1. What is ‘yield management’ in the context of service marketing?
A. A strategy for maximizing revenue from a fixed capacity.
B. A method for reducing service delivery costs.
C. A technique for improving service quality.
D. A system for managing customer relationships.
2. What is the ‘SERVQUAL’ model used for?
A. Measuring service quality dimensions.
B. Analyzing financial performance.
C. Developing marketing strategies.
D. Managing customer relationships.
3. What is the role of ‘tangible cues’ in service marketing?
A. To provide physical evidence of service quality.
B. To replace the need for customer service.
C. To reduce the cost of service delivery.
D. To simplify the service process.
4. What is the ‘zone of tolerance’ in service marketing?
A. The acceptable range of service quality a customer is willing to accept.
B. The area where service providers are allowed to operate.
C. The maximum number of customers a service can accommodate.
D. The time frame within which a service must be delivered.
5. Which of the following is an example of ‘service standardization’?
A. A fast-food chain using a consistent recipe and preparation process across all locations.
B. A customized consulting service tailored to each client’s unique needs.
C. A hotel offering different amenities based on customer loyalty status.
D. A hair salon allowing each stylist to use their own unique techniques.
6. How can a service firm best manage customer expectations?
A. By promising only what they can realistically deliver.
B. By consistently exceeding customer expectations.
C. By ignoring customer feedback.
D. By focusing solely on cost reduction.
7. Which of the following is a key aspect of ‘service culture’?
A. A shared focus on delivering exceptional customer service.
B. A strict adherence to company policies and procedures.
C. A hierarchical organizational structure.
D. A focus on cost minimization above all else.
8. How can technology be used to overcome the challenges of ‘inseparability’ in service delivery?
A. By creating self-service options and automated services.
B. By increasing face-to-face interactions.
C. By reducing employee training budgets.
D. By limiting customer feedback channels.
9. How can a service firm reduce the ‘Delivery Gap’?
A. By improving internal communication and teamwork.
B. By managing customer expectations more effectively.
C. By conducting more market research.
D. By setting more realistic service standards.
10. How does ‘perishability’ impact the marketing of services?
A. It necessitates focusing on cost leadership.
B. It requires managing supply and demand carefully.
C. It allows for easy storage and inventory management.
D. It simplifies the process of quality control.
11. What is ‘critical incident technique’ used for in service marketing?
A. Identifying key service encounters that shape customer perceptions.
B. Analyzing financial performance of service operations.
C. Developing marketing communication strategies.
D. Training employees on customer service skills.
12. Which of the following is a key benefit of customer loyalty programs in the service industry?
A. Reduced marketing costs and increased customer retention.
B. Increased pricing flexibility.
C. Simplified service delivery processes.
D. Improved employee morale.
13. Which strategy is most effective in addressing the ‘heterogeneity’ of services?
A. Implementing strict pricing controls
B. Investing in employee training and standardization
C. Focusing on mass customization
D. Ignoring variations in service delivery
14. What is the importance of ’employee empowerment’ in service delivery?
A. It allows employees to make decisions and resolve customer issues independently.
B. It reduces the need for employee training.
C. It simplifies the service delivery process.
D. It eliminates the need for management oversight.
15. In the SERVQUAL model, ‘reliability’ refers to:
A. The ability to perform the promised service dependably and accurately.
B. The knowledge and courtesy of employees and their ability to convey trust and confidence.
C. The appearance of physical facilities, equipment, personnel, and communication materials.
D. The caring, individualized attention the firm provides its customers.
16. Which of the following best describes ‘inseparability’ in the context of services?
A. Services cannot be separated from their pricing strategy.
B. Services are produced and consumed simultaneously.
C. Services are not distinct from tangible goods.
D. Services cannot be separated from the company’s brand image.
17. Which of the following is a key component of a service blueprint?
A. Line of Interaction
B. Profit Margin Analysis
C. Competitive Benchmarking
D. Market Segmentation
18. Which of the following is NOT a gap in the Gaps Model of Service Quality?
A. Knowledge Gap
B. Policy Gap
C. Delivery Gap
D. Promotion Gap
19. What is the focus of ‘Service Blueprinting’?
A. Mapping out the customer journey and service processes.
B. Analyzing financial performance of service operations.
C. Developing marketing communication strategies.
D. Training employees on customer service skills.
20. Which of the following is a strategy to manage ‘perishability’ in the airline industry?
A. Overbooking flights
B. Reducing flight frequency
C. Increasing baggage fees
