SERVICE MARKEING (TYBMS MARKETING)

1. Services marketing become difficult because of

A. Intangibility.
B. no demand
C. More complex market
D. Difficult to enter the market
ANSWER: A

2. 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. Consumers are less able to stockpile services by taking advantage of discount prices
ANSWER: B

3. Services are characterized by all of the following characteristics except for

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

4. 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

5. The centralized mass production of services is difficult due to

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

6. Minimizing the amount of role conflict and role ambiguity experienced by employees will
help reduce the size of this gap is known as ____________.
A. Knowledge gap.
B. Standards gap
C. Delivery gap.
D. Communications gap
ANSWER:

7. The consumer decision process consists of

A. Stimulus, problem awareness, and purchase stages
B. Pre-purchase, consumption, and post-purchase stages
C. Problem awareness, evaluation of alternatives, and post-purchase behaviour
D. Stimulus, information search, and post-purchase behaviour
ANSWER: B

8. Competitor intelligence should be gathered

A. Once a year.
B. Twice a year.
C. Continuously
D. When competition is more.
ANSWER: C

9. Soft technologies refer to

A. Flexible rules that can be bent to meet customer needs.
B. The personal touches that ultimately lead to customer satisfaction.
C. Guidelines that permit employee empowerment
D. Hardware that facilitates the production of a standardized
ANSWER: B

10. 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 the service execution.
ANSWER: C

11. Total customer cost consists of all of the following components except
A. Monetary cost
B. Social cost.
C. Time cost.
D. Energy cost.
ANSWER: B

12. __________ is a firm view toward planning its operations according to market needs
A. Marketing orientation
B. Marketing functions.
C. Marketing department.
D. Marketing forecast.
ANSWER: A

13. The plan for differentiating the firm from its competitors in consumers eyes is referred to as
the firms
A. Communication mix
B. Positioning strategy.
C. Publicity.
D. Target marketing
ANSWER: B

14. The perceived consequences of a consumer s purchase decision are

A. Financial, social and performance
B. Social, ethical and performance.
C. Performance, social and ethical.
D. Ethical, social and psychological
ANSWER: A

15. Word-of-Mouth communication networks are particularly important for service firms
because
A. Service customers tend to rely more on personal than the non-personal source of information
B. Service firms only offer one brand of service.
C. Service firms can seldom afford to pay for promotional efforts.
D. Service customers tend to rely more on non-personal than personal sources of information
ANSWER: A

16. __________ is an overall favourable impression or unfavourable impression based on the

early stages of the service encounter.
A. Cognitive dissonance.
B. Environmental stimulus
C. Visual pathway.
D. Halo effect.
ANSWER: D

17. One of the advantages of requiring employees to wear uniforms is that it reduces the
customers’ perception of_______.
A. Intangibility.
B. Inseparability.
C. Heterogeneity.
D. Socialization.
ANSWER: C

18. Internal marketing deals with

A. Marketing the products to employees
B. Marketing the products in the local market
C. Marketing the products inside the country
D. Identifying and taking care of employees need and wants
ANSWER: D

19. Total customer value consists of all of the following components except
A. Product value
B. Personal value.
C. Image value
D. Time value.
ANSWER: B

20. The three primary visual stimuli that appeal to consumers on a basic level are
A. Harmony, contrast, and clash.
B. Size, shape, and colour.
C. Blue, yellow, and green.
D. Red, blue, and green.
ANSWER: B

21. Which of the following statements pertaining to colours is false?

A. Warm colours are perceived as aloof or formal.
B. Children appear to favour brighter colours.
C. Adults tend to favour softer tones.
D. Dark colours make large empty spaces look smaller.
ANSWER: D

22. Managing the peak demand becomes difficult due to______________ nature.
A. Intangibility.
B. Perishability.
C. Inseparable.
D. Heterogenous.
ANSWER: B

23. It is important for organizations to change and develop. The stages that service
organisations go through are known as the Product Life Cycle. The Growth Stage refers to
A. Growth of the new service in the minds of employees.
B. Introduction of new services to grow the portfolio of the company
C. Grow advertising spend to loyal customers
D. Raise awareness of new service to new customer
ANSWER: B

