SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .

>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 1
The ____ reflects the view that the intangible aspects of products are becoming the key features that
differentiate the products in the marketplace.
a.
services marketing
b.
servuction model

c.
service imperative
d.
benefit concept
e.
industrial management model

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.

Question Which of the following sets of terms best describes a service?

a.
objects, devices, and performances
b.
effort, objects, and deeds
c.
Answer things, devices, and performances
d.
objects, devices, and things

e.
deeds, effort, and performances
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

On the scale of market entities, with tangible-dominant to the extreme left and intangible-dominant to the
Question
extreme right, investment management services would appear:
a.
to the extreme left.
b.
mid-left.
c.
Answer in the middle.

d.
mid-right.
e.
to the extreme right.

Question The continuum that ranges from tangible-dominant to intangible-dominant is referred to as the:
a.
services triangle.
b.
servuction model.

Answer c.
scale of market entities.
d.
service-profit chain.
e.
Q continuum.

Question 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

Answer 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

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question Which of the following fields would be least likely to be described as intangible-dominant?

a.
manufacturing
b.
education
Answer c.
insurance
d.
banking
e.
engineering

Question Which of the following is an example of intangible-dominant?

a.
a steakhouse
b.
car rental agency
c.
Answer a funeral
d.
a magazine subscription

e.
math tutoring

Question Which of the following statements is NOT true?

a.
Consumers evaluate goods and services differently.
b.
Firms that define their businesses too narrowly by overlooking the service aspects have developed service marketing
myopia.

Answer
c.
Goods are intangible-dominant.
d.
Consumers evaluate services based on the experiential aspects provided.
e.
The term product refers to both goods and services

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The economic value of transforming goods into services is illustrated by paying:

a.
$7 for a cup of coffee in a five-star restaurant.
b.
$3 for a pound of coffee beans at the market.
Answer c.
$6 to have your car washed.
d.
$7 to have your dog walked.
e.
$120 for a health checkup.

The ____ involves a pictorial representation of the relationship between the tangible and intangible elements of a firm's
Question
operation.

a.
molecular model
b.
servuction model
Answer c.
benefit concept
d.
industrial management model
e.
market-focused model

Question Which of the following could NOT be included in the airline molecular model?
a.
long-term parking

b.
financing arrangements
Answer c.
rental car availability
d.
gate attendants
e.
baggage handlers

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The encapsulation of the benefits of a product in the consumer's mind is called the:

a.
servuction model.

b.
benefit concept.
Answer c.
service triangle.
d.
service-profit chain.
e.
scale of market entities.

According to the servuction model, factors that influence the customer's service experience include all of the following
Question
except:

a.
price.
b.
contact personnel/service providers.
Answer c.
other customers.
d.
servicescape.
e.
organization and systems.

Question Which of the following components of the servuction model is invisible to consumers?
a.
servicescape

b.
organization and systems
Answer c.
other customers
d.
contact personnel
e.
service providers

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
A customer who notices dirty silverware and a dirty floor in his/her favorite restaurant and loses his/her appetite has been
Question
influenced by which of the following components of the servuction model?

a.
servicescape
b.
organization and systems
Answer c.
other customers
d.
contact personnel
e.
service providers

Question Servicescape consists of which of the following features?

a.
personal artifacts
b.
inanimate objects
c.
Answer signs
d.
ambient conditions

e.
all of these

Question The component of the servuction model over which most service firms have the least control is:
a.
servicescape.
b.
organization and systems.

Answer c.
other customers.
d.
contact personnel.
e.
service providers.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
If an office did not schedule as many people as were needed during a busy period, which of the following
Question
components of the servuction model has negatively influenced the customer's experience?
a.
servicescape

b.
organization and systems
Answer c.
other customers
d.
contact personnel
e.
service providers

A customer attempted to pay his bill with his American Express credit card; however, the service firm did not
Question accept American Express. Which of the following components of the servuction model negatively influenced
the customer's experience?
a.
servicescape

b.
organization and systems
Answer c.
other customers
d.
contact personnel
e.
service providers

Question Most people tend to associate this term with being "green" and protecting the environment.

a.
sustainability
b.
tangibility
Answer c.
intangibility
d.
social responsibility
e.
all of these

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 3
Question Services are characterized by all of the following characteristics except:
a.
intangibility.

b.
homogeneity.
Answer c.
perishability.
d.
inseparability.
e.
heterogeneity.

Question 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.

Answer 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.

Of the four unique service characteristics that distinguish goods from services, the one that is the primary source of the other
Question
three characteristics is:

a.
intangibility.
b.
inseparability.
Answer c.
homogeneity.
d.
perishability.
e.
heterogeneity.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is NOT a marketing challenge posed by intangibility?
a.
Services lack the ability to be stored.
b.
Services lack patent protection.
c.
Answer Services are difficult to price.
d.
Services are difficult to communicate to consumers.

e.
Consumers are involved in the service production process.

Question Which of the following is a marketing challenge posed by intangibility?

a.
Services have no costs of goods sold.
b.
The consumer is involved in the production process.
Answer 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.

Question The primary cost of producing a service is:

a.
rent.
b.
overhead.
c.
Answer cost of goods sold.

d.
labor.
e.
promotional expenses.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Possible solutions that minimize the problems caused by intangibility include all of the following except:

a.
the use of tangible clues.

b.
the effective management of consumers.
Answer c.
the creation of a strong organizational image.
d.
the use of personal sources of information.
e.
the use of activity-based costing.

Question The unique service characteristic that reflects the interconnection between the service firm and its customer is called:
a.
intangibility.

b.
inseparability.
Answer c.
homogeneity.
d.
perishability.
e.
heterogeneity.

Question Marketing challenges posed by inseparability include all of the following except:
a.
the physical connection of the service to the service provider.
b.
the involvement of the customer in the production process.

Answer c.
the difficulty to achieve service standardization and quality control.
d.
the involvement of other customers in the production process.
e.
the challenge for the mass production of the service.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The fact that services are sold and then produced and consumed simultaneously is attributed to:
a.
intangibility.

b.
inseparability.
Answer c.
homogeneity.
d.
perishability.
e.
heterogeneity.

Question The centralized mass production of services is difficult due to:

a.
inseparability.
b.
intangibility.
Answer c.
homogeneity.
d.
perishability.
e.
heterogeneity.