D. Offering only first-class seating
21. How does ‘word-of-mouth’ marketing impact service businesses?
A. It is highly influential due to the intangible nature of services.
B. It is less important than traditional advertising.
C. It is primarily used for promoting new services.
D. It is difficult to measure and control.
22. What is the primary challenge posed by the ‘intangibility’ of services for marketers?
A. Difficulty in standardizing service delivery
B. Customers cannot sample the service before purchase
C. Services cannot be protected by patents
D. Setting prices for services is complex
23. What does the ‘Knowledge Gap’ in the Gaps Model represent?
A. The difference between customer expectations and management perceptions of those expectations.
B. The difference between service quality specifications and actual service delivery.
C. The difference between perceived service and expected service.
D. The difference between service delivery and external communications.
24. A restaurant using customer feedback to improve its menu and service is an example of:
A. Service recovery
B. Continuous improvement
C. Demand management
D. Internal marketing
25. What is the ‘Communication Gap’ in the Gaps Model of Service Quality?
A. The difference between service delivery and external communications.
B. The difference between customer expectations and management perceptions of those expectations.
C. The difference between service quality specifications and actual service delivery.
D. The difference between perceived service and expected service.
26. What is ‘service recovery’ in the context of service marketing?
A. The process of retrieving lost customers.
B. The actions taken to correct a service failure.
C. The strategy for preventing service failures.
D. The method of evaluating service performance.
27. Which of the following is an example of managing ‘demand’ to address perishability in a service business?
A. Offering discounts during off-peak hours
B. Implementing strict quality control measures
C. Hiring additional staff during peak seasons
D. Creating a customer loyalty program
28. What is the main purpose of ‘internal marketing’ in service organizations?
A. To promote services to external customers.
B. To train employees to deliver excellent customer service.
C. To sell the company’s products to its employees.
D. To align employees with the company’s service goals.
29. A hotel offering a ‘satisfaction guarantee’ is an example of which strategy?
A. Managing customer expectations
B. Service recovery
C. Demand management
D. Price discrimination
30. Which of the following is NOT a characteristic of services?
A. Intangibility
B. Perishability
C. Homogeneity
D. Inseparability
31. Which of the following is NOT a key aspect of the services marketing triangle?
A. Internal marketing
B. External marketing
C. Interactive marketing
D. Product marketing
32. Why is managing customer expectations particularly important in services marketing?
A. Because services are tangible
B. Because service quality is highly subjective and based on perception
C. Because services are always cheap
D. Because services are easy to standardize
33. A hospital prominently displays patient testimonials and awards in its lobby. This is an example of:
A. Service complexity
B. Physical evidence
C. Demand management
D. Ignoring customer feedback
34. A spa offers discounted rates for appointments booked during off-peak hours. This is a strategy for:
A. Increasing service complexity
B. Managing demand
C. Ignoring customer feedback
D. Decreasing service quality
35. What does ‘interactive marketing’ primarily involve in the context of services?
A. Marketing activities directed at employees
B. Marketing activities directed at shareholders
C. The ‘moment of truth’ when the service provider and customer interact
D. Advertising and promotional activities
36. What is the potential negative consequence of over-promising in external marketing?
A. Increased customer satisfaction
B. Decreased customer expectations
C. Customer dissatisfaction when the service doesn’t meet inflated expectations
D. Improved employee morale
37. Which of the following is an example of a service encounter?
A. A customer reading a company brochure
B. A customer interacting with a hotel receptionist
C. A customer driving past a company’s building
D. A company conducting market research
38. A local dry cleaner offers a ‘same-day service guarantee’ but frequently fails to meet this promise. What is the most likely customer outcome?
A. Increased customer loyalty
B. Positive word-of-mouth referrals
C. Customer dissatisfaction and negative reviews
D. Increased brand awareness
39. Which of the following is an example of ‘internal marketing’ in a service organization?
A. Running a television advertising campaign
B. Training employees on customer service skills
C. Developing a new service offering
D. Conducting market research
40. A gym offers personal training sessions with certified trainers. The trainer’s certification is an example of:
A. Service complexity
B. Physical evidence
C. Demand management
D. Ignoring customer feedback
41. A restaurant consistently receives complaints about slow service during peak hours. Applying the Gap Model, which gap is most likely the problem?
