1. The ‘service encounter’ refers to:
A. The entire lifecycle of a customer relationship with a service provider.
B. The period during which a customer interacts directly with a service provider.
C. The internal processes of a service organization.
D. The advertising and promotional activities for a service.
2. The ‘tangibility gap’ in service quality measurement refers to:
A. The difference between the expected service and the service that is delivered.
B. The difference between the service delivered and the service that is communicated to customers.
C. The difference between what customers expect and what they perceive they have received, in terms of tangible aspects.
D. The difference between the service promised in advertising and the actual service provided.
3. Which strategy is most effective for managing the ‘perishability’ of services?
A. Building large inventories of services.
B. Implementing differential pricing and reservation systems.
C. Reducing service capacity during peak demand periods.
D. Offering only off-peak services to avoid demand fluctuations.
4. The ‘people’ element in the extended marketing mix for services (7 Ps) refers to:
A. All human actors who play a part in service delivery and influence the buyer’s perceptions.
B. The physical environment where the service is delivered.
C. The range of services offered by a company.
D. The price charged for the service.
5. What is the primary role of ‘customer co-creation’ in service marketing?
A. To have customers perform all service delivery tasks themselves.
B. To involve customers in the service production and delivery process to enhance value.
C. To reduce the need for customer feedback.
D. To ensure that services are fully standardized and predictable.
6. The concept of ‘internal marketing’ in services is crucial because:
A. It focuses on attracting new customers through advertising.
B. It aims to motivate and enable employees to deliver customer satisfaction.
C. It deals with the pricing strategies of services.
D. It involves the physical design of service facilities.
7. Which of the following is an example of a ‘customer-contact’ model of service delivery?
A. Online banking services where most interactions are digital.
B. A restaurant where customers interact directly with waitstaff and chefs.
C. A manufacturing process with minimal human intervention.
D. A software company providing automated customer support.
8. In the context of service quality, the ‘standards gap’ arises when:
A. Management does not understand what customers want.
B. The company fails to set appropriate service quality standards.
C. The delivered service does not match the promised service.
D. Customers’ perceptions of service quality are lower than expected.
9. Which of the following is an example of ‘experience qualities’ in services?
A. The price of a airline ticket.
B. The brand name of a hotel.
C. The enjoyment derived from a concert.
D. The location of a retail store.
10. Which of the following is an example of ‘search qualities’ in services?
A. The comfort of a hotel room after staying there.
B. The effectiveness of a medical treatment.
C. The taste of food at a restaurant before ordering.
D. The skill of a hairdresser during a haircut.
11. In service marketing, what is the primary characteristic that distinguishes services from tangible goods?
A. Intangibility, meaning they cannot be physically possessed or touched.
B. High production costs and economies of scale.
C. Standardized quality across all offerings.
D. The ability to be stored in inventory for future sale.
12. The concept of ‘service quality’ is often evaluated based on the gap between customer expectations and customer perceptions. Which gap is primarily addressed by focusing on effective communication and managing customer expectations?
A. The knowledge gap.
B. The standards gap.
C. The performance gap.
D. The communication gap.
13. Which of the following best describes the ‘process’ component of the 7 Ps of service marketing?
A. The procedures, mechanisms, and flow of activities by which the service is delivered.
B. The tangible evidence of the service, such as brochures or websites.
C. The skills and training of the service employees.
D. The customer’s overall satisfaction with the service experience.
14. The ‘knowledge gap’ in service quality management refers to:
A. The difference between the service delivered and customer expectations.
B. The discrepancy between what management believes customers want and what customers actually want.
C. The gap between the service promised and the service delivered.
D. The difference between the service delivered and the service communicated.
15. The ‘physical evidence’ in the 7 Ps of service marketing refers to:
A. The tangible cues and environment in which the service is delivered.
B. The company’s financial statements and reports.
C. The intellectual property and patents of the service provider.
D. The customer’s personal belongings brought to the service location.
16. Which of the following is a key characteristic of services that leads to variability in quality, often referred to as ‘heterogeneity’?
A. The involvement of people in the service delivery process.
B. The inability to be stored for later use.
C. The fact that services are consumed at the same time they are produced.
D. The absence of physical ownership.
17. When a customer experiences a service failure, what is a critical factor in service recovery that can mitigate negative consequences?