Question 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.
Answer the use of multisite locations to distribute services.
d.
the training of public contact personnel.

e.
appealing to market segments with different demand patterns.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The primary solution to overcome the centralized mass production challenges attributed to inseparability is:
a.
the careful selection of service employees.
b.
the management of service consumers.

Answer 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.

Question The service characteristic that reflects the variation in consistency from one service transaction to the next is:
a.
inseparability.
b.
intangibility.
c.
Answer homogeneity.
d.
perishability.

e.
heterogeneity.

Question Which of the following statements pertaining to heterogeneity is false?

a.
It is almost impossible for a service operation to achieve 100% perfect quality on an ongoing basis.
b.
Standardization and quality control are difficult to achieve.

Answer 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.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question All of the following are advantages of standardized services except:

a.
they are less expensive.

b.
they meet the customer's exact needs.
Answer c.
they are delivered faster.
d.
they are more consistent.
e.
none of these are exceptions.

Question Solutions used to minimize the marketing problems attributed to heterogeneity include:

a.
standardizing or customizing the service.
b.
using multisite locations.
Answer c.
stressing tangible clues.
d.
appealing to different market segments with different demand patterns.
e.
using reservation systems.

Question The unique service characteristic that deals specifically with the inability to inventory services is:
a.
inseparability.
b.
intangibility.
c.
Answer homogeneity.

d.
perishability.
e.
heterogeneity.
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question Complications attributed to perishability include all of the following except:

a.
services that 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.
Answer 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.
products are sold at a transfer price from one department to another within the same company.

Question Which of the following scenarios is likely to lead to the highest level of customer dissatisfaction?
a.
higher demand than maximum available supply

b.
higher demand than optimal supply levels
Answer c.
lower demand than optimal supply levels
d.
demand and supply at optimal levels
e.
All of these scenarios result in equal levels of customer dissatisfaction.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
A perishability-related strategy that increases the supply of services by forming a co-op with other service providers is
Question
referred to as:
a.
complimentary service sharing.

b.
capacity sharing.
Answer c.
expansion preparation.
d.
third-party utilization.
e.
nonpeak demand development.

The perishability-related strategy that may sometimes be associated with consumer feelings that the service firm may be
Question
attempting to distance itself from consumers is:
a.
the use of reservation systems.
b.
training public contact personnel.
c.
Answer the use of third-parties to conduct service transactions.

d.
increasing the amount of consumer participation.
e.
training public contact personnel and increasing the amount of consumer participation

Question Which of the following would NOT be considered a tangible clue?

a.
the quality of instruction in an educational setting
b.
the appearance of employees
Answer c.
the appearance of the firm's physical facilities
d.
the smile on an employee's face
e.
the quality of paper stock use to produce a firm's brochures.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 5
Question The place within an organization where its primary operations are conducted is called the:

a.
the technical core.
b.
the organizational point.
Answer c.
the factory.
d.
the main system.
e.
main terminal.

The strategy of breaking up large, unfocused plants into smaller units buffered from one another so that each can be focused
Question
separately is referred to as:
a.
the perfect-world model.
b.
operations segmentation.

Answer c.
the plant-within-a-plant concept.
d.
operations segregation.
e.
management by focus.

Question All of the following are examples of the technical core within an organization except the:
a.
kitchen in restaurant.
b.
surgical room in a hospital.
c.
Answer service bay at an auto repair facility.

d.
waiting area at a dentist's office.
e.
projection booth in a movie theater.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Strategies to increase the efficiency of service operations include all of the following except:
a.
buffering.
b.
smoothing.
c.
Answer anticipating.
d.
rationing.

e.
allocating.

The strategy that resorts to triage when the demands placed on the system by the environment exceed its ability
Question
to handle them is referred to as:
a.
buffering.
b.
smoothing.
c.
Answer anticipating.

d.
rationing.
e.
allocating.

Question The strategy that surrounds the technical core of the operation with input and output components is called:

a.
buffering.
b.
smoothing.
Answer c.
anticipating.
d.
rationing.
e.
allocating.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Which of the following is NOT one of the broad categories of strategies used to overcome the
Question
problems of service operations?
a.
isolating the technical core
b.
production-lining the whole system
c.
Answer creating flexible capacity
d.
increasing customer participation

e.
maximizing the servuction system

Question The objective of decoupling is:

a.
separating consumption in time and space.
b.
unbundling services so that they may be purchased separately.

Answer c.
separating the technical core of the operation from the high customer contact areas of the firm so that
efficiencies may be achieved.
d.
managing consumers so that they do not negatively influence one another's service experience.
e.
separating co-workers who, due to their differences, decrease the operational efficiency of the system.

Question Production-lining a service operation can be achieved through:

a.
utilizing hard technologies.
b.
customizing services.
c.
Answer utilizing soft technologies.
d.
meeting individual customer needs.

e.
utilizing hard and soft technologies.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is an example of decoupling?
a.
using part-time employees
b.
sharing capacity with another firm

Answer c.
handling routine transactions by mail or email
d.
cross-training employees
e.
offering discounts during non-peak times

Question Soft technologies refer to the:

a.
personal touches that ultimately lead to customer satisfaction.
b.
flexible rules that can be bent to meet customer needs.
c.
Answer guidelines that permit employee empowerment.
d.
hardware that facilitates the production of a standardized product.

e.
rules, regulations, and procedures that facilitate the production of a standardized product.

Question An automatic teller machine (ATM) is an example of:

a.
production-lining.
b.
isolating the technical core.
Answer c.
decoupling.
d.
creating flexible capacity.
e.
moving the time of demand.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question All of the following are examples of creating flexible capacity except:
a.
using part-time employees.
b.
sharing capacity with another firm.

Answer c.
handling routine transactions by mail or email.
d.
cross-training employees.
e.
none of these are exceptions.

Question The most common mistake made when constructing a service blueprint is:
a.
bottlenecks are not identified correctly.
b.
failure points are not identified correctly.

Answer c.
the blueprint is one-sided − representing only the firm's perception of the process.
d.
script norms are misunderstood.
e.
the time frame for service execution is miscalculated.