A. Gap 1: Knowledge Gap
B. Gap 2: Design and Standards Gap
C. Gap 3: Performance Gap
D. Gap 5: Service Gap
42. A consulting firm promises ‘expert advice’ in its marketing materials. However, clients feel the advice is generic and not tailored to their specific needs. Which gap is most relevant here?
A. Gap 1: Knowledge Gap
B. Gap 4: Communication Gap
C. Gap 3: Performance Gap
D. Gap 5: Service Gap
43. How can a service blueprint help improve service quality?
A. By increasing service complexity
B. By visualizing the service process and identifying potential failure points
C. By ignoring customer feedback
D. By decreasing service quality
44. A dentist’s office decorates its waiting room with calming colors, comfortable seating, and informative brochures. This focuses on:
A. Service complexity
B. Physical evidence
C. Demand management
D. Ignoring customer feedback
45. In the context of service quality, what does the ‘gap model’ help to identify?
A. Gaps in the market for new services
B. Differences in pricing strategies between competitors
C. Discrepancies between customer expectations and service delivery
D. Inefficiencies in the supply chain
46. A car rental company uses a sophisticated algorithm to predict demand and adjust pricing accordingly. What is this an example of?
A. Ignoring customer feedback
B. Demand management
C. Decreasing service quality
D. Increasing service complexity
47. A software company offers 24/7 customer support via phone, email, and chat. This is primarily aimed at:
A. Increasing service complexity
B. Improving interactive marketing
C. Managing demand
D. Decreasing service quality
48. A new restaurant offers a free appetizer to customers who experience a longer-than-expected wait time. This is an example of:
A. Increasing service complexity
B. Service recovery
C. Demand management
D. Decreasing service quality
49. Which of the following is NOT a strategy for managing service demand?
A. Using pricing strategies to shift demand
B. Developing complementary services
C. Ignoring customer feedback
D. Managing waiting lines
50. A service company empowers its frontline employees to resolve customer issues immediately, without needing managerial approval. This enhances:
A. External Marketing
B. Interactive Marketing
C. Internal Marketing
D. Demand Management
51. What is the primary goal of service recovery?
A. To avoid dealing with customer complaints
B. To turn dissatisfied customers into loyal ones
C. To minimize costs associated with service failures
D. To punish employees responsible for service failures
52. What is a key challenge associated with managing demand in services?
A. Services can be easily stored for later use
B. Demand for services is always consistent
C. Services are perishable and cannot be inventoried
D. Service demand is unaffected by external factors
53. Which of the following is the most direct way to manage customer expectations in service delivery?
A. Over-promising in advertising
B. Under-promising and over-delivering
C. Ignoring customer feedback
D. Setting unrealistic service standards
54. A hotel implements a system for automatically tracking and responding to online reviews. This contributes to:
A. Decreasing employee morale
B. Ignoring customer feedback
C. Improving service recovery
D. Increasing service complexity
55. A small accounting firm relies heavily on word-of-mouth referrals. Which aspect of the services marketing triangle is MOST crucial for its success?
A. External marketing
B. Internal marketing
C. Interactive marketing
D. All three are equally important
56. How does effective internal marketing contribute to interactive marketing?
A. By directly advertising to customers
B. By ensuring employees can deliver promised service quality during customer interactions
C. By managing physical evidence
D. By ignoring customer feedback
57. A university conducts surveys to understand student satisfaction with its academic programs. This primarily addresses which gap in the Gap Model?
A. Gap 1: Knowledge Gap
B. Gap 2: Design and Standards Gap
C. Gap 3: Performance Gap
D. Gap 4: Communication Gap
58. What is the role of physical evidence in services marketing?
A. It is irrelevant in services marketing
B. It provides tangible cues about the service
C. It only applies to product-based businesses
D. It is solely about the price of the service
59. A hotel chain consistently updates its website with accurate descriptions and photos of its rooms and amenities. This primarily addresses which aspect of the services marketing triangle?
