1. How does ‘word-of-mouth’ marketing impact service businesses?
A. It has a significant impact due to the intangible nature of services and the reliance on personal recommendations.
B. It has little impact because customers rely on advertising.
C. It only affects small businesses.
D. It is illegal in most countries.
2. How can a service company effectively manage customer expectations?
A. By consistently over-promising and under-delivering.
B. By communicating realistic and accurate information about the service.
C. By ignoring customer feedback.
D. By avoiding any form of communication with customers.
3. What is the role of ‘physical evidence’ in service marketing?
A. To provide tangible cues that signal service quality and create a favorable impression.
B. To reduce the cost of service delivery.
C. To replace the need for human interaction.
D. To confuse customers about the service offering.
4. What is ‘service culture’?
A. The shared values, beliefs, and norms within an organization that prioritize customer service.
B. A marketing campaign focused on promoting services.
C. A specific type of service offering.
D. The physical environment where services are delivered.
5. Which of the following is NOT a strategy for managing service demand?
A. Offering discounts during off-peak hours.
B. Implementing a reservation system.
C. Increasing employee training.
D. Using dynamic pricing.
6. Which of the following is a key benefit of effective internal marketing in a service organization?
A. Reduced employee turnover and increased employee motivation.
B. Lower marketing expenses.
C. Increased automation of service processes.
D. Higher prices for services.
7. Which of the following is a potential consequence of over-promising in service marketing?
A. Increased customer satisfaction.
B. Enhanced brand reputation.
C. Decreased customer loyalty and negative word-of-mouth.
D. Higher employee morale.
8. A restaurant consistently provides excellent food but has slow service. Which dimension of service quality, according to the SERVQUAL model, is lacking?
A. Reliability.
B. Assurance.
C. Tangibles.
D. Responsiveness.
9. A service provider is consistently rude to customers. Which dimension of service quality, according to the SERVQUAL model, is lacking?
A. Reliability.
B. Assurance.
C. Tangibles.
D. Empathy.
10. Why is managing demand important in service marketing?
A. To ensure that service capacity is efficiently utilized and to avoid periods of over or under-utilization.
B. To increase the price of services.
C. To reduce marketing expenses.
D. To discourage customer feedback.
11. A company focuses on providing personalized service and building strong relationships with its customers. What marketing approach is this?
A. Relationship marketing.
B. Transactional marketing.
C. Guerilla marketing.
D. Mass marketing.
12. A company advertises ‘fast and reliable service’. However, customers often experience delays. What is this an example of?
