452V1 - Services Marketing

Dr.G.R.Damodaran College of Science(Autonomous, affiliated to the Bharathiar University, recognized by the UGC)Re-

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II MBA [2012-2015]Semester IV

Elective: Services Marketing - 452V1Multiple Choice Questions.

1. Services marketing becomes difficult due toA. Intangibility.B. Less demandC. More complex market.D. Difficult to enter the market.

ANSWER: A

2. Which of the following businesses would be characterized as a pure service?A. Insurance.B. Farming.C. Mining.D. There is no such thing as a pure service.

ANSWER: D

3. Which of the following sets of terms best describes a service?A. Objects, devices, and performances.B. Effort, objects, and deeds.C. Things, devices, and performances.D. Deeds, effort, and performances.

ANSWER: D

4. Which of the following statements about the pricing of services (compared to the pricing of goods) isfalse?

A. The demand for services tends to be more elastic than the demand for goods.B. Cost-oriented pricing is more difficult for services.C. Comparing prices of competitors is more difficult for service consumers.D. Consumers are less able to stockpile services by taking advantage of discount prices.

ANSWER: B

5. Charging customers different prices for essentially the same service is called:A. Price discrimination.B. Supply and demand.C. Complementary.D. Substitutes.

ANSWER: A

6. Businesses such as fast food restaurants would fall where along the Scale of Market Entities?A. On the extreme end of the intangible-dominant side.B. On the extreme end of the tangible-dominant side.C. In the middle of the continuum.D. Left of the middle towards the tangible-dominant side.

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ANSWER: A

7. Which of the following fields would be least likely to be described as intangible-dominant?A. Engineering.B. Education.C. Insurance.D. Banking.

ANSWER: A

8. Which of the following statements is correct?A. Customer satisfaction leads to perceived service quality.B. Service quality leads to customer satisfaction.C. Service quality leads to increased purchasing behavior.D. Customer satisfaction leads to increased purchasing behavior.

ANSWER: A

9. Understanding the customer is a critical step toward minimizing or completely eliminating the:A. Knowledge gap.B. Standards gap.C. Delivery gap.D. Communications gap.

ANSWER: A

10. Results in the practice of too narrowly defining one's businessA. Services marketing.B. Marketing management.C. Marketing myopia.D. Customer experience.

ANSWER: C

11. The demand for services marketing knowledge has increased for all of the following reasons exceptA. The tremendous growth in service-sector employment.B. Increasing service-sector contributions to the world economy.C. The deregulation of many service industries.D. The decline in service sector jobs.

ANSWER: D

12. A buyer's perception of value is considered a tradeoff betweenA. Product value and psychic cost.B. Total customer value and total customer cost.C. Image value and energy cost.D. Service value and monetary cost.

ANSWER: D

13. Services are characterized by all of the following characteristics except forA. Intangibility.B. Homogeneity.C. Perishability.D. Inseparability.

ANSWER: B

14. Which of the following statements is false?A. Services cannot be touched or seen in the same manner as goods.B. Consumer judgments about services tend to be more subjective than objective.


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C. Services are first produced, then sold, then consumed.D. Customers involvement affects service quality.

ANSWER: C

15. Of the four unique service characteristics that distinguish goods from services, the one that is theprimary source of the other three characteristics is:

A. Intangibility.B. Inseparability.C. Perishability.D. Heterogeneity.

ANSWER: A

16. Which of the following is not a marketing problem caused by intangibility?A. Services lack the ability to be stored.B. Services lack patent protection.C. Services are difficult to communicate to consumers.D. Consumers are involved in the service production process.

ANSWER: D

17. Services that occur without interruption, confusion, or hassle to the customer is called:A. Seamless service.B. Service audit.C. Functional service.D. Departmental service.

ANSWER: A

18. The primary cost of producing a service isA. Rent.B. Overhead.C. Labour.D. Promotional expenses.

ANSWER: D

19. The mental energy spent by customers to acquire service is referred to as _____.A. Image costs.B. Monetary price.C. Energy costs.D. Psychic costs.

