101. 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
102. 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
103. 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
104. 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
105. 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
106. __________ 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
107. 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
108. 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
109. . 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
110. 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
111. Which of the following was NOT discussed as a Driver for Service Change?
A. Regulations
B. Perishability
C. Consumer
D. Competitors
ANSWER: B
112. 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
113. 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
114. 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
115. 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
116. 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
117. 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
118. 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
119. 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
120. 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
121. 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
122. 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
123. 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
124. 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
125. 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
126. 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
127. 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
128. 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
129. 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
130. 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
131. Customer may get dissatisfied due to
A. Less waiting time
B. More waiting time
C. More products
D. Fewer products.
ANSWER: B
132. 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
133. 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
134. 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
135. 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
136. In the services marketing mix. people refer to ………………
A. Employees and customers
B. Customers
C. Employees
D. Public at large
ANSWER: A
137. 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
138. ___________ act as clue for physical evidence.
A. Interior of the building
B. Cheque leaves
C. Quotation
D. Food
ANSWER: A
139. Service delivery becomes difficult without the support of the _____
A. Employee
B. Customer
C. Organization.
D. managers
ANSWER: B
140. 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
141. 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
142. 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
143. 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
144. 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
145. 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
146. 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
147. 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
148. 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
149. 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
150. Service quality of the company may be affected by the act of…..
A. Receptionist.
B. Competitors.
C. Advertisers.
D. System administrator.
ANSWER: A
Very useful and informative thanks for sharing
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