I.

Chap 1
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
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
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
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
5. The two considerations used to categorize service are ____________ and
____________.
a. promotion versus place; price versus product
b. place versus time; people versus ideas
c. place versus people; time versus money
d. people versus possession; tangible versus intangible
e. people versus intangible; tangible versus possession
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
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.
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.
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
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
11.A movie theater seat is an example of _____________.
a. renting durable goods
b. closely engaging customers in the service process
c. renting portions of a larger physical entity
d. the centrality of time to services
e. differences in customer choice criteria
12. Education is an example of a/an _____________ service.
a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing
13.Service firms have reservation systems because.
a. intangible elements usually dominate value creation.
b. most service products cannot be inventoried.
c. distribution may take place through non-physical channels
d. customers may be involved in co-production
e. all of the above
14.Which of the following is the best example of a supplementary service?
a. Appliance maintenance
b. Hotel room rental
c. Fast food consumption
d. House cleaning
e. Landscaping
15.Online educational programs offered by the University of Phoenix are an
example of _____________.
a. revolutionary products/services
b. collective products/services
c. additional services
d. supplementary services
e. core products/services
16.Cinema is an example of a/an _____________ service.
a. people-processing
b. information processing
c. mental stimulus processing
 d. possession-processing
e. physical processing
17.Hotel is an example of a/an _____________ service.
a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing
18.An example of Information processing service is¬¬¬______________
a. Hairstylist
b. Cinema
c. Banking
d. Hotel
e. Restaurant
19.An example of Mental stimulus processing service is__________
a. Hair-cutting
b. Cinema
c. Banking
d. Plumping
e. Restaurant
20.An example for a service that offers access to physical environments as a
form of rental is ____________
a. Hair-cutting
b. Dry cleaning
c. Museum
d. Kindergarten
e. Management consultancy
21.An example for a service that offers labor and expertise rental is
____________
a. Cinema
b. Bus
c. Museum
d. Gyms
e. Management consultancy
22.Poor task executed by customer may hurt productivity, spoil service
experience and curtail benefits is the implication of___________
a. Most service products cannot be inventories
b. Service is intangible
c. People may be part of service experience
d. Customer may be involved in co-production
e. Time factor often assumes great important
23.Service producers need to focus on recruit, train and reward employees
because_________
a. Most service products cannot be inventories
b. Service is intangible
c. People may be part of service experience
d. Customer may be involved in co-production
e. Time factor often assumes great important
24.Service producers need to focus educate customer to perform effectively and
provide customer support because______________
a. Most service products cannot be inventories
b. Service is intangible
c. People may be part of service experience
d. Customer may be involved in co-production
e. Time factor often assumes great important
25.Which of the following fields would be least likely to be described as
intangible-dominant?
a. Manufacturing
b. Education
c. Insurance
d. Banking
e. Engineering
26.Which of the following products is an example of intangible dominant?
a. A Funeral
b. A Car rental
c. A hotpot restaurant
d. Magazine subscription
e. Math tutoring
27.Which of the following is not a marketing problem caused by intangibility of
services?
a. Services lack the ability to be stored
b. Services lack patent protection
c. Services are difficult to price
d. Services are difficult to communicate to consumers
e. Consumers are involved in the service production process
28.In most highly developed nations, services account for between three-fifths
and four-fifths of the GDP. TRUE
29.Typically service jobs are not well-paid positions and require little
education. FALTS
30.When migrants from developing countries move back to their own countries
after living and working abroad in developed countries, there will be a
vacuum in the employment market of developing economies. F
31.Systems and networks access and usage is an example of the ownership of
services. FALTS
32.Other customers typically do not impact the satisfaction of other consumers
in service settings. FALTS
33.Time is of great importance in services so operations managers have to be
concerned about minimizing customer waiting time. TRUE
34.Failures are inevitable in service industries. T
35.Marketers should not attempt to shape customer roles and behaviors. F
36.The appearance of buildings, landscaping, vehicles, and uniforms provide
tangible evidence of a firm's service quality. T
37.Service scape is only a consideration if customers have to enter a service
factory. T
38.China is experiencing rapid economic growth and this stimulates demand for
production and business services. F
39. IBM is a good example of a firm that has shifted from manufacturing
intensive operations to service intensive operations. T
40.The Internet is transferring power from suppliers to customers, especially in
consumer markets. T
41.Less than 15 percent of service jobs around the world are carried out
remotely. T
 42.The best way to help customers visualize your service is to highlight
credentials/experience and educate consumers to make good choices. T
II. Chap 2
1. The three stages in the consumer decision making process are
____________, ____________, and ____________.
a. pre-awareness stage, pre-purchase, purchase stage
b. pre-purchase stage, awareness stage, post-purchase stage
c. service encounter stage, pre-purchase stage, post-purchase stage
d. pre-purchase stage, awareness stage, purchase stage
e. pre-purchase stage, service encounter stage, post-purchase stage
2. The pre-purchase stage begins with ____________.
a. perceived risk
b. formation of expectations
c. moments of truth
d. evoked set
e. need arousal
3. Tangible characteristics that customers can evaluate prior to purchase are
termed ____________.
