270+ Services Marketing Solved MCQs

Chapters

Chapter: Unit 2
101.

Which of the following is NOT an example of consumer behaviour:

A. Claire buying a new car
B. Ashley buying a new home theatre/cinema system
C. Sarah deciding on a college or university to attend
D. Marcus ordering a new computer system for his work
Answer» D. Marcus ordering a new computer system for his work
102.

Which of the following is NOT an internal factor that influences the consumer product acquisition process include

A. Learning
B. Family
C. Self-concept
D. Perceptions
Answer» B. Family
103.

With respect to consumer behaviour, one's friends, and relatives could be considered a:

A. Impersonal influence
B. Reference group influence
C. Perceptual influence
D. Institutional influences
Answer» B. Reference group influence
104.

With respect to consumer behaviour, the function of one's perceptions, learning and memory processes is to:

A. Attend to messages
B. Filter messages
C. Store messages
D. All of the above
Answer» D. All of the above
105.

Which of the following is typically NOT a result of recognizing the importance of ethnic groups by marketers?

A. Use of an undifferentiated one-size-fits-all marketing strategy
B. Different pricing strategies for different groups
C. Variations in product offerings to suit the wants of a particular group
D. Study of ethnic buying habits to isolate market segments
Answer» A. Use of an undifferentiated one-size-fits-all marketing strategy
106.

The single group within society that is most vulnerable to reference group influence is

A. The older consumer who feels somewhat left out of things
B. Married women, many of whom feel a need for stability in their lives
C. New immigrants who really want to assimilate into their new culture
D. Children, who base most of their buying decisions on outside influences
Answer» D. Children, who base most of their buying decisions on outside influences
107.

Which of the following can be described as an affective mental state?

A. Attitudes
B. Opinions
C. Values
D. Conative
Answer» A. Attitudes
108.

Early adopters, of which opinion leaders are large comprised, tend to be:

A. Generalized; that is, they tend to lead the group on most issues
B. More likely to buy new products before their friends do and voice their opinions about them
C. From the upper class; people from other classes are more likely to be followers
D. Quiet, withdrawn people who don't make fashion statements or take risks easily
Answer» B. More likely to buy new products before their friends do and voice their opinions about them
109.

An imbalance between a consumer's actual and desired state in which recognition that a gap or problem needs resolving is called

A. Motive development
B. An attitudes
C. A self-concept
D. Product Evaluation
Answer» A. Motive development
110.

__________cost refers to the product’s purchase cost plus the discounted cost of maintenanceand repair less the discounted salvage value

A. Total
B. Variable
C. Life cycle
D. Net
Answer» C. Life cycle
111.

Successful service companies focus their attention on both their customers and their employees.They understand ___________________, which links service firm profits with employee

A. Customer satisfaction.
B. Internal marketing
C. Service-profit chains
D. Interactive marketing
Answer» C. Service-profit chains
112.

If a firm is practicing ____________________, the firm is training and effectively motivating its customer-contact employees and all of the supporting service people to work as a team to providecustomer satisfaction.

A. Double-up marketing
B. Internal marketing
C. Interactive marketing
D. Service marketing
Answer» B. Internal marketing
113.

Which of the following is not an element of physical evidence?

A. Employee Dress
B. Employee Training
C. Equipment
D. Facility Design
Answer» B. Employee Training
114.

Which of the following is not an element of people?

A. Motivation
B. Teamwork
C. Flow of activities
D. Customer training
Answer» C. Flow of activities
115.

Standardized and customized flow of activities, simple and complex number of steps and customer involvement by which a service is delivered is called

A. Place Mix
B. Physical evidence mix
C. Process mix
D. People mix
Answer» C. Process mix
116.

____________ is a tool for simultaneously depicting the service process, the points of customer contact and the evidence of service from the customer’s point of view.

A. Front of Planning
B. Service Blueprinting
C. Service standardization
D. None of these
Answer» B. Service Blueprinting
117.

__________ is the physical surroundings or the physical facility where the service is produced, delivered and consumed.

A. Servicespace
B. Servicescape
C. Serviceplace
D. Servicescope
Answer» B. Servicescape
118.

__________ are the only service distributors which do not require direct human interactions.

A. Electronic channels
B. SST’s
C. Direct Service channels
D. Speculative channels
Answer» A. Electronic channels
119.

In the absence of a physical product, service providers need to consider the use of______________ that enable customers to make a judgment on the service quality.

A. Intangible clues
B. Tangible clues
C. Blueprint
D. Performance measures
Answer» B. Tangible clues
120.

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. knowledge gap
121.

Which of the following is NOT a factor influencing the delivery gap?

