There are several reasons why the services sector is increasing in almost all countries around the world.

Which is not one of the contributing reasons?

a. The knowledge-based industries are growing.
b. Countries are less dependent on agriculture.
c. Some manufacturing firms are now focusing on marketing services as well.
d. The construction and manufacturing industries are booming.
e. More companies are outsourcing some of their service components.

The three broad categories of things processed in services are ____________, ____________, and
____________.
a. people; physical objects; data
b. people; organizations; documents
c. people; data; projects
d. physical objects; data; documents
e. physical objects; organizations

A useful way to distinguish between goods and services is to place them on a continuum from
____________ to ____________.
a. practical; impractical
b. tangible-dominant; intangible-dominant
c. low; high
d. reliable; unreliable
e. prepared; unprepared

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

a. Withdrawing from an ATM.
b. Eating fast food.
c. Touring an aquarium.
d. Buying a stereo.
e. Selling items on eBay.

Customers being turned away or having to wait is an implication of which aspect of services?
a. People may be a part of the service experience.
b. Intangible elements usually dominate value creation.
c. Services are often difficult to visualize and understand.
d. Customers may be involved in co-production.
e. Most services cannot be inventoried.

The three additional Ps of services marketing that extend the original four Ps of marketing are
_____________, _____________, and _____________.
a. product; price; place; promotion
b. prospects; process; people; promotion
c. physical environment; process; people
d. prosperity; process; people; promotion
e. physical environment; prosperity; planning; process

A movie theater seat is an example of _____________.

a. renting durable goods
b. closely engaging customers in the service process
c. renting portions of a larger physical entity
d. the centrality of time to services
e. differences in customer choice criteria

Education is an example of a/an _____________ service.

a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing

Service firms have reservations systems because.

a. intangible elements usually dominate value creation.
b. most service products cannot be inventoried.
c. distribution may take place through non-physical channels
d. customers may be involved in co-production
e. all of the above

Cinema is an example of a/an _____________ service.

a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing

Hotel is an example of a/an _____________ service.

a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing

QN=12
An example of Information processing service is______________
a.
Hairstylist
b.
Cinema
c.
Banking
d.
Hotel
e.
Restaurant

QN=13
An example of Mental stimulus processing service is__________
a.
Hair-cutting
b.
Cinema
c.
Banking
d.
Plumping
e.
Restaurant

QN=14
An example for a service that offers access to physical environments as a form of rental is ____________
a.
Hair-cutting
b.
Dry cleaning
c.
Museum
d.
Kindergarten
e.
Management consultancy

QN=15
An example for a service that offers labor and expertise rental is ____________
a.
Cinema
b.
Bus
c.
Museum
d.
Gyms
e.
Management consultancy
QN= 16
Poor task executed by customer may hurt productivity, spoil service experience and curtail
benefits is the implication of___________
a.
Most service products cannot be inventories
b.
Service is intangible
c.
People may be part of service experience
d.
Customer may be involved in co-production
e.
Time factor often assumes great important

QN= 17
Service producers need to focus on recruit, train and reward employees because_________
a.
Most service products cannot be inventories
b.
Service is intangible
c.
People may be part of service experience
d.
Customer may be involved in co-production
e.
Time factor often assumes great important

QN= 18
Service producers need to focus educate customer to perform effectively and provide customer
support because______________
a.
Most service products cannot be inventories
b.
Service is intangible
c.
People may be part of service experience
d.
Customer may be involved in co-production
e.
Time factor often assumes great important

QN= 19
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

QN= 20
Which of the following products is an example of intangible dominant?
a.
A Funeral
b.
A Car rental
c.
A hotpot restaurant
d.
Magazine subscription
e.
Math tutoring

QN= 21
Which of the following is not a marketing problem caused by intangibility of services?
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

QN=1
The three stages in the consumer decision making process are ____________, ____________,
and ____________.
a.
pre-awareness stage, pre-purchase, purchase stage
b.
pre-purchase stage, awareness stage, post-purchase stage
c.
service encounter stage, pre-purchase stage, post-purchase stage
d.
pre-purchase stage, awareness stage, purchase stage
e.
pre-purchase stage, service encounter stage, post-purchase stage

QN=2
The prepurchase stage begins with ____________.
a.
perceived risk
b.
formation of expectations
c.
moments of truth
d.
evoked set
e.
need arousal

QN=3
Tangible characteristics that customers can evaluate prior to purchase are termed ____________.
a.
search attributes
b.
experience attributes
c.
credence attributes
d.
satisfaction attributes
e.
capital attributes

QN=4
Characteristics that customers find hard to evaluate even after consumption are termed ____________.
a.
search attributes
b.
experience attributes
c.
credence attributes
d.
satisfaction attributes
e.
capital attributes

QN=5
Which of the following is NOT a type of perceived risk in purchasing and using services?
a.
Functional
b.
Permanent
c.
Financial
d.
Physical
e.
Social

QN=6
The service operations system does not include ____________.
a.
physical facilities
b.
Equipment
c.
other customers
d.
technical core
e.
Personnel

QN=7
During the post-purchase stage, consumers may make satisfaction judgments that
___________ their experience.
a.
negatively confirm, positively confirm, disconfirm
b.
positively disconfirm, confirm, negatively disconfirm
c.
disconfirm, positively confirm, negatively disconfirm
d.
negatively disconfirm, positively disconfirm, positively confirm
e.
positively confirm, negatively confirm, negatively disconfirm

QN=8
To develop effective marketing strategies, marketers must understand how people make
decisions about buying and using service, what the experience of service delivery and
consumption is like for customers, and ____________.
a.
how they evaluate competitors
b.
how they evaluate the experience
c.
how often they utilize competitors
d.
how often they complain to the service firm
e.
the length of their relationship with the service firm

QN=9
An example of a service high in credence attribute is _____________.
a.
Extreme sports
b.
vacation
c.
spa
d.
musical performance
e.
surgery

QN=10
Dental customers ____________ to avoid delays and ensure effective use of dental professionals' time.
a.
sit quietly in the waiting room
b.
commit positive word-of-mouth
c.
confirm and honor appointments
d.
should get to know hygienists
e.
provide accurate histories

QN=11
All of followings are example of search attributes in restaurant service EXCEPT_________
a.
Menu
b.
Decoration
c.
Price
d.
Staff uniform
e.
Restaurant atmosphere
QN=12
A client concerns weather her financial situation would really get better after using financial consulting
service is an example of__________
a.
Financial risk
b.
Functional risk
c.
Sensory risk
d.
Physical risk
e.
Temporal risk

QN=13
Jamie don't want to go to dentist and take care of his bad teeth because he think it will be very painful is
an example of ___________
a.
Psychological risk
b.
Social risk
c.
Sensory risk
d.
Physical risk
e.
Temporal risk

QN=13
Jamie don't want to go to dentist and take care of his bad teeth because he think it will be very painful is
an example of ___________
a.
Psychological risk
b.
Social risk
c.
Sensory risk
d.
Physical risk
e.
Temporal risk
QN=13
Jamie don't want to go to dentist and take care of his bad teeth because he think it will be very painful is
an example of ___________
a.
Psychological risk
b.
Social risk
c.
Sensory risk
d.
Physical risk
e.
Temporal risk

QN=14
According to the Servuction System, factors that influence the customer's service experience include all
of the following EXCEPT____________
a.
Price
b.
Contact Personnel
c.
Inanimate environment
d.
Other customers
e.
Technical core

QN=16
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.
The other customers
b.
Contact personnel
c.
Inanimate environment
d.
Technical core
e.
Service provider

QN=17
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.
The other customers
b.
Contact personnel
c.
Inanimate environment
d.
Technical core
e.
Service provider

QN=18
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.
Other customers
b.
Contact personnel
c.
Inanimate environment
d.
Technical core
e.
Service provider

QN=19
Which one of the following methods is less likely to be the solution that customer will reach for
to reduce their perceived risks
a.
Searching for independent reviews and ratings
b.
Watching TV commercial
c.
Looking for guarantees and warranties
d.
Seeking information from family and friends
e.
Examining tangible cues of services

QN=19
Which one of the following methods is less likely to be the solution that customer will reach for
to reduce their perceived risks
a.
Searching for independent reviews and ratings
b.
Watching TV commercial
c.
Looking for guarantees and warranties
d.
Seeking information from family and friends
e.
Examining tangible cues of services

QN=20
The minimum level of service customers will accept without being dissatisfied is ___________
a.
Desired service
b.
Adequate service
c.
Predicted service
d.
Tolerable service
e.
Acceptable service

QN=21
Service provider promises, word - of - mouth, and past experience will affect to customers' ___________
- the level of service customers actually anticipate receiving.
a.
Desired service
b.
Adequate service
c.
Predicted service
d.
Tolerable service
e.
Acceptable service

QN=22
___________ , the type of service customers hope to receive, is a combination of what customers
believe can and should be delivered based on personal needs.
a.
Desired service
b.
Adequate service
c.
Predicted service
d.
Tolerable service
e.
Acceptable service

QN=23
The zone between Desired Service and Adequate Service is __________
a.
Zone of acceptance
b.
Zone of satisfaction
c.
Zone of tolerance
d.
Zone of variation
e.
Zone of possibility

QN=24
One example of Technical core in Servuction system in a hotel is _______
a.
The software to manage availability of room
b.
The music played in the lobby
c.
The lavender scent in the room
d.
The uniform of the staff
e.
The bill for customers

