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What is the benefit of creating a peak experience in a service process?

A. It ensures all steps are equally memorable

B. It makes one exceptional step more impactful than uniformly adequate steps

C. It reduces the need for a strong finish

D. It combines all unpleasant experiences into a single event

B

Which type of quality gap is the accumulated outcome of all other gaps and will be closed when other gaps have been addressed?

A. The policy gap

B. The knowledge gap

C. The communications gap

D. The service gap

E. The perception gap

D

Why is it important to ensure that communication campaigns do not promise unrealistic levels of performance?

A. To increase sales

B. To boost customer expectations

C. To avoid demotivating employees

D. To confuse employees about their role

C

Which of the following is not part of the eight petals in the Flower of Service?

A. Order-taking

B. Branding

C. Hospitality

D. Billing

B

How can signs be used to communicate the service script in a self-service environment?

A. By instructing customers to avoid self-service technologies

B. By providing instructions like taking a queue number and waiting

C. By focusing only on aesthetic enhancements in the environment

D. By replacing all directional signs with employee guidance

B

What are the four principles of positioning as distilled by Jack Trout?

A. Establish a position, Be singular, Set apart from competitors, Focus efforts

B. Be unique, Be memorable, Be consistent, Be adaptable

C. Understand customers, Understand competitors, Understand market, Understand self

D. Be visible, Be audible, Be tangible, Be intangible

A

___involves bringing the "voice of the customer' into the organization, focusing the organization on customer needs and customer satisfaction, and rallying the entire organization toward a service quality culture

A. Benchmarking of service quality and performance

B. Customer-driven learning and improvements

C. Creating a customer-oriented service culture

D. Generating an organization-centered working environment

E. Creating a positioning image to compete with rivals

C

What are the key factors determining the opening hours of a service facility?

A. Customer needs and wants, and the economics of opening hours

B. Legal requirements and union agreements

C. Social norms and religious practices

D. The number of employees and the size of the facility

A

___involves bringing the "voice of the customer' into the organization, focusing the organization on

customer needs and customer satisfaction, and rallying the entire organization toward a service quality culture

A. Benchmarking of service quality and performance

B. Customer-driven learning and improvements

C. Creating a customer-oriented service culture

D. Generating an organization-centered working environment

E. Creating a positioning image to compete with rivals

C

In what way do servicescapes serve as a quality proxy for customers?

A. By using the physical environment to signal quality

B. By providing detailed product descriptions

C. By offering extensive online reviews

D. By minimizing the physical presence of the service

E. By using generic, unbranded décor

A

British Airways offers Club World, World Traveller, and First Class. This is an example of

A. Brand overextension

B. Product simplification

C. Service tiering

D. Physical evidence management

C

Which of the following is an example of stretching capacity to accommodate extra demand?

A. Hiring part-time employees during peak periods

B. Extending the hours of operation at a bank

C. Cross-training employees to handle various tasks

D. Scheduling maintenance during low-demand periods

E. Renting additional facilities during peak times

B

What are the two dimensions that define the four basic focus strategies?

A. Market focus and service focus

B. Product focus and customer focus

C. Operational focus and financial focus

D. Strategic focus and tactical focus

A

What might be a reason for different pricing schemes for business travelers and tourists?

A. Business travelers are more price-sensitive

B. Tourists are less price-sensitives Loader

C. Business travelers are less price-sensitive

D. Both segments have the same price sensitivity

C

How can a well-designed communication campaign targeted at customers benefit employees?

A. It helps employees understand what is promised to customers

B. It is irrelevant to employees' behavior

C. It prevents employees from interacting with customers

D. It hides performance expectations from employees

A

What is a disadvantage of parallel lines to multiple servers?

A. Customers proceed through several serving operations

B. Bottlenecks may occur at any stage

C. Lines may not move at equal speed

D. Customers must take a number and wait

C

Why might a market-focused strategy look attractive to a firm?