A. Internal Marketing
B. Interactive Marketing
C. External Marketing
D. Service Blueprinting
60. An airline trains its flight attendants to handle passenger complaints with empathy and efficiency. This is an example of:
A. External Marketing
B. Interactive Marketing
C. Internal Marketing
D. Demand Management
61. A hospital implements a new patient check-in system to reduce wait times. Which dimension of service quality (SERVQUAL) is the hospital trying to improve?
A. Reliability
B. Responsiveness
C. Empathy
D. Assurance
62. What does ‘heterogeneity’ (or variability) mean in the context of service characteristics?
A. Services are consistent and uniform across all customers.
B. Services are standardized and mass-produced.
C. Services are variable in quality and delivery, depending on the provider and customer.
D. Services are easily comparable to tangible goods.
63. What is the significance of ‘word-of-mouth’ marketing in service industries?
A. It is less credible than traditional advertising.
B. It has little impact on customer perceptions.
C. It is highly influential due to the intangible nature of services.
D. It is only effective for low-cost services.
64. What is the role of ‘service guarantees’ in service marketing?
A. To eliminate the need for employee training.
B. To reduce the company’s marketing budget.
C. To reduce customer expectations.
D. To reduce customer risk and build trust.
65. How does technology impact service delivery in modern businesses?
A. It always reduces the need for human interaction.
B. It can enhance efficiency, convenience, and customization.
C. It eliminates the need for service guarantees.
D. It always decreases customer satisfaction.
66. Which of the following best describes ‘inseparability’ in the context of service characteristics?
A. The service cannot be separated from the service provider or from other customers.
B. The service is distinct and easily distinguishable from competitors.
C. The service can be easily divided into smaller, standardized components.
D. The service is consistent in quality and delivery every time.
67. How does ‘service culture’ impact the quality of service delivery?
A. It has no impact on service delivery.
B. It shapes employee attitudes and behaviors, directly influencing service quality.
C. It only affects the marketing department.
D. It primarily focuses on cost reduction.
68. What is ‘perishability’ in service marketing, and how does it impact pricing strategies?
A. Perishability means services cannot be stored, leading to strategies like off-peak pricing.
B. Perishability means services improve with time, justifying premium pricing.
C. Perishability means services are easily replicable, requiring competitive pricing.
D. Perishability means services are durable, allowing for long-term contracts.
69. What is the role of ‘customer feedback’ in improving service quality?
A. It provides valuable insights for identifying areas of improvement.
B. It is irrelevant for service improvement.
C. It is only useful for large corporations.
D. It should be ignored to maintain consistency.
70. Which of the following is the best way to empower service employees?
A. By limiting their decision-making authority.
B. By providing them with the training, resources, and authority to resolve customer issues.
C. By closely monitoring their performance at all times.
D. By discouraging them from interacting with customers.
71. What is the primary difference between goods and services concerning inventory management?
A. Goods can be inventoried, while services generally cannot.
B. Services are always easier to inventory than goods.
C. Inventory management is equally important for both goods and services.
D. Goods cannot be customized, whereas services can.
72. A hotel provides free Wi-Fi, comfortable beds, and a clean environment. Which element of the extended marketing mix is the hotel focusing on?
A. Process
B. People
C. Physical Evidence
D. Promotion
73. What does the ‘process’ element of the services marketing mix refer to?
A. The physical environment where the service is delivered.
B. The steps and procedures involved in delivering the service.
C. The advertising campaigns used to promote the service.
D. The pricing strategy for the service.
74. What is the role of ‘customer participation’ in service delivery?
A. To decrease the level of customization.
B. To increase the standardization of the service.
C. To actively involve customers in the service production and consumption process.
D. To isolate customers from the service environment.
75. An airline trains its staff to handle customer complaints efficiently and empathetically. Which element of the extended marketing mix is the airline emphasizing?
A. Price
B. Product
C. People
D. Process
76. A consulting firm standardizes its consulting approach with a clear step-by-step method. Which element of the extended marketing mix is the firm focusing on?
