1. The ‘Zone of Tolerance’ refers to:
A. The acceptable range of service quality a customer is willing to accept.
B. The physical area where a service is delivered.
C. The price range a customer is willing to pay for a service.
D. The time it takes to deliver a service.
2. In the context of services, what does ‘Physical Evidence’ refer to?
A. The tangible aspects that customers can use to evaluate the service.
B. The actual service performance itself.
C. The price charged for the service.
D. The promotion campaigns used to advertise the service.
3. What is ‘Internal Marketing’ focused on?
A. Promoting services to external customers.
B. Training and motivating employees to deliver excellent service.
C. Analyzing competitor’s marketing strategies.
D. Managing the company’s financial resources.
4. A service provider is quick to respond to customer requests and resolve issues promptly. This demonstrates which dimension of SERVQUAL?
A. Reliability
B. Assurance
C. Responsiveness
D. Empathy
5. What is ‘co-creation’ in the context of service marketing?
A. When two service companies merge their operations.
B. When customers actively participate in the service creation process.
C. When a company outsources its service operations.
D. When a company creates a new service offering.
6. Which of the following is an example of managing ‘Physical Evidence’ in a hotel?
A. Training staff on customer service skills.
B. Offering a loyalty program to frequent guests.
C. Ensuring the cleanliness and aesthetic appeal of the lobby.
D. Setting competitive room rates.
7. A hotel offers a complimentary upgrade to a guest who experienced a problem with their room. This is an example of?
A. Service diversification
B. Service recovery
C. Demand management
D. Internal marketing
8. A company consistently delivers a service that exceeds customer expectations. What is this an example of?
A. Good service pricing
B. High service quality
C. Efficient service process
D. Effective service promotion
9. The SERVQUAL model assesses service quality across five dimensions. Which of the following is NOT one of those dimensions?
A. Reliability
B. Assurance
C. Empathy
D. Price
10. What does ‘Reliability’ refer to in the context of the SERVQUAL model?
A. The willingness to help customers and provide prompt service.
B. The ability to perform the promised service dependably and accurately.
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.
11. What is the main purpose of service blueprinting?
A. To create a financial budget for the service.
B. To visually map out the service process and identify potential failure points.
C. To design the physical layout of the service environment.
D. To develop a marketing communication plan for the service.
12. What is a ‘service guarantee’?
A. A promise to deliver a service at a certain price.
B. A promise to compensate customers if the service fails to meet expectations.
C. A promise to provide excellent customer service.
D. A promise to offer the lowest price in the market.
13. What is the primary goal of ‘Service Recovery’?
A. To avoid service failures altogether.
B. To restore customer satisfaction after a service failure.
C. To increase the price of the service.
D. To reduce the number of employees.
14. Which of the following is NOT a key component of the services marketing mix, often referred to as the ‘7 Ps’?
A. People
B. Process
C. Positioning
D. Physical Evidence
15. Why is ‘People’ a critical element in the services marketing mix?
A. Because services are often delivered by people, and their performance directly impacts customer satisfaction.
B. Because people determine the pricing strategy for the service.
C. Because people design the physical environment where the service is delivered.
D. Because people control the advertising budget for the service.
16. What is the ‘SERVQUAL’ model used for?
A. To measure customer satisfaction with service quality.
B. To design the service process.
C. To train service employees.
D. To set service prices.
17. Airlines often overbook flights. This is an example of:
A. Service failure
B. Yield management
C. Internal marketing
D. Service recovery
18. Which of the following is a way to manage demand in a service business?
A. Lowering employee wages.
B. Implementing a reservation system.
C. Reducing the number of service offerings.
D. Ignoring customer feedback.
19. Which of the following is a challenge unique to marketing services compared to marketing goods?
A. Difficulty in pricing the offering.
B. Difficulty in standardizing the offering due to heterogeneity.
C. Difficulty in distributing the offering.
D. Difficulty in promoting the offering.
20. What is ‘yield management’ used for in the service industry?
A. To manage employee performance.
B. To optimize revenue by adjusting prices based on demand.
C. To control the quality of the service provided.
D. To reduce marketing expenses.
21. A restaurant implements a new online ordering system to improve efficiency. Which element of the 7 Ps is being addressed?