A. The firm can charge premium prices and provides protection against would-be competitors

B. The firm can sell multiple services to a single buyer

C. The firm serves broad markets and provides a wide range of services

D. The firm offers a largely standardized product to a broad customer base

B

Which model suggests that our feelings are central to how we respond to different elements in the environment?

A. The Cognitive-Behavioral Model

B. The Environmental Control Model

C. The Mehrabian-Russell Stimulus-Response Model

D. The Service Quality Model

E. The Behavioral Decision Model

C

Which of the following is not one of the 7 Ps of services marketing?

A. Product

B. Profit

C. People

D. Process

B

Why might marketing practices from manufacturing companies not transfer well to service organizations?

A. Services are more tangible than goods

B. Services have characteristics like intangibility and perishability

C. Services are produced and consumed separately

D. Services have consistent quality

B

Which one is NOT an objective for the pricing of services?

A. Making the largest possible long-term contribution or profit

B. Covering fully allocated costs, including corporate overhead

C. Building demand

D. Encouraging existing competitors from expanding their capacity

D

What happens during peak periods for fixed-capacity firms?

A. Facilities are idle

B. Employees are bored

C. Prospective customers are turned away

D. Service quality improves

C

The customer has no intention of paying and sets out to steal goods and services or to pay less than full price by switching price tickets or contesting bills on baseless grounds. This demonstrates which type of

Jaycustomers?

A. The Cheat

B. The Thief

C. The Rulebreaker

D. The Belligerent

E. The Vandal

B

Why are well-designed signs particularly important in servicescapes with many first-time customers?

A. They reduce the need for clear service scripts

B. They help guide customers intuitively through unfamiliar service processes

C. They focus on deterring repeat customers from returning

D. They eliminate the need for directional cues in the environment

B

What does the "Wheel of Loyalty" emphasize as the first step?

A. Delivering excellent service recovery

B. Acquiring as many customers as possible I'

C. Targeting and tiering the right customers

D. Offering financial incentives

C

What is the main role of corporate design in enhancing service communications?

A. To facilitate recognition and reinforce a desired brand image

B. To increase operational efficiency

C. To satisfy customer demands

D. To diversify service offerings

E. To expand into new markets

A

Which of the following scenarios best illustrates the use of intermediaries?

A. A customer books a flight directly through an airline's website

B. A customer buys a concert ticket from a ticket agent located in a nearby mall

C. A customer pays for groceries at a supermarket

D. A customer orders food delivery through a restaurant's app

B

What is a common characteristic of demand patterns for public transport?

A. Higher demand during weekends for work travel

B. Consistent demand throughout the day

C. Varying demand levels based on commute hours, days of the week, and seasons

D. Less demand during summer due to tourism

E. Predictable demand with no fluctuations

C

What is the typical percentage range of unhappy customers who actually complain about a service?

A. 20%-30%

B. 5%-10%

C. 50%-60%

D. 80%-90%

B

___ is the difference between the management's understanding of customers' expectations and the service standards they set for service delivery.

A. The policy gap

B. The knowledge gap

C. The communications gap

D. The service gap

E. The perception gap

B

In a service blueprint, service standards and targets are established for:

A. Support processes and supplies

B. Back-stage activities

C. Front-stage activities

D. Physical evidence

C

Which of the following is INCORRECT about online communications channels?

A. Many firms are using banner advertising to draw online traffic to their own site.

B. A key advantage of online advertising is that it provides a very clear and measurable return on investi

C. There is a movement from personal to impersonal communications.

D. Online and mobile marketing allows companies to substitute traditional communications at a reasona cost.

E. The widespread use of social networking platforms has given firms unprecedented opportunities to communicate with their customers.

C

Why is equipment a critical component of productive capacity in service processes?

A. It eliminates the need for labor in high-contact services

B. Insufficient equipment can slow down or halt service delivery

C. It is only relevant for storing customer goods

D. It ensures facilities are always fully occupied

B

A way that the service environment can shape customers' experience and behavior is attention-creating medium which means:

A. making servicescape stand out from competition and attract customers from target segments.

B. using symbolic cues to communicate the distinctive nature and quality of the service experience.

C. using colors, textures, sounds, and scents to enhance desired service experience.

D. using spatial design to facilitate service encounter and enhance productivity.

A

What determines the mode of entry for a service firm?

