1. What is the primary goal of service recovery?
A. To avoid admitting fault.
B. To retain customers and rebuild trust after a service failure.
C. To minimize costs associated with complaints.
D. To deter future complaints through harsh policies.
2. The ‘process’ element in the 7 Ps of service marketing refers to:
A. The physical surroundings of the service.
B. The procedures, mechanisms, and flow of activities by which a service is delivered.
C. The people delivering the service.
D. The tangible cues associated with the service.
3. Which strategy is used to manage the demand and supply of services when demand exceeds capacity?
A. Reducing service quality.
B. Implementing a waiting list or appointment system.
C. Increasing operating hours significantly.
D. Turning away customers without any recourse.
4. According to the SERVQUAL model, which dimension measures the ability of employees to provide prompt, careful, and reliable service?
A. Empathy
B. Reliability
C. Assurance
D. Responsiveness
5. Customer co-creation in services involves:
A. Customers independently developing new service features.
B. Customers actively participating in the service production process.
C. Service providers creating services solely for customer consumption.
D. Customers providing feedback after service consumption.
6. Which of the following is an example of a service that is highly susceptible to customer influence on service quality?
A. Online banking
B. A taxi ride
C. A car repair service
D. A streaming service
7. The ‘people’ element in the expanded marketing mix for services (7 Ps) refers to:
A. The physical environment where the service is delivered.
B. All human actors who play a part in service delivery.
C. The products or goods associated with the service.
D. The company’s financial performance.
8. The gap between customer expectations and management’s perception of customer expectations is known as:
A. The delivery gap
B. The performance gap
C. The standards gap
D. The knowledge gap
9. Which of the following is NOT considered a key characteristic of services?
A. Intangibility
B. Perishability
C. Tangibility
D. Inseparability
10. Which of the following is a strategy for managing service capacity when demand is high?
A. Reducing marketing efforts.
B. Implementing peak-time pricing.
C. Limiting service offerings.
D. Encouraging off-peak usage through discounts.
11. What is the main challenge of managing service quality in a multi-site service organization?
A. Lack of customer interaction.
B. Ensuring consistency across different locations.
C. Over-reliance on technology.
D. Low employee motivation.
12. What is the primary purpose of a service blueprint?
A. To design advertising campaigns.
B. To map out the customer journey and identify key touchpoints.
C. To analyze competitor pricing strategies.
D. To develop new product features.
13. The practice of using customer feedback to improve service design and delivery is known as:
A. Service segmentation.
B. Service bundling.
C. Service customization.
D. Service improvement loop.
14. Which of the following is an example of a pure service?
A. A restaurant meal
B. A haircut
C. A smartphone
D. A book
15. Which pricing strategy is most commonly used for services where capacity is fixed and demand fluctuates, such as airline tickets or hotel rooms?