A. Product
B. Process
C. People
D. Physical Evidence
22. A customer is unhappy with a service but doesn’t complain. What is this an example of?
A. Service encounter
B. Silent churn
C. Critical incident
D. Service guarantee
23. Which of the following is an example of ‘Tangibles’ in the SERVQUAL model?
A. The promptness of service delivery.
B. The knowledge of the service staff.
C. The cleanliness of the service environment.
D. The caring attitude of the staff.
24. A company empowers its employees to resolve customer issues on the spot. This is an example of?
A. Effective demand management
B. Strong internal marketing
C. Efficient process design
D. Strategic pricing
25. In the SERVQUAL model, ‘Empathy’ refers to:
A. The physical facilities, equipment, and appearance of personnel.
B. The knowledge and courtesy of employees.
C. The caring, individualized attention the firm provides its customers.
D. The firm’s ability to perform the promised service dependably and accurately.
26. A company uses customer feedback to continuously improve its service offerings. This is an example of:
A. Internal marketing
B. Service innovation
C. Service recovery
D. Demand management
27. Employees who are knowledgeable, courteous, and inspire confidence in customers demonstrate which dimension of SERVQUAL?
A. Reliability
B. Assurance
C. Responsiveness
D. Empathy
28. What is ‘Service Quality’ primarily determined by?
A. The price of the service.
B. The customer’s perception of the service received.
C. The cost of delivering the service.
D. The number of employees providing the service.
29. Which of the following is a characteristic of services that distinguishes them from products?
A. Tangibility
B. Homogeneity
C. Perishability
D. Standardization
30. Which of the following is the best example of ‘Process’ in the services marketing mix?
A. The design of a restaurant’s menu.
B. The steps involved in delivering a haircut at a salon.
C. The qualifications of the staff at a hotel.
D. The interior decor of a spa.
31. Which of the following is NOT a key principle of effective service recovery?
A. Making it difficult for customers to complain.
B. Responding quickly to complaints.
C. Empowering employees to resolve issues.
D. Providing fair compensation.
32. What is the potential downside of consistently ‘over-delivering’ on service expectations?
A. Customers will be less satisfied.
B. It can become the new ‘adequate service’ level, making it harder to impress customers in the future.
C. It will reduce employee workload.
D. It will lower operational costs.
33. Which of the following is NOT a strategy for closing the ‘standards gap’ in service quality?
A. Setting clear and measurable service standards.
B. Ensuring employees understand customer expectations.
C. Empowering employees to make decisions that improve service.
D. Increasing advertising spending.
34. What is a potential drawback of offering overly generous compensation during service recovery?
A. Customers will be more satisfied.
B. It can create a perception that service failures are common.
C. It will decrease service costs.
D. It simplifies the service recovery process.
35. How can a service company effectively manage the ‘desired service’ expectations of new customers?
A. By making unrealistic promises in advertising.
B. By providing clear and accurate information about the service.
C. By ignoring customer feedback.
D. By focusing solely on cost reduction.
36. What are the three types of fairness that customers consider during service recovery?
A. Price, quality, and convenience.
B. Outcome, procedural, and interactional.
C. Speed, accuracy, and empathy.
D. Honesty, integrity, and transparency.
37. Which of the following is the best example of ‘tangibilizing the intangible’ in service marketing?
A. Offering a low price.
B. Providing a detailed service guarantee.
C. Hiring friendly staff.
D. Running a TV advertisement.
38. What does the ‘zone of tolerance’ represent in the context of customer expectations?
A. The area where customers are completely satisfied.
B. The range of service performance that a customer finds acceptable.
C. The point at which a customer becomes delighted.
D. The area where service is perfect.
39. A service provider fails to meet a customer’s adequate service level. What is the most likely outcome?
A. Customer delight.
B. Customer satisfaction.
C. Customer dissatisfaction.
D. Customer indifference.
40. A hotel consistently receives positive reviews for its cleanliness but negative reviews for its slow check-in process. Which gap in the service quality model is most likely the cause?
