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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 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» C. perception.
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» A. Risk 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» C. Newspapers
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» 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.
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

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