QN=25
The Theator is a useful metaphor for understanding service encounter. In this metaphor, service facilities
are considered as___________
a.
Scripts
b.
Roles
c.
Stage
d.
Actors
e.
Blueprintings

QN=1
Brand positioning can do all of the following except ____________.
a.
generate interest in a service
b.
create awareness for a service
c.
meet customers' needs for a service
d.
differentiate a service
e.
increase adoption of a service

QN=2
Which of the following is NOT one of the four basic focus strategies?
a.
Service focused
b.
Unfocused
c.
Fully focused
d.
Refocused
e.
Market focused

QN=3
A ____________ is composed of a group of buyers who share common characteristics, needs, purchasing
behavior, or consumption patterns.
a.
target class
b.
Class
c.
focal segment
d.
market segment
e.
target segment

QN=4
A(n) ____________ is one that a firm has selected from among those in the broader market and may be
defined on the basis of several variables.
a.
general segment
b.
segmentation field
c.
target segment
d.
holistic segment
e.
mass customization

QN=5
Which of the following is the best example of a determinant characteristic for airline travel?
a.
Oxygen masks
b.
Plane size
c.
Quality of food and drinks
d.
Having cocktail service
e.
Floatation devices

QN=6
____________, refers to an explicit form of positioning strategy that is based upon offering
several price-based classes of service concept, each based on packaging a distinct level of
service performance across many attributes.
a.
Service tiering
b.
Service conscription
c.
Broad-basing
d.
Price-setting
e.
Matching

QN=7
Market analysis addresses all of the following factors EXCEPT ____________.
a.
overall level of demand
b.
trend of demand
c.
government regulations
d.
geographic location of demand
e.
market analysis addresses all of the above factors

QN=8
Competitive analysis addresses all of the following factors EXCEPT ____________.
a.
examines competitors' strengths
b.
identifies competitors' future positioning
c.
examines competitors' current positioning
d.
examines competitors' weaknesses
e.
suggest opportunities for differentiation

QN=9
Which of the following is most likely the determinant attribute for customers of bus service.
a.
number of bus
b.
Reach
c.
bus times
d.
online booking of services
e.
Staff attitude

QN=10
A company that offers a wide range of services to a narrowly defined target segment is using
____________ strategy
a.
Market focus
b.
Fully focus
c.
Service focus
d.
Customer focus
e.
Unfocused

QN=11
Mc Donald serves a broad customer base with a largely standardized product. Which of the followings
best describe their strategy?
a.
Market focus
b.
Fully focus
c.
Service focus
d.
Customer focus
e.
Unfocused

QN=12
Disney creates fantasy for children all over the world with their TV Channel, Retail store, Theme Park,
etc... Which of the followings best describe their strategy?
a.
Market focus
b.
Fully focus
c.
Service focus
d.
Customer focus
e.
Unfocused

QN=13
_____________strategy often looks attractive because firm can sell multiple services to a single buyer.
a.
Market focus
b.
Fully focus
c.
Service focus
d.
Customer focus
e.
Unfocus
QN=14
_____________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.
Customer focus
e.
Unfocused

QN=15
Companies that use ____________strategy might be in danger of being "Jacks of all trades and masters
of none".
a.
Market focus
b.
Fully focus
c.
Service focus
d.
Customer focus
e.
Unfocused

QN=16
Which one of the following is NOT a basic elements to write a good positioning statement:
a.
Target Audience
b.
Range of Price
c.
Frame of Reference
d.
Point of Different
e.
Reason to Believe

____________ facilitate use of the core product and add value and differentiation to the customer's
overall experience.
a. Fixed services
b. Value-added provisions
c. Marketing theories
d. Supplementary services
e. Service providers

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

a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services

The order-taking process should be ____________, ____________, and ____________ so that

customers do not waste time and endure unnecessary mental physical effort.
a. short; curt; abrupt
b. simple; slow; effortful
c. short; sweet; ineffective
d. powerful; simple; abrupt
e. polite; fast; accurate

____________ augment the core product, both facilitating its use and enhancing its
value and appeal.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services

____________ represent a special type of order taking that entitles customers to a specific unit of
service.
a. Suggestions
b. Reservations
c. Trackers
d. Repossessions
e. Contracts

QN=6
At its simplest, ____________ consists of immediate advice from a knowledgeable service person in
response to the request: "What do you suggest?"
a.
billing
b.
payment
c.
consultation
d.
hospitality
e.
selling

QN=7
____________ services tend to be the most demanding in terms of supplementary elements.
a.
Information Processing
b.
People Processing
c.
Possession Processing
d.
Mental Stimulus Processing

QN=8
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.
order-taking
b.
safekeeping
c.
information
d.
consultation
e.
exceptions

QN=9
Customers who visit Giordano outlets are greeted with a cheerful "Hello" and "Thank you" when they
enter and leave the store. That is an example of ____________ .
a.
Consultation
b.
Hospitality
c.
Exceptions
d.
Courtesy
e.
Safekeeping

QN=10
Singapore Airlines Raffles Class is an example of a(n) ____________.
a.
branded house
b.
endorsed brand
c.
house of brands
d.
sub-brand
e.
clear strategy

QN=11
A company's ____________ helps to determine which supplementary services should be included.
a.
Location
b.
delivery system
c.
key service representative
d.
service atmosphere
e.
market positioning strategy

QN=12
Which one of the following is NOT a facilitating service?
a.
Information
b.
Consultation
c.
Order Taking
d.
Billing
e.
Payment

QN=13
One example for Information in The flower of service is__________
a.
Foods and Drinks
b.
Greetings from staff
c.
Train Schedule
d.
Invoice
e.
Seats

QN=14
A thoughtful bank would position their ATM machine at brightly and visible location. This is an example
of_______________
a.
Counseling
b.
Information
c.
Hospitality
d.
Safekeeping
e.
Exception

QN=15
Handling customer complaints is included in__________
a.
Counseling
b.
Information
c.
Hospitality
d.
Safekeeping
e.
Exceptions

QN=16
Giordano, an international clothing retailer greets their customers with "hello" when they enter
the store and "thank you" when they leave, even if they did not buy anything. Giordano is
enhancing their core service with _________
a.
Counseling
b.
Information
c.
Hospitality
d.
Courtesy
e.
Exception

QN=17
Virgin Group applies its brand name to multiple offerings in unrelated fields from airline industry to
finance. This is an example of __________branding strategy.
a.
Branded House
b.
Subbrands
c.
Endorsed Brands
d.
House of Brands
e.
Private Brands

QN=18
An example of House of Brands is ____________
a.
Mobifone has lots of service package such as MobiGold, MobiQ, MobiStudent, etc...
b.
Mc Donald promotes their special item Big Mac
c.
Addidas opens their new store chain Addidas Neo
d.
GGG operates Kichikichi, Ashima, Sumo BBQ in Vietnam
e.
Disney uses the name for a wide range of services aiming at children

QN=19
Creating E-banking channel to complement current banking service is__________
a.
Style change
b.
Service Improvement
c.
Supplementary service innovations
d.
Process line extensions
e.
Product line extension

QN=20
Changing the color in restaurant is______________
a.
Service improvements
b.
Supplementary service innovations
c.
Major service innovations
d.
Major process innovations
e.
Style changes

QN=21
A beach hotel starts to accept credit cards for payment, this is an example of __________
a.
Service improvements
b.
Supplementary service innovations
c.
Major service innovations
d.
Major process innovations
e.
Style changes

QN=22
First Bus employees recently received their staff uniform. The blazer now includes a pocket on
the inside so hold a mobile phone; an item given to all drivers to report emergencies or
breakdown? The new blazer's development to service is classed as:
a.
Service improvements
b.
Supplementary service innovations
c.
Major service innovations
d.
Major process innovations
e.
Style changes

QN=1
_______________ is a key driver of channel choice.
a.
Risk reduction
b.
Convenience
c.
Colorful photos of the product
d.
Internet access
e.
Lower prices

QN=2
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.
Economic pressure from consumers.
c.
Changes in laws.
d.
Economic incentives to improve the use of assets.
e.
Automated self-service facilities.

The four interesting innovations for service delivery arising from the Internet are all of the
following EXCEPT _____________.
a.
creation of websites as a delivery channel for information-based services
b.
DVDs that can store huge amounts of information
c.
development of "smart" mobile phones linking users to the Internet wherever they are
d.
usage of voice recognition technology that allows customers to give information and request
service by speaking into a microphone
e.
smart card containing a microchip acting as an electronic purse containing digital money

QN=4
All of the factors below are luring customers into virtual stores EXCEPT ____________.
a.
potential for better prices
b.
ease of search
c.
broader selection
d.
opportunities for networking
e.
24-hour service with prompt delivery

QN=5
Integrating mobile devices into the service delivery infrastructure can be used as a means to
____________ services, ____________ customers to opportunities or problems, and
____________ information in real time to ensure that it is continuously accurate and relevant.
a.
Access; alert; update
b.
Complement; alert; conceal
c.
Access; attract; conceal
d.
Access; guide; conceal
e.
Complement; guide; conceal

QN=6
____________ has become a popular way to expand delivery of an effective service concept,
embracing all of the seven Ps, to multiple sites, without the level of investment capital that would
be needed for rapid expansion of company-owned and managed sites.
a.
The Internet
b.
International trade
c.
Franchising
d.
Sole proprietorship
e.
Limited partnership

QN=7
Franchisors usually seek to exercise control over all aspects of the service performance through tightly
defined ____________.
a.
service standards
b.
procedures
c.
scripts
d.
physical presentations
e.
all of the above

QN=8
A local presence may be necessary when exporting information-based services for which of the following
reasons?
a.
Appeasing local citizens.
b.
Conducting secondary research.
c.
Building personal relationships.
d.
Bargaining for cheaper facilities.
e.
Restructuring out of date systems.

