1. Which of the following is NOT an example of consumer behaviour:
Correct : D. Marcus ordering a new computer system for his work
2. Which of the following is NOT an internal factor that influences the consumer product acquisition process include
Correct : B. Family
3. With respect to consumer behaviour, one's friends, and relatives could be considered a:
Correct : B. Reference group influence
4. With respect to consumer behaviour, the function of one's perceptions, learning and memory processes is to:
Correct : D. All of the above
5. Which of the following is typically NOT a result of recognizing the importance of ethnic groups by marketers?
Correct : A. Use of an undifferentiated one-size-fits-all marketing strategy
6. The single group within society that is most vulnerable to reference group influence is
Correct : D. Children, who base most of their buying decisions on outside influences
7. Which of the following can be described as an affective mental state?
Correct : A. Attitudes
8. Early adopters, of which opinion leaders are large comprised, tend to be:
Correct : B. More likely to buy new products before their friends do and voice their opinions about them
9. An imbalance between a consumer's actual and desired state in which recognition that a
gap or problem needs resolving is called
Correct : A. Motive development
10. __________cost refers to the product’s purchase cost plus the discounted cost of maintenanceand repair less the discounted salvage value
Correct : C. Life cycle
11. Successful service companies focus their attention on both their customers and their employees.They understand ___________________, which links service firm profits with employee
Correct : C. Service-profit chains
12. 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 providecustomer satisfaction.
Correct : B. Internal marketing
13. Which of the following is not an element of physical evidence?
Correct : B. Employee Training
14. Which of the following is not an element of people?
Correct : C. Flow of activities
15. Standardized and customized flow of activities, simple and complex number of steps and customer involvement by which a service is delivered is called
Correct : C. Process mix
16. ____________ is a tool for simultaneously depicting the service process, the points of customer contact and the evidence of service from the customer’s point of view.
Correct : B. Service Blueprinting
17. __________ is the physical surroundings or the physical facility where the service is produced, delivered and consumed.
Correct : B. Servicescape
18. __________ are the only service distributors which do not require direct human interactions.
Correct : A. Electronic channels
19. 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.
Correct : B. Tangible clues
20. Understanding the customer is a critical step toward minimizing or completely eliminating the:
Correct : A. knowledge gap
21. Which of the following is NOT a factor influencing the delivery gap?
Correct : D. overpromising
22. Which of the following statements pertaining to the SERVQUAL scale is correct?
Correct : D. SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality services
23. Which of the following is a major criticism of the SERVQUAL scale?
Correct : B. validity of the five service quality dimensions
24. Research that examines the customer’s perspective of a firm’s strengths and weaknesses is called:
Correct : A. customer research
25. Loyal customers offer advantages with regard to:
Correct : D. willingness to pay premium prices.
26. The core of a CRM program is:
Correct : C. a customer database.
27. Which of the following is the MOST important component of a CIF analysis?
Correct : C. customer descriptors
28. The process of analyzing a database is called:
Correct : A. CIF.
29. Satisfaction is BASICALLY a function of:
Correct : A. price paid.
30. Human resource policies aimed at delivering superior service quality has the following steps:
Correct : D. all of the above
31. Tell which statements are incorrect?
Correct : C. Once customers are taught to coproduce services, they can be left alone to produce their own services.
32. Fundamentally, conflict arising in a service situation between any two parties
Correct : D. all of the above.
33. Matching the demand and supply of service
Correct : D. all of the above.
34. Importance should be given to the servicescape and equipment in the “service factory” as (choose the statement which is false)
Correct : C. the servicescape and equipment are paid for by the customers.
35. The 6Ms model of integrated marketing communication does not consist of
Correct : C. Media, Motives
36. Pricing a new service does not consist of which of the following?
Correct : D. Estimating price
37. Customers should be retained by a service business because retained customers (Choose
the false statement)
Correct : B. are retired and cannot do their work by themselves
38. Which of the following should not be done with service customers when they are aggrieved with a service failure?
Correct : C. laugh as much as possible so that customers start laughing and forget about the failed service
39. Service providers are afraid of providing unconditional service guarantees as
Correct : D. all of the above
40. KFC which has its only outlet at Bangalore in the country is all set to open its retail outlets in Delhi and Hyderabad. Which stage of the PLC is it in?
Correct : A. Introduction
41. Segmenting the market according to the customer use of the service is an example of
_____ segmentation
Correct : C. Behavioral
42. The intangible aspect of a service spring forth for which of the following service
product levels?
Correct : B. Core product level
43. Which of the following is not a type of positioning strategy used in service marketing?
Correct : B. Celebrity positioning
44. Which of the following is not a market penetration strategy?
Correct : B. Entering new markets with the existing services
45. Which of the following is not an approach to pricing in services?
Correct : D. Demand based approach
46. Which of the following is not an issue in the pricing of services?
Correct : D. Demand levels
47. Identify the factor that does not play a major role in setting the pricing objectives of a service organization.
Correct : A. How would a company like to position its services?
48. Which of the following is not a type of broadcast media used for advertising?
Correct : B. Radio
49. Which type of positioning involves communicating two or more contradicting
features?