Question Which of the following is NOT a step in the construction process of a service blueprint?
a.
obtaining scripts from both customers and employees

b.
segmenting customers based on the content of the script
Answer c.
identify steps in the process where the system can go awry
d.
calculating the time frame for service execution
e.
analyzing the profitability of the system

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question A volume-oriented positioning strategy is achieved by:
a.
increasing divergence.

b.
reducing divergence.
Answer c.
increasing complexity.
d.
reducing complexity.
e.
unbundling the service.

The positioning strategy that increases divergence so that the operation can tailor the service experience to each
Question
customer is referred to as a:

a.
niche positioning strategy.
b.
volume-oriented positioning strategy.
Answer c.
specialization positioning strategy.
d.
penetration strategy.
e.
market diversification strategy.

Question A specialization positioning strategy is accomplished by:

a.
increasing divergence.
b.
reducing divergence.
c.
Answer increasing complexity.

d.
reducing complexity.
e.
bundling the service.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

The positioning strategy that increases complexity by adding more services and/or enhancing current
Question
services to capture more of the market is referred to as:
a.
niche positioning strategy.
b.
volume-oriented positioning strategy.
c.
Answer specialization positioning strategy.

d.
penetration strategy.
e.
market diversification strategy.

Divesting an operation of different services and concentrating on providing only one or a few services in order
Question to pursue a specialization position strategy is called:

a.
increasing divergence.
b.
reducing divergence.
c.
Answer increasing complexity.

d.
unbundling the service.
e.
divesting concentration.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 6
Question 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.
Answer c.
image value and energy cost.
d.
service value and monetary cost.
e.
personnel value and time cost.

Question Total customer value consists of all of the following components except _____ value.
a.
product
b.
service
c.
Answer image

d.
time
e.
personnel

Question Total customer cost consists of all of the following components except _____ cost.
a.
monetary

b.
social
Answer c.
time
d.
psychic
e.
energy

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Consumers exchange their money, time, and effort for the bundle of benefits the service offers. Economic theory suggests
Question
that consumers will have a(n) ____ that captures the value they place on these benefits.

a.
lower price threshold

b.
reservation price
Answer c.
consumer surplus
d.
image value
e.
product value

Question When pricing a service, the service provider should consider all of the following except _____ considerations.
a.
demand
b.
cost
c.
Answer customer

d.
intuitive
e.
product

Question A consumer's price sensitivity will increase as:

a.
the perceived number of substitutes increase.
b.
switching costs increase.
Answer c.
the shared costs for the expenditure increase.
d.
the perceived unique value of the service increases.
e.
the customer's ability to build an inventory decreases

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question A consumer's price sensitivity will increase as:
a.
the perceived number of substitutes decrease.
b.
switching costs increase.
c.
Answer the shared costs for the expenditure increase.
d.
the perceived unique value of the service increases.

e.
the customer's ability to build an inventory increases

Question A consumer's price sensitivity will decrease as:

a.
the perceived number of substitutes increase.

b.
switching costs increase.
Answer c.
the shared costs for the expenditure decreases.
d.
the perceived unique value of the service decreases.
e.
the customer's ability to build an inventory increases

Question A consumer's price sensitivity will decrease as:

a.
the perceived number of substitutes increase.
b.
switching costs decrease.

Answer c.
the shared costs with third parties increase.
d.
the perceived unique value of the service decreases.
e.
the customer's ability to build an inventory increases.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question Which of the following statements about the pricing of services (compared to the pricing of goods) is false?

a.
The demand for services tends to be more elastic than the demand for goods.
b.
Cost-oriented pricing is more difficult for services.
Answer c.
Comparing prices of competitors is more difficult for service consumers.
d.
Self-service is a viable competitive alternative.
e.
Consumers are less able to stockpile services by taking advantage of discount prices.

Question Which of the following statements about the pricing of services (compared to the pricing of goods) is true?
a.
The demand for services tends to be more elastic than the demand for goods.

b.
Cost-oriented pricing is more difficult for services.
Answer c.
Comparing prices of competitors is less difficult for service consumers.
d.
Self-service is not a viable competitive alternative.
e.
Consumers are more able to stockpile services by taking advantage of discount prices

Question The mental energy spent by customers to acquire a service is referred to as:
a.
image costs.
b.
monetary price.
c.
Answer energy costs.

d.
psychic costs.
e.
time costs.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
A willingness to pay more for a service because of the top-notch reputation of the company providing it is related to
Question
_____ value.

a.
psychic

b.
image
Answer c.
service
d.
product
e.
personnel

If the goal of the pricing strategy is to reduce the amount of perceived risk associated with the purchase and appeal to target
Question
markets that value certainty, then the appropriate pricing strategy would be:
a.
relationship pricing.
b.
price bundling.
c.
Answer mixed bundling.
d.
efficiency pricing.

e.
flat-rate pricing.

Question All of the following are a form of satisfaction-based pricing except:

a.
offering guarantees.
b.
benefit-driven pricing.
c.
Answer flat-rate pricing.

d.
relationship pricing.
e.
none of these are exceptions.

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>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
The pricing strategy that charges customers for services actually used as opposed to overall "membership" fees
Question
is:
a.
relationship pricing.
b.
price bundling.

Answer c.
benefit-driven pricing.
d.
flat-rate pricing.
e.
efficiency pricing.

Question The pricing strategy that is a form of relationship pricing is:

a.
activity-based costing.

b.
price bundling.
Answer c.
benefit-driven pricing.
d.
flat-rate pricing.
e.
efficiency pricing.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question The actual dollar price paid by the consumer for a product is _____ cost.
a.
image

b.
monetary
Answer c.
energy
d.
psychic
e.
time

Like many services, the demand for medical care tends to be more ____ in that an increase in price does not greatly affect
Question
demand.

a.
inelastic
b.
elastic
Answer c.
tangible
d.
complementary
e.
sensitive

Question Effective service providers enhance the ____ value of services.

a.
product
b.
service
c.
Answer image
d.
time

e.
personnel

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Costs that are planned and are accrued during the operating period regardless of the level of production and
Question
sales are called _____ costs.

a.
fixed
b.
direct variable
Answer c.
average
d.
marginal
e.
future

Sheila saw the advertised price for carpet cleaning as too low and instead went with a higher-priced competitor.
Question
Sheila saw the price as a(n):
a.
signpost.

b.
quality cue.
Answer c.
reservation price.
d.
dual entitlement.
e.
adaptive price.

