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OF MANAGEMENT

Sem-IV Services
Marketing- MCQs

1. Which of the following is not a tangible dominant?

Which of the following is not an element of physical evidence?

b. Employee Training

c. Equipment

d. Facility design

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4. Which of the following is not an element of People?

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a. Motivation

b. Teamwork

c. Flow of activities

d. Customer training

5. Standardized and customized flow of activities, simple and

complex number of steps and customer involvement by which a
service is delivered is called……..

a. Place Mix

b. Physical Evidence Mix

c. Process Mix

d. People Mix

6 .................... is the environment in which the service is delivered

and
where the firm and customer interact and any tangible
components that facilitate performance or communication of the
service.

a. Physical evidence

b. Process

c. Place

d. People

7. “All human actors who play a part in service delivery and thus
influence the buyer’s perceptions: namely, the firm’s personnel,
the customer and other customers in the service environment.”

a. Process

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b. Physical Environment

c. People

d. Place

8 ............... is the difference between customer expectations and

perceptions.

a. Customer Delight

b. Customer Satisfaction

c. Customer Gap

d. The supplier Gap

9. Which of the following is difficult to evaluate?

a. Jewellery

b. Auto repair

c. Furniture

d. Clothing

10. Evaluation of Medical Diagnosis service is mainly depends on

a. High in experience quality

b. High in credence quality

c. High in search quality

d. Both a and c

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11 ................ is defined a the caring, individualized attention that
the firm
provides its customers.

a. Empathy

b. Responsiveness

d. None of these

14 ...................... is the physical surroundings or the physical

facility where
the service is produced, delivered and consumed.

a. Servicespace

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b. Servicescape

c. Serviceplace

d. Servicescope

15. “…….is the culture where an appreciation for good service

exists and where giving good service to internal as well as
ultimate, external customers is considered a natural way of life
and one of the most important norms by everyone.”

a. Service culture

b. Corporate culture

c. Service Triangle

d. Service Quality Dimensions

16. SSTs stands for…….

a. Stable Service Technologies

b. Social Service Technologies

c. Smart Service Technologies

d.Self Service Technologies

17 ................. are the only service distributors which do not require

direct
human interactions.

a. Electronic Channels

b. SSTs

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c. Direct Service Channels

d. Speculative channels

18. A triangle of Company, Customers, Employees, Internal

Marketing, External Marketing communications and
Interactive marketing is known as…………..

19. Intangibility, Perishability, Inseparability & Variability are the characteristics

of

a. Service

b. Demand

c. Need

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d. Physical object

21. Distinct characteristic of services is

a. Intangibility

b. Inseparability

Intangibility

Inseparability

d. Perishability

24. Services can not be stored. This describes the _

characteristic of services.

a. Intangibility

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b. Variability

c. Inseparability

d.Perishability

25. Examples of pure tangible goods include all of the following

EXCEPT:

Interactive marketing

a. Hybrid offer

b. Core service

c. Augmented or ancillary product

d.Experience

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28. Top firms audit service performance by collecting
measureme
nts to probe customer satisfiers and dissatisfiers.

a. Customer satisfier

b. Customer complaint

intangibility.

variability.

d. perishability.

31. Added features to an offering are called service features.

a. Expected

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b. Augmented

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c. Primary

d.Secondary

32. The intangibility of services has implications for the choice of

_

a. Brand elements

b. Location

c. Price

d. Product features

33. _ cost refers to the product’s purchase cost plus the

discounted cost of maintenance and repair less the discounted
salvage value

a. Total

b. Variable

c. Life cycle

d. Out of pocket

34. Successful service companies focus their attention on both

their customers and their employees. They understand ,
which links service firm profits with employee and customer
satisfaction.

a. Internal marketing

b. Service-profit chains

c. Interactive marketing

d. Service differentiation

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35. If a firm is practicing , the firm is training and
effectively motivating its customer-contact employees and all of
the supporting service people to work as a team to provide
customer satisfaction.