A. willingness to perform
B. employee-job fit
C. role ambiguity
D. overpromising
Answer» D. overpromising
122.

Which of the following statements pertaining to the SERVQUAL scale is correct?

A. SERVQUAL compares perceptions to what customers would normally expect
B. SERVQUAL is a 22-item scale
C. SERVQUAL consists of four service quality dimensions
D. SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality services
Answer» D. SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality services
123.

Which of the following is a major criticism of the SERVQUAL scale?

A. short questionnaire
B. validity of the five service quality dimensions
C. does not predict consumer purchase intention
D. contact personnel
Answer» B. validity of the five service quality dimensions
124.

Research that examines the customer’s perspective of a firm’s strengths and weaknesses is called:

A. customer research
B. employee survey
C. noncustomer research
D. customer complaints
Answer» A. customer research
125.

Loyal customers offer advantages with regard to:

A. revenue growth.
B. cost savings.
C. willingness to provide referrals.
D. willingness to pay premium prices.
Answer» D. willingness to pay premium prices.
126.

The core of a CRM program is:

A. customer surveys.
B. customer acquisition.
C. a customer database.
D. a JIT analysis.
Answer» C. a customer database.
127.

Which of the following is the MOST important component of a CIF analysis?

A. response information
B. purchase history
C. customer descriptors
D. contact history
Answer» C. customer descriptors
128.

The process of analyzing a database is called:

A. CIF.
B. data mining.
C. CAD-CAM.
D. demographic analysis.
Answer» A. CIF.
129.

Satisfaction is BASICALLY a function of:

A. price paid.
B. advertising.
C. perception.
D. distribution.
Answer» A. price paid.
130.

Human resource policies aimed at delivering superior service quality has the following steps:

A. Hire the right people,
B. Develop employees to deliver quality service
C. Provide needed support systems and retain the best people
D. all of the above
Answer» D. all of the above
131.

Tell which statements are incorrect?

A. Customers can coproduce services.
B. Customers can be educated to take part in service coproduction.
C. Once customers are taught to coproduce services, they can be left alone to produce their own services.
D. Customer coproduction can range from co‐producing the complete service through producing the full service.
Answer» C. Once customers are taught to coproduce services, they can be left alone to produce their own services.
132.

Fundamentally, conflict arising in a service situation between any two parties

A. depends on the level of concern for self and for others.
B. high level of concern for self and high level of concern for others leads to collaboration.
C. high level of concern for self and low level of concern for others leads to a competitive scenario.
D. all of the above.
Answer» D. all of the above.
133.

Matching the demand and supply of service

A. is required as supply is delivered during interactions between the supplier and the customer.
B. can be done by servicing customers during non‐peak periods.
C. can be done by increasing supply during periods.
D. all of the above.
Answer» D. all of the above.
134.

Importance should be given to the servicescape and equipment in the “service factory” as (choose the statement which is false)

A. the servicescape provides tangible cues to customers regarding the quality of the service.
B. the servicescape should be safe for customers who would be visiting the service factory.
C. the servicescape and equipment are paid for by the customers.
D. signage in the servicescape is important for customers to negotiate their way in the service
Answer» C. the servicescape and equipment are paid for by the customers.
135.

The 6Ms model of integrated marketing communication does not consist of

A. Market, Mission
B. Message, Media
C. Media, Motives
D. Money, Measurement
Answer» C. Media, Motives
136.

Pricing a new service does not consist of which of the following?

A. Selecting the pricing objective
B. Determining the price elasticity of demand
C. Estimating costs
D. Estimating price
Answer» D. Estimating price
137.

Customers should be retained by a service business because retained customers (Choose the false statement)

A. are profitable in the long run
B. are retired and cannot do their work by themselves
C. do not mind small increases in price
D. advise other customers to purchase from the service business
Answer» B. are retired and cannot do their work by themselves
138.

Which of the following should not be done with service customers when they are aggrieved with a service failure?

A. apologise for the service failure
B. make good (recover) the service
C. laugh as much as possible so that customers start laughing and forget about the failed service
D. look at the situation from the customer’s point of view and satisfy or even delight them
Answer» C. laugh as much as possible so that customers start laughing and forget about the failed service
139.

Service providers are afraid of providing unconditional service guarantees as

A. they fear that some customers would take wrong advantage of the guarantee
B. there might be situations outside the control of the service provider due to which the service has failed
C. service employees would give away unnecessary goodies to aggrieved customers, thereby incurring losses for the company
D. all of the above
Answer» D. all of the above
Chapter: Unit 3
140.