A. Ignoring the customer’s complaint to avoid further issues.
B. A swift, empathetic, and effective response to the failure.
C. Blaming the customer for the service issue.
D. Delaying the resolution process as long as possible.
18. What is the core purpose of a ‘service blueprint’?
A. To outline the company’s financial projections for the next year.
B. To visualize the entire service delivery process, including customer actions, frontstage actions, and backstage actions.
C. To detail the marketing communication channels to be used.
D. To list all the physical evidence associated with a service.
19. What is the primary goal of service segmentation?
A. To offer a single, standardized service to all customers.
B. To divide the market into distinct groups of customers with similar needs and preferences.
C. To eliminate the need for customer interaction.
D. To reduce the importance of the ‘people’ element in service delivery.
20. The ‘performance gap’ in service quality is also known as:
A. The standards gap.
B. The delivery gap.
C. The knowledge gap.
D. The communication gap.
21. The ‘Process’ element in the extended marketing mix for services refers to:
A. The physical appearance of service employees
B. The systems and procedures by which a service is delivered
C. The emotional connection between the customer and the service provider
D. The advertising message of the service
22. In service marketing, ‘inseparability’ implies that:
A. Services are always of high quality
B. Production and consumption of services occur simultaneously
C. Customers can easily compare different service providers
D. Services can be easily standardized
23. When a service firm actively manages the customer journey and interaction points to ensure a positive experience, it is focusing on:
A. Product differentiation
B. Customer relationship management (CRM)
C. Price skimming
D. Supply chain optimization
24. The fact that services cannot be stored for later sale or use is referred to as:
A. Inseparability
B. Variability
C. Perishability
D. Intangibility
25. Which of the following best describes ‘service encounter’ in service marketing?
A. The internal processes of a service organization
B. The period when a customer interacts directly with a service provider
C. The marketing communication strategy of a service firm
D. The financial performance of a service company
26. Service recovery refers to the actions taken by a service firm when:
A. A service is delivered perfectly
B. A customer complains about a service failure
C. A new service is launched
D. Customer satisfaction is very high
27. The ‘People’ element in the extended marketing mix for services refers to:
A. The physical evidence of the service
B. All human actors who play a part in service delivery
C. The pricing strategies used for the service
D. The promotional activities of the service
28. Which element of the extended marketing mix (7 Ps) deals with the customer’s perception of the service environment and the tangible cues associated with the service?
A. Price
B. Promotion
C. Physical Evidence
D. Process
29. Which dimension of SERVQUAL is concerned with the knowledge, courtesy, and ability of service personnel to convey trust and confidence?
A. Reliability
B. Empathy
C. Responsiveness
D. Assurance
30. The concept of ‘variability’ in services means that:
A. Services are always identical
B. Service quality can differ depending on who provides them, when, and how
C. Services can be easily mass-produced
D. Customers always receive the same level of service
31. The ‘Internal Market’ in service marketing refers to:
A. The market segment of customers who are most profitable
B. The employees of the service organization
C. The physical location where services are delivered
D. The suppliers of raw materials for services
32. Service quality is often assessed based on the gap between customer expectations and their perception of service performance. This is known as the:
A. Service-profit chain
B. Service quality gap model
C. Customer relationship management model
D. Value proposition framework
33. The SERVQUAL model is a popular framework for measuring service quality. It is based on assessing:
A. Customer satisfaction with the product features
B. The difference between expected and perceived service on five dimensions
C. The total cost of service delivery
D. The speed of service delivery only
34. Customer co-creation in services refers to:
A. Customers solely defining the service they receive
B. Customers actively participating in the service production process
C. Service providers creating services without customer input
D. Customers being passive recipients of service
35. Service blueprinting is a tool used by service marketers to:
A. Set prices for new services
B. Design and manage the service process
C. Identify target customer segments
D. Develop advertising campaigns
36. What is a key implication of the inseparability of services for marketing?
A. Services can be easily inventoried.
B. Customers can be involved in the production process.
C. Service quality is always consistent.
D. Services can be manufactured in a factory.
37. The ‘tangibles’ dimension in the SERVQUAL model relates to:
A. The emotional support provided by service staff
B. The physical appearance of facilities, equipment, and personnel
C. The speed and efficiency of service delivery
D. The ability to perform the promised service dependably and accurately
38. Which of the following is NOT one of the common characteristics of services?
A. Intangibility
B. Inseparability
C. Variability
D. Divisibility
39. Which of the following is a key characteristic that differentiates services from goods?
A. Tangibility
B. Standardization
C. Perishability
D. Durability
40. Which strategy is often used by service firms to manage demand fluctuations and overcome perishability?
A. Increasing service capacity indefinitely
B. Implementing differential pricing and appointment systems
C. Reducing the quality of service during peak times
D. Eliminating all customer contact points
41. What is the primary implication of service ‘inseparability’ for a service firm?
A. Services can be produced and consumed at different times.
B. Customers are often involved in the production process.
C. Service quality is easily standardized.
D. Services can be stored for later sale.
42. Service ‘perishability’ means that services:
A. Cannot be seen, tasted, or touched.
B. Cannot be produced or consumed at the same time.
C. Cannot be stored for sale or use at a later date.
D. Vary in quality depending on who provides them and when, where, and how.
43. Customer participation in service delivery is considered high in which of the following service settings?
A. A movie theater
B. A car repair shop
C. A concert
D. A restaurant
44. In service marketing, the ‘people’ element of the extended marketing mix primarily refers to:
A. The physical environment where the service is delivered.
B. All human actors who play a part in service delivery and thus influence the buyer’s perceptions.
C. The processes and procedures used to deliver the service.
D. The tangible cues that communicate service quality.
45. The ‘servuction system’ in service management refers to:
A. The customer’s journey from initial contact to post-service.
B. The combined effect of the organization’s support systems and the customer interacting with the organization’s contact personnel.
C. The financial performance metrics of a service business.
D. The communication channels used for service promotion.
46. The ‘moment of truth’ in service delivery occurs when:
A. A service employee is hired.
B. A customer has an opportunity to evaluate the quality of a service.
C. A service is designed by the company.
D. The company’s financial statements are released.
47. When a service firm uses differential pricing based on time of day or day of week, it is primarily addressing the challenge of:
A. Inseparability
B. Intangibility
C. Perishability
D. Variability
48. Which of the following is an example of a service that is highly ‘people-dependent’?
A. Automated car wash
B. Online streaming service
C. Legal consultation
D. Vending machine
49. Which of the following best describes ‘internal marketing’ in service management?
A. Marketing services to potential customers.
B. Marketing the company’s services to its own employees.
C. Marketing services through internal company channels only.
D. Marketing services to business partners.
50. Which of the following is a key characteristic of services that makes managing customer expectations challenging?
A. Tangibility
B. Perishability
C. Inseparability
D. Variability
51. When a service firm struggles to match supply with demand due to perishability, what is a common strategy?
A. Increasing the price of the service.
B. Reducing the quality of the service.
C. Allowing customers to store unused services.
D. Focusing solely on intangible marketing messages.
52. The term ‘customer gap’ in service quality management refers to:
A. The difference between what customers expect and what they perceive they have received.
B. The difference between what employees are trained to do and what they actually do.
C. The difference between a company’s stated service policy and its actual service delivery.
D. The difference between the cost of service delivery and the price charged to the customer.
53. The ‘customer journey’ in service marketing maps:
A. The internal organizational structure.
B. The entire experience a customer has with a service provider, from initial awareness to post-service.
C. The product development lifecycle.
D. The company’s financial performance over time.
54. The concept of ‘service encounter’ in service marketing refers to:
A. The entire process of service design.
B. The period when a customer interacts directly with a service provider.
C. The marketing campaign for a new service.
D. The internal training of service employees.
55. Which of the following is a strategy for managing service ‘variability’?
A. Standardizing the service delivery process.
B. Increasing customer involvement.
C. Making services more tangible.
D. Reducing employee training.
56. Which element of the service marketing mix is MOST directly related to the ‘process’ of service delivery?
A. Physical Evidence
B. People
C. Promotion
D. Process
57. Which of the following is an example of ‘physical evidence’ in a service context?
A. The friendliness of a hotel receptionist.
B. The speed of a delivery service.
C. The cleanliness and ambiance of a restaurant.
D. The effectiveness of a consulting firm’s advice.
58. In service marketing, ‘managing expectations’ is crucial because:
A. It guarantees a profit for the company.
B. Customer satisfaction is largely determined by the gap between expectations and perceptions.
C. It eliminates the need for employee training.
D. It ensures services are always tangible.
59. Which of the following is a critical factor in managing the ‘people’ dimension of the service marketing mix?
A. Standardizing all employee interactions.
B. Employee training, motivation, and customer orientation.
C. Minimizing customer involvement in service delivery.
D. Reducing the number of customer touchpoints.
60. The ‘service-profit chain’ concept links:
A. Marketing efforts directly to profit.
B. Employee satisfaction to customer loyalty and profitability.
C. Service quality to advertising spend.
D. Product features to customer acquisition costs.
61. When a customer’s expectations of a service are met by the service provider’s performance, this is known as:
A. Service failure
B. Service recovery
C. Service quality
D. Service gap
62. A service firm that focuses on ‘internal marketing’ is prioritizing:
A. Attracting new customers through aggressive advertising.
B. Motivating and enabling employees to provide customer satisfaction.
C. Reducing the price of its services to gain market share.
D. Developing innovative new service offerings.
63. In the context of service marketing, what is the primary characteristic that distinguishes services from goods and leads to unique marketing challenges?