A. Gap 1: Knowledge Gap
B. Gap 2: Standards Gap
C. Gap 3: Delivery Gap
D. Gap 4: Communications Gap
41. What is the potential consequence of consistently exceeding customer expectations?
A. Decreased profitability due to higher costs.
B. Increased customer loyalty and positive word-of-mouth.
C. Reduced employee satisfaction.
D. Lower service standards in the long run.
42. Airlines often overbook flights. What is a proactive way to manage customer expectations when a flight is overbooked?
A. Pretend the flight is not overbooked until the last minute.
B. Offer incentives for volunteers to take a later flight.
C. Force the last passengers to board to give up their seats.
D. Ignore the situation and hope no one complains.
43. A company’s marketing materials promise ’24/7 customer support’, but in reality, support is only available during business hours. Which gap is evident?
A. Gap 1: Knowledge Gap
B. Gap 4: Communications Gap
C. Gap 3: Delivery Gap
D. Gap 2: Standards Gap
44. Which is a proactive approach a service firm can take to address potential service failure and manage customer expectations?
A. Ignoring complaints hoping they will go away.
B. Offering guarantees and warranties.
C. Blaming the customer for misunderstandings.
D. Reducing customer service staff to cut costs.
45. What is the main purpose of a ‘service blueprint’?
A. To create a marketing plan.
B. To visually map out all the steps involved in delivering a service.
C. To manage employee schedules.
D. To track customer satisfaction scores.
46. A customer consistently receives excellent service from a particular provider. Over time, what is likely to happen to their desired service level?
A. It will decrease.
B. It will remain the same.
C. It will fluctuate randomly.
D. It will increase.
47. Which of the following is NOT a key factor influencing customer expectations in service marketing?
A. Word-of-mouth communication
B. Personal needs
C. Competitive pricing strategies
D. Past experience
48. What is ‘service recovery’?
A. Preventing service failures from happening.
B. The actions taken by a firm to correct a service failure and retain a customer.
C. Ignoring customer complaints.
D. Reducing service costs.
49. Why is empowerment of frontline employees important in service recovery?
A. It reduces the need for management oversight.
B. It allows for faster and more effective problem resolution.
C. It lowers employee salaries.
D. It eliminates the need for customer service training.
50. Which of the following factors is LEAST likely to influence a customer’s desired service level?
A. Personal needs.
B. Explicit service promises.
C. Random chance events.
D. Word-of-mouth communication.
51. In the context of service expectations, what is ‘adequate service’?
A. The minimum level of service a customer will accept.
B. The ideal level of service a customer hopes to receive.
C. The average level of service provided by competitors.
D. The highest level of service a company can provide.
52. What is the ‘fairness heuristic’ in the context of service recovery?
A. The customer’s perception of whether the service recovery process was just and equitable.
B. The company’s policy on service recovery.
C. The cost of service recovery.
D. The time it takes to recover from a service failure.
53. In the context of managing customer expectations, what does ‘internal marketing’ primarily focus on?
A. Advertising to external customers.
B. Training and motivating employees to deliver excellent service.
C. Analyzing competitor strategies.
D. Managing the company’s finances.
54. A retail store has a ‘no return’ policy on sale items. To manage customer expectations effectively, what should they do?
A. Hide the policy until after the purchase.
B. Clearly communicate the policy before the purchase.
C. Enforce the policy rudely.
D. Make exceptions for some customers but not others, without explanation.
55. A customer is dissatisfied with a service but doesn’t complain. Why might this be a problem for the service provider?
A. It’s not a problem, as long as the customer doesn’t tell others.
B. The provider loses the opportunity to learn from the mistake and improve.
C. It saves the provider time and money.
D. It means the customer is secretly satisfied.
56. What is the role of ‘service encounter’ in shaping customer perceptions and expectations?
A. It has no impact on customer perceptions.
B. It is a critical touchpoint that directly influences perceptions and future expectations.
C. It only affects customer satisfaction if something goes wrong.
D. It is only important for new customers.
57. A customer is upset because a hotel room wasn’t ready at the check-in time. What is an example of ‘interactional fairness’ in this situation?