KFC which has its only outlet at Bangalore in the country is all set to open its retail outlets in Delhi and Hyderabad. Which stage of the PLC is it in?

A. Introduction
B. Growth
C. Maturity
D. Decline
Answer» A. Introduction
141.

Segmenting the market according to the customer use of the service is an example of _____ segmentation

A. Demographic
B. Geographic
C. Behavioral
D. Psychographic
Answer» C. Behavioral
142.

The intangible aspect of a service spring forth for which of the following service product levels?

A. Actual product level
B. Core product level
C. Augmented product level
D. Potential product level
Answer» B. Core product level
143.

Which of the following is not a type of positioning strategy used in service marketing?

A. Attribute positioning
B. Celebrity positioning
C. Competitor positioning
D. Category positioning
Answer» B. Celebrity positioning
144.

Which of the following is not a market penetration strategy?

A. Maintaining or increasing the market share of existing services
B. Entering new markets with the existing services
C. Driving away competitors by restructuring a market
D. Inducing existing customers to use the services frequently
Answer» B. Entering new markets with the existing services
145.

Which of the following is not an approach to pricing in services?

A. Risk based approach
B. Cost based approach
C. Competition based approach
D. Demand based approach
Answer» D. Demand based approach
146.

Which of the following is not an issue in the pricing of services?

A. Availability of raw materials
B. Competitor pricing
C. Positioning
D. Demand levels
Answer» D. Demand levels
147.

Identify the factor that does not play a major role in setting the pricing objectives of a service organization.

A. How would a company like to position its services?
B. Are the prices chosen compatible with the corporate objectives?
C. How do the shareholders react to the price changes made by the company?
D. What is the duration of the life cycle of the services?
Answer» A. How would a company like to position its services?
148.

Which of the following is not a type of broadcast media used for advertising?

A. TV
B. Radio
C. Newspapers
D. Internet
Answer» B. Radio
149.

Which type of positioning involves communicating two or more contradicting features?

A. Under positioning
B. Over positioning
C. Confused positioning
D. Irrelevant positioning
Answer» A. Under positioning
150.

Which of the following is not a necessary strategy in the effective promotion of services?

A. Effective planning
B. Perfect timing
C. Adherence to legal regulations
D. Employee motivation
Answer» A. Effective planning
151.

Which amongst the following is not true regarding the promotional strategies of services?

A. Intermediaries have a key role in the promotion of services
B. Service personnel play a larger role in promoting services
C. Physical evidence tangibilizes the services
D. Services cannot ne inventoried
Answer» C. Physical evidence tangibilizes the services
152.

Which of the following is not a consideration in deciding the marketing channel for services?

A. Channels should ensure easy accessibility
B. Channels should cover all target markets
C. Channels should ensure expansion at any cost to the service provider
D. Channels should ensure value addition to the customers
Answer» C. Channels should ensure expansion at any cost to the service provider
153.

Location decision is not important for ____

A. Insurance company
B. Bank
C. Retail outlet
D. Health club
Answer» C. Retail outlet
154.

Which of the following is not a benefit of direct distribution of services?

A. Control over operations
B. Healthy customer relationships
C. Flexibility
D. Reduced risk
Answer» A. Control over operations
155.

In planning a service process, a service provider takes all the following important decisions except

A. Conversion process
B. Legal restrictions
C. Flow of process
D. Layout design
Answer» B. Legal restrictions
156.

Which of the following is not an element of blueprinting in a service process?

A. Onstage employee actions
B. Line of visibility
C. Customer role
D. Support processes
Answer» B. Line of visibility
157.

Which of the following is not an influencing factor in process efficiency?

A. Technology
B. External environment
C. Planning
D. Location and décor
Answer» C. Planning
158.

Which of the following is not a major element of physical evidence?

A. Conduct of support staff
B. Price of service
C. Physical environment
D. Conduct of service personnel
Answer» A. Conduct of support staff
159.

The importance of physical environment as an element of physical evidence springs forth through all of the following except

A. Layout
B. Communications
C. Atmosphere
D. Aesthetics
Answer» C. Atmosphere
160.

Which of the following may not be an objective of focusing on physical evidence by a service firm?

A. Differentiation from competitors
B. Increased productivity
C. Creating a good impression
D. Creating awareness about its services
Answer» A. Differentiation from competitors
161.

Which of the following is not a type of demand-based pricing strategy?

A. Market skimming
B. Penetration pricing
C. Destroyer pricing
D. Discounts and sales
Answer» D. Discounts and sales
162.

Which of the following is not an essential step in building a service blueprint?

A. Identifying process
B. Identifying customer segment
C. Mapping customer’s view
D. Mapping complexities
Answer» D. Mapping complexities
163.