A. Physical Evidence
B. Process
C. Promotion
D. People
77. Which of the following is NOT a key component of the services marketing mix (the 7 Ps)?
A. Product
B. Price
C. Physical Evidence
D. Profit
78. What is the ‘zone of tolerance’ in the context of service quality?
A. The range of service performance that a customer considers acceptable.
B. The area where service employees are allowed to make mistakes.
C. The physical space where a service is delivered.
D. The limit on how much a customer is willing to pay for a service.
79. How can a service company use ‘service blueprints’ to improve service delivery?
A. To design the physical layout of the service facility.
B. To map out the service process and identify potential points of failure.
C. To create a marketing plan for the service.
D. To track employee performance.
80. How can a company effectively manage customer expectations in service delivery?
A. By over-promising and under-delivering.
B. By setting realistic expectations and consistently delivering on them.
C. By ignoring customer feedback.
D. By focusing solely on price competition.
81. A customer is unhappy with a hotel stay because the room was not clean and the staff was unhelpful. Which dimension of service quality (SERVQUAL) is the hotel failing to meet?
A. Reliability and Assurance
B. Tangibles and Responsiveness
C. Empathy and Reliability
D. Assurance and Tangibles
82. A restaurant offers ‘early bird’ discounts to attract customers during off-peak hours. Which service characteristic is the restaurant addressing?
A. Intangibility
B. Inseparability
C. Perishability
D. Heterogeneity
83. Which of the following is NOT a typical strategy for managing demand in service businesses?
A. Using differential pricing (e.g., happy hour).
B. Developing complementary services.
C. Increasing employee salaries during peak times.
D. Using reservation systems.
84. What is the difference between ‘expected service’ and ‘desired service’ in the context of customer expectations?
A. Expected service is what the customer believes they will receive, while desired service is what they hope to receive.
B. Expected service is always higher than desired service.
C. Expected service and desired service are always the same.
D. Expected service is only relevant for new customers.
85. Which of the following is an example of a ‘high-contact’ service?
A. Online banking
B. Self-service car wash
C. Hair styling
D. Automated phone system
86. How can a service company best manage the challenge of ‘variability’ in service quality?
A. By ignoring customer feedback to maintain consistency.
B. By implementing strict standardization and quality control measures.
C. By focusing solely on price competition.
D. By reducing the number of service employees.
87. What is ‘service recovery’ and why is it important?
A. It refers to avoiding service failures altogether.
B. It refers to the actions taken to correct a service failure and retain customer goodwill.
C. It refers to a cost-cutting strategy to reduce service expenses.
D. It refers to the initial design of a service offering.
88. What is ‘internal marketing’ in the context of service businesses?
A. Marketing services only to employees.
B. Marketing services to international customers.
C. Training and motivating employees to deliver excellent customer service.
D. Promoting services through internal company newsletters.
89. How does the ‘people’ element of the services marketing mix impact customer satisfaction?
A. It ensures consistent pricing across all service offerings.
B. It focuses on the training, attitude, and skills of service employees.
C. It promotes the service through various advertising channels.
D. It streamlines the service delivery process for efficiency.
90. Which of the following is the best example of ‘physical evidence’ in a service setting?
A. A friendly smile from a service employee.
B. The comfortable and clean waiting room of a dental office.
C. The speed at which a customer service representative answers the phone.
D. The helpfulness of online FAQs on a company website.
91. What is the ‘zone of tolerance’ in service quality?
A. The range of service performance that a customer considers acceptable.
B. The area where service employees are allowed to make mistakes.
C. The time period when service failures are tolerated.
D. The physical space where the service is delivered.
92. Which of the following is a key factor in building customer loyalty in service industries?
A. Offering the lowest prices.
B. Providing consistent and reliable service.
C. Avoiding customer interaction.
D. Focusing solely on acquiring new customers.
93. Which of the following is the best example of a ‘people’ element in the service marketing mix?
A. The design of the company website.
B. The skills and attitudes of customer service representatives.
C. The pricing strategy for the service.
D. The location of the service facility.
94. A customer books a hotel room but finds the room is not as clean as advertised online. Which service quality gap is most likely the cause?
A. The knowledge gap.
B. The standards gap.
C. The delivery gap.
D. The communications gap.
95. What is ‘perishability’ in the context of services marketing?
A. Services can be stored for later use.
B. Services cannot be inventoried.
C. Services are always consistent in quality.
D. Services are easily transported.
96. What is the ‘knowledge gap’ in the service quality gap 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 service delivery.