24. To manage demand and supply, the company can

A. Ask the customers to wait in peak demand
B. Adopt reservation systems to balance the demand
C. Divert to competitors.
D. Deliver substitute products to customers.
ANSWER: B

25. Which of the following is NOT an example of an ambient condition in a retail

environment?
A. Music.
B. Signs.
C. Scents
D. Lighting.
ANSWER: A

26. 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

27. Results in the practice of too narrowly defining one’s business

A. Services marketing
B. Marketing management
C. Marketing myopia
D. Customer experience
ANSWER: C

28. A buyer’s perception of value is considered a trade-off between

A. 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

29. Of the four unique service characteristics that distinguish goods from services, the one that
is the primary source of the other three characteristics is:
A. Intangibility
B. Inseparability.
C. Perishability.
D. Heterogeneity.
ANSWER: A

30. 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

31. 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

32. Customer satisfaction can be defined by comparing

A. 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

33. The __________ dimension is an assessment of the firm’s consistency and dependability in
service performance
A. Empathy.
B. Responsiveness.
C. Assurance
D. Reliability.
ANSWER: D

34. Which of the following would not be considered a tangible clue?

A. The appearance of employees
B. The appearance of the firm’s physical facilities
C. The smile on an employee’s face
D. The quality of instruction in an educational setting.
ANSWER: D

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

36. Focusing the firms marketing efforts toward the existing customer base is called
A. Excellent customer service
B. Conquest retention
C. Customer retention
D. Courteous retention
ANSWER: C
37. The pursuit of new customers, as opposed to the retention of existing ones, is called
A. Services marketing
B. B2B marketing
C. Conquest marketing
D. Consumer marketing
ANSWER: C

38. A volume-oriented positioning strategy is achieved by

A. Reducing divergence.
B. Increasing complexity
C. Reducing complexity.
D. Increasing divergence
ANSWER: D

39. A buyers perception of value is considered a trade-off between

A. 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

40. Customer frustration resulting from receiving poor service is most similar to
A. Image costs.
B. Monetary price
C. Energy costs.
D. Psychic costs.
ANSWER: D

41. 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

42. The appropriate communication content during the introduction stage of the product life
cycle would be
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder.
ANSWER: B

43. Which of the following is not a communication objective during the maturity and decline
stages of the product life cycle?
A. Encourage repeat purchases
B. Provide ongoing contact with customers
C. Prepare the way for personal selling efforts
D. Express gratitude to the existing customer base.
ANSWER: B

44. A disadvantage of e-marketing is

A. High cost.
B. Low reach.
C. Loss of personal contact
D. Less satisfaction.
ANSWER: C

45. Which of the following is not a component of service firms physical evidence?
A. Parking.
B. Employee appearance
C. Billing statements.
D. In-house process equipment
ANSWER: D

46. When developing servicescapes, firms recognize that their physical environment will affect
employees and customers. This is primarily due to
A. Reflect the quality at all spheres
B. Intangibility
C. Heterogeneity
D. Perishability
ANSWER: A

47. Consumers who seek convenience over price and personal attention are
A. Economic customers
B. Personalized customers
C. Apathetic customers.
D. Ethical customers.
ANSWER: B

48. The emotional states of pleasure-displeasure, arousal-nonarousal, and dominance-

submissiveness are types of __________
A. Internal response moderators
B. The holistic environment.
C. Individual behaviours.
D. Social interactions
ANSWER: C

49. Doing promotional activity is difficult in the marketing of which of the following services.
A. Leisure service industry
B. Education industry.
C. NGO.
D. Public sector.
ANSWER: C

50. Consumer feelings of pain, comfort, and physically fit are types of
A. Physiological customer responses
B. Emotional customer responses
C. Individual approach behaviours
D. Cognitive customer responses.
ANSWER: D