QN=9
Which one of the following methods is NOT a banking service that can be delivered remotely?
a.
Face-to-face.
b.
Internet.
c.
Mobile phone.
d.
Call centers.

QN=10
Customers would NOT prefer self-service channels when________
a.
The services are perceived as complex and high risks
b.
Customers look for functional aspects of the transaction
c.
Customers are highly confidence and knowledge about the service
d.
Customers are technology savvy
e.
Customers seeking for convenient

QN=11
What would NOT be distributed in service context?
a.
Information flow
b.
Promotion flow
c.
Performance flow
d.
Negotiation flow
e.
Product flow

QN=11
What would NOT be distributed in service context?
a.
Information flow
b.
Promotion flow
c.
Performance flow
d.
Negotiation flow
e.
Product flow

QN=12
Which would NOT be an available distribution option for car wash service?
a.
Customer goes to service organization
b.
Service organization comes to customer
c.
Customer and services organization transact remotely
d.
All options would be suitable for carwash service

QN=13
Which service would not suitable for remote transaction
a.
House cleaning
b.
Banking
c.
Psychology consultation
d.
Retail shop
e.
CD rentings

QN=14
Who is NOT going to choose electronic self-service channels over personal channels?
a.
Customers with higher confidence
b.
Customers with higher knowledge
c.
Customers who look for functional aspects of service
d.
Customers with social motives
e.
Customers who like technology

QN=14
Who is NOT going to choose electronic self-service channels over personal channels?
a.
Customers with higher confidence
b.
Customers with higher knowledge
c.
Customers who look for functional aspects of service
d.
Customers with social motives
e.
Customers who like technology

QN=15
Following are success factors for franchisors EXCEPT____________
a.
The ability to achieve a larger size with a more recognitzable brand name
b.
Offering franchisees fewer supporting services but longer term contracts
c.
Building controlling relationship with franchisees
d.
Having lower overhead per outlet
e.
Providing accurate and realistic information for franchisees

QN=1
Which of the following is NOT an objective for service pricing?
a.
Build supply.
b.
Build demand.
c.
Seek profit.
d.
Cover costs.
e.
Build a user base.
QN=2
____________ recognizes that resource expenses are linked to the variety and complexity of goods and
services produced and not just on physical volume.
a.
Break-even analysis
b.
Variable cost
c.
Fixed cost
d.
Activity-based costing
e.
Semi-fixed cost

QN=3
____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived
costs of service.
a.
Net value
b.
Consumer surplus
c.
Gross value
d.
Moderate value
e.
Consumer demand

QN=4
____________, also known as customized or personalized pricing, refers to the practice of price
discrimination.
a.
Critical ratio pricing
b.
Dynamic pricing
c.
Collective pricing
d.
Fixed pricing
e.
Classical pricing

QN=5
Which of the following reduces price competition?
a.
Increasing the number of competitors.
b.
Increasing the number of substituting offers.
c.
Wider distribution of competitor and/or substitution offers.
d.
High switching costs for consumers.
e.
Increasing surplus capacity in the industry.

QN=6
Revenue management is the most effective when applied to firms characterized by all the following
conditions EXCEPT ______________.
a.
perishable inventory
b.
relatively fixed capacity
c.
varying customer price sensitivity
d.
fixed inventory
e.
variable demand

QN=7
Which of the following is NOT an example of a non-physical fence?
a.
Time or duration of use.
b.
Group membership.
c.
Service level.
d.
Flexibility of ticket usage.
e.
Location of reservation.

QN=8
Putting service pricing into practice includes thinking of all the following questions EXCEPT
____________.
a.
What should be the specified basis for pricing?
b.
How much to charge?
c.
What kind of customers should be charged more?
d.
Who should collect payment?
e.
When should payment be made?

QN=9
Which of the following is the best example of a service industry that utilizes price complexity?
a.
Fast food
b.
Education
c.
Cellular phone
d.
Moving/transportation
e.
Medical

QN=10
A buyer's perception of value is considered a trade-off between
a.
product value and psychic cost
b.
total customer value and total customer cost
c.
image value and energy cost
d.
service value and monetary cost
e.
personnel value and time cost

QN=11
Total customer cost consists of all of the following components except:
a.
monetary cost
b.
social cost
c.
time cost
d.
psychological cost
e.
physical cost

QN=12
Service high on experience and credence attributes such as surgery would create high _______________
a.
monetary cost
b.
social cost
c.
time cost
d.
psychological cost
e.
physical cost

QN=13
Which situation is NOT going to increase the price competition?
a.
Higher number of competitors
b.
Larger amount of substituting offers
c.
Wider distribution of competitors
d.
Lower demand
e.
Reducing surplus capacity

QN=14
Which circumstance is NOT going to help the service organization to reduce price competitions
a.
Non-price related cost of using competitors products are high
b.
Personal relationships matter
c.
Switching cost are high
d.
Economic downturn makes customers become more price sensitive
e.
Time and location specificity reduces choice

QN=15
One example of basic product rate fences in hotel industry is:
a.
Size and furnishing of a hotel room
b.
Free breakfast at the hotel
c.
Time of booking
d.
5 consecutive days of stays

QN=16
Which one of the following is NOT a non-physical fences based on buyer characteristics?
a.
Time of booking or reservation
b.
Frequency or volume of consumption
c.
Group membership
d.
Size of customer group
e.
Geographic location

QN=16
Following ways help firms to improve customers' fairness perception EXCEPT_____________
a.
Use unpublished prices and frame fences as discounts
b.
Use service recovery or deal with overbooking
c.
Use bundling to hide discounts
d.
Take care of loyal customer
e.
Design price schedules and frame fence that are logical, clear and fair

QN=17
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

____________ and ____________ represent important ways to add value to a product.

a. Reciprocation; classification
b. Information; classification
c. Information; consultation
d. Reciprocation; consultation
e. Reciprocation; mediation

One approach to training customers, recommended by advertising experts is to ____________.

a. train employees like customers
b. use radio advertising
c. show service delivery in action
d. design palpable service environments
e. explain service procedures in advance

In ____________ services, where much of the firm's expertise is hidden, firms may need to
illustrate equipment, procedures, and employee activities that are taking place ____________.
a. high-contact; front-stage
b. low-contact; backstage
c. high-contact; backstage
d. low-contact; front-stage
e. high-contact; intangibly

Which of the following is NOT one of the four problems for marketers seeking to promote a service's
benefits?
a. Distribution
b. Abstractness
c. Generality
d. Non-searchability
e. Mental impalpability

____________ outside peak demand periods poses a serious problem for service industries with
____________, like hotels.
a. Low demand; high fixed costs
b. Low demand; low fixed costs
c. High demand; high fixed costs
d. High demand; low fixed costs
e. High demand; low variable costs

Which of the following would be classified under generality in intangibility?

a. Safety.
b. A hamburger.
c. An airline seat.
d. Facility appearance.
e. Expert advice.

Ads based on ____________ strategies are often perceived as more informative than ____________ ads.
a. visualization; text-only
b. expert; power
c. visualization; affective
d. utilitarian; text-only
e. visualization; expert

Which of the following represents a broad target audience category?

a. Donors
b. Competitors
c. Employees
d. Contractors
e. Franchisers

Which of the following is NOT a common educational and promotional objective in service
settings?
a. Build awareness of and interest in an unfamiliar service or brand.
b. Reposition a service relative to competing offerings.
c. Familiarize customers with service processes in advance of use.
d. Encourage trial of competing products.
e. Recognize and reward valued customers and employees.

Which of the following is NOT a communication task for which marketers use the Internet?
a. Promoting consumer awareness and interest.
b. Providing information and consultation.
c. Facilitating two-way communications with customers through e-mail and chat rooms.
d. Enabling customers to place orders.
e. Reducing service demand through electronic tracking.
___________ refers to a group of technologies for distributing audio or video programs over the Internet
using a publisher/subscriber method.
a. Podcasting
b. Webcasting
c. Websiting
d. Webenabling
e. Webscribing

Virgin Atlantic's advert promotes their 9 inch seatback screens audio and video system with the
message "Play with yourself - 9 inches of pleasure" is an example of marketing communication
help company to:
a. Position and differentiate service
b. Stimulate or dampen demand to match the capacity
c. Promote contribution of personnel and backstage operations
d. Add value through communication content
e. Facilitate customer involvement in production

QN=13
Which of the following is an example of marketing communications help to stimulate or dampen
demand to match the capacity
a. DHL advert shows the image of one of its staff with the message "Dedicated to going beyond
your expectation"
b. Alton tower gives away 2 free ticket for audience of The Sun newspaper

Which of the following is not a recommended guideline for developing service communications?
a. Tangibilize the intangible
b. Promise what is possible
c. Reduce consumer fears about the variation in performance
d. Make the service more abstract
e. Feature the working relationship between provider and customer

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.