A. Offering a free night’s stay.
B. Explaining the situation politely and showing empathy.
C. Following hotel policy strictly.
D. Ignoring the customer’s frustration.
58. What is the primary goal of gap analysis in service quality management?
A. To minimize marketing expenses.
B. To identify discrepancies between customer expectations and perceptions.
C. To increase employee satisfaction.
D. To reduce production costs.
59. Which of the following is a common strategy for managing customer expectations in service industries?
A. Deliberately under-promising service delivery.
B. Ignoring customer feedback.
C. Setting unrealistically high service standards.
D. Over-promising to attract more customers.
60. A restaurant owner believes customers value speed of service above all else, but customers actually prioritize food quality. This reflects which gap?
A. Gap 1: Knowledge Gap
B. Gap 2: Standards Gap
C. Gap 3: Delivery Gap
D. Gap 4: Communications Gap
61. A company sends out a survey to measure customer satisfaction with its services. This is an example of:
A. Gap analysis
B. Service blueprinting
C. Internal marketing
D. Demand management
62. Which of the following is NOT a key dimension of service quality, according to the SERVQUAL model?
A. Reliability
B. Assurance
C. Empathy
D. Profitability
63. A consultant provides customized advice to each client. Which characteristic of services does this BEST illustrate?
A. Intangibility
B. Heterogeneity
C. Perishability
D. Inseparability
64. Which of the following is an example of ‘managing demand’ in service operations?
A. Increasing the number of service employees.
B. Offering discounts during off-peak hours.
C. Improving the quality of service delivery.
D. Expanding the service location.
65. A restaurant offers a free dessert to customers who had to wait longer than expected for their food. This is an example of:
A. Managing demand
B. Tangibilizing the intangible
C. Service recovery
D. Internal marketing
66. A gym offers a personal training program to help customers achieve their fitness goals. This is an example of:
A. Managing demand
B. Enhancing the core service
C. Service recovery
D. Internal marketing
67. A new coffee shop has comfortable seating, free Wi-Fi, and aesthetically pleasing decor. This is an example of:
A. Managing perishability
B. Tangibilizing the intangible
C. Internal marketing
D. Service recovery
68. A company with high customer contact needs to empower its employees to make decisions. Which is a potential downside of empowering employees?
A. Reduced employee motivation.
B. Inconsistent service delivery.
C. Increased customer satisfaction.
D. Faster problem resolution.
69. A customer complains loudly about a delayed flight at the check-in counter. Which service recovery strategy is MOST appropriate in this situation?
A. Ignoring the customer and hoping they will calm down.
B. Acknowledging the customer’s frustration, apologizing sincerely, and offering a solution.
C. Blaming the delay on external factors beyond the airline’s control.
D. Offering the customer a discount on their next flight, without addressing the current issue.
70. A restaurant consistently provides excellent food but has slow service. According to the SERVQUAL model, which dimension of service quality is lacking?
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
71. What is the role of ‘internal marketing’ in the context of service organizations?
A. Promoting the company’s services to external customers.
B. Training and motivating employees to deliver excellent service.
C. Managing the company’s financial resources.
D. Developing new service offerings.
72. A hotel wants to improve its service quality. Which of the following actions would be MOST effective in ‘tangibilizing the intangible’ aspects of its service?
A. Lowering the price of its rooms.
B. Providing high-quality linens, toiletries, and room décor.
C. Reducing the number of staff on duty.
D. Eliminating complimentary services such as breakfast.
73. A theme park offers fast passes for popular rides at an extra cost. This is an example of:
A. Managing demand through price discrimination
B. Tangibilizing the intangible
C. Service recovery
D. Internal marketing
74. A hotel offers a free shuttle service to the airport. This is primarily an example of:
A. Managing demand
B. Enhancing the core service
C. Service recovery
D. Internal marketing
75. Which of the following is NOT a characteristic of services?
A. Intangibility
B. Heterogeneity
C. Perishability
D. Homogeneity
76. What is the primary focus of ‘relationship marketing’ in the context of services?
A. Attracting new customers through aggressive advertising.
B. Building and maintaining long-term relationships with existing customers.
C. Reducing the cost of service delivery.
D. Standardizing service processes to ensure consistency.
77. What is the ‘zone of tolerance’ in service marketing?
A. The range of service performance that a customer finds acceptable.
B. The area where a service is delivered.
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.
