1. Which of the following is an example of ‘process’ in the services marketing mix?
A. The pricing strategy used for the service.
B. The steps involved in delivering the service.
C. The advertising campaign used to promote the service.
D. The physical environment where the service is delivered.
2. Which of the following is an example of a service that is high in ‘experience qualities’?
A. A surgical operation.
B. A new car.
C. A restaurant meal.
D. A bottle of shampoo.
3. What is ‘heterogeneity’ in service marketing?
A. The consistency of service delivery.
B. The lack of uniformity in service offerings.
C. The ability to store services for later use.
D. The separation of production and consumption.
4. Which of the following is a key element of the ‘services marketing triangle’?
A. Company, customers, and competitors.
B. Company, employees, and customers.
C. Marketing, operations, and finance.
D. Product, price, and promotion.
5. What is the role of ‘people’ in the services marketing mix?
A. The target market for the service.
B. All human actors who play a part in service delivery and thus influence the buyer’s perceptions.
C. The shareholders of the service company.
D. The suppliers who provide resources for the service.
6. Which of the following is a benefit of effective service recovery?
A. Reduced customer expectations.
B. Increased customer loyalty.
C. Lower service standards.
D. Decreased employee morale.
7. What is ‘service culture’?
A. The technology used to deliver services.
B. A culture that supports customer service through policies, procedures, reward systems, and actions.
C. The architectural design of the service facility.
D. The marketing budget allocated to service promotion.
8. What is ‘zone of tolerance’ in service marketing?
A. The area where service failures are acceptable.
B. The range of service performance a customer considers satisfactory.
C. The price range a customer is willing to pay.
D. The level of customization a customer desires.
9. Which of the following is an example of a ‘tangible cue’ used in service marketing?
A. The friendliness of the staff.
B. The cleanliness of the facility.
C. The reputation of the company.
D. The price of the service.
10. What is ‘physical evidence’ in the services marketing mix?
A. The tangible aspects of the service that influence customer perceptions.
B. The statistical data used to measure service performance.
C. The legal documents related to service delivery.
D. The customer testimonials used in advertising.
11. What is the ‘knowledge gap’ in the gaps model?
A. The difference between customer expectations and management perceptions of those expectations.
B. The difference between management perceptions of customer expectations and service quality specifications.
C. The difference between service quality specifications and actual service delivery.
D. The difference between actual service delivery and external communications about the service.
12. What is the ‘communication gap’ in the gaps model?
A. The difference between customer expectations and management perceptions of those expectations.
B. The difference between management perceptions of customer expectations and service quality specifications.
C. The difference between service quality specifications and actual service delivery.
D. The difference between actual service delivery and external communications about the service.
13. Which of the following is NOT a gap in the ‘gaps model of service quality’?
A. The knowledge gap.
B. The policy gap.
C. The delivery gap.
D. The promotional gap.
14. What is the ‘standards gap’ in the gaps model of service quality?
A. The difference between customer expectations and management perceptions of those expectations.
B. The difference between management perceptions of customer expectations and service quality specifications.
C. The difference between service quality specifications and actual service delivery.
D. The difference between actual service delivery and external communications about the service.
15. In the context of service marketing, what is ‘positioning’?
A. The physical location of the service business.
B. Creating a distinct image and value for the service in the customer’s mind.
C. The process of training service employees.
D. The method of distributing the service to customers.
16. Which of the following strategies can a service provider use to address the issue of perishability?
A. Standardizing the service process.
B. Implementing a strict no-refund policy.
C. Using differential pricing.
D. Increasing the level of customization.
17. How can a service provider widen the zone of tolerance?
