McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
Chapters
| 1. |
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 | |
| 2. |
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 | |
| 3. |
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 | |
| 4. |
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 | |
| 5. |
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 | |
| 6. |
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» A. Risk based approach | |
| 7. |
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 | |
| 8. |
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? | |
| 9. |
Which of the following is not a type of broadcast media used for advertising? |
| A. | TV |
| B. | Radio |
| C. | Newspapers |
| D. | Internet |
| Answer» C. Newspapers | |
| 10. |
Which type of positioning involves communicating two or more contradicting features? |
| A. | Under positioning |
| B. | Over positioning |
| C. | Confused positioning |
| D. | Irrelevant positioning |
| Answer» C. Confused positioning | |
| Explanation: Confused positioning occurs when a brand tries to communicate multiple, sometimes contradictory, messages or features, leading to confusion in the minds of consumers. This can make it hard for consumers to understand the brand's identity or what it stands for. | |
| 11. |
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 | |
| 12. |
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 | |
| 13. |
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 | |
| 14. |
Location decision is not important for ____ |
| A. | Insurance company |
| B. | Bank |
| C. | Retail outlet |
| D. | Health club |
| Answer» C. Retail outlet | |
| 15. |
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 | |
| 16. |
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 | |
| 17. |
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» C. Customer role | |
| 18. |
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 | |
| 19. |
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 | |
| 20. |
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» B. Communications | |
| 21. |
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 | |
| 22. |
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 | |
| 23. |
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 | |
| 24. |
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 | |
| 25. |
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 | |
| 26. |
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 | |
| 27. |
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» D. Penetration pricing | |
|
Explanation: Penetration pricing is a market-based pricing strategy where a product is introduced at a low price to gain market share, not directly related to the product's cost. On the other hand, cost-based pricing strategies (such as cost-plus pricing, contribution pricing, and the working back method) focus on determining the price based on the costs incurred to produce the product. |
|
| 28. |
Which among the following is not one of the requirements for effective segmentation of markets? |
| A. | Measurability |
| B. | Accessibility |
| C. | Substitutability |
| D. | Validity |
| Answer» C. Substitutability | |
| 29. |
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 | |
| 30. |
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 | |
| 31. |
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 | |
| 32. |
Most service marketers in the west compete at ___product/service level |
| A. | Core |
| B. | Augmented |
| C. | Expected |
| D. | Tangible |
| Answer» B. Augmented | |
| 33. |
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 | |
| 34. |
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 | |
| 35. |
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 | |
| 36. |
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 | |
| 37. |
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 | |
| 38. |
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 | |
| 39. |
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. | |
| 40. |
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 | |
| 41. |
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) | |
| 42. |
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 | |
| 43. |
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 | |
| 44. |
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 | |
| 45. |
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 | |
| 46. |
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 | |
| 47. |
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 | |
| 48. |
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 | |
| 49. |
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 | |
| 50. |
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 | |
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