ANSWER: C

20. The unique service characteristic that reflects the interconnection between the service firm and itscustomer is called

A. Intangibility.B. Inseparability.C. Homogeneity.D. Perishability.

ANSWER: B

21. Marketing problems caused by inseparability include all of the following except forA. The service provides physical connection to the service.B. The involvement of the customer in the production process.C. Service standardization and quality control are difficult to achieve.D. The involvement of other customers in the production process.

ANSWER: C


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22. The fact that services are sold and then produced and consumed simultaneously is attributed toA. Intangibility.B. Inseparability.C. Homogeneity.D. Perishability.

ANSWER: D

23. Which of the following statements pertain to inseparability is false?A. As customer contact increases, the efficiency of the firm decreases.B. Customers can affect the type of service desired.C. Customers can affect the length of the service transaction.D. Customers can affect the cycle of demand.

ANSWER: A

24. The centralized mass production of services is difficult due toA. Inseparability.B. Intangibility.C. Homogeneity.D. Perishability.

ANSWER: D

25. Possible solutions that firms use to minimize the problems caused by inseparability include all of thefollowing except

A. The careful selection of service employees.B. The management of service consumers.C. The use of multi-site locations to distribute services.D. Appealing to market segments with different demand patterns.

ANSWER: D

26. The primary solution to overcome the centralized mass production problems attributed toinseparability is

A. The careful selection of service employees.B. The management of service consumers.C. The use of multi-site locations to distribute services.D. The training of public contact personnel.

ANSWER: C

27. The service characteristic that reflects the variation in consistency from one service transaction tothe next is

A. Inseparability.B. Intangibility.C. Homogeneity.D. Heterogeneity.

ANSWER: D

28. Which of the following statements pertaining to heterogeneity is false?A. It is almost impossible for a service operation to achieve 100 percentB. Perfect quality on an ongoing basis.C. Customization decreases quality.D. Standardization and quality control are difficult to achieve.

ANSWER: B

29. Which of the following is not an advantage of standardized services?


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A. Less expensive.B. Meets the customer's exact needs.C. Delivered faster.D. More consistent.

ANSWER: B

30. Solutions used to minimize the marketing problems attributed to heterogeneity includeA. Standardizing or customizing the service.B. Using multi-site locations.C. Stressing tangible clues.D. Appealing to different market segments with different demand patterns.

ANSWER: A

31. The unique service characteristic that deals specifically with the inability to inventory services isA. Inseparability.B. Intangibility.C. HomogeneityD. Perishability.

ANSWER: D

32. Complications attributed to perishability include all of the following exceptA. Services which are not sold when they become available cease to exist.B. The production and consumption of services cannot be separated by time and space.C. Statistical sampling techniques are of little use in services.D. Due to the lack of inventories, marketing and operations must work much closer together.

ANSWER: C

33. Which of the following scenarios is likely to lead to the highest levels of customer dissatisfaction?A. Higher demand than maximum available supply.B. Higher demand than optimal supply levels.C. Lower demand than optimal supply levels.D. Demand and supply at optimal levels.

ANSWER: A

34. Which of the following strategies increases the supply of service available to consumers?A. The use of creative pricing strategies.B. The use of reservation systems.C. Capacity sharing.D. Developing complementary services.

ANSWER: B

35. Customer satisfaction can be defined by comparingA. Predicted service and perceived service.B. Predicted service and desired service.C. Desired service and perceived service.D. Adequate service and perceived service.

ANSWER: C

36. The demand strategy in which service providers utilize their downtime by marketing to differentsegments with different demand patterns is associated with which of the following?

A. The use of creative pricing strategies.B. The use of reservation systems.C. Capacity sharing.D. Developing complementary services.