A. Effective service recovery.
B. A service guarantee.
C. A gap between the service promise and actual service delivery.
D. Excellent internal marketing.
13. What is the primary purpose of a service guarantee?
A. To reduce the company’s financial risk.
B. To encourage employees to provide better service.
C. To set clear standards for service performance and compensate customers for failures.
D. To increase marketing expenses.
14. How does ‘service recovery’ contribute to customer loyalty?
A. By preventing service failures from happening in the first place.
B. By turning dissatisfied customers into loyal advocates through effective problem resolution.
C. By reducing the cost of service delivery.
D. By attracting new customers.
15. Which of the following is the MOST important factor in managing customer perceptions of service quality?
A. The price of the service.
B. The speed of service delivery.
C. Consistently meeting or exceeding customer expectations.
D. The appearance of the service facility.
16. How can technology be used to enhance service delivery?
A. By automating processes, providing self-service options, and improving communication.
B. By eliminating the need for human interaction.
C. By increasing the cost of service delivery.
D. By confusing customers with complicated interfaces.
17. What is the purpose of ‘service blueprinting’?
A. To visually map out the service process, identify potential failure points, and improve service design.
B. To reduce marketing expenses.
C. To confuse customers with complicated processes.
D. To eliminate the need for employee training.
18. How does internal marketing contribute to bridging the ‘service delivery gap’?
A. By ensuring that employees understand and are committed to delivering the promised service.
B. By reducing marketing expenses.
C. By eliminating the need for customer feedback.
D. By confusing customers with complicated processes.
19. What does ‘integrated marketing communications’ (IMC) aim to achieve in service marketing?
A. To create a consistent and unified message across all communication channels.
B. To use only digital marketing channels.
C. To reduce marketing costs by using fewer channels.
D. To focus solely on advertising.
20. Which of the following is an example of ‘tangibilizing the intangible’ in service marketing?
A. Offering lower prices during off-peak seasons.
B. Providing detailed brochures and testimonials about the service.
C. Training employees to be more efficient.
D. Increasing advertising spending.
21. What is the role of ‘standardization’ in service processes?
A. To ensure consistency and efficiency in service delivery.
B. To eliminate the need for employee training.
C. To confuse customers with complicated processes.
D. To make services more expensive.
22. A customer complains about a service failure. What is the FIRST step the service provider should take?
A. Offer a discount on future services.
B. Listen attentively and acknowledge the customer’s frustration.
C. Explain why the service failure occurred.
D. Blame another department for the problem.
23. Which of the following is NOT a key element of effective internal marketing?
A. Treating employees as internal customers.
B. Communicating company goals and values to employees.
C. Providing employees with the necessary training and resources.
D. Ignoring employee feedback and suggestions.
24. Which of the following is a characteristic of services that makes them difficult to market?
A. Tangibility.
B. Perishability.
C. Homogeneity.
D. Storability.
25. Which of the following is an example of an ‘implicit service promise’?
A. A written contract outlining service terms.
B. The cleanliness and appearance of a doctor’s office.
C. A verbal agreement between a customer and a salesperson.
D. A money-back guarantee.
26. A company decides to offer a ‘satisfaction guarantee’ for its services. What is the potential benefit of this strategy?
A. Increased customer trust and reduced perceived risk.
B. Reduced marketing expenses.
C. Decreased service quality.
D. Confused customers.
27. What is a ‘service encounter’?
A. Any interaction between a customer and the service provider.
B. A formal complaint made by a customer.
C. The moment a customer pays for a service.
D. The process of designing a new service.
28. Which of the following is NOT a key challenge in managing service promises?
A. Ensuring customer participation in service delivery.
B. Over-promising to attract new customers.
C. Lack of integrated marketing communications.
D. Customers’ lack of understanding of the service offering.
29. What is the main benefit of using customer relationship management (CRM) systems in service marketing?
A. To personalize service offerings and improve customer loyalty.
B. To reduce marketing expenses.
C. To eliminate the need for customer service representatives.
D. To confuse customers with too much information.
30. A hotel promises ‘a comfortable and relaxing stay’ in its advertising. What type of service promise is this?
A. Implicit service promise.
B. Explicit service promise.
C. Secondary service promise.
D. Guaranteed service promise.
31. Which of the following is a key element of the ‘services marketing triangle’?
A. Company, Customers, Competitors
B. Internal Marketing, External Marketing, Interactive Marketing
C. Product, Price, Place
D. People, Process, Physical Evidence
32. Which of the following is a key benefit of using technology in service delivery?
A. Reduced customer interaction.
B. Increased service cost.
C. Enhanced efficiency and convenience.
D. Decreased service customization.
33. A car wash offers different levels of service (basic, deluxe, premium) at varying prices. This is an example of:
A. Inventory Management
B. Capacity Management
C. Service Product Line
D. Demand Forecasting
34. In service recovery, what is the ‘service recovery paradox’?
A. The phenomenon where customers become more loyal after a successful service recovery than if no failure had occurred.
B. The situation where service failures always lead to customer dissatisfaction.
C. The belief that service recovery is too expensive to implement.
D. The idea that service failures are inevitable and cannot be prevented.
35. A bank trains its employees to actively listen to customers and empathize with their concerns. This is an example of:
A. External Marketing
B. Interactive Marketing
C. Internal Marketing
D. Product Development
36. What is the role of ‘service blueprinting’ in service design?
A. To create a visual representation of the service process.
B. To develop a pricing strategy for the service.
C. To identify the target market for the service.
D. To measure customer satisfaction with the service.
37. A key difference between marketing goods and services is that services marketing places additional emphasis on:
A. Product features.
B. Pricing strategies.
C. People, process, and physical evidence.
D. Distribution channels.
38. A software company provides free online tutorials and a comprehensive knowledge base for its users. What is the primary purpose of this initiative?
A. To reduce customer expectations.
B. To manage customer expectations and improve service delivery.
C. To increase advertising costs.
D. To limit customer interaction.
39. A consulting firm offers a satisfaction guarantee, stating that clients don’t pay if they are not satisfied with the results. What service characteristic is the firm trying to address?