1) are co-producers of services

A) Customers
B) Government
C) Managers
D) Producers
2) The world economy is increasingly characterized as economy
A) Service
B) Producers
C) Manufacturing
D) Customers
3) The demand for communication travel and information services has increased
due to
A) Liberalization
B) Globalization
C) Modernization
D) Privatization
4) Marketers can differentiate goods from with
the help of the concept of good service continuum
A) Services
B) Goods
C) Production
D) Ideas
5) The basic difference between marketing products and services is
A) Intangibility
B) Inseparability
C) Simultaneity
D) Tangibility
6) The environment factors are by and large
A) Uncontrollable
B) Controllable
C) Stable
D) Risky
7) are the main reasons for the existence of the service firms
A) Customers
B) Supplies
C) Service providers
D) Manufacturer
8) decision create corresponding changes in the economic
development
A) Political
B) Economic
C) Regulatory
D) Social
9) The economic reforms liberalisation and are
some of the factors responsible for the fast changes in the social environment
in india.
A) Globalization
B) Modernisation
C) Stability
D) Privatization
10) changes have also contributed substantially to the growth of the
service markets
A) Demographic
B) Political
C) Economic
D) Social
11) is the process by which buyers select, organise and interpret into a
meaningful impression in their minds
A) Perception
B) Motivating
C) Learning
D) Persuading
12)The popular variable that decides the hierarchy of social class is
A) Income
B) Status
C) Lifestyle
D) Standard of living
13)The extent to which customers are willing to accept the variations is called the

A) Zone of tolerance
B) Desired service
C) Adequate service
D) Regulatory service
14) is the most important aspect for every customer
A) Reliability
B) Popularity
C) Brand image
D) Brand loyalty
15)The person who has a specific need and proposes to buy a particular service
is called
A) Initiator
B) Influence
C) Gatekeeper
D) User
16)The service is the reason for being in the market
A) Core
B) Supporting
C) Facilitating
D) Regulatory
17) develop the flower of services
A) Christopher Lovelock
B) Peter Drucker
C) Henry Fayol
D) William Stanton
18) is a significant aspects of marketing mix
A) Price
B) Place
C) Promotion
D) People
19) often takes the form of news report and announcements
A) Publicity
B) Public relations
C) Editorials
D) Promotion
20)The is a technique used for service innovation
A) Service blue print
B) Benchmarking
C) Service mapping
D) Service GAP
21) Brand decision is important for goods
A) Tangible
B) Intangibility
C) Perishable
D) Inseparability
22) introduced the concept of brand image
A) David ogilvy
B) Peter drucker
C) William stanton
D) Henry Fayol
23)The concept stresses the importance of a brand in marketing strategies
A) Brand equity
B) Brand essence
C) Brand identity
D) Brand image
24)The brand is an articulation of the heart and soul of
the brand
A) Essence
B) Identify
C) Image
D) Loyalty
25) and branding strategies could be used to create a consistent and
cohesive culture
A) Internal marketing
B) External marketing
C) International marketing
D) Intra marketing
26) are the appearances of physical facilities equipment, personal and
communication material
A) Tangibles
B) Reliability
C) Access
D) Intangible
27) is the possession of the required skills and knowledge to perform the
service
A) Competence
B) Responsiveness
C) Communication
D) Conceptual
28) means the power to understanding the customers feelings and needs
A) Empathy
B) Assurance
C) Reliability
D) Sympathy
29) are the judgment of the consumers about the actual performance or
delivery by a company
A) Perception
B) Empathy
C) Tangibles
D) Ethics
30) When the firms service quality specifications do not
match with the customer’s expectations then the
gap occurs
A) Standard
B) Service performance
C) Communication
D) Service
31)The rate at which inputs are converted into output is termed as
A) Productivity
B) Production
C) Work in process
D) Efficiency
32) is the extent to which the goals are achieved
A) Effectiveness
B) Efficiency
C) Productivity
D) Production
33) is the cost of selecting and hiring people, material and equipment
at the lowest cost
A) Economy
B) Efficiency
C) Productivity
D) Production
34)The quantity and determinants of the service
offering cannot be treated in isolation
A) Quality
B) Productivity
C) Efficiency
D) Production
35) is a major determinant of the competitive advantage for any
organization, irrespective of goods or services
A) Productivity
B) Production
C) Efficiency
D) Marketing
36) demand is nothing but the gap between the desirability and
availability
A) Latent
B) Seasonal
C) Forecasting
D) Production
37) demand creates many problems to service organization
A) Seasonal
B) Latent
C) Regular
D) Forecasting
38) management is the process of allocating the right type of capacity to the
right kind of customer at the right price in order in order to maximise revenue
A) Yield
B) Service
C) Quality
D) Seasonal
39) is the politeness respect consideration and friendliness of contact
personnel
A) Courtesy
B) Competence
C) Credibility
D) Reliability
40) quality means what of service i.e.what is
offered to the customer
A) Technical
B) Functional
C) Commercial
D) Productivity means confirming to the
41) The term
professional standard of conduct
A) Ethics
B) Ethos
C) Ethical
D) Technical
42) creates a spirit of openness in marketing practices
A) Transparency
B) Accountability
C) Responsibility
D) Tangible
43) creates credibility with the public
A) Values
B) Ethics
C) Character
D) Ethical
44) is unethical practice in service marketing
A) Disclaimers
B) Truth
C) RTl
D) IT
45) means pricing below the competitor’s
price
A) Predatory
B) Skimming
C) Value
D) Penetration
46) are co-producers of services
A) Customer
B) Government
C) Managers
D) Suppliers
47) Air lines are the good example of
A) Sharing capacity
B) Stretch existing capacity
C) Cross training employees
D) Government