a. Double-up marketing

b. Internal marketing

36. According to Parasuraman, Zeithaml & Berry , the most important

determinant of service quality is :

Reliability

c. Physical Evidence

d. Promotion

38. Which of the following is not an element of physical evidence?

a. Employee Dress
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b. Employee Training

c. Equipment

d. Facility Design

39. Which of the following is not an element of people?

a. Motivation

b. Teamwork

c. Flow of activities

d. Customer training

40. Standardized and customized flow of activities , simple and

complex number of steps and customer involvement by which
a service is delivered is called –

a. Place Mix

b. Physical evidence mix

c. Process mix

d. People mix

41. _ is the environment in which the service is delivered

and where the firm and customer interact and any tangible
components that facilitates performance or communication of the
service.

a. Physical evidence

b. Process

c. Place

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d. People

42. All human actors who play a part in service delivery and thus
influence the buyers perceptions : namely , the firms personnel,,
the customer and other customers in the service environment.

a. Process

b. Servicescape

c. Serviceplace

d. Servicescope

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45. _ are the only service distributors which do not
require direct human interactions.

a. Electronic channels

b. SST’s

c. Direct Service channels

d. Speculative channels

46. In the absence of a physical product, service providers need

to consider the use of that enable customers to make a
judgment on the service quality.

a. Intangible clues

b. Tangible clues

c. Blueprint

d. Performance measures

47. Compared with low-contact services, customers of high-

contact services are more likely to judge service quality on the
basis of:

a. Price of the service

b. Processes used in carrying out the service

c. Intangible outcomes eg. The performance of an investment portfolio

d. Tangible outcomes

48. Which of the following is not generally accepted as being

part of the extended marketing mix for services?

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a. Product

b. Price

c. Process

d.Practice

49. Which of the following statements are incorrect?

a. Services are intangible

b. Services are perishable

c. Services can be co‐produced with customers

d.Services are invariable

50. When a music concert is recorded in a CD, which of

the following sentences are correct?

a. The CD becomes a service

b. The CD becomes a service product

c. The CD becomes both neither product nor service

d.The concert and the CD together become a service with a

tangible product.

51. Service is somewhat like a rental. The statement is

a. incorrect

b. correct

c. somewhat correct

d. none of the above

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52. Services Marketing is an attractive field of study for India
because:

a. Services contribute to more than half of India’s GDP

b. Services are delivered by more than half of India’s population

c. Services are more important than agriculture and manufacturing

55. In the service system, customers may specify their needs and
expectations to the service provider. Such specifications are
called

a. feedback

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b. feed‐forward

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c. how and why specifications

d. none of the above

56. Services are delivered within the marketing environment.

The macro‐ environment can be analysed using which of the
following tools?

a. bit‐based

b. atom‐based

c. molecule‐based

d. none of the above

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59. There are in total _ categories of service mix.

a) Four
b) Six
c) Five
d) None of the above.

60. The sale of cars wherein the seller also provides services is
an example of

a) Pure tangible good

b) Tangible good with accompanying services
c) Hybrid
d) Major Service with accompanying minor goods and services

61. Babysitting and psychotherapy are examples of

a) Pure tangible good

b) Tangible good with accompanying services
c) Hybrid
d) Pure service

62. Airplane travel can be categorized under:

a) Pure tangible good

b) Tangible good with accompanying services
c) Pure service
d) Major Service with accompanying minor goods and services

63. The service provided at restaurant is an example of:

a) Pure tangible good

b) Tangible good with accompanying services
c) Hybrid
d) Major Service with accompanying minor goods and services

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64. _ are those qualities that buyers evaluate before
purchase.

a) Search qualities
b)Experience qualities
c) Credence qualities
d) None of the above

65. _ are those characteristics that buyer

evaluate the characteristics after the purchase.