A. Inseparability
B. Heterogeneity
C. Intangibility
D. Perishability
40. A local dry cleaner implements a customer loyalty program. Which marketing objective is this program MOST likely designed to achieve?
A. Attracting new customers.
B. Increasing customer retention.
C. Reducing operating costs.
D. Improving employee satisfaction.
41. What is ‘inseparability’ in the context of service characteristics?
A. The inability to separate the service from the customer.
B. The simultaneous production and consumption of the service.
C. The difficulty in separating different service offerings.
D. The impossibility of separating the service from the service provider.
42. Which of the following strategies can a service business employ to manage demand when it exceeds capacity?
A. Decreasing prices during peak times.
B. Hiring temporary employees.
C. Ignoring the excess demand and hoping it resolves itself.
D. Reducing the service quality to serve more customers.
43. What is the primary goal of ‘internal marketing’ in a service organization?
A. To promote the company’s services to external customers.
B. To train employees to deliver consistent service quality.
C. To motivate and enable employees to deliver customer satisfaction.
D. To reduce marketing costs by focusing on existing customers.
44. What is ‘interactive marketing’ in the context of services?
A. Marketing that involves direct interaction with customers during service delivery.
B. Marketing that focuses on online channels and social media.
C. Marketing that is primarily targeted at internal employees.
D. Marketing that uses traditional advertising methods.
45. A gym offers a free personal training session to new members. What is the primary purpose of this offering?
A. To increase membership fees.
B. To reduce the gym’s operating costs.
C. To tangibilize the intangible service and demonstrate its value.
D. To limit the number of new members.
46. An airline consistently loses luggage and provides poor customer service during flight delays. What is the MOST likely outcome?
A. Increased customer loyalty.
B. Positive word-of-mouth referrals.
C. Decreased customer satisfaction and negative word-of-mouth.
D. Higher employee morale.
47. Which of the following is NOT a way to manage service promises effectively?
A. Over-promising to attract more customers.
B. Communicating realistic service outcomes.
C. Ensuring consistent service delivery.
D. Providing clear and transparent information about the service.
48. What is the most important aspect of a service guarantee?
A. It is easy to understand and communicate.
B. It is difficult for customers to use.
C. It is expensive to implement.
D. It is limited in scope.
49. Which of the following is an example of ‘tangibilizing the intangible’ in service marketing?
A. Offering a lower price than competitors.
B. Providing a detailed service guarantee.
C. Training employees to be more efficient.
D. Creating a visually appealing website.
50. Why is managing ‘customer expectations’ crucial in service marketing?
A. To ensure customers always have low expectations.
B. To increase the likelihood of customer satisfaction and loyalty.
C. To minimize the cost of service delivery.
D. To avoid any surprises during the service experience.
51. How does ‘physical evidence’ contribute to service marketing?
A. It increases the cost of service delivery.
B. It provides tangible cues that customers use to evaluate service quality.
C. It reduces the need for employee training.
D. It makes the service more difficult to copy by competitors.
52. Why is it important for service businesses to manage internal communications effectively?
A. To keep employees informed and motivated.
B. To reduce marketing expenses.
C. To limit customer feedback.
D. To control external messaging.
53. A hotel provides a welcome drink and a personalized note to each guest upon arrival. What aspect of the services marketing mix is being emphasized?
A. Process
B. Physical Evidence
C. People
D. Promotion
54. A restaurant consistently delivers high-quality food but the service is often slow and inattentive. Which aspect of the service marketing mix needs improvement?
A. Product
B. Price
C. People
D. Promotion
55. What is the importance of ’employee empowerment’ in service organizations?
A. To reduce employee salaries.
B. To enable employees to make decisions and solve customer problems independently.
C. To decrease the level of employee training required.
D. To centralize decision-making within the management team.
56. A law firm uses case studies and testimonials on its website. What service characteristic are they trying to address?
A. Perishability
B. Inseparability
C. Heterogeneity
D. Intangibility
57. Which of the following is NOT a key characteristic that distinguishes services from goods?
A. Intangibility
B. Perishability
C. Homogeneity
D. Inseparability
58. A small accounting firm struggles to compete with larger firms. What strategy can they use to differentiate their services effectively?