A. By lowering customer expectations.
B. By consistently exceeding customer expectations.
C. By reducing service customization.
D. By increasing prices.
18. Which of the following is NOT a unique characteristic of services compared to goods?
A. Perishability
B. Heterogeneity
C. Tangibility
D. Inseparability
19. What does the ‘delivery gap’ in the gaps model refer to?
A. The difference between customer expectations and management perceptions of those expectations.
B. The difference between management perceptions of customer expectations and service quality specifications.
C. The difference between service quality specifications and actual service delivery.
D. The difference between actual service delivery and external communications about the service.
20. What are ‘credence qualities’ in the context of service evaluation?
A. Attributes a customer can readily evaluate before purchase.
B. Attributes a customer can evaluate after purchase.
C. Attributes a customer finds difficult to evaluate even after purchase and consumption.
D. Attributes related to the price of the service.
21. What is ‘internal marketing’ in the context of service firms?
A. Marketing activities directed at external customers.
B. Marketing activities directed at employees.
C. Marketing activities focused on internal operations.
D. Marketing activities targeting shareholders.
22. What is the primary focus of relationship marketing in the service industry?
A. Maximizing short-term profits.
B. Building and maintaining long-term customer relationships.
C. Attracting new customers at any cost.
D. Focusing solely on transactional exchanges.
23. How can a service firm best manage the challenge of ‘heterogeneity’?
A. By reducing customer contact.
B. By implementing strict quality control measures and training.
C. By focusing on price competition.
D. By eliminating customization options.
24. How can a service firm reduce the ‘knowledge gap’?
A. By increasing advertising spending.
B. By conducting market research to understand customer needs.
C. By standardizing service processes.
D. By reducing employee training.
25. What does ‘inseparability’ in the context of service marketing refer to?
A. The service cannot be distinguished from its providers.
B. The service is always delivered separately from the customer.
C. The service is standardized and uniform.
D. The service is easily stored for future use.
26. Which of the following is a key implication of the ‘intangibility’ of services for marketing?
A. Services can be easily patented.
B. Customers often rely on tangible cues to evaluate service quality.
C. Services are easily standardized.
D. Services can be stored for future use.
27. What is the primary goal of ‘service recovery’?
A. To avoid service failures altogether.
B. To compensate customers for service failures and restore their satisfaction.
C. To minimize the cost of service delivery.
D. To ignore customer complaints.
28. What is the role of ‘service blueprints’ in service design?
A. To create a physical layout of the service facility.
B. To visually map out the service process from the customer’s perspective.
C. To develop a marketing plan for the service.
D. To calculate the cost of service delivery.
29. Which of the following is a key component of a service blueprint?
A. A competitive analysis.
B. A line of interaction.
C. A financial forecast.
D. A market segmentation analysis.
30. Which of the following is NOT a factor that influences customer expectations of service?
A. Word-of-mouth communications.
B. Past experience.
C. Competitor’s pricing strategy.
D. Personal needs.
31. What is the primary goal of service quality management?
A. To minimize costs associated with service delivery.
B. To consistently meet or exceed customer expectations.
C. To standardize the service process as much as possible.
D. To increase the tangibility of the service offering.
32. What is the primary focus of the ‘service-profit chain’?
A. Maximizing profit margins in the short term.
B. Linking employee satisfaction to customer loyalty and profitability.
C. Reducing costs associated with service delivery.
D. Improving the tangibility of services.
33. What does ‘inseparability’ in the context of service marketing refer to?
A. The service cannot be distinguished from the service provider.
B. The service is difficult to standardize.
C. The service cannot be stored for later use.
D. The service is always consistent in quality.
34. A restaurant invests in creating a pleasant ambiance and decor. Which of the 7 Ps of service marketing is it primarily focusing on?