Correct : A. Under positioning
50. Which of the following is not a necessary strategy in the effective promotion of services?
Correct : A. Effective planning
51. Which amongst the following is not true regarding the promotional strategies of services?
Correct : C. Physical evidence tangibilizes the services
52. Which of the following is not a consideration in deciding the marketing channel for services?
Correct : C. Channels should ensure expansion at any cost to the service provider
53. Location decision is not important for ____
Correct : C. Retail outlet
54. Which of the following is not a benefit of direct distribution of services?
Correct : A. Control over operations
55. In planning a service process, a service provider takes all the following important
decisions except
Correct : B. Legal restrictions
56. Which of the following is not an element of blueprinting in a service process?
Correct : B. Line of visibility
57. Which of the following is not an influencing factor in process efficiency?
Correct : C. Planning
58. Which of the following is not a major element of physical evidence?
Correct : A. Conduct of support staff
59. The importance of physical environment as an element of physical evidence springs
forth through all of the following except
Correct : C. Atmosphere
60. Which of the following may not be an objective of focusing on physical evidence by
a service firm?
Correct : A. Differentiation from competitors
61. Which of the following is not a type of demand-based pricing strategy?
Correct : D. Discounts and sales
62. Which of the following is not an essential step in building a service blueprint?
Correct : D. Mapping complexities
63. Which of the following factors does not influence service delivery?
Correct : B. The level of customer interaction
64. Which of the following groups is called boundary spanners?
Correct : B. Front line employees
65. Which of the following initiatives will not help a company retain the best people?
Correct : B. Measure and reward strong service performance
66. Which of the following is not a cost-based pricing?
Correct : A. Cost-plus pricing
67. Which among the following is not one of the requirements for effective segmentation
of markets?
Correct : B. Accessibility
68. What is the process of offering customized services to individual customers by using flexible processes, without foregoing the advantages of mass production?
Correct : A. Market specialization
69. Which of the following is not a strategic management task of a retailer?
Correct : B. Inventory management
70. Which is the nearest in meaning to the word ‘Augmented Service’
Correct : B. Increased Service
71. Most service marketers in the west compete at ___product/service level
Correct : B. Augmented
72. The stage of the service life cycle in which marketers become more cost conscious is:
Correct : C. Decline
73. Branding in a service can be developed through various ways. Music World outlets run by franchisees are anexample of
Correct : B. Licensed branding strategy
74. Qatar Airways’ first-class passengers sit in a semi-private pear-wood berth that convert into a bed, thusproviding more comfort on long flights. This service is an example of theairlines
Correct : D. Supplementary service
75. In Arab countries like Saudi Arabia, charging interest on a loan is against the “Muslim law”. Therefore, banksoperating in these countries customize their product offering as per the local requirements. Which parameter ofassessing globalization level of a firm does this example explain?
Correct : B. Achieving desirable balance between globalization and customization
76. The __________ concept holds that consumers will favor those products that offer the most quality, performance, or innovative features.
Correct : B. Product
77. The additional consumer service and benefits built around the actual product is known as
Correct : C. Augmented product
78. Which of the following statements best reflects the definition of a product?
Correct : D. All of the above statements are true vis-à-vis definition of a product.
79. Heterogeneity of services among telecom service providers makes which method of
pricing a major problem?
Correct : B. Competition based pricing approach
80. The consumer management areas of particular importance to service marketers are:
Correct : D. Customer relationship management (CRM)
81. Efforts to transform customers into partial employees should not be interpreted as the firm’sway of distancing itself from the customer. This is consistent with which of the followingguidelines for increasing customer participation:
Correct : A. Develop customer trust
82. Part of the problem when transforming from full-service to self-service is that businesses tend toforget why customers might prefer using full-service options in the first place. This is consistent withwhich of the following guidelines for increasing customer participation:
Correct : C. understand customer habits
83. Part of the problem when transforming from full-service to self-service is that the new proceduresthemselves are flawed and/or difficult to understand. Of the guidelines presented below, which wouldminimize this type of problem from occurring? This is consistent with which of the following guidelines for increasing customer participation:
Correct : C. understand customer habits
84. When service is produced via a cooperative effort between customers and service
providers, this isreferred to as:
Correct : A. Co-production
85. Co-production of services is made possible due to the __________ inherent in the
productionofservices.
Correct : D. Inseparability
86. Which of the following is not a typical benefit associated with self-service?
Correct : D. Standardization
87. Disney informs guests how long the wait will be along various points of the lines that form for each ofits attractions. This strategy helps minimize the effects of which of the following "principles ofwaiting?"
Correct : D. uncertain waits are longer than known, finite waits
88. Compared with low-contact services, customers of high-contact services are more likely
to judgeservice quality on the basis of:
Correct : B. Processes used in carrying out the service
89. 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.
Correct : B. Tangible clues
90. Which of the following is an example of a tangible component provided by a hotel?
Correct : B. Guest rooms
91. Service design often differs from product design for which one of these considerations?
Correct : B. customer interface
92. The ability of a product, part or service to perform its intended function under an appropriate set of conditions is its:
Correct : D. reliability.
93. To build a world-class service brand there are three things you will need to define or create:
Correct : D. All the above.
94. Service marketers consider which of the following?
Correct : B. People/Participants, Physical evidence, Process.
95. Three types of customer expectations can be identified:
Correct : A. Fuzzy expectations, Explicit expectations, Implicit expectations
96. Perceived Service Quality concept includes which of the following?
Correct : D. Reliability, Courtesy, Communication
97. Quality Gaps include:
Correct : C. The Management Perception Gap; The Quality Specification Gap; The Service Delivery Gap
98. The Perceived Service Quality means that the perceived or experienced service is not consistentwith the expected service. This gap results in the following: Which one is NOT true?
Correct : A. An increase in corporate costs
99. The Zone of Tolerance concept assumes:
Correct : D. All the above are true
100. The new product pricing strategy through which the companies set lower prices of services to gain large market share is classified as