A. Level of competition and currency

B. IP control and required customer interaction

C. Advertising budget

D. Location of headquarters

B

Which best defines "service recovery paradox"?

A. Customers expect perfection with no errors

B. Poor service permanently reduces satisfaction

C. Excellent recovery can increase satisfaction beyond pre-failure levels

D. Service failures must be hidden to protect brand

C

Which dimension of SERVQUAL refers to "the appearance of physical elements"?

A. Assurance

B. Tangibles

C. Empathy

D. Reliability

B

If a service involves repairing a customer's car, which category does it fall under?

A. People processing

B. Possession processing

C. Mental stimulus processing

D. Information processing

B

Which entry mode is most appropriate when customer contact is high and IP control is low?

A. Exporting

B. Franchising

C. Foreign Direct Investment

D. Licensing

B

Which type of fragrance can be used to stimulate and energize customers?

A. Eucalyptus

B. Lavender

C. Lemon

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D. Black pepper OSLoader

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C

Identify the category of non-monetary cost associated with the discomfort of waiting in long queues.

A. Time costs

B. Physical costs

C. Search costs

D. Sensory costs

A

What is the primary goal of relationship marketing?

A. To increase advertising reach

B. To create ongoing, value-added relationships

C. To simplify product design

D. To lower costs through automation

(B)

What is a key benefit of service guarantees for service firms, as outlined in service quality principles?

A. They eliminate the financial costs of quality failures

B. They discourage managers from focusing on customer expectations

C. They reduce the need for customer feedback systems

D. They set clear standards for what the company stands for

D

What is meant by "productive capacity" in the context of service management?

A. The ability to deliver services without using any resources

B. The resources or assets a firm uses to create goods and services

C. The standardization of service processes across all facilities

D. The elimination of customer interactions in service delivery

B

Which strategy encourages customers to stay by offering exclusive upgrades and personalized service?

A. Hard lock-in

B. Soft loyalty bond

C. Transactional marketing

D. Standardization

B

Which of the following service roles is most likely to face "boundary spanning"?

A. Marketing analyst

B. Cashier at a busy restaurant

C. R&D engineer

D. Data entry clerk

B

Which of the following is NOT one of the options customers take when they are dissatisfied with a service encounter?

A. Give negative word of mouth.

B. Do nothing.

C. Vent their anger on the service equipment.

D. Complain to the service firm.

E. Take legal action.

C. Vent their anger on the service equipment.

The service operations system does not include _____.

A. other customers

B. Equipment

C. physical facilities

D. technical core

A. other customers

A customer had a bad experience with the coffee shop as he got a bad argument with his friends. Which of the following components of the Servuction Model influenced the customer's experience?

A. Technical core

B. Inanimate environment

C. Contact personnel

D. Service provider

E. Other customers

E. Other customers

In SERVQUAL, service quality dimensions include following EXCEPT _____

A. Assurance

B. Responsibility

C. Reliability

D. Responsiveness

E. Tangibles

B. Responsibility

The Generator youth hotel in London has their lobby designed like a bar because they cater to the guests who love fun and have low budgets. This example illustrates which way that servicescape affects to buyer behavior?

A. As an relationship-creating medium

B. As an mood-creating medium

C. As an attention-creating medium

D. As an effect-creating medium

E. As a message-creating medium

E. As a message-creating medium

Service companies enjoy lower operating cost for loyal customers because loyal customers ______

A. Willingly pay regular price for service

B. Are least price sensitive

C. Make fewer mistakes and make more use of self-service options

D. often purchase in greater quantities

E. Provide positive word-of-mouth recommendations

C. Make fewer mistakes and make more use of self-service options

Which of the following is a component of service performance discussed under the operations function?