A. Price
B. Promotion
C. Physical Evidence
D. Process
35. What does ‘Process’ refer to in the context of the 7 Ps of service marketing?
A. The physical environment where the service is delivered.
B. The steps and procedures involved in delivering the service.
C. The pricing strategy for the service.
D. The promotional activities used to market the service.
36. Airlines often overbook flights. Which characteristic of services are they trying to manage?
A. Heterogeneity
B. Tangibility
C. Inseparability
D. Perishability
37. What is the ‘critical incident technique’ used for in service marketing?
A. To measure customer satisfaction levels.
B. To identify specific service encounters that led to customer satisfaction or dissatisfaction.
C. To train employees on how to handle difficult customers.
D. To develop new service offerings.
38. What is a ‘remote encounter’ in the context of service encounters?
A. A service encounter that takes place in a remote location.
B. A service encounter where there is no direct human contact.
C. A service encounter that is mediated by technology.
D. A service encounter that is planned in advance.
39. What is the ‘zone of tolerance’ in service marketing?
A. The area where customers are completely satisfied with the service.
B. The range of service performance that a customer considers acceptable.
C. The maximum level of service quality a company can provide.
D. The minimum level of service quality a company can provide.
40. In the SERVQUAL model, what does ‘responsiveness’ refer to?
A. The appearance of physical facilities, equipment, personnel, and communication materials.
B. The willingness to help customers and provide prompt service.
C. The knowledge and courtesy of employees and their ability to convey trust and confidence.
D. The caring, individualized attention the firm provides its customers.
41. What is ’empathy’ in the context of the SERVQUAL model?
A. The firm’s ability to perform the promised service dependably and accurately.
B. The caring, individualized attention the firm provides its customers.
C. The appearance of physical facilities, equipment, personnel, and communication materials.
D. The willingness to help customers and provide prompt service.
42. Which of the following is a key dimension of service quality, according to the SERVQUAL model?
A. Profitability
B. Reliability
C. Popularity
D. Packaging
43. Which element of the 7 Ps of service marketing is concerned with the environment in which the service is delivered?
A. Promotion
B. Physical Evidence
C. Process
D. People
44. In the 7 Ps of service marketing, what does ‘People’ refer to?
A. The target market for the service.
B. The employees who deliver the service.
C. The customers who receive the service.
D. The shareholders of the service company.
45. A hotel implements a customer feedback system to improve service quality. Which characteristic of services is it primarily addressing?
A. Perishability
B. Inseparability
C. Heterogeneity
D. Tangibility
46. Which of the following is NOT a unique characteristic of services compared to goods?
A. Perishability
B. Heterogeneity
C. Tangibility
D. Inseparability
47. If a service consistently falls below a customer’s ‘adequate service level’, what is the likely outcome?
A. Increased customer loyalty.
B. Customer satisfaction.
C. Customer defection.
D. Positive word-of-mouth.
48. Which of the following is an example of a service that exhibits high ‘tangibility’?
A. Consulting services
B. Insurance
C. A meal at a restaurant
D. Online banking
49. Which type of service encounter is characterized by a direct interaction between the customer and the service provider?
A. Remote encounter
B. Technology-mediated encounter
C. Face-to-face encounter
D. Indirect encounter
50. Which of the following is a key factor that influences customer perceptions of service quality during a service encounter?