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ANSWER: C

37. Which of the following statements pertaining to the SERVQUAL scale is incorrect?A. The SERVQUAL dimensions were obtained through extensive focus group interviews.B. SERVQUAL is a 44-item scale.C. SERVQUAL consists of five service quality dimensions.D. SERVQUAL compares perceptions to what a customer should expect from a firm the delivers

high-quality services.ANSWER: B

38. Which of the following statements most accurately reflects a marketing logic?A. Cost reduction can be obtained through mass production.B. "Families" of personnel should reinforce one another on the job.C. Personnel should be able to break organization rules in the context of serving the customer.D. Customers should be provided with options that enable them to meet their needs.

ANSWER: D

39. Which one of the following statements is true?A. The use of third parties increases the supply of service.B. Reservation systems can be used to alter the demand for services.C. Customer participation in services may result in some loss of control by the service establishment.D. The marketing department of service organizations must maintain a much closer relationship with

the rest of the organization than what is typical in a goods business.ANSWER: B

40. The __________ dimension is an assessment of the firm's consistency and dependability in serviceperformance.

A. Empathy.B. Responsiveness.C. Assurance.D. Reliability.

ANSWER: D

41. Which one of the following strategies is used to alter consumer demand?A. Utilizing third parties.B. Utilizing creative pricing strategies.C. Sharing capacity.D. Preparing in advance for expansion

ANSWER: B

42. Which of the following would not be considered a tangible clue?A. The quality of instruction in an educational setting.B. The appearance of employees.C. The appearance of the firm's physical facilities.D. The smile on an employee's face.

ANSWER: A

43. Minimizing the amount of role conflict and role ambiguity experienced by employees will helpreduce the size of this gap is known as ____________.

A. Knowledge gap.B. Standards gap.C. Delivery gap.D. Communications gap.

ANSWER: C


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44. Standardization and quality control are difficult due toA. Intangibility.B. Inseparability.C. Heterogeneity.D. Perishability.

ANSWER: C

45. Cannot protect services through patents due toA. Intangibility.B. Inseparability.C. Heterogeneity.D. Perishability.

ANSWER: A

46. Prices are difficult to set due toA. Intangibility.B. Inseparability.C. Heterogeneity.D. Perishability.

ANSWER: A

47. Other customers are involved in the production process due toA. Intangibility.B. InseparabilityC. Heterogeneity.D. Perishability.

ANSWER: B

48. Which of the following is not a component of a service quality information system?A. Mystery shopping.B. Customer retention interviews.C. After-sale surveys.D. Total market service quality surveys.

ANSWER: A

49. Services that do not meet customer expectations are calledA. Service failures.B. Critical incidents.C. Service recovery.D. Instrumental complaints.

ANSWER: A

50. _________emphasize the selection and training of public contact personnel.A. Intangibility.B. Inseparability.C. Heterogeneity.D. Perishability.

ANSWER: C

51. It is generally accepted that the _______ includes the soft parts of the economy consisting ofseveral sub-sectors.

A. Service economy.B. Industrial economy.


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C. Agricultural economy.D. Information economy.

ANSWER: A

52. The world's largest industry in the private sector and highest projected generator of jobs is______A. Business services.B. The hospitality industry.C. Health services.D. Professional services.

ANSWER: A

53. Which sector includes the internet provision industry?A. Educational.B. Finance.C. Government.D. Communications and Media.

ANSWER: D

54. The service sector that is the fastest growing sector in terms of employment isA. Wholesale and retail tradeB. Financial activitiesC. Professional and business servicesD. Education and health services

ANSWER: B

55. The leisure and hospitality industry comprises a variety of services. Which of the following is notone of them?

A. Food service.B. Lodging.C. Travel and tourism.D. Health services.

ANSWER: D

56. A large proportion of people employed in the hospitality and leisure sector areA. Young.B. Female.C. Part-time employees.D. Young, female and part-time employees.

ANSWER: D

57. The professional and business sector includes all of the following exceptA. Architectural engineering.B. Legal advice service.C. Hospital service.D. Accounting service.