48) refers to a brands objective (functional)

attributes in relation to other brands.
A) . Brand position
B) Product position
C) Brand relationship
D)Both a and b
49. defines what the brand thinks about the consumer, as per the consumer.
a. Brand attitude

b. Brand positioning

c. Brand relationship

d. Brand

50) includes two aspects of a brand – its associations and its

personality.
a. Brand attitude

b. Brand positioning

c. Brand relationship

d. Brand image

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

2. The unique service characteristic that reflects the interconnection between the service
firm and its customer is called
A. Intangibility
B. Inseparability
C. Homogeneity
D. Perishability
ANSWER: B

3. Marketing problems caused by inseparability include all of the following except for
A. The service provides a 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

4. 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
5. Solutions used to minimize the marketing problems attributed to heterogeneity include
A. 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

6. The unique service characteristic that deals specifically with the inability to inventory
services is
A. Inseparability
B. Intangibility
C. Homogeneity
D. Perishability
ANSWER: D

7. The demand strategy in which service providers utilize their downtime by marketing to
different segments 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
ANSWER: C

8. Fixing the right price for services offered is difficult because of ……………..
A. perishability.
B. heterogeneity.
C. inseparability.
D. intangibility.
ANSWER: D

9. The world’s largest industry in the private sector and highest projected generator of jobs
is______
A. The hospitality industry
B. Health services
C. Professional services.
D. Business services
ANSWER: D

10. 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

11. Service consumers tend to be more brand loyal than goods consumers because
A. 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

12. 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

13. . The service industry has several emerging trends that organisations need to be aware of.
Which of these should organisations keep a lookout for?
A. New competitors entering the marketplace
B. Advances in the internet
C. Heightened customer expectations
D. Advances in e-commerce.
ANSWER: A

14. The zone of tolerance is defined by the difference between

A. Expected service and desired service.
B. Predicted service and desired service
C. Desired service and adequate service.
D. Predicted service and perceived service
ANSWER: D

15. Customers ultimately determine the services by……………..

A. 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

16. During a service recovery effort, the employee promptly refunded the customers money
but threw the money at the customer. As a result, the recovery effort violated the
customers ___________ justice need
A. Interactional
B. Ethical.
C. Social.
D. Procedural
ANSWER: C

17. The __________ is calculated by dividing the activity time by the number of locations at
which the activity is performed.
A. Service cost per meal
B. Maximum output per hour
C. Process time.
D. Activity time.
ANSWER: C
18. Total customer value consists of all of the following components except
A. Product value.
B. Service value.
C. Image value
D. Personnel value.
ANSWER: D

19. 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

20. Which of the following is not a criterion 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

21. Service firms often find themselves in a three-cornered fight between

A. Engineering, production, and accounting
B. Marketing, finance, and human resources
C. Operations, accounting, and marketing
D. Human resources, marketing and operations
ANSWER: D

