1.
The _____________ reflects the view that the intangible aspects of products are
becoming the key features that differentiate the product in the marketplace.
a. services marketing
b. Servuction model
c. service imperative
d. benefit concept
e. industrial management model
ANS: C
2. Which of the following businesses would be characterized as a pure service?
a. insurance
b. farming
c. mining
d. engineering
e. there is no such thing as a pure service
ANS: E
3. General Motors, the manufacturing giant's, largest supplier is:
a. Blue Cross-Blue Shield Insurance
b. GMAC Financing
c. a parts supplier
d. a legal firm
e. a trucking company
ANS: A
4. Which of the following sets of terms best describes a service?
a. objects, devices, and performances
b. effort, objects, and deeds
c. things, devices, and performances
d. objects, devices, and things
e. deeds, effort, and performances
ANS: E
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5. Deeds, efforts and performances define:
a. products
b. ideas
c. services
d. goods
e. places
ANS: C
6. The continuum that ranges from tangible-dominant to intangible-dominant is referred
to as:
a. the services triangle
b. the Servuction model
c. the scale of market entities
d. the service-profit chain
e. the Q continuum
ANS: C
7. Businesses such as fast food restaurants would fall where along the Scale of Market
Entities?
a. on the extreme end of the intangible-dominant side
b. on the extreme end of the intangible-dominant side
c. in the middle of the continuum
d.. left of the middle towards the tangible-dominant side
e. right of the middle towards the intangible-dominant side
ANS: C
8. Which of the following fields would be least likely to be described as intangible-
dominant?
a. manufacturing
b. education
c. insurance
d. banking
e. engineering
ANS: A
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9. Which of the following products is an example of intangible dominant?
a. Outback steakhouse
b. car rental agency
c. a funeral
d. a magazine subscription
e. math tutoring
ANS: E
10. Which of the following statements is NOT true?
a. Service knowledge is obtained differently than goods knowledge.
b. Firms that define their businesses too narrowly have developed marketing
myopia.
c. Goods are tangible-dominant.
d. Service knowledge is obtained through the experience of receiving the actual
service.
e. All the above are true.
ANS: E
11. _______ results in firms that produce tangible products and overlook the service
aspect of their product.
a. Services marketing
b. Marketing management
c. Services marketing myopia
d. Scale of market entities
e. Customer experience
ANS: C
12. __________ involves a pictorial representation of the relationship between the
tangible and intangible elements of a firm’s operation.
a. Molecular Model
b. Servuction Model
c. Benefit concept
d. Industrial Management Model
e. Market-focused Model
ANS: A
13. Which of the following could NOT be included in the airline molecular model?
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a. long-term parking
b. financing arrangements
c. rental car availability
d. gate attendants
e. baggage handlers
ANS: B
14. The encapsulation of the benefits of product in the consumer's mind is called:
a. the Servuction Model
b. the benefit concept
c. the Service Triangle
d. the Service-Profit Chain
e. the Scale of Market Entities
ANS: B
15. According to the Servuction Model, factors that influence the customer's service
experience include all of the following except:
a. price
b. contact personnel/service providers
c. other customers
d. servicescape
e. organization and systems
ANS: A
16. Which of the following components of the Servuction Model is invisible to
consumers?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
ANS: B
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17. A customer who notices dirty silverware and a dirty floor in his/her favorite
restaurant has been influenced by which of the following components of the Servuction
Model?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
ANS: A
18. Servicescape consists of which of the following features:
a. personal artifacts
b. inanimate objects
c. signs
d. ambient conditions
e. all of the above
ANS: E
19. The component of the Servuction Model over which most service firms have the
least control is:
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
ANS: C
20. If an office did not schedule as many people as were needed during a busy period,
which of the following components of the Servuction Model has influenced the
customer's experience?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
ANS: B
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21. A customer attempted to pay his bill with his American Express credit card;
however, the service firm did not accept American Express. Which of the following
components of the Servuction Model influenced the customer's experience?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
ANS: B
22. The demand for services marketing knowledge has increased for all of the following
reasons except:
a. the tremendous growth in service-sector employment
b. increasing service-sector contributions to the world economy
c. the emergence of technologically based e-services
d. developing sustainable services marketing business practices
e. the decline in service sector jobs
ANS: E
23. What are E-services?
a. Application of science to solve problems or conduct transactions
b. Customer service activities via the net
c. Technologically based services that help customers help themselves
d. An electronic service available via the net that completes tasks
e. All of the above
ANS: E
24. Which of the following service industries have NOT employed self-service
technologies?
a. banks
b. insurance companies
c. hotels
d. movie rental chains
e. manufacturing operations
ANS: E
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25. Most people tend to associate this term with being “green” and protecting the
environment.
a. sustainability
b. tangibility
c. intangibility
d. social responsibility
e. none of the above
ANS: A
26. Which of the following areas is NOT a sustainable business practice that companies
hope to pursue as a source of competitive advantage?
a. eco-efficiency
b. environmental cost leadership
c. e-service
d. beyond compliance leadership
e. eco-branding strategies
ANS: C
27. Services are characterized by all of the following characteristics except for:
a. intangibility
b. homogeneity
c. perishability
d. inseparability
e. heterogeneity
ANS: B
28. Which of the following statements is false?
a. Services cannot be touched or seen in the same manner as goods.
b. Consumer judgments about services tend to be more subjective than
objective.
c. Services are first produced, then sold, then consumed.
d. Services tend to vary from one transaction to the next.
e. Services cannot be inventoried.