a) Search qualities
b) Experience qualities
c) Credence qualities
d) None of the above

66. _ are those characteristics that buyer cannot

evaluate even after the consumption.

a) Search qualities
b) Experience qualities
c) Credence qualities
d) None of the above

67. Service firms can increase quality control by

a) Making investment in good hiring

b) Standardize the service performance process
c) Monitor customer satisfaction
d) All of the above

68. _ shifts some demand from peak period to off-peak

periods.

a) Differential pricing
b)Same pricing

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c) Qualitative pricing
d) None of the above

69. Low early-evening movie prices is an example of

a) Differential pricing
b)Same pricing
c) Qualitative pricing
d) None of the above

70. _ can be cultivated.

a) Peak demand
b) Nonpeak demand
c) Normal demand
d) None of the above

71. _ is an approach to manage the demand level.

a) Complementary system
b) Differential system
c) Reservation system
d) None of the above

72. When it comes to perishability, demand on supply side can be

managed by

a) Part-time employees
b) Peak-time efficiency
c) Shared services
d) All of the above

73. Holistic marketing for services demands

a) External marketing

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b) Internal marketing
c) Interactive marketing
d) All of the above

74. _ is about the normal work of creation, pricing,

distribution and promotion of services to customers.

Internal marketing

77. _ is about employees skills in serving the client.

a) External marketing
b) Internal marketing
c) Interactive marketing
d) All of the above

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78. To assess the service quality, customers compare the
perceived service with the expected service.

a) True
b)False
c) Can't say
d) None of the above

79. The service-quality model identifies gaps that

results in unsuccessful delivery.

a) 4
b) 3
c) 5
d) 6

80. As per the service quality model, researchers figure out

determinants of service quality.

a) 4
b) 3
c) 5
d) 6

81. The five determinants of service quality in order of importance

are:

a) Tangibles, empathy, assurance, responsiveness, reliability

b) Responsiveness, Reliability, Assurance, Empathy, Tangibles
c) Reliability, Responsiveness, Assurance, Empathy, Tangibles
d) All of above are false

82. As per service-quality model, the capacity to complete

the promised service accurately and dependably is

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a) Responsiveness
b) Reliability
c) Assurance
d) Empathy

83. As per service-quality model, the willingness to assist

customers and offer prompt service is

d) Empathy

86. Increasing customer expectations of what an organization can

deliver

a) Can result in improved perceptions of overall service quality

b)Can result in poor perceptions of overall service quality

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c) NO change
d) None of the above

87. The perceived fairness of the level of economic advantages

derived from service usage in relationships to the economic
costs is

a) Payment debt
b) Payment equity
c) Payment profits
d) None of the above

88. At customer service interface, company intends to manage

a relationship with a customer through

a) Technology
b) People
c) Both a and b
d) None of the above

89. A customer service interface should excel on

a) Physical presence and cognition

b) Connectedness and emotion/attitude
c) Both a and b
d) None of the above

90. The use of undercover and paid shoppers to report back

to the firm is known as

a) Hidden shopping
b) Blind shopping
c) Mystery shopping
d) None of the above

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91. Customers assess complaint incidents in terms of

a) Outcomes they receive

b) The methods used to generate outcomes
c) Nature of interpersonal treatment
d) All of the above

provider.

d) None of the above

95. While estimating life-cycle cost,

a) Discounted cost of repair and maintenance is added in product's

purchase cost
b) Discounted salvage value is subtracted from product's purchase cost

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c) Both a and b
d) None of the above

96. _ extends beyond the performance and

functioning of the product itself.

a) Value augmenting services

b)Facilitating services
c) Any of a and b
d) None of the above

97. Which factors should holistic marketers take into account

while making pricing decisions?

a) The company, the customers and the competition

b)The marketing environment
c) Both a & b
d) None of the above

98. Competitive pressures along with middlemen and consumer

behavior have resulted in market place that features

a) Sales promotion
b) Heavy discounting
c) Both a and b
d) None of the above.