a. search attributes
b. experience attributes
c. credence attributes
d. satisfaction attributes
e. capital attributes
4. Characteristics that customers find hard to evaluate even after consumption
are termed ____________.
a. search attributes
b. experience attributes
c. credence attributes
d. satisfaction attributes
e. capital attributes
5. Which of the following is NOT a type of perceived risk in purchasing and
using services?
a. Functional
b. Permanent
c. Financial
 d. Physical
e. Social
6. The service operations system does not include ____________.
a. physical facilities
b. Equipment
c. other customers
d. technical core
e. Personnel
7. During the post-purchase stage, consumers may make satisfaction judgments
that ___________ their experience.
a. negatively confirm, positively confirm, disconfirm
b. positively disconfirm, confirm, negatively disconfirm
c. disconfirm, positively confirm, negatively disconfirm
d. negatively disconfirm, positively disconfirm, positively confirm
e. positively confirm, negatively confirm, negatively disconfirm
8. To develop effective marketing strategies, marketers must understand how
people make decisions about buying and using service, what the experience
of service delivery and consumption is like for customers, and
____________.
a. how they evaluate competitors
b. how they evaluate the experience
c. how often they utilize competitors
d. how often they complain to the service firm
e. the length of their relationship with the service firm
9. An example of a service high in credence attribute is _____________.
a. Extreme sports
b. vacation
c. spa
d. musical performance
e. surgery
10.Dental customers ____________ to avoid delays and ensure effective use of
dental professionals' time.
a. sit quietly in the waiting room
b. commit positive word-of-mouth
c. confirm and honor appointments
 d. should get to know hygienists
e. provide accurate histories
11.All of followings are example of search attributes in restaurant service
EXCEPT_________
a. Menu
b. Decoration
c. Price
d. Staff uniform
e. Restaurant atmosphere
12.A client concerns weather her financial situation would really get better after
using financial consulting service is an example of__________
a. Financial risk
b. Functional risk
c. Sensory risk
d. Physical risk
e. Temporal risk
13.Jamie don't want to go to dentist and take care of his bad teeth because he
think it will be very painful (đau  thân thể, sợ mới là tâm lý) is an
example of ___________
a. Psychological risk
b. Social risk
c. Sensory risk
d. Physical risk
e. Temporal risk
14.According to the Servuction System, factors that influence the customer's
service experience include all of the following EXCEPT____________
a. Price
b. Contact Personnel
c. Inanimate environment
d. Other customers
e. Technical core
15.Which of the following components of the Servuction System is NOT
visible to consumers?
a. Contact Personnel
b. Inanimate environment
 c. Other customers
d. Technical core
e. Service Delivery System
16. A customer attempted to pay his bill with his American Express credit card;
however, the service firm did not accept American Express. Which of the
following components of the Servuction Model influenced the customer's
experience?
a. The other customers
b. Contact personnel
c. Inanimate environment
d. Technical core
e. Service provider
17.A customer felt extremely comfortable because of the relaxation music that
staff play inside the spa. Which of the following components of the
Servuction Model influenced the customer's experience?
a. The other customers
b. Contact personnel
c. Inanimate environment
d. Technical core
e. Service provider
18.A customer had a bad experience with the coffee shop as he got a bad
argument with his friends. Which of the following components of the
Servuction Model influenced the customer's experience?
a. Other customers
b. Contact personnel
c. Inanimate environment
d. Technical core
e. Service provider
19. Which one of the following methods is less likely to be the solution that
customer will reach for to reduce their perceived risks
a. Searching for independent reviews and ratings
b. Watching TV commercial
c. Looking for guarantees and warranties
d. Seeking information from family and friends
e. Examining tangible cues of services
20.The minimum level of service customers will accept without being
dissatisfied is ___________
a. Desired service
b. Adequate service
c. Predicted service
d. Tolerable service
e. Acceptable service
21.Service provider promises, word - of - mouth, and past experience will affect
to customers' ___________ - the level of service customers actually
anticipate receiving.
a. Desired service
b. Adequate service
c. Predicted service
d. Tolerable service
e. Acceptable service
22.___________ , the type of service customers hope to receive, is a
combination of what customers believe can and should be delivered based
on personal needs.
