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270+ Services Marketing Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .

Chapters

Chapter: Unit 1
1.

Which of the following sets of terms best describes a service?

A. Objects, devices, and performances
B. Effort, objects, and deeds
C. Things, devices, and performances
D. Deeds, effort, and performances
Answer» D. Deeds, effort, and performances
2.

Businesses such as fast food restaurants would fall where along the Scale of Market Entities?

A. On the extreme end of the intangible-dominant side
B. On the extreme end of the intangible-dominant side
C. In the middle of the continuum
D. Left of the middle towards the tangible-dominant side
Answer» C. In the middle of the continuum
3.

Which of the following fields would be least likely to be described as intangible-dominant?

A. Manufacturing
B. Education
C. Insurance
D. Banking
Answer» A. Manufacturing
4.

Which of the following statements is not true?

A. Service knowledge is obtained differently than goods knowledge.
B. Firms that define their businesses too narrowly have developed marketing myopia.
C. Goods are tangible-dominant.
D. All of the above are true.
Answer» D. All of the above are true.
5.

The demand for services marketing knowledge has increased for all of the following reasons except:

A. The tremendous growth in service-sector employment
B. Increasing service-sector contributions to the world economy
C. The deregulation of many service industries
D. The decline in service sector jobs
Answer» D. The decline in service sector jobs
6.

Which linkage within The Service Triangle reflects the ease with which a customer uses a bank's ATM?

A. The systems--the customer
B. The service strategy--the customer
C. The systems--the people
D. The service strategy--the systems
Answer» D. The service strategy--the systems
7.

The market-focused management model, supported by the service triangle, is based on the belief that:

A. Front-line personnel tend to be more knowledgeable
B. Employees want to do good work
C. Customer satisfaction is related to employee turnover
D. A new accounting measures should be used
Answer» A. Front-line personnel tend to be more knowledgeable
8.

Services are characterized by all of the following characteristics except for:

A. Intangibility
B. Homogeneity
C. Perishability
D. Heterogeneity
Answer» D. Heterogeneity
9.

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. Homogeneity
D. Perishability
Answer» B. Inseparability
10.

Which of the following is a marketing problem caused by intangibility?

A. Services have no costs of goods sold.
B. The consumer is involved in the production process.
C. Other consumers are involved in the production process.
D. Service standardization and quality control are difficult to achieve.
Answer» B. The consumer is involved in the production process.
11.

Possible solutions that minimize the problems caused by intangibility include all of the following except:

A. The use of tangible clues.
B. The effective management of consumers.
C. The creation of a strong organizational image.
D. The use of personal sources of information.
Answer» C. The creation of a strong organizational image.
12.

Marketing problems caused by inseparability include all of the following except for:

A. The service provides 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» A. The service provides physical connection to the service.
13.

Which of the following scenarios is likely to lead to the highest levels of customer dissatisfaction?

A. Higher demand than maximum available supply
B. Higher demand than optimal supply levels
C. Lower demand than optimal supply levels
D. All of the above scenarios result in customer dissatisfaction
Answer» D. All of the above scenarios result in customer dissatisfaction
14.

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» A. The use of creative pricing strategies
15.

Which of the following strategies increases the supply of service available to consumers?

A. Increasing consumer participation
B. The use of creative pricing strategies
C. The use of reservation systems
D. Developing complementary services
Answer» D. Developing complementary services
16.

The perishability-related strategy that may sometimes be associated with consumer feelings that the service firm may be attempting to distance itself from consumers is:

A. The use of reservation systems
B. Training public contact personnel
C. The use of third-parties to conduct service transactions
D. Increasing the amount of consumer participation
Answer» B. Training public contact personnel
17.

Which one of the following strategies is used to alter consumer demand?

A. Increasing consumer participation
B. Utilizing third parties
C. Utilizing creative pricing strategies
D. Sharing capacity
Answer» C. Utilizing creative pricing strategies
18.

Which of the following would not be considered a tangible clue?