78. A hair salon offers online booking to reduce customer wait times. This is an example of:
A. Managing supply
B. Managing demand
C. Service recovery
D. Internal marketing
79. Which of the following best describes ‘tangibilizing the intangible’ in service marketing?
A. Making the service more expensive.
B. Using physical cues and evidence to communicate service benefits.
C. Simplifying the service process for customers.
D. Focusing on the emotional aspects of the service experience.
80. What is the primary goal of ‘service recovery’ in service marketing?
A. To prevent service failures from occurring in the first place.
B. To regain customer goodwill and loyalty after a service failure.
C. To reduce the cost of providing services.
D. To increase the efficiency of service delivery.
81. A bank invests heavily in training its tellers to be friendly and helpful. This is primarily an example of:
A. Internal marketing
B. Managing demand
C. Tangibilizing the intangible
D. Service recovery
82. A service company trains its employees to actively listen to customer complaints and resolve issues on the spot. This is an example of:
A. Internal marketing and service recovery
B. Managing demand
C. Tangibilizing the intangible
D. Gap analysis
83. In the context of service marketing, what does ‘service encounter’ primarily refer to?
A. The physical location where a service is delivered.
B. Any interaction between a customer and the service provider.
C. The marketing materials used to promote a service.
D. The internal processes used to create a service.
84. What is the ‘service profit chain’?
A. A model that links employee satisfaction to customer loyalty and profitability.
B. A method for calculating the profit margin of a service.
C. A strategy for reducing service costs.
D. A system for tracking customer complaints.
85. What is the primary purpose of a ‘service blueprint’?
A. To create a marketing plan for a new service.
B. To visually map out the service process from the customer’s perspective.
C. To develop a financial budget for the service operation.
D. To train employees on how to interact with customers.
86. A doctor’s office has magazines, comfortable chairs, and calming music in the waiting room. These elements primarily contribute to:
A. Managing demand
B. Tangibilizing the intangible aspects of the service
C. Service recovery
D. Internal marketing
87. Which of the following is an example of ‘inseparability’ in service marketing?
A. A customer receiving a haircut from a specific stylist.
B. A customer purchasing a product online.
C. A customer returning a defective product.
D. A customer comparing prices of different services.
88. Which of the following is an example of ‘co-creation’ in service delivery?
A. A restaurant preparing a meal according to a standard recipe.
B. A customer assembling furniture purchased from a store.
C. A tailor designing a custom suit based on the customer’s preferences.
D. A bank teller processing a routine transaction.
89. A call center uses automated scripts to ensure that all customer service representatives provide consistent information. This is an attempt to address which characteristic of services?
A. Intangibility
B. Heterogeneity
C. Perishability
D. Inseparability
90. Which of the following is a challenge unique to service marketing compared to product marketing?
A. Difficulty in setting prices.
B. The perishability of services.
C. The need for advertising.
D. Managing distribution channels.
91. Why is it important for service employees to be ’empowered’?
A. To reduce the need for management oversight.
B. To enable them to make decisions and solve problems on the spot, improving customer satisfaction.
C. To decrease their workload and responsibilities.
D. To standardize their interactions with customers.
92. A customer’s ‘zone of tolerance’ is narrow. What does this imply?
A. The customer is very forgiving of service failures.
B. The customer has very high expectations and is easily dissatisfied.
C. The customer is price sensitive.
D. The customer is not very involved with the service.
93. Which of the following is an example of a ‘moment of truth’ in a restaurant setting?
A. The restaurant’s annual financial report.
B. A customer’s first bite of their meal.
C. The restaurant manager’s weekly staff meeting.
D. The restaurant’s marketing campaign launch.
94. What is the purpose of a ‘service guarantee’?
A. To legally protect the service provider from customer complaints.
B. To set customer expectations and provide assurance about service quality.
C. To limit the service provider’s liability in case of service failure.
D. To increase the price of the service.
95. What is the ‘zone of tolerance’ in service marketing?
A. The area where customers are willing to accept price increases.
B. The range of service performance that a customer finds acceptable.
C. The geographical area where a service is offered.
D. The time period during which a service is available.
96. What is the term for the process of setting standards for service performance and then measuring actual performance against those standards?