99. A successful freemium strategy is possible when

a) There is a service or product that stands truly out

b) There is a solid up-selling plan from the beginning
c) Access to product is just one click away
d) All of the above

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100. Consumers actively process price information through

a) Informal communication
b) Point-of-purchase
c) Online sources
d) All of the above

101. There is a lower threshold for customers below which

they consider a product to be of inferior quality or
unacceptable quality.

a) False
b) True

102. When perceived prices are lower than the stated prices, it can
result in

a) Unpleasant surprises
b)Pleasant surprises
c) No impact
d) None of the above

103. Marketers set the price of a product or service in a _ step

procedure.

a) Four
b) Five
c) Six
d) None of the above

104. While setting the price, marketers

a) Select the pricing objective

b) Estimate demand
c) Analysis competitors cost, offers and prices
d) All of the above

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105. The pricing objectives are

a) Maximum current profit, market share and market skimming

b) Survival
c) Product quality leadership
d) All of the above

106. If companies face intense competition and plagued with

over-capacity, the pricing objective is

a) Survival
b)Maximum current profit
c) Maximum market share
d) None of the above

107. In _ company may not focus on long-run

performance by ignoring the impact of other marketing mix
variables.

a) Survival
b) Maximum current profit
c) Maximum market share
d) None of the above

108. Marketers focus on _ while maximizing market share.

a) Higher sales volume

b) Lower unit costs
c) Both a and b
d) None of the above

109. Market-penetration pricing strategy can be adopted when

a) Market is highly price sensitive

b) Low price stimulates market growth

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c) Both a & b
d) None of the above

110. In the process of maximum market skimming,

a) Prices start high and slowly decline over time

b) Prices start low and gradually increase over time
c) Prices remain constant
d) All of the above

111. Market skimming works when

a) More number of buyers has a high current demand

b) High price reflects the image of a superior product
c) Both a & b
d) None of the above

112. Product quality leadership is based on

a) High quality and low pricing

b) High quality and premium pricing
c) Low quality and premium pricing
d) None of the above

113. The pricing objective of a university is

a) Partial cost recovery

b)Full cost recovery
c) Maximum market share
d) None of the above

114. The pricing objective of a nonprofit hospital is

a) Partial cost recovery

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b) Full cost recovery
c) Maximum market share
d) None of the above

115. Customers are _ price sensitive to items they buy

infrequently.

a) Less
b)More
c) Not
d) None of the above

116. The factor that can result in less price sensitivity is

a) The product is more distinctive

b) Less knowledge about substitutes
c) Both a and b
d) None of the above

117. A seller can charge high price compared to peers when

a) Offers equivalent total cost of membership

b) Offers higher total cost of membership
c) It offers lowest total cost of membership
d) All of above are false

118. When a competitor has a _ it probably will match

price differences or changes.

a) Profit maximization objective

b) No specific objective
c) Market-share objective
d) None of the above

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119. When a competitor has a _ , it will improve the
product quality or increase advertising budget.

a) Profit maximization objective

b)No specific objective
c) Market-share objective
d) None of the above

120. What is the major consideration in price setting?

a) Costs form a base to the price.

b) Price of substitutes and competitors prices are orienting point
c) Customers evaluation of the unique features
d) All of the above

121. In mark up pricing, unit price is calculated by

a) Variable costs+ (Fixed cost/Unit sales)

b)Variables costs + Fixed cost
c) (Variables costs/Unit sales) + Fixed cost
d) Supply Chain dimension

122. In an organization decides the price that would

yield its target rate of ROI.

a) Mark up pricing
b) Target return pricing
c) Perceived value pricing
d) Value pricing

123. The airline and hospitality industry uses:

a) Customer segment pricing

b) Time pricing

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c) Yield pricing
d) Channel pricing

