1. Service firms often find themselves in a three-cornered fight between
Correct : D. Human resources, marketing and operations
2. Customer frustration resulting from receiving poor service is most similar to
Correct : D. Psychic costs.
3. Among many services, the demand for medical services tends to be __________.
Correct : A. Inelastic.
4. Customer competencies can be described as
Correct : C. Customer abilities that enable them to properly evaluate the servicescape.
5. Costs that are planned and are accrued during the operating period regardless of the
level of production and sales are called
Correct : B. Fixed costs.
6. The technique that allows consumers to either buy Service A and Service B together
on purchase one service separately is called
Correct : C. Price bundling.
7. Which pricing strategies encourage the customer to expand his/her dealings with the
service provider?
Correct : A. Relationship pricing
8. Do studies suggest that price is more likely to be used as a cue to quality under the
following conditions?
Correct : C. When a price is the primary differential information available
9. The primary role of a service firm for the customer in the communication mix is to ……
Correct : B. Inform and remind customers
10. The plan for differentiating the firm from its competitors in consumers eyes is referred
to as the firms
Correct : B. Positioning strategy.
11. Differentiation approaches such as competence, courtesy, reliability, and
responsiveness are forms of
Correct : B. Personnel differentiation
12. The appropriate communication content during the introduction stage of the product
life cycle would be
Correct : B. Informational and persuasive
13. Which of the following is not a communication objective during the maturity and
decline stages of the product life cycle?
Correct : B. Provide ongoing contact with customers
14. Which one of the following communication approaches would be appropriate during
the growth and maturity stages of the product life cycle?
Correct : D. Persuasive and reminder
15. The primary objective of a firms communication mix during the pre-consumption
choice stage is to
Correct : D. Persuasively convince customers why the firms brand is superior to the competitors
16. The perceived consequences of a consumer s purchase decision are
Correct : A. Financial, social and performance
17. Tangible clues are more important when services are
Correct : C. Intangible dominant
18. Which of the following communication objectives becomes the most important during
the post-consumption evaluation stage
Correct : C. Reducing consumer perceived risk
19. Branding of services becomes difficult because they are
Correct : A. Intangible.
20. Word-of-Mouth communication networks are particularly important for service firms because
Correct : A. Service customers tend to rely more on personal than the non-personal source of information
21. The suggested communication strategy to use when the product is intangible dominant is to
Correct : C. Surround the product with tangible evidence.
22. __________ is an overall favourable impression or unfavourable impression based
on the early stages of the service encounter.
Correct : D. Halo effect.
23. The advantage that the E-marketing communications carries are…………
Correct : A. Reaching a widely dispersed audience.
24. A disadvantage of e-marketing is
Correct : C. Loss of personal contact
25. Which of the following is not a component of service firms physical evidence?
Correct : D. In-house process equipment
26. One of the advantages of requiring employees to wear uniforms is that it reduces the
customers’ perception of_______.
Correct : C. Heterogeneity.
27. which of the following is not an advantage of requiring employees to wear uniforms?
Correct : B. Provides price expectations to customers.
28. __________ is the study of the use of physical evidence to create service
environments and their influence on the perceptions and behaviours of individuals
Correct : B. Environmental psychology.
29. Direct labour cost and sales commissions cost incurred in services are called
as………..
Correct : B. Variable costs.
30. The organization must effectively plan to ______ fear, uncertainty and doubts that
might occur in the minds of customers during the course of acquisition.