A. Role of marketing

B. Introduction of new technology

C. Competitive appeal

D. Workforce

E. Customer profile

B. Introduction of new technology

An example of Mental stimulus processing service is ______

A. Cinema

B. Plumping

C. Restaurant

D. Hair-cutting

E. Banking

A. Cinema

Which of the following is NOT one of the factors that encourage extended operating hours?

A. Availability of employees to work during "social" hours.

B. Automated self-service facilities.

C. Economic pressure from consumers.

D. Changes in laws.

E. Economic incentives to improve the use of assets.

A. Availability of employees to work during "social" hours.

_____ services tend to be the most demanding in terms of supplementary elements.

A. Possession Processing

B. Mental Stimulus Processing

C. Information Processing

D. People Processing

D. People Processing

Productions channels communicate with the target audience through ____

A. Word-of-mouth

B. Direct Marketing

C. Public Relations

D. Front line staff

E. Advertising

D. Front line staff

How many "acts" does a meal at full service restaurant consist of?

A. Five acts

B. One act

C. Three acts

D. Four acts

E. Two acts

C. Three acts

Outcomes of the "Cycle of Failure" for firms include _____ and _____.

A. high service quality; high employee turnover

B. high service quality; low employee turnover

C. low service quality; high employee turnover

D. mediocre service quality; unpredictable employee turnover

E. low service quality; low employee turnover

C. low service quality; high employee turnover

Perfect Teeth Dental Spa in Chicago use strawberry - scented nitrous oxide to help patient overcome fear. Which dimension in service environment is used in this example?

A. Exterior Facility

B. Store layout

C. Ambient Conditions

D. Social Dimension

E. Artifacts

C. Ambient Conditions

A customer felt extremely comfortable because of the relaxation music that staff play inside the spa. Which of the following components of the Servuction Model influenced the customer's experience?

A. Contact personnel

B. The other customers

C. Inanimate environment

D. Service provider

E. Technical core

C. Inanimate environment

When customers want the problem to be fixed, they prefer _____

A. Producing negative word of mouth

B. Sending a letter

C. Take legal action

D. Using Email

E. Taking to staff

E. Taking to staff

Putting service pricing into practice includes thinking of all the following questions EXCEPT _____.

A. What should be the specified basis for pricing?

B. Who should collect payment?

C. How much to charge?

D. When should payment be made?

E. What kind of customers should be charged more?

E. What kind of customers should be charged more?

Which of the following is NOT an element of a service's firm communication mix?

A. Publicity and Public Relation

B. Personal Selling

C. Sales Promotion

D. Advertising

E. Positioning Strategy

E. Positioning Strategy

In environmental psychology the typical outcome variable is _____ or _____ of an environment.

A. control; sensibility

B. service; repurchase

C. control; avoidance

D. approach; avoidance

E. control; reproach

D. approach; avoidance

_____ supply the central, problem-solving benefit that customers seek.

A. Core products

B. Supplementary services

C. Conditional services

D. Delivery processes

E. Sustaining processes

A. Core products

Which of the following is an example of co-production?

A. Selling items on eBay.

B. Buying a stereo.

C. Touring an aquarium.

D. Eating fast food.

E. Withdrawing from an ATM.

E. Withdrawing from an ATM.

(A. Selling items on eBay.)

The cycle of Mediocrity is mostly to be found in _____

A. Companies that operate on lots of rules and procedures

B. Companies that emphasis on customer loyalty and retention

C. Companies that focus on high productivity by simplifying work processes and paying the lowest possible wagesD. Companies that have low profit margin

E. Companies with long-term view that seek to grow by investing in their people

A. Companies that operate on lots of rules and procedures

Which of the following is NOT one of the productive capacity forms in a service context?

A. Customers

B. Infrastructure

C. Physical facilities designed to contain customers

D. Physical equipment used to process people, possessions, or information

E. Labor

A. Customers

All of the following are ways to make waits more bearable EXCEPT ______.