22. . Customer competencies can be described as

A. Consumer expectations pertaining to the service delivery process and the final
outcome
B. 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
ANSWER: C

23. Costs that are planned and are accrued during the operating period regardless of the level
of production and sales are called
A. Direct variable costs
B. Fixed costs.
C. Average costs
D. Marginal costs.
ANSWER: B

24. The technique that allows consumers to either buy Service A and Service B together on
purchase one service separately is called
A. Long-term bundling
B. Mixed bundling
C. Price bundling.
 D. Product bundling
ANSWER: C

25. Which pricing strategies encourage the customer to expand his/her dealings with the
service provider?
A. Relationship pricing
B. Price bundling.
C. Benefit-driven pricing.
D. Efficiency pricing.
ANSWER: A

26. 53. Do studies suggest that price is more likely to be used as a cue to quality under the
following conditions?
A. When alternatives are of bad products
B. When the company new to the market
C. When a price is the primary differential information available
D. When a customer does not have knowledge
ANSWER: C

27. 54. The primary role of a service firm for the customer in the communication mix is to
……
A. Confuse customers.
B. Inform and remind customers
C. Oppose the competitor s claim
D. Persuade the dealers.
ANSWER: B

28. Differentiation approaches such as competence, courtesy, reliability, and responsiveness

are forms of
A. Product differentiation
B. Personnel differentiation
C. Image differentiation
D. Service differentiation.
ANSWER: B

29. Which one of the following communication approaches would be appropriate during the
growth and maturity stages of the product life cycle?
A. Informational.
B. Informational and persuasive
C. Persuasive.
D. Persuasive and reminder
ANSWER: D

30. . The primary objective of a firms communication mix during the pre-consumption
choice stage is to
A. sell the product
B. Minimize the perceived risk associated with the purchase
C. Encourage repeat purchases
D. Persuasively convince customers why the firms brand is superior to the competitors
ANSWER: D
31. Tangible clues are more important when services are
A. Highly perishable.
B. Tangible dominant.
C. Intangible dominant
D. Heterogeneous
ANSWER: C

32. 63. Which of the following communication objectives becomes the most important
during the post-consumption evaluation stage
A. Informing customers
B. Managing customer expectations.
C. Reducing consumer perceived risk
D. Persuading customers
ANSWER: C

33. 64. Branding of services becomes difficult because they are

A. Intangible.
B. Heterogeneous.
C. Perishable.
D. Inseparable.
ANSWER: A

34. The suggested communication strategy to use when the product is intangible dominant is
to
A. Create an intangible image for the product.
B. Create awareness for the product
C. Surround the product with tangible evidence.
D. Make sure the product is in the evoked set of
ANSWER: C

35. The advantage that the E-marketing communications carries are…………

A. Reaching a widely dispersed audience.
B. Being cost-effective.
C. Being personalized.
D. More customer satisfaction.
ANSWER: A

36. which of the following is not an advantage of requiring employees to wear uniforms?
A. Identifies the firm’s personnel
B. Provides price expectations to customers.
C. Implies a coherent group structure
D. Provides a physical symbol that embodies the group’s ideas and attributes
ANSWER: B

37. __________ is the study of the use of physical evidence to create service environments
and their influence on the perceptions and behaviors of individuals
A. Ergonomics
B. Environmental psychology.
C. Physics
D. Physical sociology
ANSWER: B
38. Direct labour cost and sales commissions cost incurred in services are called as………..
A. Fixed costs.
B. Variable costs.
C. Average costs.
D. Marginal costs.
ANSWER: B

39. The organization must effectively plan to ______ fear, uncertainty and doubts that might
occur in the minds of customers during the course of acquisition.
A. Minimize
B. Maximize
C. Study
D. Balance
ANSWER: A

40. What is mean by interactive marketing?

A. Marketing by interacting with employees.
B. Marketing by interacting with dealers
C. Marketing is done by interacting between employees and customers
D. Marketing by interacting with top management.
ANSWER: C

41. Consumer responses to environmental stimuli are characterized by approach or

avoidance behaviours.
Consumer approach behaviour is defined as
A. A desire to stay in the market.
B. A desire to explore many products
C. A desire to communicate with society
D. Feelings of satisfaction.
ANSWER: B