ANSWER: A

58. Which sector should have the most concern for environmental issues?A. Transport services.B. Professional and Business Services.C. Wholesale and Retail Trade.D. Education and Health Services.

ANSWER: A


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59. Traditional service classification schemes include all of the following exceptA. The degree of tangibility.B. Skill level of the provider.C. Appearance of the provider.D. The degree of customer contact.

ANSWER: C

60. Subsequent service classification schemes include all the following exceptA. Labour intensiveness.B. Nature of the service.C. Relationship with the customer.D. Method of service delivery.

ANSWER: C

61. A Consumer Database or CRM (Customer Relationship Marketing) System isA. Electronic database of sales transactions.B. Electronic storage of customer information.C. Electronic storage system of stock in the database.D. Electronic system for tracking consumer marketing relationships.

ANSWER: D

62. At the Partnership level of the loyalty ladderA. Commitment is high, trust is low and defection is high.B. Commitment is high, trust is high and defection is low.C. Commitment is low, trust is high and defection is high.D. Commitment is low, trust is low and defection is low.

ANSWER: B

63. To date, the most successful distribution of e-services has occurred through ______A. Telecommunication companies (telcos).B. Internet service providers (ISPs).C. Enterprise resource planning (ERP) vendors.D. Application service providers/developers (ASPs).

ANSWER: B

64. E-services have overcome many of the traditional challenges faced by service marketers. Which ofthe following is not challenge overcome by the information-based services?

A. Intangibility.B. Homogeneity.C. Inseparability.D. Heterogeneity.

ANSWER: B

65. E-services can overcome some of the challenges provided by intangibility by which of thefollowing?

A. Appearance of a website.B. Accuracy of information.C. Speed of the server.D. All of the above.

ANSWER: D

66. Hotel rooms that are not sold on Thursday night cannot be added to the supply of rooms availablefor occupancy on Friday night. E-services are not faced with these problems of

A. Perishability.


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B. Intangibility.C. Homogeneity.D. Inseparability.

ANSWER: A

67. Replacing tasks that required human labour with machines is calledA. Quantization.B. Automation.C. Industrialization.D. Customization.

ANSWER: B

68. The growth in the number of time-pressured consumers has led to an increase in time-savingservices such as

A. Restaurants.B. Housekeeping.C. Hairstyling shops.D. Restaurants, housekeeping and hairstyling shops.

ANSWER: D

69. The migration of domestic jobs to foreign host countries is calledA. Out servicing.B. Outsourcing.C. Off shoring.D. Industrialization.

ANSWER: C

70. Several guidelines to success become clear when examining the growth and dominance of theservice sector. Which of the following is not one of them?

A. Excel at niche marketing.B. Bigger is better.C. Master technological change.D. Excel at customer service.

ANSWER: A

71. Focusing the firms marketing efforts toward the existing customer base is calledA. Customer retention.B. Excellent customer service.C. Conquest retention.D. Courteous retention.

ANSWER: A

72. Which of the following statements pertaining to firm's customer retention efforts is true?A. The marketing costs associated with keeping customers are higher than the costs associated with

obtaining new customers.B. Existing customers tend to purchase less services less frequently.C. Current customers are more efficient in their service transactions.D. Reducing customer defections by 5 percent can increase profits by as much as 90 percent.

ANSWER: D

73. The pursuit of new customers as opposed to the retention of existing ones is calledA. Services marketing.B. B2B marketing.C. Conquest marketing.


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D. Consumer marketing.ANSWER: C

74. According to the text which one of the following statements is false?A. Many service firms continue to be operations dominated rather than customer oriented.B. Consumer orientation lies at the heart of the marketing concept.C. Researchers clearly understand how consumers make decisions.D. Differences exist between the way consumers make decisions regarding purchase of services

versus goods.ANSWER: C

75. The consumer decision process consists ofA. Stimulus, problem awareness, and purchase stages.B. Pre-purchase, consumption, and post-purchase stages.C. Problem awareness, evaluation of alternatives, and post-purchase behavior.D. Stimulus, information search, and post-purchase behavior.

