Chapter 1

Introduction to Services Marketing

GENERAL CONTENT

Multiple Choice Questions

1. 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.
(d; Moderate; p. 6)

2. Service markets are shaped by all of the following except ____________.

a. government policies
b. social changes
c. global economic change
d. business trends
e. advances in information technology
(c; Easy; p. 9)

3. The following are all business trends transforming service markets except ____________.
a. push to increase shareholder value
b. growth of franchising
c. new agreements on trade in services
d. marketing emphasis by non-profit organizations
e. focus on quality and customer satisfaction
(c; Moderate; p. 9)

4. 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; Easy; p. 15)

5. The two considerations used to categorize service are ____________ and ____________.
f. promotion versus place; price versus product
g. place versus time; people versus ideas
h. place versus people; time versus money
i. people versus possession; tangible versus intangible
j. people versus intangible; tangible versus possession
(d; Moderate; p. 15)

6. 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
(b; Easy; p. 19)

7. 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.
(a; Challenging; p. 20)

8. 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.
(e; Easy; p. 20)

9. 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
(c; Moderate; p. 23)

10. The service framework for developing effective service strategies excludes
_________________.
a. understanding service products, consumers and markets
b. managing the competitive landscape
c. applying the 4 Ps to services
d. managing the customer interface
 e. implementing profitable service strategies
(b; Moderate; p. 25)
Chapter 2
Customer Behavior in a Services Context

GENERAL CONTENT

Multiple Choice Questions

1. The three stages in the consumer decision making process are ____________, ____________,
and ____________.
f. pre-awareness stage, pre-purchase, purchase stage
g. pre-purchase stage, awareness stage, post-purchase stage
h. service encounter stage, pre-purchase stage, post-purchase stage
i. pre-purchase stage, awareness stage, purchase stage
j. pre-purchase stage, service encounter stage, post-purchase stage
(e; Easy; p. 34)

2. The key concepts in the pre-purchase stage include all the following except ____________.
f. servuction system
g. evoked set
h. perceived risk
i. zone of tolerance
j. credence attributes
(a; Easy; p. 34)

3. The prepurchase stage begins with ____________.

f. perceived risk
g. formation of expectations
h. moments of truth
i. evoked set
j. need arousal
(e; Moderate; p. 35)

4. Tangible characteristics that customers can evaluate prior to purchase are termed
____________.
f. search attributes
g. experience attributes
h. credence attributes
i. satisfaction attributes
j. capital attributes
(a; Moderate; p. 36)
 5. Characteristics that customers find hard to evaluate even after consumption are termed
____________.
f. search attributes
g. experience attributes
h. credence attributes
i. satisfaction attributes
j. capital attributes
(c; Moderate; p. 36)

6. Which of the following is NOT a type of perceived risk in purchasing and using services?
f. Functional
g. Permanent
h. Financial
i. Physical
j. Social
(b; Moderate; p. 37)

7. Consumer preferences for involvement in the service process may reflect which of the
following factors?
f. Variability in price structures.
g. Willingness to travel to a service facility.
h. Desire to be served by employee’s face-to-face.
i. A and C only.
j. B and C only.
(e; Moderate; p. 40)

8. The service operations system does not include ____________.

a. physical facilities
b. equipment
c. other customers
d. technical core
e. personnel
(c; Moderate; p. 47)

9. In the theater metaphor, the elements include all but the following ____________.
a. positions
b. roles
c. scripts
d. service facilities
e. personnel
(a; Easy; p. 48)

10. During the post-purchase stage, consumers may make satisfaction judgments that
___________ their experience.
f. negatively confirm, positively confirm, disconfirm
g. positively disconfirm, confirm, negatively disconfirm
 h. disconfirm, positively confirm, negatively disconfirm
i. negatively disconfirm, positively disconfirm, positively confirm
j. positively confirm, negatively confirm, negatively disconfirm
(b; Moderate; p. 50)

Chapter 3
Positioning Services in Competitive Markets

GENERAL CONTENT

Multiple Choice Questions

1. Brand positioning can do all of the following except ____________.

k. generate interest in a service
l.create awareness for a service
m. meet customers’ needs for a service
n. differentiate a service
o. increase adoption of a service
(c; Challenging; p. 58)

2. Which of the following is NOT one of the four basic focus strategies?
k. Service focused
l. Unfocused
m. Fully focused
n. Refocused
o. Market focused
(d; Easy; p. 59)

3. A ____________ is composed of a group of buyers who share common characteristics, needs,

purchasing behavior, or consumption patterns.
k. target class
l. class
m. focal segment
n. market segment
o. target segment
(d; Moderate; p. 60)

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.
k. general segment
l. segmentation field
m. target segment
n. holistic segment
o. mass customization
 (c; Easy; p. 60)

5. The same individuals may set different priorities for attributes according to all EXCEPT
which of the following?
k. The purpose of using the service.
l. Who makes the decision.
m. The timing of use.
n. Whether the individual is using the service alone or with a group.
o. The cost of the service.
(e; Moderate; p. 63)

6. Which of the following is the best example of a determinant characteristic for airline travel?
k. Oxygen masks
l. Plane size
m. Quality of food and drinks
n. Having cocktail service
o. Floatation devices
(c; Moderate; p. 63)

7. ____________, 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
(a; Challenging; p. 64)

8. Which of the following is NOT one of the four principles of positioning according to Jack
Trout?
k. A company must maintain a strong labor base.
l. A company must establish a position in the minds of its targeted customers.
m. The position should be singular, providing one simple and consistent message.
n. The position must set a company apart from its competitors.
o. A company cannot be all things to all people—it must focus its efforts.
(a; Moderate; p. 65)

9. Market analysis addresses all of the following factors EXCEPT ____________.

k. overall level of demand
l. trend of demand
m. government regulations
n. geographic location of demand
o. market analysis addresses all of the above factors
(c; Easy; p. 68)
10. 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. suggests opportunities for differentiation
(b; Moderate; p. 68)