124. The first level in the customer value hierarchy is _

a) Core benefit
b)Basic product
c) Expected product
d) Augmented product

125. At the second level of customer value hierarchy, marketers

need to turn core benefit into

a) Expected product
b) Augmented product
c) Basic product
d) None of the above

126. At the third level of customer value hierarchy, marketers

need to design a

a) Expected product
b)Augmented product
c) Basic product
d) None of the above

127. When it is about fourth level of customer value hierarchy,

marketers need to design that exceed customers expectations.

a) Expected product
b) Augmented product
c) Basic product
d) None of the above

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128. At the fifth level, marketer gets a _ that has all the
transformations and augmentations the offering or product
might undergo in the future.

a) Expected product
b) Augmented product
c) Basic product
d) Potential product

129. _ have different services and product features

that are more important considerations compared to price.

a) Staples
b) Heterogeneous shopping goods
c) Homogenous shopping goods
d) None of the above

130. Smoke detectors is an example of

a) Unsought goods
b)Heterogeneous shopping goods
c) Homogenous shopping goods
d) Specialty goods

131. Advertising and management consulting are examples of

a) Maintenance and repair services

b) Business Advisory services
c) Capital services
d) None of the above

132. _ can be defined as a measure of the probability that a

item will not fail or malfunction within a given time period.

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a) Reliability
b)Reparability
c) Durability
d) None of the above

133. The prime service differentiators are

a) Installation, customer consulting and customer training

b) Ordering ease and delivery
c) Maintenance and repair
d) All of the above

134. In a product hierarchy, all the product classes that can

meet a core need with justified effectiveness is

a) Need family
b) Product line
c) Product type
d) Product family

135. In a product hierarchy, a group of products in a

product class that is closely associated as they perform a
specific function and sold to same customer groups:

a) Need family
b) Product line
c) Product type
d) Product family

136. _ is a group of diverse but associated items that

work n a compatible manner.

a) Product system
b)Product mix

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c) Product assortment
d) None of the above

137. _ is the set of all items and products a particular

seller offer for sale.

a) Product system
b) Product mix
c) Product line
d) None of the above

138. A product mix consists of various

a) Product lines
b)Product system
c) Product family
d) None of the above

139. The of a product mix implies to how many types of

variants are offered of each product in the line.

a) Length
b) Depth
c) Width
d) Consistency

140. The of the product mix implies to how closely

associate the several product lines are in distribution channels,
production requirements or some other way.

a) Length
b) Depth
c) Width
d) Consistency

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141. In product-line analysis, _ are that result in high sales
volume and are aggressively promoted but have low margins.

a) Core products
b)Staples
c) Specialties
d) Convenience items

142. In product-line analysis are items will lower sales

volume and no promotion.

a) Core products
b) Staples
c) Specialties
d) Convenience items

143. In product line analysis, Staples have

a) Low margins
b) No margins
c) Higher margins
d) None of the above

144. In product line analysis _ are items that have low sales
volume and highly promoted.

a) Core products
b) Staples
c) Specialties
d) Convenience items

145. When a firm placed in the middle-market wants to launch a

lower-priced line as the middle market is stagnating or declining,
it is

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a) Down-market stretch
b)UP-market stretch
c) Two-way stretch
d) None of the above

146. The pricing of products where the focus is more on ancillary

products

a) Optional feature pricing

b) Product line pricing
c) Captive product pricing
d) None of the above

147. The pricing done in amusement parks is an example of

a) Optional feature pricing

b) Product line pricing
c) Captive product pricing
d) Two-part pricing

148. High mark ups on razor blades is an example of

a) Optional feature pricing

b) Product line pricing
c) Captive product pricing
d) Two-part pricing

149. _ creates brand equity for components, parts or

materials that are essentially contained within other branded
products.

a) Ingredient branding
b)Component branding
c) Material branding
d) None of the above

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150. Which of the following business shall be categorized as a
pure service?

a) Insurance

b) farming

c) engineering

Marketing Myopia

d) Servicescape

e) Organization and Systems

153. Which of the following components of the Servuction

Model is not visible to consumers?