A. Lowering their prices significantly.
B. Focusing on a niche market and providing highly specialized services.
C. Increasing their advertising budget.
D. Expanding their service offerings to compete directly with larger firms.
59. In the context of services, what does ‘perishability’ refer to?
A. The ease with which a service can be copied by competitors.
B. The tendency for service quality to decline over time.
C. The inability to store or inventory services.
D. The degree to which a service is customized to meet individual customer needs.
60. A hair salon uses online booking and appointment reminders. Which of the following service challenges are they primarily addressing?
A. Heterogeneity
B. Perishability
C. Inseparability
D. Intangibility
61. Which of the following is a primary goal of service guarantees?
A. To increase prices without justification.
B. To reduce the company’s financial risk.
C. To reduce customer uncertainty and build confidence.
D. To complicate the service delivery process.
62. A cleaning service offers a guarantee: ‘If you’re not happy, we’ll re-clean for free.’ This aims to:
A. Increase operational costs.
B. Reduce employee motivation.
C. Reduce customer risk and build confidence.
D. Complicate the booking process.
63. A telecom company advertises ‘unlimited data’ but then throttles speeds after a certain usage level. This leads to:
A. Increased customer satisfaction.
B. Improved brand image.
C. Erosion of customer trust and negative publicity.
D. Higher employee retention rates.
64. A university open day, where prospective students can tour the campus and meet faculty, primarily aims to:
A. Persuade current students to stay enrolled.
B. Remind alumni of their past experiences.
C. Build awareness and educate potential students.
D. Maintain relationships with corporate sponsors.
65. A bank uses a mobile app to send personalized financial advice to its customers. This is an example of:
A. Replacing all human interaction.
B. Providing personalized and convenient communication channels.
C. Limiting customer access to information.
D. Increasing the complexity of the service process.
66. What role do service employees play in the services marketing communications mix?
A. They are irrelevant as they only focus on service delivery.
B. They are part of the ‘product’ element, not the communications mix.
C. They are a crucial part of the communications mix, delivering the service promise.
D. They only handle customer complaints and feedback.
67. A consulting firm showcases case studies with quantifiable results (e.g., ‘increased sales by 20%’). This is an example of:
A. Making services physically touchable.
B. Creating tangible cues and signals.
C. Converting services into tangible goods.
D. Focusing solely on the physical environment.
68. Which communication objective is most suitable for a new service entering the market?
A. Persuading customers to switch from competitors.
B. Reminding existing customers about the service.
C. Building awareness and educating potential customers.
D. Maintaining customer loyalty through reward programs.
69. A restaurant’s marketing promotes ‘fresh, local ingredients,’ but the kitchen uses frozen imports. This inconsistency leads to:
A. Stronger customer relationships.
B. Positive brand associations.
C. Damage to credibility and negative customer experiences.
D. Increased employee satisfaction.
70. A financial advisor offers a free initial consultation. What communication objective does this primarily serve?
A. Persuading customers to switch from competitors.
B. Reminding existing customers about the service.
C. Building awareness and educating potential customers.
D. Maintaining customer loyalty through reward programs.
71. What is the primary focus of Chapter 4 in a services marketing context?
A. Managing the organization’s finances and budget allocation.
B. Developing integrated services marketing communications strategies.
C. Analyzing competitor pricing strategies for tangible goods.
D. Optimizing the physical distribution channels for service delivery.
72. A small local bakery gets a lot of new customers because their friends recommended it. This is an example of:
A. A formal advertising campaign.
B. Direct mail marketing.
C. Word-of-mouth marketing.
D. A written guarantee.
73. How can technology be used to enhance service communications?
A. By replacing all human interaction with automated systems.
B. By providing personalized and convenient communication channels.
C. By limiting customer access to information.
D. By increasing the complexity of the service process.
74. An IT company promises 24/7 support but frequently fails to deliver. What is the likely consequence?
A. Increased customer satisfaction.
B. Enhanced brand reputation.
C. Damage to customer trust and negative word-of-mouth.
D. Improved employee morale.
75. In the context of service communication, what is ‘word-of-mouth’ marketing?
A. A formal advertising campaign using radio and television.
B. A type of direct mail marketing to potential customers.
C. Informal communication between customers about their service experiences.
D. A written guarantee provided to customers.
76. A local coffee shop gains popularity because customers share positive experiences on social media. This is a form of:
A. Paid advertising.
B. Direct marketing.
C. Word-of-mouth marketing.
D. Public relations.
77. Which of the following is NOT a key challenge in services communication, as highlighted in Chapter 4?
A. Intangibility of services.
B. Difficulty in evaluating service quality before purchase.
C. Managing customer expectations.
D. Standardization of service delivery across all locations.
78. What does ‘tangibilizing the intangible’ mean in the context of services marketing communications?
A. Making services physically touchable and transportable.
B. Creating tangible cues and signals to communicate service quality.
C. Converting services into tangible goods for easier distribution.
D. Focusing solely on the physical aspects of the service environment.
79. A car repair shop ensures its mechanics explain the repair process clearly to customers. This is an example of:
A. Ignoring the importance of communication.
B. Utilizing service employees in the communications mix.
C. Focusing solely on technical expertise.
D. Reducing the need for advertising.
80. An airline’s marketing department promises ‘on-time flights’ while the operations department struggles with frequent delays. What is the likely result?
A. Increased customer loyalty.
B. Successful advertising campaign.
C. Customer dissatisfaction and negative reviews.
D. Improved employee morale.
81. A fitness center displays before-and-after photos of clients. This is a way of:
A. Making the service physically touchable.
B. Providing tangible cues of results.
C. Converting the service into a product.
D. Focusing solely on the physical environment.
82. A new language learning app offers a free trial period. This mainly aims to:
A. Persuade existing users to upgrade.
B. Remind past users to re-subscribe.
C. Build awareness and attract new users.
D. Maintain loyalty among paying subscribers.
83. What is the significance of managing promises in services marketing communications?
A. It is not important as customers rarely remember promises.
B. It helps in setting unrealistic expectations to attract more customers.
C. It ensures that service delivery matches or exceeds customer expectations.
D. It only matters for high-end luxury services.
84. A dry cleaner offers a ‘money-back guarantee’ if customers are not satisfied. What does this primarily aim to do?
A. Increase prices.
B. Reduce the company’s financial risk.
C. Reduce customer uncertainty and build confidence.
D. Complicate the service delivery process.
85. A restaurant uses high-quality images of its dishes in its online menu. This is an example of:
A. Focusing on the physical aspects of the service environment.
B. Standardizing service delivery.
C. Tangibilizing the intangible.
D. Ignoring customer expectations.
86. A call center trains agents to empathize with customers. This is an example of:
A. Ignoring customer communication needs.
B. Using employees as part of the communications strategy.
C. Focusing only on technical support.
D. Reducing operational expenses.
87. An online retailer sends personalized product recommendations based on past purchases. This is using technology to:
A. Eliminate human interaction.
B. Provide tailored communication.
C. Restrict information access.
D. Increase website complexity.
88. Why is it important to coordinate internal and external marketing communications in services?
A. To confuse customers and create a sense of mystery.
B. To ensure consistent messaging and service delivery.
C. To reduce the workload of the marketing department.
D. To save money on advertising expenses.
89. A hair salon trains its staff to actively listen to customer preferences. This is an example of:
A. Ignoring the communications mix.
B. Utilizing service employees as part of the communications mix.
C. Focusing solely on advertising.
D. Reducing customer complaints.
90. A hotel chain consistently advertises ‘exceptional customer service’ but receives numerous complaints about rude staff. This is an example of:
A. Effective internal marketing.
B. A service guarantee in action.
C. A communication gap.
D. Successful word-of-mouth marketing.
91. Which of the following is an example of managing demand to match capacity in a service business?
A. Hiring more employees during peak hours.
B. Offering discounts during off-peak hours.
C. Reducing service offerings during slow periods.
D. All of the above.
92. A new online service promises ’24/7 customer support’, but customers frequently experience long wait times and unanswered inquiries. Which service quality gap is evident?