ANS: C
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29. Of the four unique service characteristics that distinguish goods from services,
the one that is the primary source of the other three characteristics is:
a. intangibility
b. inseparability
c. homogeneity
d. perishability
e. heterogeneity
ANS: A
30 Which of the following is not a marketing problem caused by intangibility?
a. Services lack the ability to be stored
b. Services lack patent protection
c. Services are difficult to price
d. Services are difficult to communicate to consumers
e. Consumers are involved in the service production process
ANS: E
31. Which of the following is a marketing problem caused by intangibility?
a. Services have no costs of goods sold.
b. The consumer is involved in the production process.
c. Other consumers are involved in the production process.
d. Service standardization and quality control are difficult to achieve.
e. Centralized mass production of services is difficult.
ANS: A
32. The primary cost of producing a service is
a. rent
b. overhead
c. cost of goods sold
d. labor
e. promotional expenses
ANS: D
33. Possible solutions that minimize the problems caused by intangibility include all
of the following except:
a. The use of tangible clues.
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b. The effective management of consumers.
c. The creation of a strong organizational image.
d. The use of personal sources of information.
e. The use of activity-based costing.
ANS: B
34. The unique service characteristic that reflects the interconnection between
the
service firm and its customer is called:
a. intangibility
b. inseparability
c. homogeneity
d. perishability
e. heterogeneity
ANS: B
35. Marketing problems caused by inseparability include all of the following
except for:
a. The service provides physical connection to the service.
b. The involvement of the customer in the production process.
c. Service standardization and quality control are difficult to achieve.
d. The involvement of other customers in the production process.
e. All of the above are marketing problems caused by inseparability.
ANS: C
36. The fact that services are sold and then produced and consumed simultaneously
is attributed to:
a. intangibility
b. inseparability
c. homogeneity
d. perishability
e. heterogeneity
ANS: B
37. Which of the following statements pertain to inseparability is false?
a. As customer contact increases, the efficiency of the firm decreases.
b. Customers can affect the type of service desired.
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c. Customers can affect the length of the service transaction.
d. Customers can affect the cycle of demand
e. All the above statements are true.
ANS: E
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38. The centralized mass production of services is difficult due to:
a. inseparability
b. intangibility
c. homogeneity
d. perishability
e. heterogeneity
ANS: A
39. Possible solutions that firms use to minimize the problems caused by
inseparability include all of the following except:
a. The careful selection of service employees.
b. The management of service consumers.
c. The use of multisite locations to distribute services.
d. The training of public contact personnel
e. Appealing to market segments with different demand patterns.
ANS: E
40. The primary solution to overcome the centralized mass production problems
attributed to inseparability is:
a. The careful selection of service employees.
b. The management of service consumers.
c. The use of multisite locations to distribute services.
d. The training of public contact personnel
e. Appealing to market segments with different demand patterns.
ANS: C
41. The service characteristic that reflects the variation in consistency from one
service transaction to the next is:
a. inseparability
b. intangibility
c. homogeneity
d. perishability
e. heterogeneity
ANS: E
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42. Which of the following statements pertaining to heterogeneity is false?
a. It is almost impossible for a service operation to achieve 100 percent
perfect quality on an ongoing basis.
b. Standardization and quality control are difficult to achieve.
c. Customers always prefer customized services over standardized services.
d. Customized services are generally more expensive than standardized
services.
e. It is easier to customize services than goods.
ANS: C
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43. Which of the following is not an advantage of standardized services?
a. less expensive
b. meets the customer's exact needs
c. delivered faster
d. more consistent
e. all the above are advantages of standardized services.
ANS: B
44. Solutions used to minimize the marketing problems attributed to heterogeneity
include:
a. standardizing or customizing the service
b. using multisite locations
c. stressing tangible clues
d. appealing to different market segments with different demand patterns
e. using reservation systems
ANS: A
45. The unique service characteristic that deals specifically with the inability to
inventory services is:
a. inseparability
b. intangibility
c. homogeneity
d. perishability
e. heterogeneity
ANS: D
46. Complications attributed to perishability include all of the following except:
a. Services which are not sold when they become available cease to exist.
b. The production and consumption of services cannot be separated by
time and space.
c. Statistical sampling techniques are of little use in services.
d. Due to the lack of inventories, marketing and operations must work much
closer together.
e. All of the above are complications associated with perishability.
ANS: E
47. Which of the following scenarios is likely to lead to the highest levels of customer
dissatisfaction?
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a. higher demand than maximum available supply
b. higher demand than optimal supply levels
c. lower demand than optimal supply levels
d. demand and supply at optimal levels
e. all of the above scenarios result in customer dissatisfaction
ANS: B
48. Which of the following strategies increases the supply of service available to
consumers?
a. the use of creative pricing strategies
b. the use of reservation systems
c. capacity sharing
d. developing complementary services
e. developing nonpeak demand
ANS: C
49. Possible strategies for managing demand and minimizing the marketing
problems associated with perishability include which of the following:
a. the use of creative pricing strategies
b. the use of reservation systems
d. developing complementary services
d. developing nonpeak demand
e. All of the above
ANS: E
50. The demand strategy in which service providers utilize their downtime by
marketing to different segments with different demand patterns is associated with
which of the following:
a. the use of creative pricing strategies
b. the use of reservation systems
c. capacity sharing
d. developing complementary services
e. developing nonpeak demand
ANS: E
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