A. Service blueprinting.
B. Gap analysis.
C. Service quality monitoring.
D. Service standardization.
97. A retail store redesigns its layout to make it easier for customers to find what they are looking for. This is an example of:
A. Service process automation
B. Managing the physical evidence
C. Service capacity planning
D. Demand forecasting
98. A software company releases a new version of its software with several bugs. Customers are frustrated and complain. The company quickly releases a patch to fix the bugs and offers affected customers a free month of service. This is an example of:
A. Service diversification
B. Service failure escalation
C. Effective service recovery
D. Customer defection management
99. A retail store trains its employees to actively listen to customer concerns, empathize with their situation, and offer solutions tailored to their needs. This is an example of:
A. Service process automation
B. Customer expectation management
C. Effective service encounter management
D. Service capacity planning
100. A theme park regularly surveys its visitors to gather feedback on their experiences and identify areas for improvement. This is an example of:
A. Service capacity management
B. Continuous service quality monitoring
C. Demand forecasting
D. Service failure prediction
101. A hotel offers a ‘satisfaction guarantee’: ‘If you aren’t completely satisfied with your stay, we’ll refund your money.’ This is an example of what type of service guarantee?
A. Implicit guarantee
B. Conditional guarantee
C. Unconditional guarantee
D. Meaningless guarantee
102. In the context of service marketing, what does ‘service encounter’ primarily refer to?
A. The period when the service is being designed and planned.
B. The interaction between a customer and the service provider.
C. The marketing materials used to promote the service.
D. The physical environment where the service is delivered.
103. Which of the following is a key challenge in managing customer expectations in service industries?
A. Customers always have unrealistically high expectations.
B. Customer expectations are static and easy to predict.
C. Customer expectations are often based on limited information and are dynamic.
D. Customers generally don’t have any expectations before receiving a service.
104. A bank uses a service blueprint to map out the steps involved in opening a new account, from the customer’s initial inquiry to the final account setup. This is an example of:
A. Service process innovation
B. Service capacity planning
C. Visualizing the service process
D. Customer journey mapping
105. A hotel offers a loyalty program that rewards frequent guests with exclusive benefits. This is an example of:
A. Service diversification
B. Customer relationship management
C. Service process automation
D. Demand forecasting
106. A consulting firm promises its clients that it will increase their sales by 15% within one year. This is an example of:
A. A realistic service guarantee
B. An explicit service promise
C. An implicit service expectation
D. A service process bottleneck
107. A customer complains to a restaurant manager that their steak was overcooked. The manager immediately offers a free dessert and apologizes. This is an example of:
A. Service failure avoidance
B. Proactive service recovery
C. Reactive service recovery
D. Service standardization
108. A hospital uses a checklist to ensure that all nurses follow the same steps when admitting a patient. This is an example of:
A. Service customization
B. Service standardization
C. Customer relationship management
D. Service failure analysis
109. What is the potential downside of offering a service guarantee that is too generous?
A. It may attract too many customers.
B. It may reduce customer loyalty.
C. It may lead to increased costs and fraudulent claims.
D. It may simplify the service process too much.
110. Which of the following is an example of ‘managing the evidence’ in a service setting?
A. Hiring attractive and friendly employees.
B. Ensuring the physical environment is clean, well-maintained, and aesthetically pleasing.
C. Offering discounts to repeat customers.
D. Developing a detailed service blueprint.
111. A airline company overbooks a flight and some passengers are bumped. To compensate them, the airline offers a free flight voucher. This is an example of:
A. Service failure escalation
B. Effective service recovery
C. Service process innovation
D. Demand management
112. A car rental company implements a system where employees are empowered to offer discounts or upgrades to customers experiencing delays, without needing managerial approval. This is an example of:
A. Service blueprinting
B. Employee empowerment
C. Service standardization
D. Customer segmentation
113. Which of the following is NOT a key factor influencing customer perceptions of service quality during a service encounter?
A. Employee responsiveness and willingness to help.
B. The price of the service relative to competitors.
C. The tangible aspects of the service environment.
D. The reliability of the service performance.
114. A customer has a negative experience at a restaurant. What is the BEST course of action for the restaurant manager to take to recover the service?