A. let customers know how long they are expected to wait

B. keep customers occupied while waiting

C. provide the customers with no explanation for the wait

D. encourage group waits

E. make customers feel comfortable during waits

C. provide the customers with no explanation for the wait

Service blueprints _____, and how these are supported by backstage activities and systems.

A. complicate employee handling of special requests

B. enhance servicescape features such as furniture and lighting

C. enhance customer technical know-how

D. clarify the interactions between customers and employees

E. diminish customer complaining capacity

D. clarify the interactions between customers and employees

Which would NOT be an available distribution option for car wash service?

A. Customer and service organization transact remotely

B. Customer goes to service organization

C. Service organization comes to customer

D. All options would be suitable for carwash service

A. Customer and service organization transact remotely

Which of the following is NOT one of the benefits of having a reservations system?

A. Helps firms to keep some time aside for emergency jobs.

B. Helps customers to avoid queuing.

C. Allows demand to be controlled.

D. Helps in pre-selling the service.

E. Helps service personnel to serve more effectively.

E. Helps service personnel to serve more effectively.

Which service would not suitable for remote transaction

A. CD renting

B. House cleaning

C. Psychology consultation

D. Banking

E. Retail shop

B. House cleaning

Which of the following is not a recommended guideline for developing service communications?

A. Reduce consumer fears about the variation in performance

B. Tangibilize the intangible

C. Make the service more abstract

D. Feature the working relationship between provider and customer

E. Promise what is possible

C. Make the service more abstract

Using SERVQUAL to evaluate quality of the service, a bank ask customers if their staff always smile when greeting customers. Which dimension in SERVQUAL does the question aim at?

A. Tangibles

B. Emphathy

C. Assurance

D. Reliability

E. Responsiveness

C. Assurance

(B. Empathy)

Which of the following is NOT one of the advantages to incremental profits of a loyal customer?

A. Profit from decreased advertising.

B. Profit from referrals to other customers.

C. Profit from increased purchases.

D. Profit from price premiums.

E. Profit from reduced operating costs.

A. Profit from decreased advertising.

Which of the following is NOT one of the elements of effective service recovery?

A. Learn from the recovery experience

B. Resolve complaints effectively

C. Seek alternative recompense strategies

D. Identify service complaints

E. Do the job right the first time

C. Seek alternative recompense strategies

According to Susan Keveaney research, the reason that cause the largest propotion of customers who switch to another service provider is ______

A. Disatisfactory service encounter

B. Core service failures

C. Inconvenience in term of time, location or delays

D. Poor response to service failure

E. High, deceptive or unfair pricing

B. Core service failures

Which of the following is most likely the determinant attribute for customers of bus service.

A. number of bus

B. Staff attitude

C. Reach

D. bus times

E. online booking of services

C. Reach

(D. bus times)

______ strategy often allows companies to charge premium price because of their expertise in the market

A. Market focus

B. Fully focus

C. Service focus

D. Unfocus

E. Customer focus

B. Fully focus

Which of the following reduces price competition?

A. Increasing the number of competitors.

B. High switching cost for consumers.

C. Increasing the number of substituting offers.

D. Wider distribution of competitor and/or substitution offers.

E. Increasing surplus capacity in the industry.

B. High switching cost for consumers.

DHL offers customers the opportunity to track the movements of their packages, which have been assigned a unique identification number. This is an example of ______.

A. safekeeping

B. consultation

C. exceptions

D. information

E. order-taking

D. information

Tangible characteristics that customers can evaluate prior to purchase are termed ______.

A. search attributes

B. credence attributes

C. experience attributes

D. satisfaction attributes

E. capital attributes

A. search attributes

Which of the following is NOT one of the four basic focus strategies?

A. Market focused

B. Fully focused

C. Refocused

D. Unfocused

E. Service focused

C. Refocused

Education is an example of a/an _____ service.