A. Cost-plus pricing
B. Penetration pricing
C. Yield management pricing
D. Skimming pricing
16. The ‘physical evidence’ in the 7 Ps of service marketing refers to:
A. The internal systems of the service provider.
B. The tangible aspects that customers use to evaluate the service.
C. The financial statements of the company.
D. The employees’ performance reviews.
17. The concept of ‘customer gap’ in service quality management refers to:
A. The difference between what customers expect and what they perceive they receive.
B. The gap between a company’s internal processes and industry standards.
C. The difference between marketing promises and actual service delivery.
D. The gap between customer expectations and competitor offerings.
18. The ‘moment of truth’ in service marketing refers to:
A. The period after service delivery when a customer evaluates the experience.
B. A critical incident where a customer interacts with a service provider and forms an impression.
C. The internal planning phase for service development.
D. The advertising campaign leading up to service launch.
19. What does the ‘assurance’ dimension of SERVQUAL measure?
A. The courtesy and knowledge of employees.
B. The physical appearance of personnel and facilities.
C. The ability to perform the promised service dependably and accurately.
D. The provision of information and explanations.
20. Which of the following best describes internal marketing in services?
A. Marketing services to existing customers.
B. Marketing services to potential customers through advertising.
C. Marketing the service organization and its values to employees.
D. Marketing services to business partners and suppliers.
21. The concept of ‘managing demand’ in services is crucial due to which characteristic?
A. Inseparability
B. Intangibility
C. Variability
D. Perishability
22. Which strategy is often employed to manage the ‘variability’ of services?
A. Standardizing the service delivery process.
B. Increasing employee autonomy.
C. Focusing solely on customer personalization.
D. Reducing the number of service touchpoints.
23. Service blueprinting is a tool used by service marketers to:
A. Analyze competitor service offerings.
B. Map out the entire service process, from customer actions to back-office operations.
C. Measure customer satisfaction levels.
D. Develop advertising campaigns.
24. Which of the following best describes ‘internal marketing’ in a service context?
A. Marketing the service to external customers.
B. Motivating and enabling employees to provide good customer service.
C. Using social media to promote the service.
D. Developing new service offerings.
25. Which of the following is NOT considered a key component of the ‘Service Encounter Triad’?
A. The Company
B. The Customer
C. The Employee
D. The Competitor
26. Which of the following is a common strategy to manage the ‘inseparability’ of services?
A. Increasing employee training.
B. Using technology to automate parts of the service process.
C. Encouraging customer participation in the service delivery.
D. All of the above.
27. The ‘moment of truth’ in service marketing refers to:
A. The initial advertising campaign for a service.
B. The period of service design and development.
C. Any interaction point where a customer comes into contact with a service provider.
D. The post-service customer feedback collection process.
28. Which of the following is an example of a ‘physical cue’ or ‘tangible’ in a service environment?
A. The friendliness of a hotel receptionist.
B. The speed of a restaurant’s service.
C. The cleanliness and design of a café.
D. The helpfulness of a customer service representative.
29. When a service firm tries to reduce the variability of service quality, it is addressing which core service characteristic?
A. Intangibility
B. Inseparability
C. Variability
D. Perishability
30. The role of ‘People’ in the 7 Ps of Service Marketing includes:
A. Only the front-line employees interacting with customers.
B. All individuals involved in the service delivery process, including support staff.
C. Only the senior management responsible for service strategy.
D. The target market segment for the service.
31. The ‘gap model’ of service quality highlights potential discrepancies between:
A. Customer expectations and customer perceptions.
B. Company’s marketing promises and actual service delivery.
C. Employee training and customer needs.
D. All of the above.
32. According to the SERVQUAL model, which dimension assesses the organization’s ability to perform the service dependably and accurately?
A. Tangibles
B. Reliability
C. Responsiveness
D. Assurance
33. The ‘customer gap’ in the service quality model is the difference between:
A. What the company promises and what it delivers.
B. What employees are trained to do and what customers expect.
C. Customer expectations and customer perceptions of the service.
D. Market research findings and actual service design.
34. What is the primary goal of service recovery?
A. To eliminate all customer complaints.
B. To turn a dissatisfied customer into a loyal one.
C. To provide a refund for all service failures.
D. To blame the employee responsible for the failure.
35. In the context of the ‘7 Ps of Marketing’, what does ‘Process’ refer to?
A. The physical surroundings of the service.
B. The procedures, mechanisms, and flow of activities by which the service is delivered.
C. The quality of the staff delivering the service.
D. The pricing strategy of the service.
36. Which pricing strategy is often used for services with fluctuating demand, such as airline tickets or hotel rooms?
A. Cost-plus pricing
B. Penetration pricing
C. Dynamic pricing (or yield management)
D. Skimming pricing
37. Which of the following is an example of ‘service co-creation’?
A. A restaurant offering a fixed menu.
B. A bank providing an online portal for customers to manage accounts.
C. A consultancy firm developing a custom solution for a client.
D. A hotel providing room service.
38. Which strategy aims to increase service capacity or manage demand during peak periods to improve customer satisfaction?
A. Yield management
B. Customer segmentation
C. Service differentiation
D. Internal marketing
39. What does the ‘assurance’ dimension of the SERVQUAL model primarily measure?
A. The physical appearance of the service facility.
B. The knowledge and courtesy of employees and their ability to inspire trust and confidence.
C. The willingness of employees to provide prompt service.
D. The ability of the service to perform dependably.
40. In service marketing, ‘perishability’ refers to the fact that services:
A. Cannot be stored for later sale or use.
B. Are heterogeneous in quality.
C. Are produced and consumed simultaneously.
D. Are intangible and cannot be touched.
41. Which of the following is an example of service ‘tangibility’ as a marketing tool?
A. A customer’s positive experience with a service provider.
B. A detailed brochure describing the benefits of a consulting service.
C. The speed at which a service is delivered.
D. The friendliness of the service staff.
42. A customer’s perception of a service’s quality is often determined by the gap between:
A. Expected service and perceived service.
B. Actual service and the cost of service.
C. Service provider’s intention and customer’s understanding.
D. Marketing promises and service delivery capacity.
43. The physical surroundings and atmosphere in which a service is delivered, including decor, lighting, and sound, are known as:
A. Process
B. People
C. Physical Evidence
D. Product
44. Which of the following best describes the ‘reliability’ dimension of service quality?
A. The willingness of employees to help customers.
B. The knowledge and courtesy of service providers.
C. The ability to perform the promised service dependably and accurately.
D. The physical appearance of service facilities and personnel.
45. Which of the following is a key characteristic that distinguishes services from goods, impacting marketing strategies?
