1. What is a key characteristic of services compared to tangible products in marketing?
a. Services are tangible and can be physically held.
b. Services are intangible and cannot be stored or owned.
c. Services have longer lifespans than products.
d. Services require less customization than products.
Answer: b
2. Which of the following is NOT a component of the services marketing mix?
a. Product
b. Price
c. Place
d. Packaging
Answer: d
3. What is the term used to describe the process of converting potential customers into actual customers for a service?
a. Product differentiation
b. Market segmentation
c. Service promotion
d. Service conversion
Answer: d
4. In services marketing, what does the “extended marketing mix” include in addition to the traditional 4Ps (Product, Price, Place, Promotion)?
a. People, Process, Physical Evidence
b. Packaging, Positioning, Publicity
c. Performance, Profit, Positioning
d. Partnerships, Public Relations, Positioning
Answer: a
5. Which strategy focuses on pricing services based on the value perceived by the customer rather than the cost of production?
a. Cost-plus pricing
b. Value-based pricing
c. Penetration pricing
d. Skimming pricing
Answer: b
6. What is the term used to describe the interaction between the service provider and the customer during the service delivery process?
a. Service encounter
b. Service blueprinting
c. Service positioning
d. Service segmentation
Answer: a
7. Which marketing strategy involves tailoring services to meet the specific needs and preferences of individual customers or market segments?
a. Mass marketing
b. Niche marketing
c. Relationship marketing
d. Customized marketing
Answer: d
8. What is the significance of the “physical evidence” element in the services marketing mix?
a. It refers to the actual service being offered.
b. It provides tangible cues to customers about the service quality and experience.
c. It represents the promotional activities used to market the service.
d. It determines the pricing strategy for the service.
Answer: b
9. Which factor is critical for service providers to manage effectively to ensure consistency and quality in service delivery?
a. Product innovation
b. Cost reduction
c. Service personnel training
d. Market expansion
Answer: c
10. In services marketing, what does the term “intangibility” refer to?
– a. The inability to measure the quality of services
– b. The lack of physical attributes in services that can be touched or seen
– c. The difficulty in promoting services through traditional advertising channels
– d. The complexity of service pricing strategies
– Answer: b
11. What role does “word-of-mouth” play in the marketing of services?
– a. It has no impact on service marketing.
– b. It is a primary source of information and recommendation for potential customers.
– c. It is only relevant for tangible products, not services.
– d. It is a form of direct advertising controlled by the service provider.
– Answer: b
12. How do services differ from physical products in terms of inventory management?
– a. Services require extensive inventory storage facilities.
– b. Services can be stored indefinitely without degradation.
– c. Services cannot be inventoried or stored.
– d. Services have lower inventory turnover rates than physical products.
– Answer: c
13. Which element of the extended marketing mix refers to the people involved in delivering the service, including frontline employees and support staff?
– a. Process
– b. Product
– c. People
– d. Price
– Answer: c
14. What is the significance of “service quality” in services marketing?
– a. It has no impact on customer satisfaction.
– b. It is determined solely by the price of the service.
– c. It influences customer perceptions, satisfaction, and loyalty.
– d. It is irrelevant in service industries.
– Answer: c
15. Which pricing strategy involves initially offering services at a low price to penetrate the market and attract customers?
– a. Value-based pricing
– b. Cost-plus pricing
– c. Penetration pricing
– d. Skimming pricing
– Answer: c
16. How does the “service process” component of the extended marketing mix impact service delivery?
– a. It determines the physical evidence of the service.
– b. It outlines the steps involved in delivering the service to customers.
– c. It sets the pricing strategy for the service.
– d. It identifies the target market for the service.
– Answer: b
17. What role does customer relationship management (CRM) play in services marketing?
– a. It focuses on reducing service quality to lower costs.
– b. It emphasizes building long-term relationships and loyalty with customers.
– c. It has no relevance in services marketing.
– d. It replaces traditional marketing channels for services.
– Answer: b
18. How does service marketing differ from product marketing in terms of customer involvement?
– a. Services require less customer interaction than products.
– b. Services involve more customer participation in the production and delivery process.
– c. Services and products require the same level of customer involvement.
– d. Customer involvement is irrelevant in service marketing.
– Answer: b
19. What is the role of “place” in the services marketing mix?
– a. It refers to the physical location where services are produced.
– b. It determines the distribution channels used to deliver services to customers.
– c. It represents the promotional activities used to market the service.
– d. It has no significance in services marketing.
– Answer: b
20. Which marketing strategy focuses on building and maintaining long-term relationships with customers to ensure repeat business and loyalty?
– a. Transactional marketing
– b. Relationship marketing
– c. Guerrilla marketing
– d. Viral marketing
– Answer: b
21. What role does service differentiation play in services marketing?
– a. It focuses on standardizing services to reduce costs.
– b. It emphasizes creating unique features or benefits to distinguish one service from another.
– c. It ignores customer preferences and needs.
– d. It has no impact on service quality.
– Answer: b
22. How do services differ from physical products in terms of distribution channels?
– a. Services use the same distribution channels as physical products.
– b. Services require exclusive distribution channels.
– c. Services do not require distribution channels.
– d. Services often involve direct delivery to the customer without intermediaries.
– Answer: d
23. What is the primary objective of service marketing?
– a. To increase production efficiency
– b. To maximize profits
– c. To meet customer needs and preferences effectively
– d. To minimize competition
– Answer: c
24. How does the “physical evidence” element of the extended marketing mix contribute to customer perceptions of service quality?
– a. It has no impact on customer perceptions.
– b. It serves as tangible cues that influence perceptions of service quality and reliability.
– c. It reduces the importance of service personnel in customer interactions.
– d. It replaces the need for service guarantees.
– Answer: b
25. Which marketing concept emphasizes the importance of delivering superior value and satisfaction to customers to achieve organizational goals?
– a. Product orientation
– b. Sales orientation
– c. Market orientation
– d. Production orientation
– Answer: c
26. How do services differ from physical products in terms of pricing strategies?
– a. Services use cost-based pricing strategies exclusively.
– b. Services have higher price elasticity than physical products.
– c. Services cannot be priced competitively.
– d. Services often use value-based pricing strategies.
– Answer: d
27. What role do service guarantees play in services marketing?
– a. They eliminate the need for service quality standards.
– b. They reduce customer expectations and satisfaction.
– c. They provide assurance to customers regarding the quality of service delivery.
– d. They have no impact on customer perceptions.
– Answer: c
28. How does the “people” element of the extended marketing mix impact service delivery?
– a. It determines the physical evidence of the service.
– b. It outlines the steps involved in delivering the service to customers.
– c. It identifies the target market for the service.
– d. It represents the service personnel involved in delivering the service.
– Answer: d
29. What is the primary focus of service marketing research?
– a. Analyzing production processes
– b. Identifying customer needs and preferences
– c. Maximizing profits
– d. Minimizing costs
– Answer: b
30. Which marketing strategy involves targeting a specific segment of the market with specialized services tailored to their unique needs and preferences?
– a. Mass marketing
– b. Niche marketing
– c. Relationship marketing
– d. Customized marketing
– Answer: b