A. Intangibility, meaning services cannot be physically touched or held.
B. Perishability, where services cannot be stored for future sale.
C. Variability, as service quality can differ significantly.
D. Inseparability, where production and consumption often occur simultaneously.
64. The ‘inseparability’ of services means that:
A. Customers can easily return a service if they are not satisfied.
B. Service providers and customers are often present together during service delivery.
C. Service quality is highly standardized across all providers.
D. Services can be produced in advance and stored for later use.
65. The marketing mix for services is often extended beyond the 4 Ps (Product, Price, Place, Promotion) to include People, Process, and Physical Evidence. This extended marketing mix is known as the:
A. Service Blueprint
B. Service-Dominant Logic
C. 7 Ps of Marketing
D. Customer Journey Map
66. The ‘physical evidence’ element of the service marketing mix primarily addresses which characteristic of services?
A. Perishability
B. Inseparability
C. Variability
D. Intangibility
67. The ‘service process’ in service marketing refers to:
A. The physical environment where the service is delivered.
B. The sequence of actions and activities performed to deliver the service.
C. The pricing structure of the service offering.
D. The promotional messages used to advertise the service.
68. When a service provider fails to meet a customer’s expectations, leading to dissatisfaction, this is known as:
A. Service excellence
B. Service quality gap
C. Service innovation
D. Service differentiation
69. A ‘service blueprint’ is a tool used by service marketers to:
A. Develop a new service product.
B. Visualize and manage the entire service delivery process.
C. Analyze customer satisfaction levels.
D. Create advertising campaigns.
70. Which of the following is an example of a ‘tangible cue’ used in service marketing to reduce perceived risk and enhance customer confidence?
A. A well-trained and friendly service staff.
B. A clean and well-designed waiting area for a dental clinic.
C. A loyalty program offering discounts to repeat customers.
D. A clear and concise service guarantee.
71. Which of the following is an example of a service that has a high degree of ‘customer contact’?
A. Online software subscription.
B. Automated car wash.
C. Hairdressing salon.
D. Mail delivery service.
72. Which of the following is the MOST crucial factor in ensuring effective ‘service recovery’?
A. Minimizing the cost of the recovery effort.
B. Quickly blaming the employee responsible for the failure.
C. Empowering employees to resolve customer complaints effectively.
D. Promising compensation that is higher than the actual loss incurred by the customer.
73. Which of the following is a key challenge associated with the ‘variability’ of services?
A. Services can be easily produced in large batches.
B. It is difficult to standardize service quality and ensure consistency.
C. Services can be stored for future use.
D. Customers are always present during service production.
74. In service marketing, ‘People’ refers to:
A. Only the customers who receive the service.
B. All human actors who play a part in service delivery and influence the buyer’s perceptions.
C. The management and administrative staff of the service organization.
D. The target market segment for the service.
75. The ‘moment of truth’ in service marketing refers to:
A. The time when a service is first advertised.
B. Any point at which a customer interacts with a service provider and forms an impression.
C. The period after the service has been delivered and the customer is reflecting on it.
D. The internal process of service production.
76. Which of the following is an example of ‘customer relationship management’ (CRM) in the service sector?
A. Offering a buy-one-get-one-free promotion.
B. Tracking customer purchase history and preferences to offer personalized recommendations.
C. Implementing a new online booking system.
D. Hiring more customer service representatives.
77. Which of the following is an example of ‘customer participation’ in the service delivery process?
A. A restaurant chef preparing a meal.
B. A bank teller processing a withdrawal.
C. A customer filling out a medical history form before a doctor’s appointment.
D. A flight attendant serving drinks on a plane.
78. The ‘yield management’ strategy in service marketing is primarily aimed at:
A. Increasing the quality of the service provided.
B. Maximizing revenue from a fixed, perishable service capacity.
C. Reducing the costs associated with service delivery.
D. Enhancing customer loyalty through personalized service.
79. Which dimension of service quality, according to the SERVQUAL model, refers to the knowledge and courtesy of employees and their ability to inspire trust and confidence?