Question Charging customers different prices for essentially the same service is called:

a.
price discrimination.
b.
supply and demand.
Answer c.
aggregrate pricing.
d.
substitutes.
e.
complementary.
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Adaptive pricing strategies include all of the following except:
a.
altering the product size.
b.
using new distribution channels.
c.
Answer requiring purchase minimums.
d.
offering two-for-one deals.

e.
offering guarantees.

The technique that allows consumers to either buy Service A and Service B together or purchase one service
Question
separately is called _____ bundling.
a.
long-term
b.
relations

Answer c.
mixed
d.
product
e.
individual

Question Which pricing strategy encourages the customer to expand his/her dealings with the service provider?

a.
relationship pricing
b.
efficiency pricing
Answer c.
benefit-driven pricing
d.
flat-rate pricing
e.
aggregate pricing

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 7
The array of communication tools available to marketers including advertising, personal selling, publicity, sales
Question
promotions, and sponsorships are called:

a.
the communication mix.
b.
the communication strategy.
Answer c.
the impersonal sources.
d.
face-to-face sources.
e.
the noncommunication strategy.

Question The role of the firm's communications strategy is to:

a.
remind customers about the firm's goods and services for the purpose of achieving organizational objectives.
b.
persuade employees for the purpose of achieving organizational objectives.
c.
Answer inform stockholders regarding the firm's organizational objectives.

d.
do all of these.
e.
do none of these.

Question The plan for differentiating the firm from its competitors in consumers' eyes is referred to as the firm's:
a.
communication mix.

b.
positioning strategy.
Answer c.
publicity plan.
d.
public relations position.
e.
target marketing.
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Differentiation approaches such as competence, courtesy, reliability, and responsiveness are forms of _____
Question
differentiation.

a.
product

b.
personnel
Answer c.
image
d.
service
e.
satisfaction

Differentiation approaches such as delivery, installation, customer training, consulting services, and repair are forms of
Question
_____ differentiation.
a.
product
b.
personnel
c.
Answer image

d.
service
e.
satisfaction

Question The appropriate communications content during the introduction stage of the product life cycle is:

a.
informational.
b.
informational and persuasive.
Answer c.
persuasive.
d.
persuasive and reminder.
e.
reminder.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is NOT a communications objective during the maturity and decline stages of the product life cycle?
a.
Encourage repeat purchases.
b.
Provide an ongoing contact with customers.

Answer c.
Create brand awareness.
d.
Express gratitude to the existing customer base.
e.
Confirm past purchase decisions.

Which one of the following communication approaches would be appropriate during the growth and maturity stages of the
Question
product life cycle?
a.
informational

b.
informational and persuasive
Answer c.
persuasive
d.
persuasive and reminder
e.
reminder

Question When targeting users versus nonusers, which form of communication can be used more often with the former than the latter?
a.
publicity
b.
advertising

Answer c.
service provider
d.
public relations
e.
sales promotions

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Service staff who are required to deal with customers quickly and effectively in "once only" situations where
Question
large numbers of customers are present are considered:

a.
type 1 service staff.
b.
type 2 service staff.
Answer c.
type 3 service staff.
d.
type 4 service staff.
e.
type 5 service staff.

Question The typical McDonald's employee who works the front counter would be considered:

a.
type 1 service staff.
b.
type 2 service staff.
Answer c.
type 3 service staff.
d.
type 4 service staff.
e.
type 5 service staff.

Question A travel agent planning trips for clients would be considered:

a.
type 1 service staff.
b.
type 2 service staff.

Answer c.
type 3 service staff.
d.
type 4 service staff.
e.
type 5 service staff.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Consultants who need to have highly developed communication skills because of extended and
Question
complex interactions with customers would be considered:
a.
type 1 service staff.
b.
type 2 service staff.

Answer c.
type 3 service staff.
d.
type 4 service staff.
e.
type 5 service staff.

Question Service staff that predominantly fill an operations role are considered:

a.
type 1 service staff.
b.
type 2 service staff.
Answer c.
type 3 service staff.
d.
type 4 service staff.
e.
type 5 service staff.

Question What is the first step in managing the service communication process?

a.
Select target markets.
b.
Establish communication objectives.
Answer c.
Set communication budget.
d.
Formulate positioning strategy.
e.
Establish the message.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is NOT a SMART term?
a.
specific
b.
measurable
c.
Answer achievable
d.
relevant

e.
transformative

When demand for the service is infrequent and therefore the success of the communication strategy may not be
Question
realized until a later point in time, it is called the _____ effect.
a.
halo
b.
SMART

Answer c.
lagged
d.
target.
e.
sporadic

Question Word-of-mouth communication networks are particularly important for service firms because:

a.
service customers tend to rely more on personal than nonpersonal sources of information.
b.
service firms only offer one brand of service.
Answer c.
service firms can seldom afford to pay for promotional efforts.
d.
the inseparability of service performance.
e.
service customers tend to rely more on nonpersonal than personal sources of information

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The suggested communication strategy to use when the product is intangible dominant is to:
a.
create an intangible image for the product.
b.
create awareness for the product.

Answer c.
surround it with physical cues and tangible evidence.
d.
make sure the product is in the evoked set of alternatives.
e.
differentiate the service product from service delivery.

Question The suggested communication strategy to use when the product is tangible dominant is to:

a.
create an intangible image for the product.
b.
create awareness for the product.
Answer c.
surround it with physical cues and tangible evidence.
d.
make sure the product is in the evoked set of alternatives.
e.
differentiate the service product from service delivery

The suggested communication strategy to use when the service firm is a restaurant that offers food and service
Question is to:

a.
create an intangible image for the service aspect.
b.
create awareness for the product.
c.
Answer surround the physical product with tangible evidence.
d.
differentiate the service product from service delivery.

e.
use both abstract and concrete elements.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is NOT a recommended guideline for developing service communications?

a.
Tangibilize the intangible.
b.
Promise what is possible.
c.
Answer Reduce consumer fears about variation in performance.

d.
Make the service more abstract.
e.
Feature the working relationship between provider and customer.

Prudential's "piece of the rock" is a good example of which of the following guidelines for developing service
Question
communications?

a.
Tangibilize the intangible.
b.
Promise what is possible.
Answer c.
Reduce consumer fears about variation in performance.
d.
Make the service more abstract.
e.
Feature the working relationship between provider and customer.