A. Tangibility, meaning services can be physically touched and seen.
B. Inseparability, where production and consumption occur simultaneously.
C. Homogeneity, ensuring every service experience is identical.
D. Perishability, meaning services cannot be stored for later sale or use.
46. The ’empathy’ dimension in the SERVQUAL model refers to:
A. The accuracy and dependability of service performance.
B. The knowledge and expertise of service providers.
C. The caring, individualized attention provided to customers.
D. The speed and promptness of service delivery.
47. Which strategy is used to overcome the challenge of service perishability?
A. Increasing the tangibility of the service.
B. Developing complementary services.
C. Implementing reservation systems and managing demand.
D. Focusing on internal marketing efforts.
48. A company that fails to meet customer expectations for service delivery might suffer from:
A. Increased customer loyalty.
B. Positive word-of-mouth referrals.
C. A service quality gap (specifically, a performance gap).
D. Enhanced service tangibility.
49. The strategic role of service quality is primarily to:
A. Reduce the cost of service delivery.
B. Increase employee turnover.
C. Build customer loyalty and competitive advantage.
D. Simplify marketing communications.
50. Internal marketing in services is critical because:
A. It helps customers understand the service’s value proposition.
B. It ensures employees are motivated and capable of delivering the service effectively.
C. It directly impacts the pricing strategy of the service.
D. It is primarily used to manage the physical evidence of the service.
51. The ‘process’ element of the 7 Ps of service marketing refers to:
A. The customer’s emotional response to the service.
B. The procedures, mechanisms, and flow of activities by which a service is delivered.
C. The physical surroundings of the service encounter.
D. The marketing communications used to promote the service.
52. Which service marketing strategy is most appropriate for a service that is highly perishable, like airline seats?
A. Focusing solely on building brand loyalty.
B. Implementing differential pricing and yield management.
C. Increasing the tangibility of the service through brochures.
D. Standardizing the service to ensure consistent delivery.
53. The ‘people’ element in the expanded marketing mix for services (7 Ps) refers to:
A. The physical environment where the service is delivered.
B. All human actors who play a part in service delivery.
C. The systems and processes used to deliver the service.
D. The price charged for the service.
54. What is the primary goal of service recovery?
A. To avoid acknowledging service failures.
B. To minimize the cost of customer complaints.
C. To restore customer satisfaction and loyalty after a service failure.
D. To blame employees for service shortcomings.
55. What is the primary challenge in managing service quality for a service that requires significant customer participation?
A. Ensuring the service is not too tangible.
B. Controlling the customer’s behavior and input.
C. Reducing the perishability of the service.
D. Making the service more homogeneous.
56. When a service provider tailors the service to the specific needs of individual customers, this is known as:
A. Service standardization.
B. Service customization.
C. Service rationing.
D. Service commoditization.
57. A hotel offering different room types at varying prices based on amenities, view, and location is an example of:
A. Service standardization.
B. Service customization.
C. Service segmentation.
D. Service differentiation.
58. The SERVQUAL model measures service quality across five dimensions. Which of the following is NOT one of these dimensions?
A. Reliability
B. Responsiveness
C. Competence
D. Assurance
59. The concept of ‘moment of truth’ in service marketing refers to:
A. The initial planning phase of a service offering.
B. Any point where a customer interacts with a service provider.
C. The final evaluation of a service after consumption.
D. The internal training of service employees.
60. A restaurant that trains its staff to greet customers warmly, take orders accurately, and handle complaints efficiently is focusing on which element of service marketing?
A. Physical Evidence
B. Process
C. People
D. Promotion
61. Which of the following strategies is most effective in managing the ‘perishability’ of services?
A. Offering discounts during off-peak hours.
B. Increasing advertising during peak demand periods.
C. Standardizing the service delivery process.
D. Focusing solely on customer retention.
62. Which pricing strategy is most appropriate when the primary goal is to attract a large number of customers quickly in a new service market?
A. Skimming pricing
B. Penetration pricing
C. Premium pricing
D. Psychological pricing
63. Which pricing strategy is often used by service firms to manage demand and revenue, such as charging higher prices during peak seasons?