42. In order to improve the process and performance of the company towards the customers,
they should try to …….
A. Modernize the building.
B. Modernize the product.
C. Reduce the waiting time by adopting the reservation system.
D. Asking customers to come another time.
ANSWER: C

43. Ambient conditions will have the least effect on customer behaviour in which of the
following service scapes?
A. A bakery shop
B. An air-conditioned hotel.
C. An open five-story parking garage
D. Bookstore with an in-store coffee cart.
ANSWER: C

44. In a(n) _______ environment, the service employees are physically present while
customers are involved in the service production process at an arm s length.
A. Self-service.
B. Vertical service
 C. Remote service
D. Saleable service
ANSWER: A

45. __________ is the customers composite of mental images of the service firms physical
facilities.
A. Internal response moderators
B. Perceived services cape.
C. Cognitive response
D. Emotional response.
ANSWER: B

46. Consumer moods and attitudes are types of

A. Physiological customer responses
B. Emotional customer responses
C. Individual approach behaviours
D. Internal response moderators
ANSWER: B

47. Which of the following statements pertaining to the location of the firm is false?
A. Location decisions should consider the amount of customer involvement necessary to
provide the service.
B. Low contact firms should consider moving sites that are closer to sources of supply,
transportation and labour.
C. The actual location of high-contact services should be close to the street as possible.
D. The firm’s facility should be compatible with its surrounding environment.
ANSWER: D

48. The service industry has grown many folds due to _________
A. less growth in other sectors
B. more growth in all sectors
C. more affluence of customers
D. effective marketing strategies of service marketers
ANSWER: C

49. Growth in leisure and entertainment services due to ________

A. more surplus money left with customers
B. interest that people want to spend leisure time fruitfully
C. more support from the government to invest in such an industry.
D. growth of other sectors contributed to this growth
ANSWER: A

50. Which of the following statements is not true?

A. Combinations of warm and cool colours can create relaxing, yet stimulating
atmospheres.
B. Lighter hues are popular for fixtures.
C. Darker hues are used for attention grabbers.
D. Colour does not influence the consumer spirits
ANSWER: D
1. Word-of-Mouth communication networks are particularly important for service firms
because
A. Service customers tend to rely more on personal than the non-personal source of
information.
B. Service firms do not believe in promotional efforts.
C. Service firms can seldom afford to pay for promotional expenditures.
D. Service customers tend to rely more on non-personal than personal sources of
information.
ANSWER: A

2. Initially, bank counter staff were uncomfortable with their new task of selling services
to customers.
They viewed themselves as bank counter staff and not salespersons. This is an example
of which type of conflict?
A. Channel conflict.
B. Organization/client conflict
C. Person/role conflict.
D. Inter-client conflict.
ANSWER: C

3. As part of the internal marketing strategy, the company takes up

A. Performance appraisal.
B. Training employees.
C. Assigning more responsibilities
D. Transferring the employees.
ANSWER: B

4. The service quality is determined on the basis of……

A. Employee involvement.
B. Customer involvement.
C. Top management involvement
D. Employee and customer involvement.
ANSWER: D

5. Services marketing is important in today’s context because of it

A. Generates more customers.
B. Generates more GDP.
C. Generates more jobs.
D. Generates more jobs and GDP.
ANSWER: D
6. __________ gives discretion to front-line personnel to meet the needs of consumer’s
creatively.
A. Empowerment
B. Enfranchisement.
C. Service passion
D. Service climate.
ANSWER: A

7. It is important for organizations to change and develop. The stages that service
organisations go through are known as the Product Life Cycle. The Introduction Stage
refers to
A. Introducing a change to the service.
B. Introducing a new service overseas.
C. Introducing new ideas to the market.
D. Introducing existing services to new markets.
ANSWER: C

8. __________ encourage quick decisions and work best for businesses where low-
involvement purchase decisions are made.
A. Response moderators.
B. Scent appeals.
C. Warm colours.
D. Sound appeals
ANSWER: A