A firm that offers "service guarantees" is attempting to accomplish which of the following guidelines for developing service
communications?
a.
Tangibilize the intangible.
b.
Develop a word-of-mouth communication's network.

Answer c.
Reduce consumer fears about variation in performance.
d.
Feature the working relationship between provider and customer.
e.
Encourage repeat purchases.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The ____ is an overall favorable impression or unfavorable impression based on early stages of the service encounter.
a.
cognitive dissonance
b.
environmental stimulus
c.
Answer visual pathway

d.
halo effect
e.
technical service quality

The ____ refer(s) to printed materials through which the professional image of the firm can be consistently transmitted,
Question
including firm brochures, letterhead, envelopes, and business cards.
a.
sales promotions
b.
public relations

Answer c.
visual pathway
d.
publicity
e.
encoding

Question The written "showpiece" for the firm should be its:

a.
business cards.

b.
brochure.
Answer c.
newsletter.
d.
billing materials.
e.
letterhead.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The most important piece of regular communication with clients should be the firm's:
a.
business cards.
b.
brochure.

Answer c.
newsletter.
d.
billing materials.
e.
letterhead.

Question Communication cues on which consumers base initial impressions include all of the following except:

a.
the welcome letter.
b.
the company website.
Answer c.
advertisements.
d.
signage.
e.
the firm’s reception area.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 8
Question Which of the following is NOT a component of a service firm's physical evidence?
a.
parking
b.
employee appearance
c.
Answer billing statements
d.
business equipment

e.
customer satisfaction

Question All of the following are components of a service firm's physical evidence except:
a.
exterior design.
b.
landscaping.
c.
Answer firm brochures.
d.
signage.

e.
employee skill set.

Question Which of the following is NOT a major role of a service firm's physical evidence?
a.
socializing employees and customers
b.
providing a means for differentiation

Answer c.
providing a means for customer price comparisons
d.
facilitating the flow of the service delivery process
e.
packaging the service

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question One of the advantages of requiring employees to wear uniforms is that it reduces the customer's perception of:

a.
intangibility.
b.
inseparability.

Answer c.
heterogeneity.
d.
socialization.
e.
perishability

Question Which of the following is NOT an advantage of requiring employees to wear uniforms?
a.
Uniforms identify the firm's personnel.
b.
Uniforms help in controlling deviant members.

Answer c.
Uniforms provide price expectations to customers.
d.
Uniforms imply a coherent group structure.
e.
Uniforms present a physical symbol that embodies the group's ideals and attributes

____ is the study of the use of physical evidence to create service environments and its influence on the perceptions and
Question
behaviors of individuals.
a.
Ergonomics

b.
Environmental psychology
Answer c.
Physics
d.
Physical sociology
e.
Environmental anthropology

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The ____ model helps explain the effects of the service environment on consumer behavior.
a.
servuction model
b.
scale of market entities
c.
Answer conceptual model of service quality
d.
service blueprint

e.
stimulus-organism-response

Question The component of the SOR model that describes the recipient of the set of stimuli in the service encounter is:
a.
stimulus receiver.

b.
organism.
Answer c.
organizations.
d.
responder.
e.
stimuli receptor.

The emotional state that reflects the degree to which consumers and employees feel in control and able to act
Question
freely within the service environment is referred to as:
a.
pleasure-displeasure.
b.
arousal-nonarousal.
c.
Answer approach-avoidance.

d.
dominance-submissiveness.
e.
cognitive-physiological.

44
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Consumer responses to environmental stimuli are characterized by approach or avoidance behaviors. Consumer
Question
approach behavior is demonstrated by:
a.
a desire to stay.
b.
a desire to explore and interact.
c.
Answer a desire to communicate.
d.
feelings of satisfaction.

e.
all of these.

When developing servicescapes, firms recognize that their physical environment will affect employees and
Question
customers. This is due primarily to:

a.
inseparability.
b.
intangibility.
Answer c.
heterogeneity.
d.
perishability.
e.
socialization.

Question Which of the following is NOT an example of an ambient condition in a retail environment?
a.
music

b.
signs
Answer c.
scents
d.
lighting
e.
colors

45
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Ambient conditions will have the least effect on customer behavior in which of the following servicescapes?

a.
a bakery shop
b.
an air-conditioned hotel on a hot July day

Answer c.
an open five-story parking garage
d.
bookstore with an in-store coffee cart
e.
a movie theater

In a(n) ____ environment, the service employees are physically present while customers are involved in the service
Question
production process at an arm's length.
a.
self-service
b.
vertical service

Answer c.
remote service
d.
saleable service
e.
interpersonal service

Question A(n) ____ is the customer's composite of mental images of the service firm's physical facilities.
a.
internal response moderator

b.
perceived servicescape
Answer c.
cognitive response
d.
emotional response
e.
physiological response

46
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Consumers who seek convenience over price and personal attention are:
a.
economic customers
b.
personalized customers

Answer c.
apathetic customers
d.
ethical customers
e.
elastic customers

Question Cognitive responses to the firm's servicescape include all of the following except:
a.
beliefs or opinions.
b.
categorization.
c.
Answer the inference of symbolic meaning.

d.
feelings of contentedness or anxiety.
e.
beliefs or opinions, and feelings of contentedness or anxiety.

Question The emotional states of pleasure-displeasure, arousal-nonarousal, and dominance-submissiveness are types of:

a.
internal response moderators.
b.
holistic environments.
Answer c.
individual behaviors.
d.
social interactions.
e.
physical environmental dimensions.

47
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Sam enters a new restaurant and finds it dimly lit and nicely furnished with soft music playing in the
Question background. He immediately lowers his voice to a hush and uses his best table manners. This is an
example of the cognitive response of:
a.
pleasure.
b.
peacefulness.
c.
Answer symbolic meaning.
d.
beliefs.

e.
categorization

Question Consumer moods and attitudes are types of:

a.
physiological customer responses.

b.
emotional customer responses.
Answer c.
individual approach behaviors.
d.
internal response moderators.
e.
cognitive customer responses.