A. The knowledge gap.
B. The standards gap.
C. The delivery gap.
D. The communications gap.
93. Which of the following is NOT a dimension of service quality in the SERVQUAL model?
A. Reliability
B. Assurance
C. Empathy
D. Price
94. Which of the following is a proactive approach to managing service quality?
A. Waiting for customer complaints to identify problems.
B. Regularly surveying customers to assess their satisfaction.
C. Ignoring negative feedback to avoid demotivating employees.
D. Focusing solely on cost reduction.
95. A customer complains about a service. What is the best way to handle this situation to improve service quality?
A. Ignore the complaint to avoid negative feedback.
B. Offer a sincere apology and attempt to resolve the issue promptly.
C. Blame another department for the problem.
D. Argue with the customer about the validity of the complaint.
96. What does ‘inseparability’ in the context of service marketing refer to?
A. The service cannot be separated from the price.
B. The service cannot be separated from the provider.
C. The service cannot be separated from the customer.
D. The service cannot be separated from the location.
97. Which of the following is a key element of a good service guarantee?
A. Being difficult to claim.
B. Being conditional and complex.
C. Being easy to understand and claim.
D. Being vague and open to interpretation.
98. How can a service firm use ‘physical evidence’ to enhance its service offering?
A. By making the service more intangible.
B. By creating a clean and appealing environment.
C. By reducing the number of employees.
D. By focusing solely on price.
99. What is the difference between ‘desired service’ and ‘adequate service’ in the zone of tolerance?
A. Desired service is the minimum level of service a customer will accept, while adequate service is what they truly want.
B. Desired service is what the customer truly wants, while adequate service is the minimum level of service they will accept.
C. Desired service is the service the firm wants to provide, while adequate service is what they can realistically provide.
D. Desired service is the service provided during peak hours, while adequate service is provided during off-peak hours.
100. How does the concept of ‘customer participation’ impact service delivery?
A. It makes the service more standardized.
B. It can increase customer satisfaction but also increase variability.
C. It reduces the need for employee training.
D. It always leads to lower service quality.
101. Which of the following is an example of ‘tangibles’ in a service setting?
A. The friendliness of the staff.
B. The speed of the service.
C. The cleanliness of the waiting area.
D. The expertise of the service provider.
102. What is the role of ‘communication’ in managing customer expectations in service delivery?
A. To overpromise and underdeliver.
B. To accurately inform customers about the service and manage their expectations.
C. To avoid communication to prevent complaints.
D. To focus solely on advertising.
103. How can technology be used to improve service quality?
A. By reducing the need for human interaction.
B. By providing faster, more convenient, and more personalized service.
C. By making the service more impersonal.
D. By increasing the cost of the service.
104. How does ’empathy’ contribute to service quality?
A. By ensuring consistent service delivery.
B. By providing caring, individualized attention to customers.
C. By having modern equipment.
D. By offering competitive prices.
105. Which of the following is an example of a service encounter?
A. A customer purchasing a product online.
B. A customer interacting with a hotel receptionist.
C. A customer reading a product review.
D. A customer seeing an advertisement for a service.
106. A consulting firm wants to ensure consistent service quality across all its consultants. What internal marketing strategy would be most effective?
