51. 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
52. 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
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
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
55. 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
56. 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
57. 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
58. 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
59. 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
60. 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
61. 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
62. Tangible clues are more important when services are
A. Highly perishable.
B. Tangible dominant.
C. Intangible dominant
D. Heterogeneous
ANSWER: C
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
64. Branding of services becomes difficult because they are
A. Intangible.
B. Heterogeneous.
C. Perishable.
D. Inseparable.
ANSWER: A
65. 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
66. 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
67. __________ 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
68. 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
69. A disadvantage of e-marketing is
A. High cost.
B. Low reach.
C. Loss of personal contact
D. Less satisfaction.
ANSWER: C
70. 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
71. 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
72. 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
73. __________ is the study of the use of physical evidence to create service environments and their influence on the perceptions and behaviours of individuals
A. Ergonomics
B. Environmental psychology.
C. Physics
D. Physical sociology
ANSWER: B
74. 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
75. 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
76. 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
77. 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
78. 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
79. 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
80. When developing service scapes, 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
81. Consumers who seek convenience over price and personal attention are
A. Economic customers
B. Personalized customers
C. Apathetic customers.
D. Ethical customers.
ANSWER: B
82. 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
83. 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
84. 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
85. __________ 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
86. 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
87. The emotional states of pleasure-displeasure, arousal & non-arousal, and dominance-submissiveness are types of __________
A. Internal response moderators
B. The holistic environment.
C. Individual behaviours.
D. Social interactions
ANSWER: C
88. 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
89. 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
90. 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
91. 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
92. 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
93. 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
94. 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
95. Managing the peak demand becomes difficult due to______________ nature.
A. Intangibility.
B. Perishability.
C. Inseparable.
D. Heterogenous.
ANSWER: B
96. 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
97. 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
98. 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
99. __________ 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
100. Positioning map in services will helps too…..
A. Identify the position of the company on the world map.
B. Identify the position of the company on the industry map.
C. Identify the position of the company on the local map.
D. Know-how the brand is perceived by customers among other players in the market.
ANSWER: D
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