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Service Marketing MCQs

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 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 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

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

ANSWER: A

5. 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

6. 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

7. Services are characterized by all of the following characteristics except for
A. Intangibility.
B. Homogeneity
C. Perishability.
D. Inseparability

ANSWER: B

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. The centralized mass production of services is difficult due to
A. Inseparability.
B. Intangibility.
C. Homogeneity.
D. Perishability.

ANSWER: D

15. 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

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

ANSWER: D

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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: C

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

ANSWER: D

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. Competitor intelligence should be gathered
A. Once a year.
B. Twice a year.
C. Continuously
D. When competition is more.

ANSWER: C

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

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

ANSWER: D

40. 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

41. 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

42. 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

43. 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

44. __________ 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

45. 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

46. 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

47. 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

48. 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

49. 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 service scape.
D. The ability to interact effectively with other

ANSWER: C

50. 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

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