Question Consumer feelings of physical pleasure or discomfort are _____ responses.

a.
physiological
b.
emotional
Answer c.
cognitive
d.
psychic
e.
emotional and psychic

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following senses conveys more information than any of the others?

a.
sight
b.
sound
Answer c.
scent
d.
touch
e.
taste

Question The three primary visual stimuli that appeal to consumers on a basic level are:
a.
harmony, contrast, and clash.

b.
size, shape, and color.
Answer c.
blue, yellow, and green.
d.
red, blue, and green.
e.
violet, blue, and red.

The actual size of the firm's facility conveys meanings to the firm's target market. Which of the following most
Question accurately describes customer perceptions regarding small facilities?

a.
important
b.
powerful

Answer c.
personal
d.
successful
e.
stable

49
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question Which of the following statements pertaining to colors is false?

a.
Hues are the actual colors such as red, blue, or yellow.

b.
Warm colors are perceived as aloof or formal.
Answer c.
Children appear to favor brighter colors.
d.
Adults tend to favor softer tones.
e.
Dark colors make large empty spaces look smaller.

Question Which of the following statements pertaining to the location of the firm is false?
a.
Location decisions should consider the amount of customer involvement necessary to provide the service.
b.
Low contact firms should consider moving sites that are closer to sources of supply, transportation and labor.

Answer c.
The actual location of high-contact services should be as close to the street as possible.
d.
Parking should be considered when making site selection decisions.
e.
The firm's facility should be compatible with its surrounding environment.

Question Which of the following statements regarding background music in a restaurant were found to be true?
a.
Consumers spend more money when fast music is played.
b.
Customers are served faster when slow music is played.

Answer c.
Customers run higher bar bills when slow music is played.
d.
Gross margins are higher when fast music is played.
e.
Customers are willing to wait longer for a table when fast music is played.
50
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

Question Which of the following combinations are made up of all warm colors?
a.
red, blue, green
b.
yellow, blue, violet
c.
Answer red, yellow, green

d.
yellow, red, orange
e.
orange, blue, green

Question Which of the following colors is associated with coolness, shyness, dignity, and wealth?
a.
red

b.
violet
Answer c.
yellow
d.
orange
e.
green

Question All of the following statements are true except:

a.
combinations of warm and cool colors can create relaxing, yet stimulating atmospheres.

b.
rooms painted in lighter colors tend to look smaller.
Answer c.
lighter hues are popular for fixtures.
d.
darker hues are used as attention grabbers.
e.
too much violet may dampen consumer spirits.
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<

____ encourage quick decisions and work best for businesses where low-involvement purchase
Question
decisions are made.
a.
Response moderators
b.
Scent appeals

Answer c.
Warm colors
d.
Sound appeals
e.
Taste appeals

Question ____ are favored when the customer needs to take time to make high-involvement decisions.

a.
Cool colors
b.
Scent appeals
Answer c.
Warm colors
d.
Sound appeals
e.
Taste appeals

52
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 9
Question The two primary roles that boundary-spanning personnel fulfill are:
a.
sales and profit-production.
b.
sales and customer service.

Answer c.
information transfer and representation.
d.
process flow and service.
e.
information transfer and profit production.

Question All of the following are boundary-spanners except:

a.
classroom teachers.
b.
JCPenney customer service representatives.
c.
Answer hospital nurses.
d.
Applebee's servers.

e.
none of these are exceptions.

Question Which of the following is a type of conflict experienced by boundary-spanning personnel?

a.
precise-duty conflict
b.
channel conflict
c.
Answer organization/client conflict
d.
inter-client conflict

e.
organization/client and inter-client
Employees who feel that they are often caught in the middle between company rules and regulations and customer
Question
requests for services that are against company rules are experiencing which of the following types of conflict?
53
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
a.
person/role conflict
b.
channel conflict

Answer c.
organization/client conflict
d.
inter-client conflict
e.
vertical conflict

When a lawyer feels a conflict between what she is asked to do and her own personality, orientation, or values she is
Question
experiencing _____ conflict.

a.
person/role
b.
channel
Answer c.
organization/client
d.
inter-client
e.
horizontal

Initially, bank tellers were uncomfortable with their new task of selling services to customers. They viewed themselves as
Question
bank tellers and not salespersons. This is an example of which type of conflict?
a.
precise-duty conflict
b.
channel conflict
c.
Answer organization/client conflict
d.
inter-client conflict

e.
person/role conflict

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
A Disney tram driver that is asked to break up a fight between a feuding couple is experiencing which of the
Question
following types of conflict?
a.
person/role conflict
b.
channel conflict
c.
Answer organization/client conflict

d.
inter-client conflict
e.
horizontal conflict

Question All of the following are behaviors by which service employees attempt to reduce their role stress except:

a.
engaging the customer.
b.
engaging in a people-processing mode (robotism).
Answer c.
using physical symbols in their office to regain some sense of control.
d.
engaging in service sabotage.
e.
none of these are exceptions.

Service personnel are influenced by their shared perception of the practices, procedures, and kinds of behaviors
Question that get rewarded. That shared perception is referred to as:

a.
empowerment.
b.
enfranchisement.
c.
Answer service passion.

d.
the climate for service.
e.
production-lining.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question ____ gives discretion to front-line personnel to meet the needs of consumers creatively.

a.
Empowerment
b.
Enfranchisement
Answer c.
Service passion
d.
Service climate
e.
Production-lining

Question Empowerment coupled with a performance-based compensation method is referred to as:

a.
double empowerment.
b.
straight salary.

Answer c.
enfranchisement.
d.
quota systems.
e.
straight commission.