A. The company’s overall market share.
B. The employee’s attitude and behavior.
C. The company’s advertising budget.
D. The number of years the company has been in business.
51. A customer complains about a service failure. Which dimension of service quality is most directly affected?
A. Tangibles
B. Reliability
C. Empathy
D. Assurance
52. What is ‘heterogeneity’ in service marketing primarily caused by?
A. The consistent quality of standardized processes.
B. Variations in employee performance and customer interactions.
C. The physical characteristics of the service environment.
D. The inability to store services.
53. Which of the following is a proactive strategy for managing service expectations?
A. Ignoring customer complaints.
B. Setting realistic service promises.
C. Always exceeding customer expectations, regardless of cost.
D. Avoiding customer interaction.
54. Which of the following is a potential outcome of a positive service encounter?
A. Decreased customer loyalty.
B. Negative word-of-mouth.
C. Increased customer lifetime value.
D. Reduced customer satisfaction.
55. Which of the following is an example of a ‘technology-mediated encounter’?
A. A massage at a spa.
B. Ordering food through a mobile app.
C. A consultation with a lawyer in person.
D. A repair service performed at a customer’s home.
56. What is the ‘desired service level’ in the zone of tolerance?
A. The minimum level of service customers are willing to accept.
B. The level of service customers hope to receive.
C. The average level of service customers typically receive.
D. The level of service the company aims to provide.
57. Which dimension of SERVQUAL refers to the knowledge and courtesy of employees?
A. Empathy
B. Assurance
C. Reliability
D. Responsiveness
58. Which of the following is NOT a component of the ‘7 Ps of service marketing’?
A. Price
B. Product
C. Promotion
D. Patience
59. Which strategy can a service business use to address the challenge of perishability?
A. Standardize the service process.
B. Implement a strong branding campaign.
C. Offer discounts during off-peak hours.
D. Increase employee training.
60. Which of the following is a key implication of ‘inseparability’ for service marketers?
A. Customers are not involved in the production process.
B. Customer interaction is crucial for service delivery.
C. Standardization is easily achieved.
D. Services can be easily inventoried.
61. How does the physical evidence in a doctor’s office impact a patient’s perception of service quality?
A. A clean and well-maintained office can increase the patient’s confidence in the doctor’s competence.
B. The doctor’s personal appearance is irrelevant to the patient’s perception.
C. The price of the consultation is the only factor that matters.
D. The waiting time has no impact on the patient’s perception.
62. What is ‘inseparability’ in service marketing?
A. Services are produced and consumed simultaneously.
B. Services always require a long-term relationship with the customer.
C. Services are difficult to separate from their provider.
D. Services cannot be delivered remotely.
63. Which gap in the gap model of service quality refers to the difference between customer expectations and management perceptions?
A. Gap 1: The knowledge gap.
B. Gap 2: The standards gap.
C. Gap 3: The delivery gap.
D. Gap 4: The communications gap.
64. How can a company empower its employees to improve service quality?
A. Providing them with the authority to make decisions and resolve customer issues.
B. Implementing strict rules and regulations to ensure consistency.
C. Limiting their interaction with customers to minimize errors.
D. Focusing solely on efficiency and cost reduction.
65. In the context of service marketing, what is ‘customer co-creation’?
A. The active involvement of customers in the service production and delivery process.
B. The process of outsourcing service functions to external providers.
C. The practice of offering standardized services to all customers.
D. The strategy of minimizing customer feedback to improve efficiency.
66. How does service-dominant logic differ from goods-dominant logic?
A. Service-dominant logic emphasizes customer co-creation, while goods-dominant logic focuses on production efficiency.
B. Service-dominant logic prioritizes tangible features, while goods-dominant logic emphasizes intangible benefits.
C. Service-dominant logic focuses on mass production, while goods-dominant logic emphasizes customization.
D. Service-dominant logic minimizes customer interaction, while goods-dominant logic encourages it.
67. What is ‘perishability’ in service marketing?
A. Services cannot be stored or inventoried.
B. Services always require physical infrastructure.
C. Services are only valuable for a short period.
D. Services are easily outdated.
68. What is ‘interactive marketing’ within the services marketing triangle?
A. The real-time interaction between employees and customers during the service encounter.
B. The use of social media to engage with customers.
C. The process of gathering customer feedback through surveys.
D. The development of personalized marketing campaigns.
69. What is the ‘services marketing triangle’?
A. A model depicting the interlinked relationships between the company, employees, and customers.
B. A framework for analyzing the competitive landscape in the service industry.
C. A strategy for segmenting the service market.
D. A method for measuring customer satisfaction.
70. What does ‘internal marketing’ refer to in the context of the services marketing triangle?
A. Marketing to employees to ensure they are motivated and capable of delivering excellent service.
B. Marketing to existing customers to encourage repeat business.
C. Marketing to potential employees to attract top talent.
D. Marketing within the company to promote new service offerings.
71. How can a service provider widen a customer’s zone of tolerance?
A. By consistently delivering service that exceeds customer expectations.
B. By lowering prices to increase affordability.
C. By reducing service features to simplify the experience.
D. By minimizing communication with customers to avoid complaints.
72. A company consistently advertises fast and efficient service, but customers often experience long wait times. Which gap in the gap model is most evident?