Which of the following is NOT an example of intangible abstract concept in service promotion
a. Financial security
b. Expert advice
c. Safe transportation
d. Working timetable
e. Friendly staff
Starbucks shows how coffee beans are cultivated, harvested and produced, highlighting its use
of the finest and freshest. This is an example of _________
a. Position and differentiate service
b. Stimulate or dampen demand to match the capacity
c. Promote contribution of personnel and backstage operations
d. Add value through communication content
e. Facilitate customer involvement in production

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

a. Personal Selling
b. Sales Promotion
c. Positioning Strategy
d. Advertising
e. Publicity and Public Relation

Which of the following is NOT a question in the check list for marketing communication planning?
a. Who is the target audience?
b. What do we need to communicate and achieve
c. How should we communicate this?
d. How much should we spend?
e. When do the communications need to take places

Productions channels communicate with the target audience through_____________

a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Word-of-mouth

Marketing channels communicate with the target audience through following sources
EXCEPT___________
a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Trade shows

QN=21
Following sources are originating within the organization thus they are controlled by service firms
EXCEPT___________
a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Word-of-mouth
Which of the following form of publicity is most porpular for B2B context?
a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Trade-show

QN=1
Blueprinting is a more complex form of ____________.
a.
linear graphing
b.
flow charting
c.
Cox & Snell analysis
d.
non-linear graphing
e.
cluster analysis

QN=2
The first step in developing a service blueprint is ____________.
a.
to reach a consensus on which activities are more important than others
b.
to identify all the key activities involved in creating and delivering the service
c.
to identify the links between a set of alternative service possibilities
d.
to identify the key employees who will be enacting the service blueprint

QN=3
Service blueprints ____________, and how these are supported by backstage activities and
systems.
a.
enhance servicescape features such as furniture and lighting
b.
complicate employee handling of special requests
c.
clarify the interactions between customers and employees
d.
enhance customer technical know-how
e.
diminish customer complaining capacity
QN=4
The line of ____________ divides front-stage activities from backstage activities.
a.
service standards and scripts
b.
physical evidence
c.
internal physical interaction
d.
internal IT interaction
e.
visibility

QN=5
Which of the following is NOT a key component of a service blueprint?
a.
Line of transference
b.
Line of interaction
c.
Line of visibility
d.
Backstage actions by customer contact personnel
e.
Front-stage actions by customer contact personnel

QN=6
The ____________ or ____________ includes both the ____________ and ____________ of a
service facility.
a.
roll; retrieval; implicit aspects; explicit aspects
b.
stage; servicescape; exterior; interior
c.
stage; service area; customers; employees
d.
roll; canopy; employees; equipment
e.
roll; service area; front-stage; backstage

QN=7
Server ____________ ensure that service staffs do things correctly, as requested, in the right order, and
at the right speed.
a.
kanbans
b.
poka-yokes
c.
jidokas
d.
banzais
e.
sodokus

QN=8
Service process redesign efforts typically focus on achieving all EXCEPT which of the following key
performance measures?
a.
Reduced number of service failures.
b.
Reduced cycle time.
c.
Enhanced productivity.
d.
Increased profitability.
e.
Increased customer satisfaction.

QN=9
Service process redesign can be categorized into all EXCEPT which of the following types?
a.
Getting rid of non-value adding steps.
b.
Shifting to self-service.
c.
Delivering direct service.
d.
Separating services.
e.
Redesigning the physical aspect of service processes.

QN=10
Which of the following is NOT an advantage of self-service technologies?
a.
Greater choice of products
b.
Higher perceived level of customization.
c.
Convenience of location.
d.
Greater control over service delivery.
e.
Cost and time savings.

QN=11
How many "acts" does a meal at full service restaurant consist of?
a.
One act
b.
Two acts
c.
Three acts
d.
Four acts
e.
Five acts

QN=12
Banks ensure eye contact by requiring tellers to record ____________ on a checklist at the start of a
transaction.
a.
the customer's eye color
b.
the customer's bank account number
c.
the customer's shirt size
d.
the customer's account type
e.
the customer's nationality

QN=13
Examples of preparing customers for service encounters include all of the following EXCEPT
____________.
a.
printing dress code requests on invitations
b.
sending reminders of dental appointments
c.
printing guidelines on customer cards
d.
billing customers for services rendered
e.
all of the above are examples of preparing customers for service encounters
QN=14
Marriage counseling is a service that requires a ____________ level of participation from customers.
a.
minimal
b.
high
c.
moderate
d.
low
e.
absolute

QN=15
The internet kiosk with a touchscreen is getting popular for the following reasons EXCEPT
____________.
a.
it is conveniently located
b.
it saves customers from having to deal with other undesirable customers
c.
it is accessible 24/7
d.
it doesn't make mistakes, unlike employees
e.
it has easy access to websites

QN=16
Front staff's uniform is an example of which element in a service Blueprint
a.
Front stage activities
b.
Physical evidence
c.
Line of visibility
d.
Support processes and supplies
e.
Potential fail points

QN=17
In order to manage the customer experience well, firms can also build emotionprints which look at
customer's ____________ at each stage of service process.
a.
Waiting time
b.
Potential failure
c.
Thinking
d.
Feeling
e.
Sensing

QN=18
Which of the following is NOT the symptom that indicates the necessity of service
redesign?
a.
A lot of information exchange
b.
Increasing processing of exceptions
c.
Data is not useful
d.
Staff being familiar with the current process
e.
A high ratio of checking or control activities to value-adding activities

QN=20
Which of the following service has the lowest customer's participation level ?
a.
ATM cash withdraw
b.
Weather forecast TV program
c.
Hair cutting
d.
Education
e.
Car repair

QN=21
_______________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

QN=1
Which of the following is NOT one of the productive capacity forms in a service context?
a.
Physical facilities designed to contain customers
b.
Physical equipment used to process people, possessions, or information
c.
Customers
d.
Labor
e.
Infrastructure

QN=2
Which of the following is NOT one of the conditions that fixed-capacity firms may face?
a.
Excess capacity.
b.
Demand exceeds desired capacity.
c.
Demand and supply are well-balanced.
d.
Ideal demand exceeds capacity.
e.
Excess demand.

QN=3
Which of the following is the correct action for a firm to take that wants to reduce
demand and has insufficient capacity?
a.
Take no action.
b.
Consider override for most desirable segments.
c.
Consider priority systems for most desirable segments.
d.
Increase prices or encourage use in other time slots.
e.
Lower prices selectively.

QN=4
Which of the following is NOT one of the ways to change the overall level of capacity to match
demand variations?
a.
Use part-time employees.
b.
Ask customers to share.
c.
Invite customers to perform self-service.
d.
Cross-train employees.
e.
Share facilities with the supplier.

QN=5
All of the following are questions to ask about demand patterns and their underlying
causes EXCEPT ____________.
a.
Do demand levels follow a predictable cycle?
b.
What are the underlying causes of these cyclical variations?
c.
How much demand are competitors receiving?
d.
Do demand levels seem to change randomly?

QN=6
Which of the following is NOT one of the five basic approaches to managing demand?
a.
Taking no action and leaving demand to find its own levels.
b.
Reduce demand in peak periods.
c.
Increase demand when there is excess capacity.
d.
Inventory capacity until demand increases.
e.
Inventory demand by creating a formalized queuing system.

QN=7
Marketing strategies can be used to shape demand in all ways EXCEPT ____________.
a.
modify mode of delivery
b.
use price and other cost to manage demand
c.
change product elements
d.
modify time and place of delivery
e.
use promotion and education+

QN=8
Which of the following is NOT one of the alternative queuing configurations discussed?
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated lines to designated servers
e.
"Take a Number" (single or multiple servers)

QN=9
All of the following are ways to make waits more bearable EXCEPT ____________.
a.
encourage group waits
b.
keep customers occupied while waiting
c.
make customers feel comfortable during waits
d.
let customers know how long they are expected to wait
e.
provide the customers with no explanation for the wait

QN=10
Which of the following is NOT one of the benefits of having a reservations system?
a.
Helps service personnel to serve more effectively.
b.
Helps in pre-selling the service.
c.
Helps customers to avoid queuing.
d.
Helps firms to keep some time aside for emergency jobs.
e.
Allows demand to be controlled.

QN=11
The demand on a city bus is likely to vary by all EXCEPT which of the following?
a.
Time of day.
b.
Day of the week.
c.
Season of the year.
d.
Population density in the city.
e.
All of the above will likely cause demand to vary on a city bus.

QN=12
____________ is usually the first variable to be proposed for bringing demand and supply into
balance.
a.
Price.
b.
Place.
c.
Personnel.
d.
Product.
e.
Promotion.

QN=13
One way for car washes to decrease the number of visitors to the existing site is to
a.
Offer free pickup and delivery of cars to be washed.
b.
Offer mobile car wash services.
c.
Add more service options.
d.
Increase prices to get the most out of current customers.
e.
Educate customers on when they should have their cars washed.