ANSWER: B

76. The pre-purchase stage consists of all of the following activities except forA. The approach.B. Problem awareness.C. Information search.D. Evaluation of alternatives.

ANSWER: D

77. Consumers determine a shortage or unfulfilled desire exists during which stage of the consumerdecision process?

A. Problem awareness.B. Information search.C. Evaluation of alternatives.D. Post-purchase evaluation.

ANSWER: A

78. Bill's parents finally convinced him to get a haircut. Bill's decision process was prompted by aA. Physical cue.B. Psychological cue.C. Pressure cue.D. Social cue.

ANSWER: D

79. During the evaluation of alternatives stage, consumers sometime rely on their "gut-level feelings. "This type of decision making is called

A. The lexicographic approach.B. A systematic approach.C. A nonsystematic approach.D. The linear compensatory approach.

ANSWER: C

80. According to the text, which one of the following is a type of perceived risk?A. Financial risk.B. Performance risk.C. Social risk.D. Psychological risk.

ANSWER: D


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81. Co-producer risk is directly related to the concept of ______.A. Intangibility.B. Heterogeneity.C. Inseparability.D. Perishability.

ANSWER: C

82. Services are primarily characterized byA. Search attributes.B. Experience attributes.C. Credence attributes.D. Search and experience attributes.

ANSWER: D

83. Which of the following statements is not correct?A. Service consumers are more brand loyal.B. Personal sources of information are more important to service consumers versus non-personal

sources.C. Service consumers have fewer alternatives to consider.D. Self-service is a viable alternative for many services.

ANSWER: D

84. Which of the following statements is not true?A. Service purchases are perceived as riskier than goods purchases.B. The participation of the consumer in the service process increases the amount of perceived risk.C. The variability in services increases the perceived risk associated with the Purchase.D. Consumers of services have less pre-purchase information versus goods.

ANSWER: B

85. Service consumers tend to be more brand loyal than goods consumers becauseA. More choices are available.B. Brand loyalty lowers the amount of perceived risk.C. Each service provider provides many brands.D. Location of the provider is the major driver in the consumer selection process.

ANSWER: B

86. During which stage of the consumer decision process does acquisition, production and consumptionbecome an entangled process?

A. The pre-purchase stage.B. The consumption stage.C. The post-purchase stage.D. The information search stage.

ANSWER: B

87. The _____ is the last step in the consumer decision process.A. Post-purchase stage.B. Positioning stage.C. Problem identification stage.D. Pre-purchase stage.

ANSWER: A

88. The reason services have few search attributes is primarily attributed toA. Inseparability.


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B. Heterogeneity.C. Intangibility.D. Non-standardization.

ANSWER: C

89. The costs associated with changing from one provider to another are referred to asA. Performance costs.B. Economic costs.C. Selection costs.D. Switching costs.

ANSWER: D

90. Which of the following is not one of the reasons that fueled the growth of the 1970's consumerismmovement?

A. Skyrocketing inflation.B. Automation.C. Deregulation.D. More informed consumers.

ANSWER: C

91. When changing dentists, the patient was required to pay for a new set of X-rays. This type ofswitching costs is referred to as

A. Performance costs.B. Loyal customer discounts.C. Cognitive costs.D. Transaction costs.

ANSWER: D

92. Customers are most dissatisfied when a ______________ occurs.A. Disconfirmation.B. Zone of intolerance.C. Positive disconfirmation.D. Confirmation.

ANSWER: A

93. Which of the following statements about the consumption stage of the consumer decision processfor services is not correct?

A. The activities of buying, using, and disposing occur in a definite order and have clear boundariesbetween them.

B. Service marketers are able to change consumer evaluations during the service encounter.C. The consumption stage is more complex for services than goods.D. Consumer evaluation of the service occurs during and after consumption.