A. Gap 4: The communication gap.
B. Gap 1: The knowledge gap.
C. Gap 2: The standards gap.
D. Gap 3: The delivery gap.
73. How does the inseparability of services impact the customer experience at a hair salon?
A. The interaction with the stylist directly affects the customer’s satisfaction.
B. The salon’s location is irrelevant to the customer’s experience.
C. The customer’s input is not important during the service.
D. The price of the service is the only factor affecting satisfaction.
74. Which of the following is a key challenge in managing service capacity?
A. Matching fluctuating demand with fixed capacity.
B. Standardizing service processes to ensure consistency.
C. Minimizing customer interaction to reduce variability.
D. Lowering prices to attract more customers.
75. What is the ‘service-dominant logic’ perspective?
A. Focuses on the exchange of skills and knowledge rather than tangible outputs.
B. Emphasizes the importance of physical goods in creating value.
C. Prioritizes cost reduction in service delivery.
D. Minimizes customer involvement in the service process.
76. What does ‘intangibility’ mean in the context of service marketing?
A. Services cannot be touched or seen before purchase.
B. Services are always delivered face-to-face.
C. Services are easily copied by competitors.
D. Services are always customized to individual needs.
77. Which of the following is NOT a unique characteristic of services compared to products?
A. Intangibility
B. Perishability
C. Heterogeneity
D. Standardization
78. What is the primary focus of relationship marketing in the service industry?
A. Building and maintaining long-term relationships with customers.
B. Focusing on short-term sales and transactions.
C. Minimizing customer interaction to reduce costs.
D. Offering standardized services to all customers.
79. What is the ‘zone of tolerance’ in service marketing?
A. The range of service performance that a customer finds acceptable.
B. The maximum price a customer is willing to pay for a service.
C. The time a customer is willing to wait for a service.
D. The level of customization a customer expects from a service.
80. How can a gym manage its service capacity during peak hours?
A. Offering off-peak discounts and encouraging members to use the gym at less crowded times.
B. Increasing membership fees during peak hours.
C. Limiting the number of members who can use the gym at any given time.
D. Reducing the number of classes offered during peak hours.
81. Which of the following is a way to manage the heterogeneity of services?
A. Implementing strict quality control measures and training programs.
B. Reducing customer interaction to minimize variability.
C. Offering standardized service packages.
D. Hiring only experienced employees.
82. Which of the following is a benefit of relationship marketing for a service provider?
A. Increased customer loyalty and repeat business.
B. Reduced marketing costs due to less need for advertising.
C. Higher prices due to increased perceived value.
D. All of the above.
83. What is the ‘gap model of service quality’?
A. A framework that identifies potential gaps in service delivery that can lead to customer dissatisfaction.
B. A method for measuring the difference between customer expectations and perceptions.
C. A strategy for closing the gap between service promises and actual delivery.
D. A model for understanding the customer decision-making process.
84. How can a restaurant address the perishability of its services?
A. Offering early-bird discounts to fill empty tables during off-peak hours.
B. Reducing the number of items on the menu.
C. Closing the restaurant during slow periods.
D. Increasing prices during peak hours.
85. Which of the following is an example of a service?
A. A haircut
B. A mobile phone
C. A bottle of water
D. A pair of shoes
86. What is the role of employees in service delivery?
A. Employees are a crucial part of the service product and directly impact customer satisfaction.
B. Employees are primarily responsible for maintaining physical facilities.
C. Employees have limited interaction with customers.
D. Employees follow strict guidelines with no room for creativity.
87. What does ‘heterogeneity’ refer to in the context of service marketing?
A. Services are variable and inconsistent in quality.
B. Services are always provided to diverse customer groups.
C. Services are difficult to standardize.
D. Services require a variety of resources to deliver.
88. Which of the following is an example of customer co-creation in a hotel?
A. A guest providing feedback on their stay through an online survey.
B. The hotel offering a loyalty program to frequent guests.
C. The hotel providing complimentary breakfast to all guests.
D. A guest using the hotel’s laundry service.
89. Which of the following strategies can a service provider use to address the challenge of intangibility?
A. Offering warranties and guarantees.
B. Focusing on price promotions.
C. Limiting customer interaction.
D. Reducing employee training.
90. What is ‘physical evidence’ in service marketing?
A. The tangible elements that customers use to evaluate service quality.
B. The skills and knowledge of service employees.
C. The promises made by service providers in their advertising.
D. The price charged for the service.
91. A service provider offering personalized service based on customer preferences is addressing which service characteristic?