A. Cost-plus pricing
B. Value-based pricing
C. Yield management
D. Penetration pricing
64. The SERVQUAL dimension ‘Responsiveness’ refers to:
A. The ability to perform the promised service dependably and accurately.
B. The willingness to help customers and provide prompt service.
C. The knowledge and courtesy of employees and their ability to inspire trust.
D. The degree to which the customer is treated with dignity and respect.
65. The ‘recovery paradox’ in service management suggests that:
A. Customers are always satisfied with excellent service.
B. A failed service, if recovered effectively, can lead to higher customer satisfaction than if the failure never occurred.
C. Service failures are inevitable and cannot be managed.
D. Customers prefer to complain rather than resolve issues.
66. What is the primary purpose of service guarantees?
A. To increase service prices.
B. To reduce employee motivation.
C. To reduce customer perceived risk and build confidence.
D. To eliminate the need for customer feedback.
67. The ‘moment of truth’ in service marketing refers to:
A. The planning phase of service delivery.
B. Any interaction where a customer encounters and evaluates a service.
C. The post-service customer feedback process.
D. The internal training of service staff.
68. When a service firm uses its employees to market its services, this is an example of:
A. Relationship marketing
B. Internal marketing
C. Cause marketing
D. Direct marketing
69. Customer complaints about a service often stem from a gap between what customers expect and what they perceive they have received. This is known as the:
A. Internal Marketing Gap
B. External Communication Gap
C. Service Performance Gap
D. Customer Expectation Gap
70. Which of the following is NOT a key characteristic that differentiates services from goods?
A. Intangibility
B. Inseparability
C. Inventory
D. Variability
71. The SERVQUAL model measures service quality based on five dimensions. Which dimension deals with the knowledge and courtesy of employees and their ability to inspire trust and confidence?
A. Reliability
B. Assurance
C. Tangibles
D. Empathy
72. The use of technology, such as online booking systems and self-service kiosks, in service delivery is primarily aimed at:
A. Increasing the reliance on human interaction.
B. Reducing the need for physical evidence.
C. Improving efficiency and customer convenience.
D. Eliminating the concept of perishability.
73. Which of the following is an example of a ‘service encounter’?
A. A customer viewing a service advertisement.
B. An employee attending a service training session.
C. A customer interacting with a hotel receptionist.
D. A manager analyzing service performance data.
74. The process of managing customer relationships to build long-term loyalty is known as:
A. Transaction marketing
B. Customer relationship management (CRM)
C. Product marketing
D. Brand marketing
75. In the context of service marketing, which of the following best describes the ‘intangibility’ characteristic of services?
A. Services cannot be touched, tasted, or felt before they are purchased.
B. Services are produced and consumed simultaneously.
C. Services are heterogeneous and vary from one provider to another.
D. Services cannot be stored for later sale or use.
76. Which of the following is a primary function of ‘internal marketing’ in service organizations?
A. To attract new customers.
B. To motivate and enable employees to provide customer satisfaction.
C. To reduce service costs.
D. To manage the physical environment.
77. The concept of ‘inseparability’ in service marketing refers to the fact that:
A. Customers often participate in the service production process.
B. Services are delivered and consumed at the same time.
C. Services are perceived differently by each customer.
D. Services are difficult to standardize.
78. In service marketing, ‘customer participation’ is a key aspect because:
A. It reduces the need for service personnel.
B. Customers are co-producers of the service.
C. It guarantees service quality.
D. It simplifies the marketing process.
79. Which element of the expanded marketing mix for services (7 Ps) refers to the physical surroundings where the service is delivered and where the firm and customer interact?
A. People
B. Process
C. Physical Evidence
D. Promotion
80. When a restaurant manager carefully designs the layout, decor, and ambiance of the dining area, they are focusing on:
A. Process management
B. People management
C. Physical evidence
D. Service innovation
81. Which factor is most likely to contribute to the ‘variability’ of services?
A. Standardized operating procedures for all service interactions.
B. The degree of customer involvement in the service production process.
C. The use of advanced technology in service delivery.
D. Consistent training programs for all service employees.
82. In the ‘7 Ps of Marketing’ for services, ‘People’ refers to all human actors who play a part in service delivery. Which of the following is MOST critical for the ‘People’ element to contribute positively to service quality?
A. High employee turnover rates to bring in fresh perspectives.
B. Extensive employee training and empowerment to handle customer interactions effectively.
C. Low employee wages to maximize profit margins.
D. Minimal customer interaction to reduce potential for errors.
83. The ‘Servicescape’ refers to the physical environment in which a service is delivered. What is a key role of the servicescape in influencing customer behavior?