Question All of the following are benefits associated with empowerment except:
a.
empowered employees are more customer focused and quicker in responding to customer needs.
b.
empowered employees are more likely to respond in a positive way to service failures and to engage in effective service
recovery strategies.

c.
Answer
empowered front-line employees gain a false sense of power, in turn aiding the customer.
d.
empowered front-line service employees can be key to new service ideas and a cheaper source of market research than going
to the consumer directly.
e.
empowered employees tend to feel better about their jobs and themselves, which is automatically reflected in the way they
interact with customers.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is an example of sensitivity training?

a.
having new bus drivers spend their first week on the help desk instead of the bus
b.
having store employees play roles of service representative and customer
Answer c.
having hotel employees play roles of check-in clerk and hotel guest
d.
presenting stereotypical examples of a customers from hell with suggestions for ways to deal with each type
e.
having airline employees meet with a counselor on a regular basis

Question Which of the following is NOT a cost associated with empowerment?

a.
higher labor costs
b.
slower or inconsistent service delivery

Answer c.
decreased word-of-mouth advertising
d.
excessive giveaways and bad decisions
e.
a perception of inequitable service treatment among customers

Which of the following types of interpersonal training provides stereotypes with which a service provider can
Question categorize customers?

a.
sensitivity training
b.
role-playing

Answer c.
behavioral modeling
d.
red-taping
e.
flexibility training

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Empowerment approaches fall along a continuum that ranges from control-oriented to involvement-oriented. Which of
Question
the following empowerment approaches is the most control-oriented?

a.
job involvement

b.
suggestion involvement
Answer c.
high involvement
d.
enfranchisement
e.
contingency involvement

The empowerment approach that utilizes teams and allows employees to use a variety of skills with considerable latitude
Question
regarding lower-level decisions is:

a.
job involvement.
b.
suggestion involvement.
Answer c.
high involvement.
d.
production line approach.
e.
contingency involvement.

Question The empowerment approach in which service employees are trained to manage themselves is called:
a.
job involvement.
b.
suggestion involvement.

Answer c.
high involvement.
d.
production-line approach.
e.
contingency involvement.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following customers needs to be "moved offstage" as quickly as possible?
a.
Egocentric Edgar
b.
Badmouth Betty
c.
Answer Hysterical Harold
d.
Dictatorial Dick

e.
Badmouth Betty and Hysterical Harold

Question Despite popular beliefs, the "Freeloading Fredas" of the world probably represent only _____ of all customers.

a.
1% to 2%
b.
3% to 4%
Answer c.
5% to 6%
d.
7% to 8%
e.
9% to 10%

Question Which of the following is NOT one of the seven tests of reward effectiveness?
a.
availability
b.
flexibility
c.
Answer visibility
d.
durability

e.
perishability

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Which of the following tests of reward effectiveness reflects the notion that if rewards are given to the wrong people for
Question
the wrong reasons, they should not be lifelong?

a.
availability
b.
flexibility
c.
Answer visibility
d.
durability

e.
reversibility

Which of the following tests of reward effectiveness reflects the notion that rewards should be given immediately following
Question
desired behaviors?
a.
availability
b.
flexibility

Answer c.
timeliness
d.
durability
e.
perishability

Which of the following tests of reward effectiveness reflects the notion that rewards should be tied to desired performance
Question
criteria?
a.
availability
b.
flexibility
c.
Answer timeliness
d.
durability

e.
contingent

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Which of the following tests of reward effectiveness reflects the notion that rewards should be large enough for
Question
employees to take notice?

a.
availability
b.
flexibility
Answer c.
timeliness
d.
durability
e.
contingent

Which of the following tests of reward effectiveness reflects the notion that rewards should be able to be given
Question to anyone at anytime?

a.
availability

b.
flexibility
Answer c.
timeliness
d.
durability
e.
visibility

Question One of the major lessons to learn from the service-profit chain is:
a.
customer loyalty leads to customer satisfaction.

b.
firms must satisfy their employees in order for customer satisfaction to become a consistent reality.
Answer c.
employee retention leads to employee satisfaction.
d.
the firm's profitability leads to customer satisfaction.
e.
revenue growth leads to customer satisfaction.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The HR functions that together support the creation of a climate for service is referred to as the:

a.
concept strategy.

b.
service HR wheel.
Answer c.
marketing wheel.
d.
service operation strategy.
e.
interdepartmental support.

Question Which of the following is NOT a broad category in the service HR wheel?

a.
concept strategy
b.
control, reward, and evaluation strategy
Answer c.
retention strategy
d.
recruitment strategy
e.
training/development strategy

Question All of the following are roles of middle management except:

a.
enable the front-line providers to focus on customers and not be distracted.
b.
manage the crises.
c.
Answer move the roadblocks to good service out of the way.
d.
relieve pressure by doing some of the front-line work.

e.
invest in technology and ensure foundations are in place that allow the front-line teams to do their work.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Chapter 12
Question ____ is an attitude formed by a long-term, overall evaluation of a firm's performance.
a.
Customer satisfaction
b.
Negative disconfirmation
c.
Answer Positive disconfirmation

d.
Service quality
e.
Customer retention

Question ____ is a short-term, transaction-specific measure.

a.
Customer satisfaction
b.
Focus group interviews
Answer c.
Noncustomer research
d.
Service quality
e.
Customer retention

All of the following are part of the logic for the position that satisfaction assists consumers in revising service quality
Question
perceptions except:
a.
Consumer perceptions of the service quality of a firm with which he or she has no prior experience is based on the
consumer’s expectations.
b.
Subsequent encounters with the firm lead the consumer through the disconfirmation process and revised perceptions of
service quality are formed.
Answer
c.
Once service quality perceptions are fixed, additional encounters with the firm have little bearing.
d.
Revised service quality perceptions modify future consumer purchase intentions toward the firm.
e.
The sum of a customer’s satisfaction over time with a single firm equals the customer’s service quality perception.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
The distance between a customer's expectations of a service and the perception of the service actually delivered
Question
is called the _____ gap.

a.
service
b.
knowledge
Answer c.
standards
d.
delivery
e.
communication

The firm's increased research orientation and enhanced upward communication will assist the firm in
Question
decreasing which one of the following gaps?

a.
knowledge gap
b.
standards gap
Answer c.
delivery gap
d.
communications gap
e.
confirmation gap

Question Understanding the customer is a critical step toward minimizing or completely eliminating the _____ gap.

a.
knowledge
b.
standards
Answer c.
delivery
d.
communications
e.
confirmation
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
A hotel may feel that its customers prefer comfortable rooms, when, in fact, the majority of the hotel's
Question customers spend little time in their rooms and are more interested in on-site amenities such as the
pool, spa, and restaurants. This hotel is suffering from a _____ gap.

a.
knowledge
b.
standards
Answer c.
delivery
d.
communications
e.
confirmation

As a service organization's hierarchy becomes more complex and more levels of management are added, the
Question
firm is more likely to experience a _____ gap.

a.
knowledge
b.
standards
Answer c.
delivery
d.
communications
e.
confirmation

The difference between what management perceives consumers to expect and the quality specifications set for
Question
service delivery is called the _____ gap.
a.
knowledge

b.
standards
Answer c.
delivery
d.
communications
e.
service

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question The firm's overemphasis on cost reduction and short-term profits will increase the size of the _____ gap.