A. The quality of instruction in an educational setting
B. The appearance of employees
C. The appearance of the firm's physical facilities
D. The quality of paper stock use to produce a firm's brochures
Answer» D. The quality of paper stock use to produce a firm's brochures
19.

The service sector that is the fastest growing sector in terms of employment is:

A. Wholesale and retail trade
B. Transportation and warehousing
C. Financial activities
D. Professional and business services
Answer» C. Financial activities
20.

Which of the following features separate services from products? i. Perishability ii Intangibility iii Reliability iv Inseparability

A. Only ii
B. i, ii and iii
C. i, ii and iv
D. ii, iii, and iv
Answer» B. i, ii and iii
21.

Which of the following attributes of services make it difficult for a service provider to evaluate them when compared to goods?

A. High search and experience quality
B. High experience and credence quality
C. High credence and search quality
D. Both b and c
Answer» B. High experience and credence quality
22.

Classification of products into goods, services, and ideas is determined by the:

A. Degree of labour intensiveness.
B. Type of markets.
C. Dominant component.
D. Skill of the service provider.
Answer» C. Dominant component.
23.

Services can be meaningfully analysed by using a five-category classification scheme including type of market, degree of labour-intensiveness, degree of customer contact, skill of service provider, and

A. Degree of competition within the service industry.
B. Goal of the service provider.
C. Market share of the service provider.
D. Employee structure of the service provider.
Answer» A. Degree of competition within the service industry.
24.

The appearance of the production facilities and the interpersonal skills of actual service providers are critical in __________ services.

A. Low-contact
B. Equipment-based
C. Industrial
D. Nonprofessional
Answer» D. Nonprofessional
25.

The necessary interaction between service provider and customer that allows a service to be delivered is called

A. Customer contact.
B. Service exchange.
C. Marketing
D. Relationship marketing.
Answer» D. Relationship marketing.
26.

A problem encountered by service companies that change high-contact services into lowcontact services is that the

A. Service becomes more expensive to deliver.
B. Quality of the service usually declines.
C. Service becomes less personaliz
Answer» C. Service becomes less personaliz
27.

What is the 5th unique characteristic of service markets? 1. Lack of ownership 2. Intangibility 3. Inseparability

A. Protractability
B. Serviceability
C. Homogeneity
D. Perishability
Answer» A. Protractability
28.

Which of the following statements is correct?

A. Marketing is the term used to refer only to the sales function within a firm.
B. Marketing managers don't usually get involved in production or distribution decisions.
C. Marketing is an activity that considers only the needs of the organization; not the needs of society as a whole.
D. It is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Answer» B. Marketing managers don't usually get involved in production or distribution decisions.
29.

Select name of the country having maximum percent of GDP attributed to services

A. United States
B. China
C. Germany
D. India
Answer» D. India
30.

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

A. Employee dress
B. Employee Training
C. Equipment
D. Facility design
Answer» D. Facility design
31.

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
Explanation: In organizational or management contexts, "People" typically refers to elements like motivation, teamwork, and training, which are directly related to managing and supporting the human aspects of an organization. "Flow of activities" is more related to processes or workflows rather than the people themselves.
32.

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
33.

Professionals such as Doctors, Lawyers or Photographers often charge for missed appointments

A. Services are inseparable from their providers
B. Services cannot be inventoried
C. They prefer to avoid such clients
D. To reduce their workload
Answer» A. Services are inseparable from their providers
Explanation: Professionals like doctors, lawyers, or photographers charge for missed appointments because their services are inseparable from their time and presence. When an appointment is missed, their time is lost, and they cannot provide the service to someone else, unlike products that can be stored or inventoried.
34.

The key difference between goods and services is:

A. People
B. Production costs
C. Intangibility of services
D. Recruitment policy
Answer» C. Intangibility of services
Explanation: The key difference between goods and services lies in intangibility—services cannot be touched, stored, or owned, unlike physical goods. This makes services inherently different in how they are produced, consumed, and perceived by customers. Production costs and recruitment policies are not the defining factors in distinguishing goods from services.
35.