QN=14
Which one of the following services has the capability that is most likely to be affected by
physical facilities designed for storing or processing goods
a.
Bus
b.
Dentist
c.
Education
d.
Car wash
e.
Fast food – restaurant

QN=15
The restaurant is full of people and some of them complaint about level of noise as well as the
speed of service. This situation is called________
a.
Excess Demand
b.
Demand Excess Optimum Capacity
c.
Demand and Supply are well Balance
d.
Excess Capacity
e.
Low utilization of Capacity

QN=16
Which is NOT one of the method to adjust Capacity to Match Demand?
a.
Schedule downtime during period of low demand
b.
Use full-time employee
c.
Cross-train employee
d.
Invite customer to use self-service
e.
Ask customer to share

QN=17
Which one of the following services has the maximum capacity equal with the optimum
capacity?
a.
High-end restarants
b.
Themeparks
c.
Bus
d.
Cinema

QN=16
Which one of the following services has the maximum capacity different from the optimum
capacity
a.
Airline
b.
Car repair
c.
Bus
d.
Cinema

QN=17
Which one of the following queue configurations saves customers from standing in a queue
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated lines to designated servers
e.
"Take a Number" (single or multiple servers)

QN=18
Customers who wait in which queue configuration are most likely to have fellings of
injustice and unfairness?
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
All queue configurations are perceived at the similar level of justice or fairness by
customers
QN=19
Checkout system at supermarket is an example of _____________
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated line to designated serves
e.
Take a number

QN=20
Which queue confirguration has to deal with the problem that some service stages take
longer time to process than others.
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated line to designated serves
e.
Take a number

QN=21
Waiting to buy a ticket to enter a theme park is different from waiting to ride on a roller
coaster once customers are sitting on it. This is implication of ____________
a.
Solo waits feel longer than group waits
b.
Physically uncomfortable waits feel longer than comfortable waits
c.
Pre and post process waits feel longer than in process wait
d.
Unfair waits are longer than equitable waits

QN=23
Students waiting for the test to begin feel the time much longer most likely
because____________
a.
Anxiety makes waites seem longer
b.
Uncertain waits are longer than known, finite waits
c.
Pre and post process waits feel longer than in process waits
d.
Unfair waits are longer than equitable waits
e.
Unfamiliar waits seem longer than familiar ones

QN=1
Service environments, also called ____________ relate to the style and appearance of the
physical surroundings and other experiential elements encountered by customers at service
delivery sites.
a.
service planes
b.
servicescapes
c.
service boxes
d.
Servicetomies
e.
service vaults

QN=2
The field of ____________ studies how people respond to specific environments.
a.
organizational behavior
b.
marketing
c.
environmental psychology
d.
strategic management
e.
financial management

QN=3
In environmental psychology the typical outcome variable is ____________ or ____________ of
an environment.
a.
service; repurchase
b.
control; reproach
c.
control; avoidance
d.
control; sensibility
e.
approach; avoidance

QN=4
The two dimensions of Russell's model of affect are ____________ and ____________.
a.
centrality; dominance
b.
pleasure; arousal
c.
centrality; permanence
d.
pleasure; regret
e.
fullness; looseness

QN=5
The ____________ complex a(n) ____________ process becomes, the more powerful is its
potential impact on ____________.
a.
more; affective; cognition
b.
more; cognitive; affect
c.
less; cognitive; services
d.
less; affective; cognition
e.
less; cognitive; affect

QN=6
If a service environment is inherently ____________, one should avoid
increasing ____________ levels, as this would move customers into the
"distressed" region of Russell's model.
a.
pleasant; arousal
b.
pleasant; excitement
c.
pleasant; relaxation
d.
unpleasant; arousal
e.
unpleasant; excitement

QN=7
Which of the following is NOT one of the dimensions of the service environment?
a.
Exterior facilities
b.
General infrastructure
c.
Store layout
d.
Interior displays
e.
Location

QN=8
Which of the following is an ambient condition?
a.
Facility layout
b.
Displays
c.
Music
d.
Location
e.
Price

QN=9
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

QN=10
Which one of the following colors would be LEAST likely used for a low-involment decisions?
a.
Blue
b.
Red
c.
Yellow
d.
Orange
e.
Pink

QN=11
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 a message-creating medium
b.
As an attention-creating medium
c.
As an effect-creating medium
d.
As an mood-creating medium

QN=12
One example of service environment helps to facilitate the service encounter and
enhance productivity is__________
a.
Childcare center draws toy outline on walls to floors to show where toys should be
placed after use.
b.
Las Vegas built reproductions of Paris, pyramids of Egypt, and canals of Vienne in order
to attract families.
c.
Kipton Hotel design their lobby assemble to a family living room rather than big hotel
lobby to create the friendly environment
d.
Restaurant provide clean table cloth to indicate the hygiene of their food

QN=14
Which of following ideas is not TRUE according to Mehrabian-Russell Stimulus-
Response Model?
a.
Service environments will affect to people weather consciously or unconsciously
b.
Thinking rather than Felling would drive people's responses to environment
c.
Affective Responses include Pleasure and Arousal

QN=15
Base on Russel Model of Affect , the felling that they would have when customers are in a rush
and have to wait in a long queue is___________
a.
Exciting
b.
Relaxing
c.
Boring
d.
Distressing
e.
Sleepy

QN=16
Base on Russel Model of Affect , the felling people would have when waiting for Chistmas festival
in front of The Big Chapel is ___________
a.
Exciting
b.
Relaxing
c.
Boring
d.
Distressing
e.
Sleepy

QN=17
Russell's model of affect proposes that emotional response to environments can be described
along the two main dimension of ____________
a.
Pleasure and Exciting
b.
Relaxing and Exciting
c.
Pleasure and Arousal
d.
Exciting and Distressing
e.
Pleasure and Sleepy
QN=18
Which of the following service provider have the highest level of arousal in their services?
a.
Park Operator
b.
Car Repair Store
c.
Clothing Retail Shop
d.
Hair Cutting Store
e.
Mountain Climbing club

QN=19
Which of the following is NOT true about Arousal in Russell's model of Affect?
a.
Arousal depends on how much an individual like or dislike the environment
b.
Arousal refers to how stimulated the individual feels
c.
Arousal depends on information rate or load of an environment
d.
Complex services usually have higher level of Arousal

QN=20
According to Russell's Model of Affect, which of the following felling would be most suitably
targeted by a Paint Ball Service Operator?
a.
Relaxing
b.
Exciting
c.
Depressing
d.
Stimulating
e.
Breathtaking

QN=21
According to Russell's Model of Affect, which of the following felling would be most suitably
targeted by a Spa
a.
Relaxing
b.
Exciting
c.
Pleasant
d.
Stimulating
e.
Pleasing

QN=22
According to Russell's Model of Affect, which of the following activities a restaurant
manager should do when the restaurant are crowded to calm their customers?
a.
Increase level of yellow and red of their lighting
b.
Turn on dance music
c.
Using lavender scent
d.
Ordering their employees to introduce new menu items to customers
e.
Increase the temperature of the room

QN=23
Which type of music could help service companies to avoid jay customers?
a.
Pop
b.
Rock
c.
Classical
d.
Jazz
e.
Dance

QN=24
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.
Artifacts
d.
Ambient Conditions
e.
Social Dimension

QN=25
The term ____________is used to capture the important of the physical image of service
personnel who serve customer directly
a.
Front Stage personnel
b.
Aesthetic Labor
c.
Emotional Labor
d.
Relational Labor
e.
Back Stage Personnel

QN=26
A university is considering changing the type of chairs in lecture theater to make it more
comfortable for the students to concentrate. This element is an example of__________
in Bitner's model of Servicescape
a.
Signs and Artifacts
b.
Exterior Facilities
c.
Spatial Layout
d.
Ambient conditions
e.
Social dimensions

QN=27
Which dimension in Bitner's model of Servicescape will guide customers through the process of
service delivery?
a.
Signs and Artifacts
b.
Exterior Facilities
c.
Spatial Layout
d.
Ambient conditions
e.
Social dimensions

QN=28
When a customer complains that the store is not clean, the store is having proplem with which
dimension of Servicescape?
a.
Signs and Artifacts
b.
Exterior Facilities
c.
Spatial Layout
d.
Ambient conditions
e.
Social dimensions

QN=29
When a customer complains that it is easy to lose one's way in a large shopping, the store is
having proplem with which dimension of Servicescape?
a.
Signs and Artifacts
b.
Exterior Facilities
c.
Spatial Layout
d.
Ambient conditions
e.
Social dimensions

QN=30
When a researcher try different type of scents and musics to find the best one for the store, the
tool used is ___________
a.
Keen observation
b.
Feedback and ideas from frontline staff and customers
c.
Photo audit
d.
Field experiments
e.
Blueprinting
 QN=1
From the customer's perspective which of the following is the most important
aspect of service?
a.
Management's responsiveness to occurrences of failure.
b.
Timely delivery of service.
c.
Efficient handling of special requests.
d.
The encounter with service staff.
e.
A fair price.
QN=2
Service employees are important to customers and competitive positioning, because the front
line ____________.
a.
is the most visible part of the firm
b.
contains more employees than management
c.
is often the first to deal with customer complaints
d.
is better trained at dealing with customers than are managers
e.
all of the above

QN=3
Emotional labor is when employees ____________.
a.
find it hard to be emotional because they are too overworked
b.
have a gap between what they feel inside, and what management expects them to display to
their customers
c.
have to keep their emotions under control at the work place
d.
feel happy all the time because they enjoy their jobs

QN=4
Training is most effective at reducing ____________.
a.
person/role stress
b.
organization/client conflict
c.
interclient conflict
d.
interorganizational conflict
e.
intraorganizational conflict

QN=5
Outcomes of the "Cycle of Failure" for firms include ____________ and ____________.
a.
low service quality; low employee turnover
b.
low service quality; high employee turnover
c.
high service quality; low employee turnover
d.
high service quality; high employee turnover
e.
mediocre service quality; unpredictable employee turnover

QN=6
The "Cycle of Failure" includes all of the following EXCEPT ____________.
a.
emphasis on rules
b.
emphasis on attracting new customers
c.
adequate pay and job security
d.
low skill levels
e.
use of technology to control quality

QN=7
Companies that engage in a "Cycle of Success" are more likely to have which of the following?
a.
Happier employees
b.
More loyal customers
c.
Higher profit margins
d.
Better wages
e.
All of the above
QN=8
Employees should be trained in all these areas EXCEPT ____________.
a.
organizational culture
b.
organizational revenue
c.
service knowledge
d.
interpersonal skills
e.
product knowledge

QN=9
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.