A. Offering higher salaries to attract top talent.
B. Implementing standardized training programs and performance evaluations.
C. Focusing solely on external marketing campaigns.
D. Reducing employee benefits to cut costs.
107. What does ‘assurance’ refer to in the SERVQUAL model?
A. The physical facilities and equipment.
B. The knowledge and courtesy of employees and their ability to convey trust and confidence.
C. The willingness to help customers and provide prompt service.
D. The caring, individualized attention the firm provides its customers.
108. Which of the following is a potential consequence of failing to meet customer expectations in a service encounter?
A. Increased customer loyalty.
B. Positive word-of-mouth referrals.
C. Negative word-of-mouth and customer churn.
D. Higher service prices.
109. Which of the following is NOT a key characteristic that distinguishes services from goods?
A. Perishability
B. Intangibility
C. Heterogeneity
D. Homogeneity
110. A hotel guest is unhappy with their room. Which of the following responses demonstrates effective service recovery?
A. Telling the guest that all rooms are the same.
B. Offering a discount on their next stay and promptly addressing the issue.
C. Ignoring the guest’s complaint.
D. Blaming the housekeeping staff.
111. What is the ‘zone of tolerance’ in service quality?
A. The area where the service is free.
B. The range of service performance a customer finds acceptable.
C. The area where the service is most profitable.
D. The range of service offerings available.
112. What is the role of internal marketing in service quality?
A. To promote the service to external customers.
B. To train and motivate employees to deliver excellent service.
C. To reduce marketing costs.
D. To focus on advertising the service.
113. What is ‘heterogeneity’ in services, and why is it a marketing challenge?
A. The service is always the same; it’s not a marketing challenge.
B. The service varies from provider to provider and customer to customer, making consistent quality difficult to ensure.
C. The service is complex; it’s a challenge due to complexity.
D. The service is inexpensive; it’s a challenge to generate revenue.
114. A customer calls a call center with a billing issue. The representative is rude and unhelpful. What dimension of SERVQUAL is most directly affected?
A. Tangibles
B. Reliability
C. Assurance
D. Responsiveness
115. How can a service firm empower its employees to improve service quality?
A. By giving them strict rules to follow.
B. By giving them the authority to make decisions and solve problems.
C. By closely monitoring their performance.
D. By limiting their interaction with customers.
116. A restaurant consistently receives complaints about slow service during peak hours. Which of the following strategies would best address this issue?
A. Ignoring the complaints as peak hours are always busy.
B. Increasing prices during peak hours to reduce demand.
C. Hiring additional staff, streamlining processes, or using technology to improve efficiency.
D. Blaming the customers for ordering too much food.
117. How can a service firm improve its ‘reliability’ dimension of service quality?
A. By offering lower prices.
B. By consistently delivering on its promises.
C. By having a modern-looking facility.
D. By providing personalized service.
118. Which of the following strategies can a service firm use to manage the challenge of ‘perishability’?
A. Standardizing the service offering
B. Implementing a strict cancellation policy
C. Using differential pricing to shift demand
D. Increasing employee training
119. What is ‘service recovery’ and why is it important?
A. The process of preventing service failures; it’s important to avoid mistakes.
B. The process of restoring customer satisfaction after a service failure; it’s important to retain customers.
C. The process of analyzing service performance; it’s important to improve efficiency.
D. The process of training employees; it’s important to ensure consistency.
120. What does ‘responsiveness’ mean in the context of service quality?
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.
D. The physical appearance of the service facility.
121. What is ‘zone of tolerance’ in the context of service quality?
A. The area where service failures are acceptable.
B. The range of service performance a customer finds acceptable.
C. The level of service quality a company aims to achieve.
D. The gap between customer expectations and perceptions.
122. Which of the following is NOT a key factor influencing customer expectations of service?
A. Word-of-mouth communication
B. Past experience
C. Competitor’s pricing
D. Personal needs
123. A doctor’s waiting room provides magazines and comfortable seating. This is an attempt to manage:
A. Customer expectations
B. Service capacity
C. Perceived waiting time
D. Employee morale
124. Which of the following is a key benefit of using technology in service delivery?
A. Reduced customer interaction.
B. Increased service customization.
C. Improved service consistency.
D. Decreased employee training needs.
125. What is the main purpose of ‘service blueprinting’?
A. To design the physical layout of a service facility.
B. To visually map out the service process and identify potential failure points.
C. To create a marketing plan for a new service offering.
D. To analyze customer feedback and improve service quality.
126. What is the potential consequence of failing to manage service capacity effectively?
A. Increased customer satisfaction.
B. Loss of potential revenue.
C. Reduced employee workload.
D. Lower operating costs.
127. Which of the following is an example of managing ‘internal demand’?
A. Advertising a service to attract new customers.
B. Scheduling employee shifts to match customer traffic.
C. Increasing prices during peak demand.
D. Offering discounts to repeat customers.
128. A restaurant offers a ‘kids eat free’ promotion on Tuesdays. This is an example of which demand management strategy?