A. Ignore the customer’s complaint and hope they don’t write a bad review.
B. Offer a sincere apology, empathize with the customer, and provide a fair solution.
C. Blame the employee responsible for the mistake in front of the customer.
D. Argue with the customer and defend the restaurant’s actions.
115. In service recovery, what is the ‘service recovery paradox’?
A. The phenomenon where customers are more satisfied after a successful service recovery than if no service failure had occurred at all.
B. The situation where service recovery efforts actually worsen customer satisfaction.
C. The difficulty of predicting when service failures will occur.
D. The conflict between providing standardized service and personalized service recovery.
116. What is the primary goal of ’empowering’ service employees?
A. To reduce labor costs by minimizing supervision.
B. To enable them to make decisions and solve problems independently, improving customer service.
C. To standardize service delivery across all locations.
D. To increase employee workload and productivity.
117. A restaurant proactively trains its staff to anticipate customer needs and offer personalized recommendations. This is an example of:
A. Reactive service recovery
B. Proactive service recovery
C. Service failure avoidance
D. Service blueprinting
118. Which of the following is NOT a typical component of a service blueprint?
A. Customer actions.
B. Onstage contact employee actions.
C. Backstage contact employee actions.
D. Competitor pricing strategies.
119. What is the main benefit of using a ‘service blueprint’?
A. It helps to identify potential points of failure and improve service delivery.
B. It helps to reduce marketing expenses.
C. It helps to increase employee salaries.
D. It helps to attract new investors.
120. A call center agent follows a script when answering customer inquiries. This is an example of:
A. Service customization
B. Service standardization
C. Employee empowerment
D. Service recovery
121. An airline company overbooks a flight, resulting in some passengers being denied boarding. To apply the ‘service recovery paradox,’ what should the airline do?
A. Offer a minimal compensation to avoid additional expenses.
B. Provide a generous compensation and personalized apology to the affected passengers.
C. Ignore the situation and hope passengers will not complain.
D. Blame the situation on external factors beyond their control.
122. A consultant provides tailored advice to each client, adapting their approach based on the client’s specific situation. This highlights which characteristic of services?
A. Intangibility
B. Perishability
C. Inseparability
D. Heterogeneity
123. A hotel guest experiences a significant problem during their stay. According to the service recovery paradox, what is the potential outcome of effectively addressing the issue?
A. The guest will likely never return to the hotel.
B. The guest may become more loyal to the hotel than if they had not experienced a problem.
C. The guest will only be satisfied if they receive a full refund.
D. The guest will likely share their negative experience with others.
124. A popular restaurant experiences long wait times during dinner hours. Which of the following is a demand management strategy they could implement?
A. Increasing prices during peak hours.
B. Reducing the number of tables to decrease crowding.
C. Offering a limited menu to speed up service.
D. Ignoring the wait times and hoping customers will be patient.
125. A tutoring service finds it difficult to standardize its service offerings because each student has unique learning needs. This highlights which characteristic of services?
A. Intangibility
B. Perishability
C. Inseparability
D. Variability
126. A customer is willing to accept a 5-minute delay at a coffee shop but becomes dissatisfied if the delay exceeds 10 minutes. The 5-minute range represents the customer’s:
A. Service guarantee
B. Zone of tolerance
C. Point of expectation
D. Service blueprint
127. What is the primary goal of ‘internal marketing’ in a service organization?
A. Attracting new customers through advertising.
B. Improving employee job satisfaction and service delivery.
C. Reducing marketing expenses.
D. Expanding into new markets.
128. An online retailer consistently delivers products as promised, but customers complain about the confusing website layout. According to SERVQUAL, which dimension needs improvement?
A. Reliability
B. Tangibles
C. Responsiveness
D. Empathy
129. A medical clinic wants to improve its patients’ perception of care. Which tangible cue would likely have the most positive impact?
A. Installing vending machines in the waiting room.
B. Renovating the waiting area with comfortable seating and soothing decor.
C. Increasing the number of brochures available.
D. Shortening appointment times.
130. What is the ‘zone of tolerance’ in service marketing?
A. The range of service performance that a customer considers acceptable.
B. The area where the service provider is willing to compromise on quality.
C. The time frame within which a service must be delivered.
D. The geographical area where the service is offered.
131. Which of the following best describes ‘service blueprinting’?
A. A financial statement outlining service costs and revenues.
B. A visual representation of the service delivery process.
C. A marketing plan for promoting the service.
D. A legal document outlining service agreements.
132. Which of the following is NOT a key dimension of service quality according to the SERVQUAL model?
A. Reliability
B. Tangibles
C. Profitability
D. Empathy
133. A financial advisor develops a personalized investment strategy for each client to build trust and confidence. This mainly improves which SERVQUAL dimension?