QN=11
Excellent service firms use all of the following to identify the best job candidates EXCEPT ____________.
a.
observing behavior
b.
conducting personality tests
c.
interviewing applicants
d.
viewing transcripts
e.
providing applicants with realistic job previews

QN=12
The cycle of failure includes all following EXCEPT_____________
a.
Low customer turnover
b.
Low profit margins
c.
Narrow design of jobs to accommodate low skill level
d.
Minimizaton of selection effort
e.
Customer dissatisfaction

QN=14
The cycle of Mediocrity is mostly to be found in _____________
a.
Companies that operate on lots of rules and procedures
b.
Companies that have low profit margin
c.
Companies that focus on high productivity by simplifying work processes and paying the lowest
possible wages
d.
Companies with long-term view that seek to grow by investing in their people

QN=15
The companies that engage in the Cycle of Mediocrity are LEAST likely to have _______________
a.
Emphasis on rules rather than pleasing customers
b.
Customer Dissatisfaction
c.
High employee turnover
d.
High customer turnover
e.
Indifferent and hostility employees

QN=15
The companies that engage in the Cycle of Mediocrity are LEAST likely to have _______________
a.
Emphasis on rules rather than pleasing customers
b.
Customer Dissatisfaction
c.
High employee turnover
d.
High customer turnover
e.
Indifferent and hostility employees
QN=16
The Employee Cycle of Success contains all of the followings EXCEPT__________
a.
Broaden job designs
b.
Extensive training
c.
Intensive selection effort
d.
Empowerment of frontline personnel
e.
Promotion based on longetivity

QN=17
The Service Talent Cycle, which is the guiding framework for succesful in HR practices, starts with:
a.
Motivating employees with full range of rewards
b.
Hiring the right people
c.
Empowering frontline staff
d.
Extensive training
e.
Developing high performance service delivery team.

QN=18
Frontline staff who work in service companies that are not customer oriented are likely to have
_____________
a.
Person/Role conflict
b.
Inter-client conflict
c.
Organization/client conflict
d.
Structural conflict
e.
Service delivery conflict

QN=19
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

QN=19
_____________ orcurs when there is gap between the way frontline staff fell inside and the emotions
that management requries them to display to their customers
a.
Person/role conflict
b.
Inter-client conflict
c.
Organization/client conflict
d.
Emotional labor
e.
Aesthetic labor

QN=20
When frontline staff describe customers as overdemanding, unreasonable, arrogant; they are likely to
have ___________
a.
Person/role conflict
b.
Inter-client conflict
c.
Organization/client conflict
d.
Procedure conflictt
e.
Emotional stress

QN=21
Asking jumping queue customers to behave is a stressful and unpleasant task for service staff.
This cause of role stress in front line position is called _________________
a.
Person/role conflict
b.
Inter-client conflict
c.
Organization/client conflict
d.
Procedure conflictt
e.
Emotional stress

QN=22
Investing in front stage personnel is important for service firms. All of the following statement
about frontline staff is true EXCEPT ________
a.
Frontline is a core part of the product
b.
Frontline is the service firm
c.
Frontline is the brand
d.
Frontline determines productivities
e.
All of these statement are true

QN=1
Which of the following is NOT one of the advantages to incremental profits of a loyal customer?
a.
Profit from increased purchases.
b.
Profit from decreased advertising.
c.
Profit from reduced operating costs.
d.
Profit from referrals to other customers.
e.
Profit from price premiums.

QN=2
Steps to building a foundation of loyalty include all EXCEPT _____________.
a.
delivering customer satisfaction
b.
delivery service quality
c.
segmenting the market to match customer needs and firm capabilities
d.
acquiring customers who fit the core value proposition
e.
managing the customer base through effective tiering
QN=3
The wheel of loyalty is composed of which of the following three main components?
a.
Create loyalty bonds; deliver quality service; segment the market
b.
Create loyalty bonds; build higher level bonds; deliver quality service
c.
Build a foundation for loyalty; create bundling; build higher level bonds
d.
Build a foundation for loyalty; create loyalty bonds; reduce churn drivers

QN=4
Firms should not assume that the "right customers" are always the ___________.
a.
ones that are easily delighted
b.
high spenders
c.
price sensitive customers
d.
average income earners
e.
least costly to acquire

QN=5
Which of the following are the three main zones of the satisfaction-loyalty relationship?
a.
Direction; institution; affluence
b.
Defection; indifference; affection
c.
Detection; elimination; subversion
d.
Detection; affluence; rejection
e.
Direction; intention; rejection

QN=7
Which of the following is NOT one of the key strategies used to reduce customer defections?
a.
Eliminate nuisance customers.
b.
Address key churn drivers.
c.
Implement effective complaint handling and service recovery procedures.
d.
Increase switching costs.
e.
Analyze customer defections and monitor declining accounts.

QN=8
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?

QN=9
Which of the following is NOT an example of common CRM applications?
a.
Data collection
b.
Data analysis
c.
Market reinvestment
d.
Sales force automation
e.
Call center automation

QN=10
Common CRM applications include all of the following EXCEPT _____________.
a.
Data collection
b.
Marketing automation
c.
Data entry
d.
Sales force automation
e.
Finance automation

QN=11
Common failures in CRM implementation include all of the following EXCEPT _____________.
a.
employee enthusiasm about CRM
b.
inadequate support from top management.
c.
inadequate understanding of customer lifetime value
d.
lack of coordination
e.
failure to reengineer business processes

QN=13
Loyalty customers are less likely to be price sensitive and more likely to pay regular price. In other words,
service firms have more profit derived from _________
a.
Increased purchase
b.
Reduced operating cost
c.
Reduced advertising cost
d.
Referals to other customers
e.
Premium price

QN=14
Service companies enjoy lower operating cost for loyal customers because loyal
customers________________
a.
often purchase in greater quantities
b.
Make fewer mistakes and make more use of self-service options
c.
Provide positive word-of-mouth recommendations
d.
Willingly pay regular price for service
e.
Are lest price sensitive

QN=15
When asked for reason of loyalty, one customer states " You can get better service than drop-in
customers. They know exactly your preference". This benefit customer received from being loyal
is called___________
a.
Confidence benefits
b.
Risk reducing benefits
c.
Social benefits
d.
Relational benefits
e.
Special treatment benefits

QN=16
When asked for reason of loyalty, one customer states " I like to drink coffee there, they know
who I am and remember what I like. Once I forgot to bring my wallet with me and they told me to
pay whenever I wanted ". This benefit customer received from being loyal is called___________
a.
Confidence benefits
b.
Risk reducing benefits
c.
Social benefits
d.
Relational benefits
e.
Special treatment benefits

QN=16
Building foundation for loyalty include all following activities EXCEPT ____________
a.
Acquiring the customers who fit with the service's value proposition
b.
Tiering service to manage customer base
c.
Segmenting the market
d.
Giving customers loyalty rewards
e.
Delivering Quality service

QN=17
Reducing churn drivers include ____________
a.
Acquiring the customers who fit with the service's value proposition
b.
Tiering service to manage customer base
c.
Increasing switching cost
d.
Giving customers loyalty rewards
e.
Delivering Quality service

QN=18
Which of the following is higher-level bond service firms should build?
a.
Quality service
b.
Customization service
c.
Higher tier-service level
d.
Recognition and appreciation
e.
Financial rewards

QN=19
Vanguard Group, a growth leader in the mutual fund industry, apply a low redemtion rate
strategy in order to attract only long-term investor. This strategy help the company to:
a.
Build a foundation for loyalty
b.
Create loyalty bonds
c.
Reduce churn driver
d.
Provide loyalty reward
e.
Improve service quality

QN=19
The group of customer who usually provide the bulk of the customer base but only a small profit margin
is _____________
a.
Platinium
b.
Diamond
c.
Gold
d.
Iron
e.
Lead
QN=20
The customers who are least price sensitive and most commited to the firm is called________
a.
Platinium
b.
Diamond
c.
Gold
d.
Iron
e.
Lead

QN=21
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

QN=22
According to Susan Keveaney research, the reason that cause the largest propotion of
customers who switch to another service provider is ___________
a.
Core service failures
b.
Disatisfactory service encounter
c.
High, deceptive or unfair pricing
d.
Inconvenience in term of time, location or delays
e.
Poor response to service failure

QN=16
Building foundation for loyalty include all following activities EXCEPT ____________
a.
Acquiring the customers who fit with the service's value proposition
b.
Tiering service to manage customer base
c.
Segmenting the market
d.
Giving customers loyalty rewards
e.
Delivering Quality service

QN=17
Reducing churn drivers include ____________
a.
Acquiring the customers who fit with the service's value proposition
b.
Tiering service to manage customer base
c.
Increasing switching cost
d.
Giving customers loyalty rewards
e.
Delivering Quality service

QN=1
Which of the following is NOT one of the options customers take when they are dissatisfied with a
service encounter?
a.
Take legal action.
b.
Vent their anger on the service equipment.
c.
Do nothing.
d.
Complain to the service firm.
e.
Give negative word of mouth.