A. Intangibility
B. Perishability
C. Heterogeneity
D. Inseparability
92. How can technology be used to reduce heterogeneity in service delivery?
A. By eliminating human interaction completely.
B. By standardizing service processes and providing consistent information.
C. By increasing the cost of service delivery.
D. By making services more intangible.
93. Which is NOT a typical gap in the Gaps Model of Service Quality?
A. The Knowledge Gap
B. The Standards Gap
C. The Delivery Gap
D. The Promotion Gap
94. Which of the following best describes ‘heterogeneity’ in service marketing?
A. The consistency of service performance across different customers and encounters.
B. The variability in service quality from one delivery to the next.
C. The standardization of service processes.
D. The uniformity of service offerings.
95. What is the potential consequence of failing to manage service expectations?
A. Increased customer loyalty
B. Higher service quality
C. Customer dissatisfaction and negative word-of-mouth
D. Reduced employee turnover
96. Which of the following is a challenge in measuring service quality?
A. Services are tangible and easily measured.
B. Customer perceptions are subjective and variable.
C. Service quality is always consistent.
D. There are standardized metrics for all services.
97. What does ’empowerment’ of service employees mean?
A. Giving employees the authority to make decisions and solve customer problems.
B. Strictly controlling employee behavior to ensure consistency.
C. Limiting employee interaction with customers.
D. Reducing employee training to save costs.
98. Which of the following is an example of ‘tangible evidence’ used to market a service?
A. A money-back guarantee
B. A clean and well-maintained waiting area
C. Friendly and helpful employees
D. A positive online review
99. What is the ‘Standards Gap’ in the Gaps Model of Service Quality?
A. The difference between the service quality specifications and the actual service delivery.
B. A difference between customer expectations and management perceptions of those expectations.
C. A discrepancy between management’s perceptions of customer expectations and the service quality specifications.
D. The difference between the actual service delivery and the service communicated to customers.
100. A service blueprint is a tool used to:
A. Map out the customer journey and service processes.
B. Analyze the financial performance of a service.
C. Develop a marketing plan for a service.
D. Train employees on customer service skills.
101. The ‘inseparability’ characteristic of services refers to:
A. The difficulty in separating the service from the service provider.
B. The inability to distinguish one service from another.
C. The fact that services cannot be stored.
D. The close relationship between a service and its price.
102. What is the ‘Communications Gap’ in the Gaps Model of Service Quality?
A. The difference between the service quality specifications and the actual service delivery.
B. The difference between the actual service delivery and the service communicated to customers.
C. A difference between customer expectations and management perceptions of those expectations.
D. A discrepancy between management’s perceptions of customer expectations and the service quality specifications.
103. What role do customer contact employees play in service delivery?
A. They have no impact on service quality.
B. They are the service in the customer’s eyes.
C. They are only responsible for administrative tasks.
D. They are not important for service success.
104. Which of the following is a strategy for managing demand in service businesses?
A. Increasing prices during peak demand
B. Decreasing service quality during peak demand
C. Ignoring fluctuations in demand
D. Reducing employee training
105. A restaurant implementing a customer feedback system to improve service is addressing which aspect of service quality?
A. Intangibility
B. Heterogeneity
C. Perishability
D. Inseparability
106. Which of the following is NOT a unique characteristic of services compared to tangible goods?
A. Perishability
B. Heterogeneity
C. Tangibility
D. Intangibility
107. Which of the following is a key component of the ‘SERVQUAL’ model?
A. Price
B. Promotion
C. Reliability
D. Place
108. What is the ‘Delivery Gap’ in the Gaps Model of Service Quality?
A. The difference between the service quality specifications and the actual service delivery.
B. A difference between customer expectations and management perceptions of those expectations.
C. A discrepancy between management’s perceptions of customer expectations and the service quality specifications.
D. The difference between the actual service delivery and the service communicated to customers.
109. A hotel offering discounted rates for rooms during off-peak seasons is an example of managing which service characteristic?