ANSWER: A

94. Using information gathered from a range of sources can createA. New customers.B. New markets.C. Competitive advantage.D. All of the above.

ANSWER: D

95. What is a marketing information system?A. An automated way of delivering the service to customers.B. A formal or informal process of managing the information gathered by an organization.


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C. Computer software only.D. A filing cabinet.

ANSWER: B

96. Competitor intelligence should be gatheredA. Once a year.B. Twice a year.C. Continuously.D. When competition is more.

ANSWER: C

97. Information gathered to address a particular marketing problem or requirement isA. Environmental scanning.B. Government statistics.C. Marketing research.D. Data analysis.

ANSWER: A

98. Which type of data comes from the day to day running of the organization?A. Internal data.B. External data.C. Government statistics.D. Market surveys.

ANSWER: A

99. Which type of information comes from industry published reports?A. Internal data.B. Secondary data.C. Only qualitative.D. Operating data.

ANSWER: B

100. A service company should gather data forA. Objective setting.B. Customer analysis.C. Competitor analysis.D. All of the above.

ANSWER: D

101. Which of the following is not a benefit of customer satisfaction?A. The firm is more insulated from price competition.B. The firm provides a positive work environment for its employees.C. Positive word-of-mouth is generated from satisfied customers.D. Satisfied customers make purchases more frequently.

ANSWER: B

102. Which of the following tactics would yield higher customer satisfaction scores?A. Utilizing mail surveys instead of personal interviews.B. Stating the question in a dissatisfied form instead of a satisfied form.C. Asking general questions prior to specific questions.D. Avoiding data collection until a substantial period of time had elapsed since the purchase

ANSWER: D

103. __________ is the level of service quality a customer believes is likely to occur


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A. Desired service.B. Predicted service.C. Ideal service.D. Derived expectations.

ANSWER: B

104. One of the main problems with experiments in service industry situations isA. Cost.B. The information they provide.C. Controlling all the variables.D. Customers dont like them.

ANSWER: C

105. What should be at the centre of any marketing information system?A. A computer.B. An IT expert.C. Stakeholder information files.D. Financial information.

ANSWER: C

106. Information overload occurs whenA. Consumers are told too much.B. Storage space is limited.C. There are too few staff.D. No marketing research is undertaken.

ANSWER: A

107. In using information on customers, service companies shouldA. Ensure that they have permission to do so.B. Comply with the consumer Prohibition Act.C. Behave nicely.D. Pay money to customers.

ANSWER: A

108. _______ service is the level of service the customer actually wants to receive.A. Desired service.B. Predicted service.C. Ideal service.D. Adequate service.

ANSWER: A

109. Which strategy option is more intense than others?A. Sell new services to existing customers.B. Sell more existing services to existing customers.C. Sell existing services to new customers.D. Sell new services to new customers.

ANSWER: D

110. The characteristics of what and when new services are delivered and how they are delivered to thecustomer are called

A. Continuum of new service development.B. Service delivery continuum.C. Continuum of service delivery.D. New service and customer delivery continuum.


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ANSWER: D

111. Niklas Zenstrom and Janus Friis created a new internet service called Skype. Which new servicedevelopment did they introduce?

A. Major process innovation.B. Process-line extensions.C. Style changes.D. Major service innovations.

ANSWER: A

112. First Bus employees recently received their staff uniform. The blazer now includes a pocket on theinside so hold a mobile phone; an item given to all drivers to report emergencies or breakdown? Thenew blazers development to service is classed as

A. Major process innovation.B. Process-line extensions.C. Service improvements.D. Style changes.

ANSWER: C

113. The new service development process includes several stages. Which stage means organisationshave to consider sales, set-up costs and profitability?