D. The difference between service delivery and external communications.
97. A restaurant consistently receives complaints that the food is not prepared according to the customer’s requests. Which service quality gap is most likely the cause?
A. The knowledge gap.
B. The standards gap.
C. The delivery gap.
D. The communications gap.
98. Which of the following is an example of managing the ‘physical evidence’ element in the services marketing mix?
A. Training employees to be friendly and helpful.
B. Offering competitive pricing.
C. Designing a clean and appealing waiting area.
D. Developing a strong brand reputation.
99. Which of the following is NOT a key characteristic that distinguishes services from goods?
A. Intangibility
B. Perishability
C. Homogeneity
D. Inseparability
100. Which of the following is a challenge unique to services marketing compared to product marketing?
A. Setting a competitive price.
B. Managing inventory effectively.
C. Ensuring consistent quality across all locations.
D. Creating a strong brand identity.
101. What is ‘search quality’ in the context of service evaluation?
A. Attributes a consumer can determine after purchase.
B. Attributes a consumer can determine before purchase.
C. Attributes a consumer can determine during consumption.
D. Attributes that are impossible to evaluate.
102. Which of the following best describes ‘credence qualities’ in service evaluation?
A. Attributes that are easy to evaluate before purchase.
B. Attributes that can be evaluated during the service encounter.
C. Attributes that are difficult to evaluate even after consumption.
D. Attributes related to the price of the service.
103. What is the primary purpose of a ‘service blueprint’?
A. To design the physical layout of a service facility.
B. To visualize the steps and processes involved in service delivery.
C. To create a marketing plan for a new service.
D. To train employees on customer service skills.
104. Which of the following is a strategy for managing service capacity?
A. Ignoring customer waiting lines.
B. Hiring part-time employees during peak seasons.
C. Reducing service quality during busy periods.
D. Discouraging customer feedback.
105. Which of the following is a key dimension of service quality in the SERVQUAL model?
A. Price.
B. Reliability.
C. Location.
D. Advertising.
106. What does ‘inseparability’ mean in the context of services marketing?
A. Services cannot be distinguished from goods.
B. Services are produced and consumed simultaneously.
C. Services are not related to customer involvement.
D. Services are standardized across all customers.
107. Which type of service failure is typically the most difficult to recover from?
A. A minor inconvenience.
B. A service delay.
C. A failure that is perceived as unjust or unfair.
D. A technical malfunction.
108. Why is it important to manage customer expectations in services marketing?
A. To reduce the cost of providing the service.
B. To increase customer satisfaction and loyalty.
C. To simplify the service delivery process.
D. To avoid the need for service recovery.
109. Which of the following strategies is most effective in managing fluctuating demand for services?
A. Reducing employee training programs.
B. Ignoring demand fluctuations and maintaining consistent service levels.
C. Implementing differential pricing strategies.
D. Decreasing marketing efforts during peak demand.
110. A service provider consistently delivers the promised service on time and without errors. Which dimension of SERVQUAL is being demonstrated?
A. Assurance.
B. Empathy.
C. Responsiveness.
D. Reliability.
111. What is the ‘SERVQUAL’ model used for in services marketing?
A. To measure employee satisfaction.
B. To assess the financial performance of a service firm.
C. To evaluate customer perceptions of service quality.
D. To develop new service offerings.
112. Which of the following is a key component of the ‘process’ element in the services marketing mix?
A. The physical environment where the service is delivered.
B. The steps and procedures involved in delivering the service.
C. The skills and knowledge of the service employees.
D. The price charged for the service.
113. What is the primary goal of ‘internal marketing’ in service organizations?
A. To promote services to external customers.
B. To train and motivate employees to deliver excellent service.
C. To reduce marketing expenses.
D. To analyze competitor strategies.
114. Which of the following is a proactive approach to service recovery?
A. Ignoring customer complaints.
B. Contacting customers after the service to gather feedback.
C. Waiting for customers to complain before taking action.
D. Hiding service failures from management.
115. Which of the following is NOT a typical component of a service blueprint?
A. Line of interaction.
B. Line of visibility.
C. Line of internal interaction.
D. Line of employee motivation.
116. A company decides to offer a discount to customers who book appointments during off-peak hours. This is an example of which demand management strategy?