A. Reliability
B. Assurance
C. Tangibles
D. Empathy
80. The ‘perishability’ of services implies that service firms must find ways to manage demand and supply. Which of the following strategies is LEAST likely to be effective in managing service perishability?
A. Implementing a tiered pricing strategy with lower prices during off-peak hours.
B. Developing complementary services to utilize idle capacity.
C. Encouraging customers to make advance reservations or appointments.
D. Building large inventories of services to meet peak demand.
81. In the context of services, ‘customer participation’ refers to:
A. The customer’s role in influencing service quality.
B. The customer’s perception of value.
C. The customer’s overall satisfaction with the service.
D. The customer’s willingness to pay.
82. Which of the following is NOT considered a core element of the service marketing mix (7 Ps)?
A. Product
B. Price
C. Place
D. Profit
83. Which element of the expanded marketing mix (7 Ps) for services refers to the physical evidence of a service?
A. People
B. Process
C. Physical Evidence
D. Promotion
84. What is the main challenge in marketing services due to their intangibility?
A. Services are difficult to produce consistently.
B. Customers cannot evaluate services before purchase.
C. Services cannot be stored for later use.
D. Services are produced and consumed at the same time.
85. Which of the following is a key benefit of effective service marketing?
A. Increased inventory levels.
B. Reduced customer interaction.
C. Enhanced customer loyalty.
D. Lower service costs.
86. Which of the following is a strategy to manage service variability?
A. Increasing the number of service employees.
B. Standardizing the service delivery process.
C. Reducing the interaction between customers and providers.
D. Offering more customized service options.
87. How does internal marketing contribute to successful service marketing?
A. By focusing on external customer acquisition.
B. By ensuring employees are motivated and capable of delivering service.
C. By reducing the need for advertising.
D. By lowering the price of services.
88. Why is the perishability of services a significant challenge for marketers?
A. It makes services difficult to standardize.
B. It means services cannot be stored for future sale or use.
C. It leads to inconsistent service quality.
D. It requires services to be produced and consumed simultaneously.
89. When a customer compares their expectations of a service with their perception of the service received, they are engaging in:
A. Service segmentation.
B. Service positioning.
C. Service evaluation.
D. Service differentiation.
90. The ‘moment of truth’ in service marketing refers to:
A. The moment a service is produced.
B. The moment a customer interacts with a service provider.
C. The moment a customer decides to purchase a service.
D. The moment a service is advertised.
91. The concept of ‘service-profit chain’ suggests a link between:
A. Marketing expenditure and advertising reach.
B. Employee satisfaction and customer loyalty.
C. Product features and price sensitivity.
D. Operational efficiency and market share.
92. Why are ‘People’ so critical in the marketing of services?
A. They handle all customer transactions.
B. They are often the most visible part of the service.
C. They are responsible for product development.
D. They manage the company’s inventory.
93. In service marketing, what fundamental characteristic distinguishes services from physical goods and necessitates a different marketing approach?
A. Tangibility
B. Perishability
C. Inseparability
D. Variability
94. What is the primary function of ‘Process’ in the 7 Ps of service marketing?
A. To manage customer complaints.
B. To outline the steps and procedures involved in service delivery.
C. To determine the pricing strategy.
D. To create a service guarantee.
95. The fact that service quality can vary greatly depending on who provides it, when, where, and how it is provided, refers to which service characteristic?
A. Intangibility
B. Inseparability
C. Variability
D. Perishability
96. Which strategy is often used to overcome the intangibility of services?
A. Focusing solely on price.
B. Using tangible cues to represent the service.
C. Reducing customer involvement.
D. Limiting service availability.
97. The ‘simultaneous production and consumption’ aspect of services is known as:
A. Variability
B. Inseparability
C. Perishability
D. Intangibility
98. What is the primary purpose of a service guarantee?
A. To increase the price of services.
B. To reduce the risk for customers.
C. To discourage customer feedback.
D. To limit employee responsibility.
99. The difference between what customers expect and what they perceive they have received is known as:
A. Service gap
B. Service quality
C. Customer satisfaction
D. Service value
100. What is the primary goal of service recovery in marketing?
A. To eliminate all customer complaints.
B. To retain customers after a service failure.
C. To reduce the cost of service delivery.
D. To increase employee workload.