Which of the following factors does not influence service delivery?

A. The service provider
B. The level of customer interaction
C. The complexity of the service
D. The legal aspects connected to it
Answer» B. The level of customer interaction
164.

Which of the following groups is called boundary spanners?

A. Top management
B. Front line employees
C. Market research analysts
D. All the above
Answer» B. Front line employees
165.

Which of the following initiatives will not help a company retain the best people?

A. Treat employees as customers
B. Measure and reward strong service performance
C. Include employees in the company’s vision
D. Provide supportive technology and equipment
Answer» B. Measure and reward strong service performance
166.

Which of the following is not a cost-based pricing?

A. Cost-plus pricing
B. Contribution pricing
C. Working back method
D. Penetration pricing
Answer» A. Cost-plus pricing
167.

Which among the following is not one of the requirements for effective segmentation of markets?

A. Measurability
B. Accessibility
C. Substitutability
D. Validity
Answer» B. Accessibility
168.

What is the process of offering customized services to individual customers by using flexible processes, without foregoing the advantages of mass production?

A. Market specialization
B. Full market coverage
C. Mass customization
D. Mass marketing
Answer» A. Market specialization
169.

Which of the following is not a strategic management task of a retailer?

A. Identifying target markets
B. Inventory management
C. Store design and layout
D. Pricing decisions
Answer» B. Inventory management
170.

Which is the nearest in meaning to the word ‘Augmented Service’

A. Supplementary Service
B. Increased Service
C. Support Service
D. Auxiliary Service
Answer» B. Increased Service
171.

Most service marketers in the west compete at ___product/service level

A. Core
B. Augmented
C. Expected
D. Tangible
Answer» B. Augmented
172.

The stage of the service life cycle in which marketers become more cost conscious is:

A. Maturity
B. Introduction
C. Decline
D. Growth
Answer» C. Decline
173.

Branding in a service can be developed through various ways. Music World outlets run by franchisees are anexample of

A. Manufacturer branding strategy
B. Licensed branding strategy
C. Multi-product branding strategy
D. Multi-branding strategy
Answer» B. Licensed branding strategy
174.

Qatar Airways’ first-class passengers sit in a semi-private pear-wood berth that convert into a bed, thusproviding more comfort on long flights. This service is an example of theairlines

A. Standardized service
B. Core service
C. Customized service
D. Supplementary service
Answer» D. Supplementary service
175.

In Arab countries like Saudi Arabia, charging interest on a loan is against the “Muslim law”. Therefore, banksoperating in these countries customize their product offering as per the local requirements. Which parameter ofassessing globalization level of a firm does this example explain?

A. Responding to changes in environment
B. Achieving desirable balance between globalization and customization
C. Presence in strategic markets
D. Consistency in quality and pricing of services
Answer» B. Achieving desirable balance between globalization and customization
176.

The __________ concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.

A. Production
B. Product
C. Selling
D. Marketing
Answer» B. Product
177.

The additional consumer service and benefits built around the actual product is known as

A. Core product
B. Expected product
C. Augmented product
D. Basic product
Answer» C. Augmented product
178.

Which of the following statements best reflects the definition of a product?

A. A product is anything that is offered to the market for attention
B. Services are intangible and do not result in the ownership of anything
C. Organizations tend to compete at the augmented product level
D. All of the above statements are true vis-à-vis definition of a product.
Answer» D. All of the above statements are true vis-à-vis definition of a product.
179.

Heterogeneity of services among telecom service providers makes which method of pricing a major problem?

A. Demand based pricing approach
B. Competition based pricing approach
C. Perceived value based pricing approach
D. Costing based pricing approach
Answer» B. Competition based pricing approach
180.

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 (CRM)
Answer» D. Customer relationship management (CRM)
181.

Efforts to transform customers into partial employees should not be interpreted as the firm’sway of distancing itself from the customer. This is consistent with which of the followingguidelines for increasing customer participation:

A. Develop customer trust
B. Promote the benefits and stimulate trial
C. Understand customer habits
D. Pretest new procedures
Answer» A. Develop customer trust
182.

Part of the problem when transforming from full-service to self-service is that businesses tend toforget why customers might prefer using full-service options in the first place. This is consistent withwhich of the following guidelines for increasing customer participation:

A. develop customer trust
B. promote the benefits and stimulate trial
C. understand customer habits
D. pre-test new procedures
Answer» C. understand customer habits
183.

Part of the problem when transforming from full-service to self-service is that the new proceduresthemselves are flawed and/or difficult to understand. Of the guidelines presented below, which wouldminimize this type of problem from occurring? 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. pre-test new procedures
Answer» C. understand customer habits
184.