A. Hire and train personnel.B. Cross-functional team.C. Pilot run.D. Business analysis.

ANSWER: D

114. The new service development process includes several stages. Which stage means organisationshave to stimulate the customer/personnel interface and role-play all situations?

A. Hire and train personnel.B. Cross-functional team.C. Pilot run.D. Idea generation.

ANSWER: A

115. The new service development process includes several stages. Which stage means organisationshave to ensure staff across all department work together and know their role?

A. Hire and train personnel.B. Cross-functional team.C. Pilot run.D. Idea generation.

ANSWER: B

116. The new service development process includes several stages. Which stage means organisationshave to review comments from customer comments cards, B2B feedback and market trends?

A. Hire and train personnel.B. Cross-functional team.C. Pilot run.D. Business analysis.

ANSWER: C

117. The new service development process includes several stages. Which stage means organisationshave to advertise and recruit employees?

A. Hire and train personnel.


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B. Cross-functional team.C. Pilot run.D. Idea generation.

ANSWER: D

118. The service industry has several emerging trends that organisations need to be aware of. Which ofthese should organisations keep a look out for?

A. New competitors entering the marketplace.B. Advances in the internet.C. Heightened customer expectations.D. Advances in e-commerce.

ANSWER: A

119. The zone of tolerance is defined by the difference betweenA. Predicted service and perceived service.B. Predicted service and desired service.C. Desired service and adequate service.D. Expected service and desired service.

ANSWER: A

120. Customers ultimately determineA. The type of competitors.B. The levels of marketing effectiveness and operational efficiency.C. The cycle of fluctuations.D. The price of the competitors.

ANSWER: B

121. A bias in survey results because of responses being received from only a limited group among thetotal survey population is called

A. Response bias.B. Question bias.C. Social desirability bias.D. Collection bias.

ANSWER: D

122. During a service recovery effort, the employee promptly refunded the customers money, but threwthe money at the customer. As a result, the recovery effort violated the customers ___________ justiceneed.

A. Social.B. Procedural.C. Interactional.D. Ethical.

ANSWER: A

123. Soft technologies refer toA. The personal touches that ultimately lead to customer satisfaction.B. Flexible rules that can be bent to meet customer needs.C. Guidelines that permit employee empowerment.D. Hardware that facilitates the production of a standardized product.

ANSWER: A

124. An Automatic Teller Machine (ATM) is an example ofA. Hard technology.B. Soft technology.


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C. The perfect-world-model.D. Complexity.

ANSWER: B

125. The __________ is calculated by dividing the activity time by the number of locations at which theactivity is performed.

A. Service cost per meal.B. Maximum output per hour.C. Process time.D. Activity time.

ANSWER: C

126. Which of the following is not a step in the construction process of a service blueprint?A. Obtaining scripts from both customers and employees.B. Segmenting customers based on the content of the script.C. Identify steps in the process where the system can go awry.D. Calculating the time frame for service execution.

ANSWER: C

127. A volume-oriented positioning strategy is achieved byA. Increasing divergence.B. Reducing divergence.C. Increasing complexity.D. Reducing complexity.

ANSWER: A

128. The positioning strategy that increases divergence so that the operation can tailor the serviceexperience to each customer is referred to as

A. Niche positioning strategy.B. Volume-oriented positioning strategy.C. Specialization positioning strategy.D. Market diversification strategy.

ANSWER: C

129. A specialization positioning strategy is accomplished byA. Increasing divergence.B. Reducing divergence.C. Increasing complexity.D. Reducing complexity.

ANSWER: A

130. The positioning strategy that increases complexity by adding more services and/or enhancingcurrent services to capture more of the market is referred to as

A. Niche positioning strategy.B. Volume-oriented positioning strategy.C. Specialization positioning strategy.D. Market diversification strategy.

ANSWER: B

131. A buyers perception of value is considered a tradeoff betweenA. Product value and psychic cost.B. Total customer value and total customer cost.C. Image value and energy cost.D. Service value and monetary cost.