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a) Organization and Systems

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b)Contact Personnel/ Service Provider

c) Other Customers

d) Servicescape

154. A tool for assessing the level of service quality based on

the difference between users expectations and the service
experience delivered is:

a. The service dashboard

b. The service quality gap model

c. The balanced scorecard

d. The information value model

155. Text messaging is a type of which promotion strategy?

a. Personal selling

b. Sales promotion

c. Direct marketing

d. Public relations

156. The element of service quality which is defined as 'the

knowledge and courtesy of employees and their ability to
convey trust and confidence'

a. Tangibles

b. Reliability

c. Assurance

d. Empathy

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157. Attributes where consumers can evaluate only
during or after the consumption process is known as

a. Credence qualities

b. Experience qualities

critical incidents

d. service recovery

160. The difference between desired service and the

level of service considered adequate is known as

a. Service quality

b. Zone of Tolerance

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c. GAP

d. SERQUAL

161. Service failures involving problematic customer include .

a. uncooperative customers

all of the above

c. critical incident

d. moment of truth

164. The difference between which two expectation standards

is the zone of tolerance?

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a. Desired service, adequate service

b. Professional service, adequate service

c. Desired Service, optimal service

d. Desired service, advance service

165. In a services context, distribution embraces all of the

following elements EXCEPT _ .

a. core services flow

b. product flow

c. information and promotion flow

d. negotiation flow

166. What is the sequence of steps for the service recovery

process?

a. Anticipating customer needs, acknowledging their feelings, Apologising

and Owning the responsibility, Offering alternatives, making amends

b. Acknowledging their feelings, Apologising and Owning the

responsibility , making amends, anticipating customer needs, offering
alternatives

c. Acknowledging their feelings, Apologising and owning the

responsibility, offering alternatives, making amends,
anticipating customer needs

d. Acknowledging their feelings, offering alternatives, Apologising and

owning the responsibility, making amends, anticipating customer needs

167. has become a popular way to expand delivery of an

effective service concept to multiple sites without the level of
investment capital that would be otherwise needed.
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a. Multi-site expansion

b. Sub-contracting

c. Franchising

d. Company-owned expansion

168. _ are the only service distributors which o not require direct
human interactions.

170. The collection of strategies and tactics firms use to

scientifically manage demand for their products and services is
known as

a. Customer profitability management

b. Cost of service delivery

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c. Segmented pricing

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d.Revenue management

171. Which of the following statements pertaining to the

SERVQUAL scale is correct?

a. SERVQUAL compares perceptions to what customers would

normally expect

b. SERVQUAL is a 22-item scale

c. SERVQUAL consists of four service quality dimensions

d.SERVQUAL compares perceptions to what a customer

should expect from a firm the delivers high-quality services

172. Which of the following is not one the five dimensions that
is measured by the SERVQUAL SCALE?

a. tangibles

b. employee satisfaction

c. responsiveness

d. assurance

173. How many type of price discriminations are there?

a. 1

b. 3

c. 2

d. 4

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174. The SERVQUAL dimension that measures consumer
views that reflect the security of the firm's operations is the _
dimension.

a. tangibles

b. employee satisfaction

d. a high need for personal interaction

177. are complaints that are expressed without the

expectation that the problem will be solved.

a. ostensive
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b. instrumental

c. reflexive

d.non-instrumental

178. During a service recovery effort, the employee was very empathetic to
the customer’s plight and agreed to replace the defective product.
However, it took three months for the replacement product to show up
which was much later than the customer had anticipated. As a result, the
recovery effort violated the customer’s justice need.

a. social

b. procedural

c. interactional

d. distributive

179. Perception of Performance- Expectation gives us

a. Customer motivation

b. Customer service

c. Customer satisfaction

d. Customer performance

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