A. Increasing supply.
B. Decreasing supply.
C. Shifting demand.
D. Ignoring demand.
117. Which of the following is a strategy for reducing the ‘delivery gap’ in service quality?
A. Understanding customer expectations through research.
B. Setting realistic service standards.
C. Empowering employees to resolve customer issues.
D. Managing customer expectations through clear communication.
118. Which of the following is an example of ‘tangibilizing the intangible’ in services marketing?
A. Offering lower prices than competitors.
B. Providing guarantees and warranties.
C. Reducing the number of service employees.
D. Limiting customer interaction.
119. What is ‘interactive marketing’ in the context of services?
A. Marketing services through online channels.
B. Marketing that involves direct interaction between customers and service providers.
C. Marketing that focuses on promoting service features.
D. Marketing that targets internal employees.
120. What is the role of ‘service culture’ in a service organization?
A. To dictate strict rules and procedures for employees.
B. To foster a customer-oriented mindset among employees.
C. To minimize customer interaction.
D. To reduce training costs.
121. What is the ‘servuction system’?
A. A standardized process for delivering services.
B. The visible and invisible elements of a service organization that customers experience.
C. A system for training service employees.
D. A technology platform for managing service operations.
122. Which of the following is a key principle of Service-Dominant Logic (SDL)?
A. Goods are the fundamental unit of exchange.
B. Value is embedded in the product.
C. The customer is always a co-creator of value.
D. Operational efficiency is the primary goal.
123. Which of the following is a primary challenge resulting from the ‘intangibility’ of services?
A. Difficulty in standardizing service quality.
B. Customers’ difficulty in evaluating service quality before purchase.
C. High production costs due to customized service offerings.
D. Inability to protect services with patents.
124. Which gap in the Gaps Model of Service Quality is most directly influenced by employee training and empowerment?
A. Knowledge Gap (Gap 1)
B. Standards Gap (Gap 2)
C. Delivery Gap (Gap 3)
D. Communications Gap (Gap 4)
125. What is ‘perishability’ in the context of service marketing?
A. The tendency of services to degrade in quality over time.
B. The inability to store services for future use.
C. The high risk of service failure.
D. The short lifespan of a service business.
126. Which of the following is NOT a key characteristic that distinguishes services from goods?
A. Perishability
B. Heterogeneity
C. Tangibility
D. Inseparability
127. A restaurant offers ‘early bird’ discounts to attract customers during off-peak hours. Which characteristic of services is the restaurant addressing?
A. Intangibility
B. Inseparability
C. Heterogeneity
D. Perishability
128. Which gap in the Gaps Model of Service Quality refers to the difference between management’s perceptions of customer expectations and actual customer expectations?
A. Knowledge Gap (Gap 1)
B. Standards Gap (Gap 2)
C. Delivery Gap (Gap 3)
D. Communications Gap (Gap 4)
129. Which element of the servuction system refers to the physical environment where the service is delivered?
A. Contact Personnel
B. Invisible Organization
C. Servicescape
D. Other Customers
130. In the servuction system, who are considered ‘contact personnel’?
A. All employees of the service organization.
B. Employees who have direct interaction with customers.
C. Managers who oversee service operations.
D. Employees who work behind the scenes to support service delivery.
131. Which of the following is the most effective way to manage the ‘heterogeneity’ of a service?
A. Automating the service process to reduce human error.
B. Implementing strict quality control measures and standardization.
C. Hiring only highly experienced service providers.
D. Offering customized services to meet individual customer needs.
132. If a customer’s perception of service falls below their ‘adequate service’ level, what is the likely outcome?
A. Delight and increased loyalty.
B. Satisfaction and repeat business.
C. Dissatisfaction and potential switching to a competitor.
D. Indifference and no change in behavior.
133. What does ‘inseparability’ in service marketing refer to?
A. The service cannot be distinguished from the tangible goods sold with it.
B. The service is produced and consumed at the same time.
C. The service cannot be separated from its price.
D. The service is always sold as part of a package.
134. A consulting firm works closely with its clients to develop customized solutions. Which marketing philosophy does this approach align with?