9. It is important for organizations to change and develop. The stages that service
organisations go through are known as the Product Life Cycle. The Saturation Stage
refers to
A. All competitors leave the market place.
B. New competitors join the market place.
C. Many competitors seeking the same customers
D. All competitors seek the same customers.
ANSWER: C

10. It is important for organizations to change and develop. The stages that service
organisations go through are known as the Product Life Cycle. The Decline Stage refers
to
A. Sales decline but remain profitable.
B. Profitability improves and sales decline.
C. Sales increase and profitability declines.
D. Profitability declines and sales decline.
ANSWER: D

11. Which of the following was NOT discussed as a Driver for Service Change?
A. Regulations
B. Perishability
C. Consumer
D. Competitors
ANSWER: B
12. The characteristics of what, when and how the new services are delivered to the
customer are called
A. Continuum of new service development.
B. Service delivery continuum.
C. New service and customer delivery continuum
D. Customer delivery continuum
ANSWER: B

13. Strategies to increase the efficiency of service operations include all of the following
except
A. Training the employees
B. Reduce the waiting time.
C. Giving subcontracting to others.
D. Engage the customers effectively by explaining the service process
ANSWER: C

14. One of the major lessons to learn from the Service-Profit Chain is:
A. Customer loyalty leads to customer satisfaction
B. Employee retention leads to employee satisfaction
C. The firm’s profitability leads to customer satisfaction.
D. Revenue growth leads to customer satisfaction
ANSWER: A

15. Important components of internal service quality include all of the following except for
A. Customer referrals.
B. Rewards and recognition
C. Workplace design.
D. Job design.
ANSWER: A

16. Customer retention, repeat business, and customer referrals are alternative measures for
A. Internal service quality.
B. External service value.
C. Employee satisfaction.
D. Customer loyalty.
ANSWER: D

17. The buying process of services becomes complicated because

A. Difficult to assess and compare.
B. No direct sales are available.
C. Many products leads to confusion.
D. Door delivery is not possible.
ANSWER: A

18. The consumer management areas of particular importance to service marketers are
A. Managing customer participation
B. Managing customer waits.
C. Managing uncooperative customers
D. Customer relationship management
ANSWER: A
19. Efforts to transform customers into partial employees should not be interpreted as the
firms’ way of distancing itself from the customer. This is consistent with which of the
following guidelines for increasing customer participation?
A. Develop customer trust.
B. Promote the benefits and stimulate trial.
C. Understand customer habits.
D. Monitor and evaluate performance.
ANSWER: B\

20. Blueprints identify all of the following process steps except

A. The direction in which processes flow
B. The time it takes to move from one process to another.
C. The costs involved with each processing site.
D. The amount of inventory build-up at each step
ANSWER: D

21. The most common mistake made when constructing a service blueprint is
A. Bottlenecks are not identified correctly
B. Failure points are not identified correctly
C. The blueprint is one-sided.
D. Representing only the firm’s perception of the process
ANSWER: D

22. Co-production of services is made possible due to __________ inherent in the production
of services.
A. Homogeneity.
B. Intangibility.
C. Heterogeneity.
D. Inseparability.
ANSWER: D

23. The internal marketing refers to which of the following options.

A. Marketing its products to its customers.
B. Marketing its products to its employees.
C. Marketing to local customers.
D. Ensuring that the employees are satisfied in the organization.
ANSWER: D

24. Physical evidence helps

A. To evaluate the service by customers
B. To deliver the services
C. To evaluate the services by the provider.
D. To assess the quality by the third party.
ANSWER: A
25. The augmented product is one which offers
A. Basic services
B. Additional services
C. Services which are more valuable than any other competitors
D. Multiple services
ANSWER: C

26. Potential product is the one which can be…….

A. Enjoys a competitive edge wherein no one can come nearby.
B. Satisfies customer needs.
C. Caters to large segments
D. Is available in all the places.
ANSWER: A

27. In order to win over the competitors and attract the customers, the company need to
create………….
A. New markets.
B. New customers
C. Meaningful unique selling proposition which is valuable and has more opportunities.
D. More products.
ANSWER: C

28. While advertising the service product, the marketers need to…….
A. Show the service product
B. Need not to show the service product
C. Show some tangible clues to help the customers to understand and evaluate
D. Create a world-class advertisement to attract the customers.
ANSWER: C.