A. To provide a consistent brand image and communicate service quality.
B. To exclusively manage employee satisfaction and productivity.
C. To solely serve as a cost-saving measure for the service provider.
D. To limit customer interaction and service touchpoints.
84. Which of the following is a key benefit of a well-managed ‘customer journey map’ in service marketing?
A. It primarily helps in reducing employee workload.
B. It identifies critical touchpoints and potential areas for service improvement.
C. It guarantees immediate customer satisfaction without further effort.
D. It simplifies the pricing structure of the service.
85. Which of the following is NOT a characteristic of services that distinguishes them from goods?
A. Intangibility
B. Inseparability
C. Tangibility
D. Perishability
86. When a hotel offers different room rates based on the day of the week, season, and availability, it is employing which pricing strategy?
A. Penetration pricing
B. Price bundling
C. Dynamic pricing
D. Promotional pricing
87. What does the ‘internal marketing’ concept in service marketing primarily focus on?
A. Marketing services to external customers.
B. Marketing the company’s brand to potential investors.
C. Marketing to employees to ensure they are motivated and capable of delivering the service.
D. Marketing service features to highlight competitive advantages.
88. The ‘moment of truth’ in service delivery refers to:
A. The period after service delivery when customer feedback is collected.
B. Any instance where a customer interacts with a service provider and has an opportunity to form an impression.
C. The initial stage of service design and planning.
D. The internal processes of the service organization.
89. Customer loyalty in services is often built on:
A. Infrequent service interactions.
B. Consistently exceeding customer expectations across multiple touchpoints.
C. The lowest possible price.
D. A single positive service experience.
90. Which pricing strategy is most appropriate for a service with high fixed costs and a perishable nature, where demand fluctuates significantly?
A. Cost-plus pricing
B. Penetration pricing
C. Yield management pricing
D. Skimming pricing
91. Which of the following best describes the ‘customer gap’ in service marketing?
A. The difference between what customers expect and what they perceive they have received.
B. The gap between a service firm’s market research and its understanding of customer expectations.
C. The difference between service quality specifications and the actual service delivered.
D. The gap between the service designed and the service delivered.
92. Customer relationship management (CRM) in services aims to:
A. Solely focus on acquiring new customers.
B. Maximize short-term sales transactions.
C. Build and maintain long-term, profitable customer relationships.
D. Reduce the number of customer touchpoints.
93. What is the main challenge associated with the ‘perishability’ of services?
A. Services cannot be stored or inventoried for later use.
B. Services are inconsistent in quality due to varying providers.
C. Services cannot be separated from their producers.
D. Services are difficult to evaluate before purchase.
94. Which of the following is an example of ‘service tangibles’ in the SERVQUAL model?
A. The friendliness of the staff.
B. The speed of service delivery.
C. The appearance of the physical facilities, equipment, and personnel.
D. The accuracy of billing.
95. Service recovery is critical for customer retention. What is the primary goal of an effective service recovery strategy?
A. To minimize the cost of resolving customer complaints.
B. To restore customer satisfaction and loyalty after a service failure.
C. To identify and blame the employee responsible for the failure.
D. To deter future complaints by making the process difficult.
96. The SERVQUAL model measures service quality across five dimensions. Which dimension focuses on the knowledge and courtesy of employees and their ability to inspire trust and confidence?
A. Reliability
B. Assurance
C. Tangibles
D. Empathy
97. Customer co-creation in services emphasizes the customer’s active role. Which scenario best exemplifies customer co-creation?
A. A restaurant allowing customers to pre-order meals online.
B. A bank providing a mobile app for customers to manage their accounts.
C. A consulting firm working with a client to jointly develop a strategic plan.
D. A retail store offering a loyalty program for repeat purchases.
98. In the context of service marketing, ‘managing demand’ is crucial. Which strategy is LEAST likely to be effective for managing demand during peak periods?
A. Implementing a reservation or appointment system.
B. Offering lower prices during off-peak times to shift demand.
C. Increasing service capacity by hiring more staff and expanding facilities.
D. Encouraging customers to use complementary services during off-peak hours.
99. What is the primary purpose of ‘service blueprints’ in service design and management?
A. To increase the complexity of service delivery.
B. To visualize the entire service process, including customer actions, frontstage actions, backstage actions, and support processes.
C. To reduce the need for employee training.
D. To focus solely on the physical aspects of the service.
100. The ‘provider gap’ in the Gaps Model of Service Quality refers to:
A. The difference between what customers expect and what they perceive they have received.
B. The gap between the company’s understanding of customer expectations and its service quality specifications.
C. The difference between service quality specifications and the actual service delivered.
D. The gap between the service delivered and the promised service to customers.