A. Intangibility
B. Inseparability
C. Perishability
D. Heterogeneity
110. Which of the following is an example of ‘internal marketing’ in a service organization?
A. Advertising services to potential customers.
B. Training and motivating employees to deliver excellent service.
C. Conducting market research to understand customer needs.
D. Developing a pricing strategy for services.
111. In the context of services, ‘assurance’ refers to:
A. The physical appearance of facilities, equipment, personnel, and communication materials.
B. The willingness to help customers and provide prompt service.
C. The knowledge and courtesy of employees and their ability to convey trust and confidence.
D. The caring, individualized attention the firm provides its customers.
112. A call center implementing a script for customer service representatives is an attempt to manage:
A. Perishability
B. Intangibility
C. Heterogeneity
D. Inseparability
113. What is the primary goal of relationship marketing in the service industry?
A. To attract as many new customers as possible.
B. To build and maintain long-term customer relationships.
C. To minimize customer contact and interaction.
D. To offer the lowest possible prices.
114. To address the ‘intangibility’ of services, marketers often:
A. Focus on tangible cues and physical evidence.
B. Reduce the price of the service.
C. Standardize the service process.
D. Limit customer interaction.
115. Which of the following is a key benefit of using service blueprints?
A. Identifying potential failure points in the service process.
B. Increasing customer complaints.
C. Reducing employee motivation.
D. Ignoring customer feedback.
116. How does ‘service recovery’ impact customer satisfaction?
A. It always leads to decreased customer satisfaction.
B. It can increase customer satisfaction if handled effectively.
C. It has no impact on customer satisfaction.
D. It only matters for new customers, not loyal ones.
117. What does ‘perishability’ mean in the context of service marketing?
A. Services cannot be inventoried or stored for later use.
B. Services are easily damaged or destroyed.
C. Services have a short life cycle.
D. Services are always of low quality.
118. What is the ‘zone of tolerance’ in service quality?
A. The range of service performance that a customer finds acceptable.
B. The area where service providers are allowed to make mistakes.
C. The maximum level of service quality that can be achieved.
D. The minimum price a customer is willing to pay for a service.
119. In service marketing, ‘responsiveness’ means:
A. The ability to perform the promised service dependably and accurately.
B. The willingness to help customers and provide prompt service.
C. The knowledge and courtesy of employees and their ability to convey trust and confidence.
D. The caring, individualized attention the firm provides its customers.
120. The ‘Knowledge Gap’ in service quality arises from:
A. A difference between customer expectations and management perceptions of those expectations.
B. A discrepancy between management’s perceptions of customer expectations and the service quality specifications.
C. The difference between the service quality specifications and the actual service delivery.
D. The difference between the actual service delivery and the service communicated to customers.
121. A restaurant employee resolving a customer complaint about a late food order is an example of:
A. Internal marketing.
B. External marketing.
C. Interactive marketing.
D. Supply chain management.
122. Which strategy can a service firm use to address the challenge of ‘perishability’?
A. Standardizing service delivery.
B. Implementing a reservation system.
C. Increasing employee training.
D. Focusing on tangible cues.
123. Which of the following best describes ‘heterogeneity’ in service marketing?
A. The consistent quality of a service across different providers.
B. The uniformity of service delivery regardless of customer.
C. The variability in service quality across different providers and customers.
D. The standardization of a service to reduce costs.
124. What does ‘external marketing’ involve in the Services Marketing Triangle?
A. Managing relationships between employees.
B. Setting customer expectations and making promises to customers.
C. Developing new service offerings.
D. Improving internal communication.
125. What is ‘internal marketing’ focused on within the context of the Services Marketing Triangle?
A. Managing the company’s brand image.
B. Enabling the promises between the company and its customers.
C. Equipping, enabling, and motivating employees to deliver customer satisfaction.
D. Attracting new customers to the business.
126. A hotel chain implementing a new training program for its front desk staff to improve customer service is an example of:
A. External marketing.
B. Internal marketing.
C. Interactive marketing.
D. Product marketing.
127. What is ‘perishability’ in the context of service marketing?
A. Services can be stored for later use.
B. Services cannot be stored, resold, or returned.
C. Services can be easily returned if not satisfied.
D. Services are durable and last a long time.
128. To address the ‘heterogeneity’ of services, a company might:
A. Offer lower prices during off-peak hours.
B. Implement rigorous quality control measures and standardized processes.
C. Increase advertising spending.
D. Reduce the number of service employees.
129. What is the primary goal of ‘service recovery’?
A. To prevent service failures from occurring.
B. To restore customer satisfaction after a service failure.
C. To reduce the cost of service delivery.
D. To increase employee productivity.
130. How does ‘word-of-mouth’ marketing impact service businesses?
A. It is less important than traditional advertising.
B. It has a significant impact due to the intangible nature of services.
C. It is primarily effective for tangible goods.
D. It is easily controlled by the company.
131. What does ‘inseparability’ refer to in the context of service marketing?
A. The service cannot be separated from its price.
B. The service cannot be separated from its provider or consumed separately.
C. The service cannot be separated from its distribution channel.
D. The service cannot be separated from its marketing campaign.
132. Which of the following is a primary implication of ‘intangibility’ for service marketers?
A. Services are easy to standardize.
B. Customers can easily evaluate the service before purchase.
C. Services are difficult to promote and differentiate.
D. Services can be easily patented.
133. How can a service provider effectively manage demand during peak periods?
A. Increase prices during peak periods.
B. Offer discounts during peak periods.
C. Reduce employee staffing during peak periods.
D. Ignore customer wait times.
134. Which of the following is a key challenge presented by the ‘inseparability’ of services?
A. Maintaining consistent service quality.
B. Storing excess service capacity.
C. Standardizing service delivery processes.
D. Separating service production from consumption.
135. An advertising campaign promising ‘fast and reliable internet service’ is an example of:
A. Internal marketing.
B. Interactive marketing.
C. External marketing.
D. Operations management.
136. Which of the following is a potential consequence of poor service quality?
A. Increased customer loyalty.
B. Positive word-of-mouth referrals.
C. Decreased customer retention and negative word-of-mouth.
D. Higher employee satisfaction.
137. Which of the following is an example of a ‘tangible cue’ used to enhance the perception of a service?
A. A friendly phone greeting.
B. A clean and well-decorated waiting room.
C. A prompt email response.
D. A helpful customer service representative.
138. Which of the following is a key element of building a strong service brand?
A. Focusing solely on price promotions.
B. Delivering consistent and reliable service experiences.
C. Ignoring customer feedback.
D. Reducing employee training budgets.
139. A service company that empowers its employees to resolve customer issues on the spot is practicing:
A. Autocratic management.
B. Bureaucratic management.
C. Service leadership.
D. Micromanagement.
140. What is ‘service culture’?
A. The technology used to deliver services.
B. The specific training provided to service employees.
C. A culture that supports customer service through policies, procedures, reward systems, and actions.
D. The physical environment where services are delivered.
141. What is ‘interactive marketing’ concerned with in the Services Marketing Triangle?
A. Managing the company’s finances.
B. Managing the ‘moment of truth’ when the customer interacts with the service provider.
C. Managing the supply chain.
D. Managing the company’s legal compliance.
142. What is the ‘SERVQUAL’ model used for?
A. Measuring employee satisfaction.
B. Measuring the gap between customer expectations and perceptions of service quality.
C. Measuring the cost of service delivery.
D. Measuring the effectiveness of advertising campaigns.
143. Why is customer participation important in service delivery?
A. It reduces the cost of service provision.
B. It increases the standardization of services.
C. It can influence the service outcome and customer satisfaction.
D. It simplifies the service process.
144. Which of the following is a way to manage customer expectations in service marketing?
A. Over-promising and under-delivering.
B. Under-promising and over-delivering.
C. Ignoring customer feedback.
D. Reducing communication with customers.
145. In the ‘Services Marketing Triangle’, who are the key players?
A. Company, Customers, and Competitors.
B. Company, Employees, and Customers.
C. Management, Employees, and Suppliers.
D. Marketing, Operations, and Finance.
146. What is the role of technology in service delivery?
A. To replace human interaction entirely.
B. To standardize service delivery and improve efficiency.
C. To reduce the importance of customer service.
D. To eliminate the need for employee training.
147. Which of the following is NOT a key characteristic that distinguishes services from goods?
A. Perishability
B. Intangibility
C. Heterogeneity
D. Homogeneity
148. Which of the following is a key component of a ‘service blueprint’?
A. A financial statement.
B. A detailed map of the customer service process.
C. A marketing budget.
D. A list of competitors.
149. Which of the following is a benefit of customer relationship management (CRM) in service marketing?
A. Reducing the need for customer service representatives.
B. Increasing the cost of acquiring new customers.
C. Improving customer loyalty and retention through personalized service.
D. Standardizing service delivery for all customers.
150. What is the ‘zone of tolerance’ in service marketing?
A. The area where service failures are acceptable.
B. The range of service performance that a customer finds satisfactory.
C. The maximum price a customer is willing to pay for a service.
D. The geographical area where a service is offered.