29. Customers may go dissatisfied even when the company offers the best in the industry due
to
A. More competition in the market
B. More customers in the market
C. More products in the product line
D. The customers expect more than what the company offers due to more exaggerated
advertisements.
ANSWER: D

30. Internal marketing refers to satisfying the

A. Employees of the organization.
B. Customers of the organization.
C. Customers as well as employees.
D. public
ANSWER: A.
31. Customer may get dissatisfied due to
A. Less waiting time
B. More waiting time
C. More products
D. Fewer products.
ANSWER: B

32. Dissatisfaction due to more waiting time can be resolved by

A. Introducing reservation systems.
B. Asking the customers to come next time.
C. Asking the customers politely to wait.
D. Reducing demand.
ANSWER: A

33. When waiting time is unavoidable, the company can

A. Ask the customers to wait for some time.
B. make the customers wait in the canteen.
C. Provide refreshments to customers.
D. Provide magazines, newspapers and show relevant movie/Video to kill the time.
ANSWER: D

34. When the demand is more than the supply, then the company can
A. Expand the facility
B. Ignore the excess demand
C. Ask the customers to wait for some time
D. Divert the excess demand to competitors
ANSWER: A

35. Service quality much depends on

A. Customer involvement in the process
B. Timing of the delivery process
C. The involvement of the customer and employee
D. The timing of the process
ANSWER: C

36. In the services marketing mix. people refer to ………………

A. Employees and customers
B. Customers
C. Employees
D. Public at large
ANSWER: A

37. Physical evidence is more important in service marketing because

A. It is the evidence of service quality
B. Customers are going to value based on this evidence.
C. Every service provider uses it
D. every employee expects this
ANSWER: B
38. ___________ act as clue for physical evidence.
A. Interior of the building
B. Cheque leaves
C. Quotation
D. Food
ANSWER: A

39. Service delivery becomes difficult without the support of the _____
A. Employee
B. Customer
C. Organization.
D. managers
ANSWER: B

40. Product line refers to

A. Arrangement of products in the line.
B. The assortment of products at the shop
C. Variety of products company offers to customers.
D. Waiting time of the customers.
ANSWER: C

41. Empathy refers to

A. Providing service at the expected level.
B. Making service available at all times.
C. Being considerate and ready to assist customers.
D. Providing service at doorstep.
ANSWER: C

42. Reliability refers to

A. Ability to perform the service dependably and accurately.
B. Ability to perform the service at cheap cost.
C. Ability to perform the service in less time.
D. Ability to perform the service at all the time.
ANSWER: A

43. Assurance refers to

A. Trust and confidence of the employees on the customers
B. Trust and confidence of the customers on employees
C. The promise was given to stakeholders
D. Consistent performance by the company
ANSWER: B

44. Gap model indicates the

A. Possible failures in the service delivery process
 B. The outcome of the process
C. Process of the service delivery
D. The sequence in which service delivered
ANSWER: A

45. Service recovery refers to

A. Recover the loss from the customers
B. Recover the loss from the competitors
C. Recover from the failure
D. Recover from the market
ANSWER: C

46. Service encounter refers to

A. conveying the service products to customers
B. Selling the products to the customers
C. Contact established with the customer at the delivery process
D. Encountering the failures
ANSWER: C

47. Customer expectation becomes exaggerated by

A. Exaggerated advertising
B. The acts of competitors
C. The activities of middlemen
D. Over expectation from the service provider
ANSWER: A

48. Intangible nature of services poses

A. Problems to marketers
B. Problems to customers
C. The difficulty for the researcher
D. Problem for service designers
ANSWER: A

49. In order to manage the Peak-time demand, the service provider can ……..
A. Manage by introducing more products
B. Manage by adding additional facilities
C. Manage by diverting the customers for other services
D. Manage by asking the customers to wait for some time
ANSWER: B

50. Service quality of the company may be affected by the act of…..
A. Receptionist.
B. Competitors.
C. Advertisers.
D. System administrator.
ANSWER: A