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230+ Service Marketing Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Master of Commerce (M.com) .

201.

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. Human resources, marketing and operations
202.

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. Psychic costs.
203.

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. Inelastic.
204.

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. Customer abilities that enable them to properly evaluate the servicescape.
205.

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. Fixed costs.
206.

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. Price bundling.
207.

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. Relationship pricing
208.

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. When a price is the primary differential information available
209.

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. Inform and remind customers
210.

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. Positioning strategy.
211.

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. Personnel differentiation
212.

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. Informational and persuasive
213.

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. Provide ongoing contact with customers
214.

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. Persuasive and reminder
215.

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. Persuasively convince customers why the firms brand is superior to the competitors
216.

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. Financial, social and performance
217.

Tangible clues are more important when services are

A. Highly perishable.
B. Tangible dominant.
C. Intangible dominant
D. Heterogeneous
Answer» C. Intangible dominant
218.

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. Reducing consumer perceived risk
219.

Branding of services becomes difficult because they are

A. Intangible.
B. Heterogeneous.
C. Perishable.
D. Inseparable.
Answer» A. Intangible.
220.

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. Service customers tend to rely more on personal than the non-personal source of information
221.

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. Surround the product with tangible evidence.
222.

__________ 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. Halo effect.
223.

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. Reaching a widely dispersed audience.
224.

A disadvantage of e-marketing is

A. High cost.
B. Low reach.
C. Loss of personal contact
D. Less satisfaction.
Answer» C. Loss of personal contact
225.

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. In-house process equipment
226.

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. Heterogeneity.
227.

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. Provides price expectations to customers.
228.

__________ 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. Environmental psychology.
229.

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. Variable costs.
230.

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. Minimize

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