The characteristic of services marketing that it cannot be saved, stored, resold, or returned is known as:

A. Marketing
B. Price
C. Promotion
D. Advertisement
E. Perishability
Answer» E. Perishability
36.

An e-mail service is a good example of

A. People processing service
B. Information processing service
C. Mental Stimulus processing service
D. Technology processing service
Answer» D. Technology processing service
37.

No two services are precisely alike. This characteristic is known as:

A. Selling
B. Production
C. Heterogeneity
D. Consumption
Answer» C. Heterogeneity
Explanation: Heterogeneity in services marketing refers to the variability or lack of uniformity in service offerings. Since services are often delivered by people, they can differ from one service encounter to another, leading to variations in quality and experience.
38.

The main characteristic of Service is________

A. Non-existence
B. Balanced scorecard
C. Age and Lifecycle
D. Intangibility
Answer» D. Intangibility
Explanation: Intangibility is a key characteristic of services, meaning that services cannot be seen, touched, or owned like physical products. This makes it challenging for customers to evaluate the service before purchase, highlighting the unique nature of service marketing.
39.

A ___________ is a form of product that consists of activities, benefits, orsatisfactions offered for sale that are essentially intangible and do not result in the ownership ofanything.

A. Service
B. Demand
C. Need
D. Physical object
Answer» A. Service
Explanation: A service is defined as a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
40.

Distinct characteristic of services is_____________

A. Intangibility
B. Inseparability
C. Variability
D. Perishability
Answer» A. Intangibility
41.

All of the following are examples of services EXCEPT:

A. Banking
B. Hotels and motels.
C. Tax preparation.
D. Computer software.
Answer» D. Computer software.
Explanation: Computer software is considered a product rather than a service. In contrast, banking, hotels and motels, and tax preparation are all examples of services provided to customers.
42.

Services are typically produced and consumed simultaneously. This is an example of the________characteristic of services.

A. Intangibility
B. Variability
C. Inseparability
D. Simultaneously
Answer» D. Simultaneously
43.

Services cannot be stored. This describes the ___________characteristic of services.

A. Intangibility
B. Variability
C. Inseparability
D. Inconsistency
Answer» C. Inseparability
44.

__________describes the employee’s skills in serving the client.

A. Internal Marketing
B. External Marketing
C. Relationship marketing
D. Interactive marketing
Answer» D. Interactive marketing
45.

SSTS refers to __________

A. Service Standards Testing
B. Self- Service Technologies
C. Standard Service Technologies
D. Self Service Treatments
Answer» D. Self Service Treatments
46.

_____________ occurs when a company intentionally uses services as the stage, and goods as theprops, to engage individual customers in a way that creates a memorable event.

A. Hybrid offer
B. Core service
C. Augmented or ancillary product
D. Experience
Answer» B. Core service
47.

Top firms audit service performance by collecting measurements to probe customer satisfiers and dissatisfiers.

A. Customer satisfier
B. Customer complaint
C. Voice of the customer
D. Psychological
Answer» D. Psychological
48.

The fact that a business traveler may have one very positive check-in experience at a hotel and then a very negative check-in experience with a different employee on a subsequent visit is evidence of service:

A. Intangibility
B. Inseparability
C. Variability
D. Perishability
Answer» C. Variability
49.

Service marketers consider which of the following?

A. People/Participants, Physical evidence, Placement.
B. Participants, Physical evidence, Products
C. People, Products Process.
D. People/Participants, Physical evidence, Process.
Answer» D. People/Participants, Physical evidence, Process.
50.

Three types of customer expectations can be identified:

A. Internal expectations; Explicit expectations, Implicit expectations.
B. Fuzzy expectations, Explicit expectations, Implicit expectations
C. Internal expectations, External expectations, Implicit expectations.
D. none
Answer» B. Fuzzy expectations, Explicit expectations, Implicit expectations

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