When service is produced via a cooperative effort between customers and service providers, this isreferred to as:

A. Co-production
B. Intangibility
C. Heterogeneity
D. Inseparability
Answer» A. Co-production
185.

Co-production of services is made possible due to the __________ inherent in the productionofservices.

A. Homogeneity
B. Intangibility
C. Heterogeneity
D. Inseparability
Answer» D. Inseparability
186.

Which of the following is not a typical benefit associated with self-service?

A. Convenience
B. Cost savings
C. Customization
D. Standardization
Answer» D. Standardization
187.

Disney informs guests how long the wait will be along various points of the lines that form for each ofits attractions. This strategy helps minimize the effects of which of the following "principles ofwaiting?"

A. preprocess waits feel longer than in process waits
B. unoccupied time feels longer than occupied time
C. unfair waits are longer the equitable waits
D. uncertain waits are longer than known, finite waits
Answer» D. uncertain waits are longer than known, finite waits
188.

Compared with low-contact services, customers of high-contact services are more likely to judgeservice quality on the basis of:

A. Price of the service
B. Processes used in carrying out the service
C. Intangible outcomes eg. The performance of an investment portfolio
D. Tangible outcomes
Answer» B. Processes used in carrying out the service
189.

In the absence of a physical product, service providers need to consider the use of ______ that enable customers to make a judgment on the service quality.

A. Intangible clues
B. Tangible clues
C. Blueprint
D. Performance measures
Answer» B. Tangible clues
190.

Which of the following is an example of a tangible component provided by a hotel?

A. Wake-up call
B. Guest rooms
C. Room service
D. Express check-out
Answer» B. Guest rooms
191.

Service design often differs from product design for which one of these considerations?

A. its life cycle
B. customer interface
C. cost and value
D. legal environment
Answer» B. customer interface
192.

The ability of a product, part or service to perform its intended function under an appropriate set of conditions is its:

A. robustness.
B. quality.
C. appropriateness.
D. reliability.
Answer» D. reliability.
193.

To build a world-class service brand there are three things you will need to define or create:

A. The brand's personality.
B. The relationship the brand has with the target segment.
C. Visual icons, symbols or other representations of the brand such as the logo or a character.
D. All the above.
Answer» D. All the above.
194.

Service marketers consider which of the following?

A. People, Products Process.
B. People/Participants, Physical evidence, Process.
C. Participants, Physical evidence, Products
D. People/Participants, Physical evidence, Placement.
Answer» B. People/Participants, Physical evidence, Process.
195.

Three types of customer expectations can be identified:

A. Fuzzy expectations, Explicit expectations, Implicit expectations
B. Internal expectations; Explicit expectations, Implicit expectations.
C. Internal expectations, External expectations, Implicit expectations.
D. None of the above
Answer» A. Fuzzy expectations, Explicit expectations, Implicit expectations
196.

Perceived Service Quality concept includes which of the following?

A. Credibility, Security, Process
B. Courtesy, Access, Choice
C. Access, Service, Communication
D. Reliability, Courtesy, Communication
Answer» D. Reliability, Courtesy, Communication
197.

Quality Gaps include:

A. The Management Perception Gap, The Market Communication Gap, The Quality Improvement Gap
B. The Service Delivery Gap, The Market Communication Gap; The Information Gap
C. The Management Perception Gap; The Quality Specification Gap; The Service Delivery Gap
D. The Service Delivery Gap, The Management Perception Gap, The implementation Gap
Answer» C. The Management Perception Gap; The Quality Specification Gap; The Service Delivery Gap
198.

The Perceived Service Quality means that the perceived or experienced service is not consistentwith the expected service. This gap results in the following: Which one is NOT true?

A. An increase in corporate costs
B. Bad word of mouth
C. A negative impact on corporate or local image
D. Negatively confirmed quality
Answer» A. An increase in corporate costs
199.

The Zone of Tolerance concept assumes:

A. That customers can tolerate a variation in the real experiences and still consider them acceptable.
B. That customers do not have expectations of a service attribute on a single level.
C. That customers' expectations exist on two levels.
D. All the above are true
Answer» D. All the above are true
200.

The new product pricing strategy through which the companies set lower prices of services to gain large market share is classified as

A. optional product pricing
B. skimming pricing
C. penetration pricing
D. captive product pricing
Answer» C. penetration pricing
Tags
Question and answers in Services Marketing, Services Marketing multiple choice questions and answers, Services Marketing Important MCQs, Solved MCQs for Services Marketing, Services Marketing MCQs with answers PDF download