A. Reliability
B. Assurance
C. Tangibles
D. Responsiveness
134. In service marketing, what does ‘managing demand’ involve?
A. Focusing solely on increasing demand for the service.
B. Adjusting prices to maximize revenue during peak times.
C. Balancing customer demand with service capacity.
D. Ignoring fluctuations in demand and maintaining a consistent service level.
135. A customer service representative is consistently rude and unhelpful, leading to customer dissatisfaction. Which SERVQUAL dimension is most affected?
A. Reliability
B. Tangibles
C. Responsiveness
D. Empathy
136. Which of the following is NOT a characteristic of services?
A. Intangibility
B. Homogeneity
C. Perishability
D. Inseparability
137. A company trains its employees to anticipate and fulfill customer needs proactively. This initiative aligns with which aspect of service marketing?
A. External communication
B. Internal marketing
C. Interactive marketing
D. Public relations
138. A hospital uses a detailed flowchart to map out the patient admission process, from initial contact to discharge. This is an example of?
A. Gap analysis
B. Service blueprinting
C. Customer relationship management
D. Quality control
139. What is ‘gap analysis’ in service marketing primarily used for?
A. Determining the optimal pricing strategy.
B. Identifying differences between expected and perceived service quality.
C. Measuring employee satisfaction levels.
D. Analyzing competitor pricing strategies.
140. A local gym is consistently underutilized during weekday afternoons. Which demand management strategy would be most effective in attracting more customers during these times?
A. Increasing membership fees.
B. Offering discounted rates for weekday afternoon visits.
C. Reducing the number of classes offered.
D. Closing the gym during those hours.
141. A restaurant consistently delivers high-quality food but receives complaints about slow service. According to the SERVQUAL model, which dimension of service quality is lacking?
A. Reliability
B. Responsiveness
C. Assurance
D. Empathy
142. A hotel chain implements a new training program to ensure all staff members handle customer complaints effectively. This initiative primarily aims to improve which aspect of service quality?
A. Tangibles
B. Reliability
C. Assurance
D. Empathy
143. In the context of 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 recovery efforts increase customer dissatisfaction.
C. The idea that service failures are inevitable and cannot be fully recovered.
D. The belief that service recovery is too costly to implement.
144. A technology company frequently fails to deliver its services on time, despite promising prompt service. Which SERVQUAL dimension is most negatively impacted?
A. Reliability
B. Assurance
C. Tangibles
D. Empathy
145. A company encourages its employees to actively listen to customer feedback and empowers them to resolve issues on the spot. This is an example of?
A. External marketing
B. Internal marketing
C. Interactive marketing
D. Direct marketing
146. Which of the following is an example of a ‘tangible cue’ used in service marketing?
A. The friendliness of the service staff.
B. The cleanliness of the service environment.
C. The speed of service delivery.
D. The knowledge of the service provider.
147. A university creates a detailed diagram outlining the steps a student takes from application to graduation. This diagram is an example of:
A. A marketing plan
B. A service blueprint
C. A budget allocation
D. A organizational chart
148. In the context of service marketing, what does ‘service quality’ primarily refer to?
A. The tangible aspects of the service environment.
B. The degree to which the service meets or exceeds customer expectations.
C. The price point at which the service is offered.
D. The number of customers served per day.
149. A customer expects a haircut to cost $20 but is willing to pay up to $25. The $5 difference represents the customer’s?
A. Zone of tolerance
B. Point of indifference
C. Service expectation
D. Perceived value
150. A spa wants to create a more relaxing atmosphere for its clients. Which of the following ‘tangible cues’ would be most effective?
A. Installing brighter lighting in the treatment rooms.
B. Using calming music and aromatherapy.
C. Increasing the number of clients served per day.
D. Offering faster service times.