QN=2
Which of the following is NOT one of the reasons why customers complain that is listed in the book?
a.
Better understand the failure
b.
Vent their anger
c.
Help improve the service
d.
Obtain restitution or compensation
e.
For altruistic reasons

QN=3
____________ involves the employees of the firm who provide the service recovery and their behavior
toward the customer.
a.
Procedural justice
b.
Legal justice
c.
Interactional justice
d.
Relational justice
e.
Outcome justice

QN=4
Which of the following is NOT one of the guidelines provided for the Front Line on how to handle
customer complaints?
a.
Consider compensation
b.
Keep the customer informed of progress
c.
Explain the problem from the service firm's point of view
d.
Acknowledge the customer's feelings
e.
Act fast

QN=5
The ____________ refers to the sometimes-observed effect that customers who experience a
service failure and then have it resolved to their full satisfaction are more likely to make future
purchases than are customers who have no problem in the first place.
a.
referent renewal paradox
b.
referent contribution paradox
c.
referent acquisition paradox
d.
service recovery paradox
e.
service renewal paradox
QN=6
Effective service recovery procedures should be ____________, ____________,
____________, and ____________.
a.
proactive, engaged, universal, empowered
b.
planned, engaged, universal, trained
c.
proactive, planned, trained, empowered
d.
trained, engaged, flexible, spontaneous
e.
trained, engaged, universal, empowered

QN=8
Which of the following is NOT one of the criteria that service guarantees should be designed to meet?
a.
Easy to understand and communicate
b.
Meaningful to the customer
c.
Conditional
d.
Easy to invoke
e.
Credible

QN=9
All of the following are jaycustomers EXCEPT ___________.
a.
The Cheat
b.
The Rule Breaker
c.
The Belligerent
d.
The Deadbeat
e.
The Hooligan

QN=10
The customers who are likely to abuse service employees when they are not to be blamed are called
_________
a.
The Cheat
b.
The Rule Breaker
c.
The Belligerent
d.
The Deadbeat
e.
The Vandal

QN=11
The customers who abuse service equipment and facilities are called____________
a.
The Cheat
b.
The Rule Breaker
c.
The Belligerent
d.
The Deadbeat
e.
The Vandal

QN=12
How many failures can a service firm commit before the recovery paradox is wiped out?
a.
One failure
b.
Two failures
c.
Three failures
d.
Four failures
e.
Five failures

QN=13
Which of the following is NOT one of the elements of effective service recovery?
a.
Do the job right the first time
b.
Seek alternative recompense strategies
c.
Identify service complaints
d.
Resolve complaints effectively
e.
Learn from the recovery experience

QN=15
Which of the following activities is NOT a good method to cure vandalism?
a.
Increasing lighting
b.
Installing cameras
c.
Educating customers on using equipments
d.
Asking customer to provide security deposits to pay for any damage that they cause
e.
Setting more rules

QN=16
Installing surveilance system would helps to prevent following jay customers except?
a.
The Belligerent
b.
The Thief
c.
The Cheat
d.
The Vandal

QN=17
Which of the following customer response to service failure should be encouraged by the service
providers?
a.
Complain to the service firms
b.
Complain to the third party
c.
Swithch to another service providers
d.
Negative word of mouth
e.
Take legal action
QN=18
David Needleman, JetBlue's CEO, sent a personal e-mail to all customer in the company's
database to explain what caused the problem, apologized profusely and detailed its service
recovery report. This is example of a service firm understand that customers seek for
_________ when they make complain.
a.
Procedural justice
b.
Interactional justice
c.
Outcome justice
d.
Personal justice

QN=19
Which one of the following is an example of outcome justice customers expect?
a.
The airline provide vouchers or refunds when flights is delayed
b.
Waiters apologize when the soup is cold
c.
Managers come and explain what happen to waiting customers
d.
It's free when customer call to make complain on their Internet service
e.
Customers would not have to provide any proof for their complains

QN=20
When customers want the problem to be fixed, they prefer ________
a.
Taking to staff
b.
Using Email
c.
Sending a letter
d.
Producing negative word of mouth
e.
Take legal action

QN=22
When a service firm allows anonymous feedback, it is reducing which customers' complaining barrier?
a.
Inconvenience
b.
Doubtful payoff
c.
Unpleasantness
d.
Anger
e.
Financial cost

QN=23
The Bugs Burger Bug Killers Guarantee includes:
- You don't owe us a penny until all the pests on your premises have been eradicated
- If you're ever dissatisfied with the BBBK's service, you will received a refund for as much as 12
months of service
- If a guest spots a pest on your premises, the exterminator will pay for the guest's meal or
room, send a letter of apology and pay for a future meal or stay.
- If your premises are closed down because of the presence of roaches or rodents, BBBK will
pay any fines, as well as all lost profit, plus $5,000
This is an example of
a.
Single attribute - specific guarantee
b.
Multi attribute - specific guarantee
c.
Full satisfaction guarantee
d.
Combined guarantee

QN=24
Customers are much more likely to take advantage of a firm's service recovery effort
if______________
a.
They believe that they were treated unfairly
b.
The service firm is small
c.
The service recovery procedure is convenience
d.
They have personal relationship with employees
e.
The service quality is high

QN=1
The common perspective on quality includes all of the following EXCEPT ____________.
a.
transcendent view
b.
user-based definition
c.
manufacturing-based approach
d.
process-based approach
e.
value-based definition

QN=3
Which of the following is NOT a broad dimension of service quality?
a.
Tangibles
b.
Reliability
c.
Responsiveness
d.
Transcendence
e.
Assurance

QN=4
____________ and ____________ typically measure satisfaction with all major customer
service processes and products.
a.
Total market surveys; ordinary surveys
b.
Regular surveys; ordinary surveys
c.
Regular surveys; reverse surveys
d.
Regular surveys; split surveys
e.
Total market surveys; annual surveys

QN=5
The ____________ is the difference between what service providers believe customers
expect and customers' actual needs and expectations
a.
interpretation gap
b.
standard gap
c.
knowledge gap
d.
service quality gap
e.
internal communications gap

QN=6
The ____________ is the difference between what a service provider communicates and what it actually
delivers to the customer.
a.
interpretation gap
b.
communications gap
c.
perceptions gap
d.
standards gap
e.
knowledge gap

QN=7
Which of the following is NOT one of the six service quality gaps?
a.
The knowledge gap.
b.
The proportion gap.
c.
The policy gap.
d.
The delivery gap.
e.
The perceptions gap.

QN=8
Which of the following is the solution for the perception gap?
a.
Ensure the right service processes and specify standards.
b.
Ensure that performance meets standards.
c.
Learn what customers expect.
d.
Tangibilize and communicate the service quality delivered.
e.
Ensure that communications promises are realistic.

QN=10
Which of the following is NOT one of the six steps that can help smooth the path of customer change?
a.
Develop customer trust.
b.
Understand customers' habits and expectations
c.
Develop innovation and limit trial.
d.
Pretest new procedures and equipment.
e.
Publicize the benefits.

QN=11
Which of the following is the best example of the source of a delayed flight caused by front-stage
personnel?
a.
Air traffic
b.
Late food service
c.
Late fuel
d.
Gate agents cannot process passengers quickly enough
e.
Poor announcement of departures

QN=12
Companies that focus on developing the best services take the ___________ view on quality
a.
Trancedence
b.
Manufacturing-based
c.
User-based
d.
Value-based
e.
Consumer-based

QN=12
Companies that improves service quality by focusing to meet all services' specifications and standards,
take the __________view on service quality
a.
Trancedence
b.
Manufacturing-based
c.
User-based
d.
Value-based
e.
Consumer-based

QN=14
Using SERVQUAL to evaluate quality of the service, a bank ask customers to provide feedback on the
user-friendliness of their ATM machines. Which dimension in SERVQUAL does the question aim at?
a.
Tangibles
b.
Reliability
c.
Responsiveness
d.
Assuarance
e.
Emphathy

QN=15
Using SERVQUAL to evaluate quality of the service, a bank ask customers if their staff are always willing
to help customers. Which dimension in SERVQUAL does the question aim at?
a.
Tangibles
b.
Reliability
c.
Responsiveness
d.
Assuarance
e.
Emphathy

QN=16
Using SERVQUAL to evaluate quality of the service, a bank ask customers if their staff give customers
personal attention. Which dimension in SERVQUAL does the question aim at?
a.
Tangibles
b.
Reliability
c.
Responsiveness
d.
Assuarance
e.
Emphathy

QN=18
To close the _____________Gap, services companies need to invest in intensive training to ensure that
their employees are understand and accept service goals, standards, and priorities
a.
Knowledge
b.
Policy
c.
Delivery
d.
Communication
e.
Perception

QN=19
Quality Gap is the accumulate 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

QN=20
Which of the following customer feedback collection tools enable service recovery?
a.
Total market surveys
b.
Annual surveys
c.
Transactional surveys
d.
Mystery shopping
e.
Service feedback cards

QN=22
Which Analyzing and Addressing service quality problems tool allows service firms to separate between
important and trivial causes
a.
Fish bone diagram
b.
Pareto chart
c.
Blueprinting
d.
Poka-yoka
e.
Servuction system

QN=1
In the service profit chain, profitability, customer loyalty and customer satisfaction is due to
_____________.
a.
complacent reactionism
b.
satisfied, loyal and productive employees
c.
conducive servicescape
d.
crossfunctional teams
e.
reduction management

QN=2
Which of the following is one of the three functions that are tightly linked in effective service firms?
a.
The management function.
b.
The outputs function.
c.
The inputs function.
d.
The servicescape function.
e.
The human resources function.