A. mental stimulus processing

B. information processing

C. physical processing

D. possession-processing

E. people-processing

A. mental stimulus processing

Adhering to consistent service quality standards is the responsibility of _____

A. Operational function

B. Human Resource Fuction

C. Manufacturing Fuction

D. Marketing fuction

E. Financial function

A. Operational function

Which of the following is NOT true about Arousal in Russell's model of Affect?

A. Arousal refers to how stimulated the individual feels

B. Complex services usually have higher level of Arousal

C. Arousal depends on how much an individual like or dislike the environment

D. Services with surprising elements would have higher level of Arousal

E. Arousal depends on information rate or load of an environment

C. Arousal depends on how much an individual like or dislike the environment

Which of the following is NOT one of the aspects of leadership in the future?

A. Collaborative, using the team approach.

B. Controlling employees so they do not act on impulse.

C. Leadership from behind, sharing power with others.

D. Building collective efforts.

E. Leadership coming from emerging countries, with different styles.

B. Controlling employees so they do not act on impulse.

_____ include specitific times set for the completion of each task and the acceptable wait between each customer activities.

A. Front stage invisible activities

B. Service standards and targets

C. Customer waiting points

D. Fail points

E. Front stage visible activities

B. Service standards and targets

A strategy of empowerment is most likely to be appropriate when which of the following factors are present within the organization and its environment?

A. The business strategy is not too customized

B. The organization uses routine technology.

C. The business environment is stable.

D. Customer interactions are relational as opposed to transactional.

E. All of these

D. Customer interactions are relational as opposed to transactional.

Quality Gap is the accumulative outcomes of all preceding gaps. To close the Quality Gap, service firms must successfully address _____ and _____

A. Knowledge Gap, Perception Gap

B. Knowledge Gap Policy Gap

C. Policy Gap; Delivery Gap

D. Communication Gap; Perception Gap

E. Delivery Gap; Perception Gap

A. Knowledge Gap, Perception Gap

Which of the following is a component of service performance discussed under the marketing function?

A. Service quality

B. Service delivery

C. Productivity

D. Workforce

E. Role of operations

A. Service quality

In the Service Profit Chain, which drive employee satisfaction?

A. Customer loyalty

B. Top management leadership

C. Internal quality

D. Service Quality

E. Employee Loyalty

C. Internal quality

The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT ______.

A. What is the increase in profit from increase the share-of-wallet with our current customers?

B. How much customization or one-to-one marketing and service delivery is suitable and profitable?

C. How will top management feel about our strategy?

D. How should our value proposition change to increase customer loyalty?

E. How much time and resources can we provide to CRM right now?

C. How will top management feel about our strategy?

Which of the following fragrances would you use to boost energy levels and help make customers feel happy and rejuvenated?

A. Lemon

B. Black pepper

C. Lavender

D. Eucalyptus

E. Rose

A. Lemon

Extremely dissatisfied customers who stay at the end of _____ could become _____

A. Zone of defection, apostles

B. Zone of Affection, apostles

C. Zone of indifferent, Terrorists

D. Zone of Defection, terrorists

E. Zone of Affetion, tersorists

(D. Zone of Defection, terrorists)

Service firms often ask employee to cross-sell and up-sell in order to improve sales revenue. However, some customers feel uncomfortable and disatisfy when service staff introduce new products. This could lead to increase in _____ for the staff

A. Person/Role conflict

B. Inter-client conflict

C. Organization/client conflict

D. Structural conflict

E. Service delivery conflict

C. Organization/client conflict

The cost of an evening at the theater for a couple with young children usually far exceeds the price of the two tickets. It can include expenses such as hiring a babysitter, travel, parking, food and drink. These expenses are called _____

A. Moneytary cost

B. Operating cost

C. Incidental expenses

D. Physical cost

E. Psychological cost

B. Operating cost

(C. Incidental expenses)

Which of the following is a NOT role played by service marketing communications?

A. Add value through communication content.

B. Facilitate customer involvement in service production.

C. Positioning to attract investors.

D. Stimulate or dampen demand to match capacity.

E. Position and differentiate the service.

C. Positioning to attract investors.