a.
knowledge

b.
standards
Answer c.
delivery
d.
communications
e.
confirmation

Question Management's inability to translate what consumers want into a written business plan will increase the size of the _____ gap.
a.
knowledge

b.
standards
Answer c.
delivery
d.
communications
e.
confirmation

The difference between the quality standards set for service performance and the actual quality of the service performed is
Question
called the _____ gap.
a.
knowledge
b.
standards

Answer c.
delivery
d.
communications
e.
service

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question All of the following are factors influencing the delivery gap except:

a.
research orientation.
b.
role ambiguity.
Answer c.
disperson of control.
d.
inadequate support.
e.
role conflict

Employee willingness to perform and employee-job fit are directly related to which of the following service
Question
quality gaps?
a.
knowledge gap
b.
standards gap

Answer c.
delivery gap
d.
communications gap
e.
service gap

Minimizing the amount of role conflict and role ambiguity experienced by employees will help reduce the size
Question
of the _____ gap.
a.
knowledge
b.
standards

Answer c.
delivery
d.
communications
e.
confirmation
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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
The ____ gap is the difference between the service the firm promises to deliver through its external communications and
Question
the service it actually delivers to its customers.

a.
knowledge
b.
standards
c.
Answer delivery

d.
communications
e.
service

Question When competing firms begin to overpromise in order to top one another, a ____ gap is likely to occur.
a.
knowledge
b.
standards
c.
Answer delivery

d.
communications
e.
service

Question Which of the following statements pertaining to the SERVQUAL scale is correct?
a.
SERVQUAL compares perceptions to what customers would normally expect.
b.
SERVQUAL is a 22-item scale.
c.
Answer SERVQUAL consists of four service quality dimensions.

d.
SERVQUAL compares perceptions to what a customer should expect from a firm that delivers high-quality services.
e.
SERVQUAL consists of one in-depth and two sub-sections of questions.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is NOT one the five dimensions that is measured by the SERVQUAL scale?
a.
tangibles

b.
employee satisfaction
Answer c.
responsiveness
d.
assurance
e.
empathy

Question All of the following statements pertaining to the SERVQUAL scale are correct except:
a.
when the gap score equals zero, the customer is satisfied.

b.
the first section of questions asks respondents to record their experiences with excellent firms in the specific
service industry.
Answer c.
SERVQUAL consists of five service quality dimensions.
d.
SERVQUAL compares perceptions to what a customer should expect from a firm the delivers high-quality
services.
e.
SERVQUAL is a 44-item scale.

The SERVQUAL dimension that measures consumer views of the firm's personnel and communications materials is the
Question
____ dimension.

a.
tangibles
b.
employee satisfaction
Answer c.
responsiveness
d.
assurance
e.
reliability

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Employees of excellent companies will be neat in appearance is a typical statement within the ____ dimension
Question
of the SERVQUAL scale.

a.
tangibles
b.
reliability
Answer c.
responsiveness
d.
assurance
e.
reliability

Question The ____ dimension is an assessment of the firm's consistency and dependability in service performance.
a.
tangibles
b.
empathy
c.
Answer responsiveness
d.
assurance

e.
reliability

Excellent companies will perform the service right the first time is a typical statement within the ____ dimension of the
Question
SERVQUAL scale.
a.
tangibles
b.
empathy
c.
Answer responsiveness
d.
assurance

e.
reliability

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question ____ refers to the service firm's commitment to providing its services in a timely manner.
a.
Tangibles
b.
Empathy

Answer c.
Responsiveness
d.
Assurance
e.
Reliability

The SERVQUAL assessment of a firm’s competence, courtesy to its customers, and security of its operations is the ____
Question
dimension.
a.
tangibles
b.
employee satisfaction
c.
Answer responsiveness

d.
assurance
e.
reliability

Excellent companies will have the customer's best interest at heart is a typical statement within the ____ dimension of the
Question
SERVQUAL scale.
a.
tangibles

b.
empathy
Answer c.
responsiveness
d.
assurance
e.
reliability

71
 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
Question Which of the following is a major criticism of the SERVQUAL scale?
a.
The questionnaire is too short to adequately assess the dimensions.

b.
The five service quality dimensions do not hold up under statistical scrutiny.
Answer c.
The results do not predict consumer purchase intention.
d.
The perceptions section is of no real value.
e.
More emphasis should be placed on the expectations section.

Question _____ examine(s) the customer’s perspective of a firm’s strengths and weaknesses.

a.
Customer research
b.
Employee survey
Answer c.
Noncustomer research
d.
Customer complaints
e.
Service quality survey

Question The SERVQUAL dimension that is typically noted as the least important by customers is the ____ dimension.

a.
tangibles
b.
empathy
Answer c.
responsiveness
d.
assurance
e.
reliability

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
The SERVQUAL dimension that is typically noted as the most important by customers is the ____
Question
dimension.
a.
tangibles
b.
empathy
c.
Answer responsiveness
d.
assurance

e.
reliability

Question Which of the following is NOT a component of a service quality information system?
a.
mystery shopping

b.
customer retention interviews
Answer c.
after-sale surveys
d.
employee surveys
e.
total market service quality surveys

The component of a firm's service quality information system that is used specifically to assess employee
Question
performance is:
a.
solicitation of customer complaints.
b.
customer focus group interviews.
c.
Answer employee surveys.

d.
mystery shopping.
e.
total market service quality survey.

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 SERVICES MARKETING (MKTG430) FINAL EXAM POOL ITEMS – CH 1, 3, 5, 6, 7, 8, 9, 12 … NOT 15 .
>>> CORRECT ANSWER “ARROW” IS DIRECTLY ABOVE THE CORRECT LETTER RESPONSE <<<
The component of a firm's service quality information system that assesses the firm's and competitor's service
Question
quality ratings is:
a.
solicitation of customer complaints.
b.
customer focus group interviews.
c.
Answer employee surveys.
d.
mystery shopping.

e.
total market service quality survey.

Question Which of the following is NOT a key component that needs to be built into every service quality system?

a.
listening
b.
reliability
Answer c.
servant leadership
d.
individual play
e.
service design

74