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ANSWER: D

132. Total customer value consists of all of the following components exceptA. Product value.B. Service value.C. Image value.D. Personnel value.

ANSWER: D

133. Total customer cost consists of all of the following components exceptA. Monetary cost.B. Social cost.C. Time cost.D. Energy cost.

ANSWER: B

134. Security, esteem, and justice are types of __________ that are often unrecognized by customersthemselves.

A. Customer perceptions.B. Customer needs.C. Customer expectations.D. Customer competencies.

ANSWER: B

135. A consumers price sensitivity will increase asA. The perceived number of substitutes increase.B. Switching costs increase.C. The shared costs for the expenditure increase.D. The perceived unique value of the service increases.

ANSWER: B

136. Which of the following statements about the pricing of services (compared to the pricing of goods)is false?

A. The demand for services tends to be more elastic than the demand for goods.B. Cost-oriented pricing is more difficult for services.C. Comparing prices of competitors is more difficult for service consumers.D. Self-service is a viable competitive alternative.

ANSWER: D

137. __________ is a firms view toward planning its operations according to market needsA. Marketing orientation.B. Marketing functions.C. Marketing department.D. Marketing forecast.

ANSWER: A

138. Which of the following is not a criteria for effective price discrimination?A. The segments should be identifiable, and a mechanism must exist to price them differently.B. Different groups of consumers should have similar responses to price.C. Segments should be large enough to be profitable.D. Incremental revenues should exceed incremental costs.

ANSWER: B

139. Service firms that wish to excel at service failures analysis and recovery may conduct a _______.


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A. Service recovery audit.B. Service recovery.C. Critical incident.D. Moment of truth.

ANSWER: A

140. Service firms often find themselves in a three-cornered fight betweenA. Engineering, production, and accounting.B. Marketing, finance, and human resources.C. Operations, accounting, and marketing.D. Human resources, marketing and operations.

ANSWER: D

141. Customer frustration resulting from receiving poor service is most similar toA. Image costs.B. Monetary price.C. Energy costs.D. Psychic costs.

ANSWER: D

142. Among many services, the demand for medical services tends to be __________.A. Inelastic.B. Elastic.C. Substitute demand.D. Price cross elastic demand.

ANSWER: A

143. Customer competencies can be described asA. Consumer expectations pertaining to the service delivery process and final outcomeB. Customer perceptions regarding the quality of the outcome.C. Customer abilities that enable them to properly evaluate the servicescape.D. The ability to interact effectively with other customers.

ANSWER: C

144. Costs that are planned and are accrued during the operating period regardless of the level ofproduction and sales are called

A. Fixed costs.B. Direct variable costs.C. Average costs.D. Marginal costs.

ANSWER: A

145. Costs such as direct labour and sales commissions are calledA. Fixed costs.B. Variable costs.C. Average costs.D. Marginal costs.

ANSWER: B

146. Charging customers different prices for essentially the same service is calledA. Price discrimination.B. Supply and demand.C. Complementary.D. Substitutes.


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ANSWER: A

147. Technique that allows consumers to either buy Service A and Service B together on purchase oneservice separately is called

A. Long-term bundling.B. Price bundling.C. Mixed bundling.D. Product bundling.

ANSWER: B

148. Which pricing strategies encourage the customer to expand his/her dealings with the serviceprovider?

A. Relationship pricing.B. Price bundling.C. Benefit-driven pricing.D. Efficiency pricing.

ANSWER: A

149. Studies suggest that price is more likely to be used as a cue to quality under the followingconditions?

A. When price is the primary differential information available.B. When alternatives are of bad productsC. When company new to the market.D. When customer do not have knowledge to assess.

ANSWER: A

150. Communication channels that are considered impersonal, such as television advertising or printedinformation are called

A. Non-personal sources.B. Personal sources.C. Impersonal sources.D. Non-communication sources.

ANSWER: C

Staff NameANISH.K.


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Documents

452V1 - Services Marketing