A. Goods-Dominant Logic
B. Production Orientation
C. Sales Orientation
D. Service-Dominant Logic
135. A company promises ‘same-day delivery’ but frequently fails to meet this promise. Which gap in the Gaps Model of Service Quality is most evident?
A. Knowledge Gap (Gap 1)
B. Standards Gap (Gap 2)
C. Delivery Gap (Gap 3)
D. Communications Gap (Gap 4)
136. Which of the following strategies can a service provider use to narrow the zone of tolerance?
A. Providing consistent and reliable service.
B. Offering lower prices.
C. Reducing communication with customers.
D. Increasing variability in service delivery.
137. How does Service-Dominant Logic (SDL) differ from Goods-Dominant Logic?
A. SDL focuses on tangible outputs, while Goods-Dominant Logic focuses on intangible benefits.
B. SDL emphasizes the provider’s perspective, while Goods-Dominant Logic emphasizes the customer’s perspective.
C. SDL emphasizes the co-creation of value, while Goods-Dominant Logic emphasizes value embedded in the product.
D. SDL focuses on standardization, while Goods-Dominant Logic focuses on customization.
138. What factors influence a customer’s zone of tolerance?
A. Price and availability of the service.
B. Past experiences, word-of-mouth, and personal needs.
C. Advertising and promotional offers.
D. The service provider’s reputation and expertise.
139. Which of the following is NOT a key implication of Service-Dominant Logic (SDL) for marketing strategy?
A. Focus on building relationships with customers.
B. Emphasis on understanding customer needs and co-creating solutions.
C. Standardizing service offerings to ensure consistency.
D. Viewing customers as active participants in the value creation process.
140. What is ‘customer gap’ in the Gaps Model of Service Quality?
A. The difference between customer expectations and perceptions.
B. The difference between management perceptions and service quality specifications.
C. The difference between service delivery and external communications.
D. The difference between service quality specifications and service delivery.
141. A customer expects a hotel room to be clean and functional. This expectation represents which level of service?
A. Desired Service
B. Adequate Service
C. Predicted Service
D. Ideal Service
142. What is the ‘communications gap’ (Gap 4) in the Gaps Model of Service Quality?
A. The gap between customer expectations and perceptions.
B. The gap between management perceptions of customer expectations and service quality specifications.
C. The gap between service quality specifications and service delivery.
D. The gap between service delivery and external communications.
143. A hotel invests in creating a relaxing and aesthetically pleasing lobby. Which element of the servuction system is the hotel focusing on?
A. Contact Personnel
B. Invisible Organization
C. Servicescape
D. Other Customers
144. How can ‘other customers’ influence a customer’s service experience within the servuction system?
A. By providing feedback to the service provider.
B. By setting expectations for service quality.
C. By directly interacting with the customer, positively or negatively.
D. By influencing the design of the servicescape.
145. In Service-Dominant Logic (SDL), what is ‘value’ primarily determined by?
A. The cost of producing the service.
B. The features and benefits of the service.
C. The customer’s perception and experience of the service.
D. The service provider’s expertise and reputation.
146. What is ‘Service Dominant Logic’ (SDL) primarily focused on?
A. The tangible aspects of a service offering.
B. The value created through the exchange of services between parties.
C. The efficient production and delivery of services.
D. The standardization of service processes.
147. What is the ‘standards gap’ (Gap 2) in the Gaps Model of Service Quality?
A. The gap between customer expectations and perceptions.
B. The gap between management perceptions of customer expectations and service quality specifications.
C. The gap between service quality specifications and service delivery.
D. The gap between service delivery and external communications.
148. Which part of the servuction system is typically NOT visible to the customer?
A. Servicescape
B. Contact Personnel
C. Other Customers
D. Invisible Organization
149. What is ‘desired service’ in the context of the zone of tolerance?
A. The minimum level of service a customer will accept.
B. The level of service a customer hopes to receive.
C. The average level of service a customer typically receives.
D. The level of service a customer predicts they will receive.
150. What is the ‘zone of tolerance’ in service marketing?
A. The range of service performance that a customer finds acceptable.
B. The area within a service facility where customers are allowed.
C. The amount of time a customer is willing to wait for a service.
D. The price range a customer is willing to pay for a service.