QN=4
Which of the following is a component of service performance discussed under the operations function?
a.
Role of marketing
b.
Competitive appeal
c.
Introduction of new technology
d.
Customer profile
e.
Workforce

QN=5
Management keeps the current situation going through all of the following EXCEPT _____________.
a.
Planning
b.
Design
c.
Budgeting
d.
Controlling
e.
Problem solving

QN=6
All of the following are qualities that effective leaders in service organizations should have
EXCEPT ___________.
a.
love for the business
b.
ways of communicating that is easily understood
c.
see service quality as foundation for competing
d.
recognize the part played by employees in delivering service
e.
diplomatic

QN=7
Organizational culture includes all of the following EXCEPT ____________.
a.
shared perceptions or themes regarding what is important in the organization
b.
shared values about what is right and wrong
c.
shared understanding about what works and what doesn't work
d.
shared beliefs, and assumptions about why these things are important
e.
diverse styles of working and relating to others

QN=8
_____________ is when leaders are able to display the behaviors that they expect of managers and
other employees.
a.
Role modelling
b.
Motivational management
c.
Affiliative leadership
d.
Authoritative leadership
e.
Political maneuvering

QN=9
Which of the following is NOT one of the aspects of leadership in the future?
a.
Leadership coming from emerging countries, with different styles.
b.
Collaborative, using the team approach.
c.
Leadership from behind, sharing power with others.
d.
Building collective efforts.
e.
Controlling employees so they do not act on impulse.

QN=10
_______________are service firms with uncaring workforces; thus customers only patronize them
because there is no other althernatives
a.
Service losers
b.
Service nonenities
c.
Service professioners
d.
Service leaders
e.
Service winners

QN=11
_______________are considered as 'crème da la crème' in their industry because of their oustanding
service and delightful customers.
a.
Service losers
b.
Service nonenities
c.
Service professioners
d.
Service leaders
e.
Service winners

QN=12
_______________are dominated with traditional operation mindsets; therefore, receive customers'
indifference
a.
Service losers
b.
Service nonenities
c.
Service professioners
d.
Service leaders
e.
Service winners

QN=13
Which one of the following is NOT characteristic of leadership?
a.
Concerned with development of vision and strategies, and empowerment of people to overcome
obstacles, make vision happen
b.
Emphasis on emotional and spiritual resources
c.
Works through people and culture
d.
Produces useful change, especially non-incremental change
e.
Works through hierachy and systems
QN=14
Which one of the following is a characteristic of leadership?
a.
Concerned with development of vision and strategies, and empowerment of people to overcome
obstacles, make vision happen
b.
Involves keeping current situation operating through planning, budgeting, organizing, staffing,
controlling, and problem solving
c.
Emphasizes physical resources—raw materials, technology, capital
d.
Works through hierarchy and systems
e.
Keeps current system functioning

QN=15
Operation fuctions are responsible for_____________
a.
Target right customers and build relationships
b.
Offer solutions the meet customers' needs
c.
Achieve both productivity and customers' satisfaction
d.
Achieve high productivity to ensure acceptable costs
e.
Recruite and retain best employees for each job

QN=16
Adhering to consistent service quality standards is the responsibility of ____________
a.
Marketing fuction
b.
Operational function
c.
Financial function
d.
Human Resource Fuction
e.
Manufacturing Fuction

QN=17
In the Service Profit Chain, which drive customer satisfaction?
a.
Customer loyalty
b.
Value
c.
Quality
d.
Productivity
e.
Employee Loyalty

QN=18
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

QN=1
Which of the following is NOT one of the productive capacity forms in a service context?
a.
Physical facilities designed to contain customers
b.
Physical equipment used to process people, possessions, or information
c.
Customers
d.
Labor
e.
Infrastructure

QN=2
Which of the following is NOT one of the conditions that fixed-capacity firms may face?
a.
Excess capacity.
b.
Demand exceeds desired capacity.
c.
Demand and supply are well-balanced.
d.
Ideal demand exceeds capacity.
e.
Excess demand.

QN=3
Which of the following is the correct action for a firm to take that wants to reduce demand and
has insufficient capacity?
a.
Take no action.
b.
Consider override for most desirable segments.
c.
Consider priority systems for most desirable segments.
d.
Increase prices or encourage use in other time slots.
e.
Lower prices selectively.

QN=4
Which of the following is NOT one of the ways to change the overall level of capacity to match demand
variations?
a.
Use part-time employees.
b.
Ask customers to share.
c.
Invite customers to perform self-service.
d.
Cross-train employees.
e.
Share facilities with the supplier.

QN=5
All of the following are questions to ask about demand patterns and their underlying causes
EXCEPT ____________.
a.
Do demand levels follow a predictable cycle?
b.
What are the underlying causes of these cyclical variations?
c.
How much demand are competitors receiving?
d.
Do demand levels seem to change randomly?

QN=6
Which of the following is NOT one of the five basic approaches to managing demand?
a.
Taking no action and leaving demand to find its own levels.
b.
Reduce demand in peak periods.
c.
Increase demand when there is excess capacity.
d.
Inventory capacity until demand increases.
e.
Inventory demand by creating a formalized queuing system.

QN=7
Marketing strategies can be used to shape demand in all ways EXCEPT ____________.
a.
modify mode of delivery
b.
use price and other cost to manage demand
c.
change product elements
d.
modify time and place of delivery
e.
use promotion and education

QN=8
Which of the following is NOT one of the alternative queuing configurations discussed?
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated lines to designated servers
e.
"Take a Number" (single or multiple servers)

QN=9
All of the following are ways to make waits more bearable EXCEPT ____________.
a.
encourage group waits
b.
keep customers occupied while waiting
c.
make customers feel comfortable during waits
d.
let customers know how long they are expected to wait
e.
provide the customers with no explanation for the wait

QN=10
Which of the following is NOT one of the benefits of having a reservations system?
a.
Helps service personnel to serve more effectively.
b.
Helps in pre-selling the service.
c.
Helps customers to avoid queuing.
d.
Helps firms to keep some time aside for emergency jobs.
e.
Allows demand to be controlled.

QN=11
The demand on a city bus is likely to vary by all EXCEPT which of the following?
a.
Time of day.
b.
Day of the week.
c.
Season of the year.
d.
Population density in the city.
e.
All of the above will likely cause demand to vary on a city bus.

QN=12
____________ is usually the first variable to be proposed for bringing demand and supply into balance.
a.
Price.
b.
Place.
c.
Personnel.
d.
Product.
e.
Promotion.

QN=13
One way for car washes to decrease the number of visitors to the existing site is to
a.
Offer free pickup and delivery of cars to be washed.
b.
Offer mobile car wash services.
c.
Add more service options.
d.
Increase prices to get the most out of current customers.
e.
Educate customers on when they should have their cars washed.

QN=14
Which one of the following services has the capability that is most likely to be affected by physical
facilities designed for storing or processing goods
a.
Bus
b.
Dentist
c.
Education
d.
Car wash
e.
Fast food – restaurant

QN=15
The restaurant is full of people and some of them complaint about level of noise as well as the speed of
service. This situation is called________
a.
Excess Demand
b.
Demand Excess Optimum Capacity
c.
Demand and Supply are well Balance
d.
Excess Capacity
e.
Low utilization of Capacity

QN=14
Which is NOT one of the method to adjust Capacity to Match Demand?
a.
Schedule downtime during period of low demand
b.
Use full-time employee
c.
Cross-train employee
d.
Invite customer to use self-service
e.
Ask customer to share

QN=15
Which one of the following services has the maximum capacity equal with the optimum capacity?
a.
High-end restarants
b.
Themeparks
c.
Bus
d.
Cinema

QN=17
Which one of the following queue configurations saves customers from standing in a queue
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated lines to designated servers
e.
"Take a Number" (single or multiple servers)

QN=18
Customers who wait in which queue configuration are most likely to have fellings of injustice and
unfairness?
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
All queue configurations are perceived at the similar level of justice or fairness by customers

QN=19
Checkout system at supermarket is an example of _____________
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated line to designated serves
e.
Take a number

QN=21
Waiting to buy a ticket to enter a theme park is different from waiting to ride on a roller coaster
once customers are sitting on it. This is implication of ____________
a.
Solo waits feel longer than group waits
b.
Physically uncomfortable waits feel longer than comfortable waits
c.
Pre and post process waits feel longer than in process wait

QN=22
Theme parks use electrice signs at the beginning of each line to announce customers the
approximate waiting time for each game is an implication of ___________
a.
Solo waits feel longer than group waits
b.
Uncertain waits are longer than known, finite waits
c.
Pre and post process waits feel longer than in process waits
d.
Unfair waits are longer than equitable waits

QN=23
Students waiting for the test to begin feel the time much longer most likely
because____________
a.
Anxiety makes waites seem longer
b.
Uncertain waits are longer than known, finite waits
c.
Pre and post process waits feel longer than in process waits
d.
Unfair waits are longer than equitable waits
e.
Unfamiliar waits seem longer than familiar ones
QN=20
Which queue confirguration has to deal with the problem that some service stages take longer
time to process than others.
a.
Single line/single servers at sequential stages
b.
Multiple line to single servers
c.
Parallel lines to multiple servers
d.
Designated line to designated serves
e.
Take a number