A. Developing nonpeak demand
B. Increasing peak demand
C. Inventorying demand
D. Reducing service capacity
129. Which characteristic of services makes standardization difficult?
A. Intangibility
B. Heterogeneity
C. Perishability
D. Inseparability
130. What is the purpose of a ‘service script’?
A. To create a movie about the service.
B. To standardize employee behavior during service encounters.
C. To develop a new service product.
D. To analyze customer feedback.
131. What is the role of ‘people’ in the services marketing mix?
A. To focus solely on the target market.
B. To manage the physical environment of the service.
C. To emphasize the importance of employee selection, training, and motivation.
D. To streamline service processes for efficiency.
132. Which of the following is an example of ‘physical evidence’ in the services marketing mix?
A. The attitude of the service staff.
B. The company’s pricing strategy.
C. The design of the service facility.
D. The word-of-mouth referrals from customers.
133. A service company trains its employees to actively listen to customer concerns. This is primarily focused on improving:
A. Service efficiency
B. Customer empathy
C. Service reliability
D. Physical evidence
134. How can a service firm improve its ‘responsiveness’ dimension of service quality?
A. By ensuring consistent service delivery.
B. By providing prompt service and addressing customer needs quickly.
C. By having knowledgeable and courteous employees.
D. By creating a visually appealing service environment.
135. Which of the following is a proactive approach to service failure?
A. Ignoring customer complaints.
B. Empowering employees to resolve issues immediately.
C. Blaming the customer for the problem.
D. Creating complex complaint procedures.
136. In the context of services, what does ‘perishability’ refer to?
A. The tendency of services to deteriorate over time.
B. The inability to store services for future use.
C. The difficulty in assessing service quality before purchase.
D. The variability of service delivery across different customers.
137. What does ‘inseparability’ mean in the context of service characteristics?
A. Services cannot be distinguished from goods.
B. Services are consumed at the same time they are produced.
C. Services are difficult to evaluate before purchase.
D. Services cannot be stored for later use.
138. Which of the following strategies can a service business use to manage demand when facing high demand periods?
A. Decreasing prices during peak times.
B. Hiring fewer employees to reduce costs.
C. Implementing a reservation system.
D. Reducing the number of service offerings.
139. What is ‘service culture’?
A. The cultural events sponsored by the service company.
B. A shared focus on service excellence within an organization.
C. The cultural background of the service employees.
D. The way a service is adapted to different cultures.
140. Which of the following is NOT a way to manage customer expectations in services?
A. Offering realistic service previews.
B. Promising more than you can deliver.
C. Communicating service standards clearly.
D. Educating customers about the service process.
141. A hotel uses ambient scents and music to create a relaxing atmosphere. This is an example of managing which element of the services marketing mix?
A. Process
B. Physical Evidence
C. People
D. Promotion
142. In services marketing, what is ‘moment of truth’?
A. The point when the service is designed.
B. Any interaction the customer has with the service firm.
C. The time when the service is advertised.
D. The point when the customer pays for the service.
143. Which of the following is a key challenge in managing service promises?
A. Ensuring all employees understand and deliver on the promises.
B. Creating simple and easy-to-understand promises.
C. Making promises that are difficult to achieve.
D. Avoiding making any explicit promises.
144. What is the primary goal of ‘internal marketing’ in a service organization?
A. To promote the company’s services to external customers.
B. To train employees on how to handle customer complaints.
C. To motivate and enable employees to deliver customer satisfaction.
D. To reduce marketing expenses by utilizing internal resources.
145. What is ‘service recovery’ in the context of services marketing?
A. The process of preventing service failures from occurring.
B. The actions taken by a firm to correct a service failure and retain a customer.
C. The method of measuring customer satisfaction after service delivery.
D. The strategy of outsourcing service operations to reduce costs.
146. What is the primary reason service guarantees are more powerful than product guarantees?
A. Services are more expensive than products.
B. Services are intangible and difficult to evaluate.
C. Product guarantees are illegal in some countries.
D. Service guarantees are easier to implement.
147. What does ‘process’ refer to within the 7Ps of service marketing?
A. The physical goods that accompany the service.
B. The steps and procedures involved in delivering the service.
C. The pricing strategy used for the service.
D. The promotional activities used to market the service.
148. What is the role of communication in managing customer perceptions of service quality?
A. Communication is not relevant to service quality perceptions.
B. Effective communication can help manage expectations and explain service failures.
C. Communication should be minimized to avoid confusing customers.
D. Communication is only important during the service encounter.
149. Which of the following is NOT a key element of the services marketing mix (7Ps)?
A. Product
B. Price
C. Promotion
D. Profits
150. How can a service firm reduce perceived risk for potential customers?
A. By increasing prices to signal higher quality.
B. By offering guarantees and warranties.
C. By limiting customer interaction.
D. By avoiding customer feedback.