a. Desired service
b. Adequate service
c. Predicted service
d. Tolerable service
e. Acceptable service
23.The zone between Desired Service and Adequate Service is __________
a. Zone of acceptance
b. Zone of satisfaction
c. Zone of tolerance
d. Zone of variation
e. Zone of possibility
24.One example of Technical core in Servuction system in a hotel is _______
a. The software to manage availability of room
b. The music played in the lobby
c. The lavender scent in the room
d. The uniform of the staff
e. The bill for customers
 25.The Theator is a useful metaphor for understanding service encounter. In
this metaphor, service facilities are considered as___________
a. Scripts
b. Roles
c. Stage
d. Actors
e. Blue printings
III. Chap 3
1. Brand positioning can do all of the following except ____________.
a. generate interest in a service
b. create awareness for a service
c. meet customers' needs for a service
d. differentiate a service
e. increase adoption of a service
2. Which of the following is NOT one of the four basic focus strategies?
a. Service focused
b. Unfocused
c. Fully focused
d. Refocused
e. Market focused
3. A ____________ is composed of a group of buyers who share common
characteristics, needs, purchasing behavior, or consumption patterns.
a. target class
b. class
c. focal segment
d. market segment
e. target segment
4. A(n) ____________ is one that a firm has selected from among those in the
broader market and may be defined on the basis of several variables.
a. general segment
b. segmentation field
c. target segment
d. holistic segment
e. mass customization
5. The same individuals may set different priorities for attributes according to
all EXCEPT which of the following?
a. The purpose of using the service.
b. Who makes the decision.
c. The timing of use.
d. Whether the individual is using the service alone or with a group.
e. The cost of the service.
6. Which of the following is the best example of a determinant characteristic
for airline travel?
a. Oxygen masks
b. Plane size
c. Quality of food and drinks
d. Having cocktail service
e. Floatation devices
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
8. Which of the following is NOT one of the four principles of positioning
according to Jack Trout?
a. A company must maintain a strong labor base.
b. A company must establish a position in the minds of its targeted
customers.
c. The position should be singular, providing one simple and consistent
message.
d. The position must set a company apart from its competitors.
e. A company cannot be all things to all people—it must focus its efforts.
9. Market analysis addresses all of the following factors EXCEPT
____________.
a. overall level of demand
b. trend of demand
 c. government regulations
d. geographic location of demand
e. market analysis addresses all of the above factors
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
11.Bright Horizons strategy included which of the following?
a. Marketing services to employers instead of parents.
b. Hiring inexpensive labor.
c. Commoditized service offerings.
d. Heavy regulatory oversight.
e. All of the above are strategies employed by BH.
12.Segmentation variables at Contiki Holidays include all of the following
EXCEPT ____________.
a. geographic
b. income
c. lifestyle
d. household size
e. age
13.Which of the following is most likely the determinant attribute for customers
of CEVA Logistics, who have global operations?
a. number of trucks
b. reach
c. delivery times
d. mode of delivery
e. online booking of services
14.Which of the following is most likely the determinant attribute for customers
of CEVA Logistics, who have global operations?
a. number of trucks
b. reach
c. delivery times
 d. mode of delivery
e. online booking of services
15.Grant Thornton, the fifth largest firm in the accounting industry, has
successfully positioned itself as offering ____________ and having
____________.
a. high investment yield; "a passion for the business of accounting"
b. limited financial obligation; "a desire to exceed expectations"
c. easy access to partners; "a passion for the business of accounting"
d. low employee turnover; "a desire to exceed expectations"
e. high asset turnover; "a passion for the business of accounting"
16.It is usually a good idea for firms to try to appeal to all potential buyers in a
market, because customer variety leads to full capacity. F
17.Market niches that seem too narrow to offer sufficient sales in one country
are indicative of globally narrow market niches. F
18.A fully-focused organization concentrates on a narrow market segment, but
has a wide range of services. F
19.One of the reasons why firms with a narrow product line elect to serve
multiple segments is to create a portfolio of customers that hedge against
low demand risks. T
20.A service-focused firm offers a narrow range of services to a fairly broad
market. T
21.A target segment should only be selected on the basis of their sales and
profit potential. F
22.No service attribute can be easily quantified because of the intangibility of
services. F
23.Positioning plays a pivotal role in marketing strategy, because it links
market analysis and competitive analysis to environmental analysis F
24.The objective of internal corporate analysis is to identify the organization's
resources, any limitations or constraints, its goals, and how it values shape
the way it does business. T
25.The best way to anticipate possible competitive responses is to identify all
current or potential competitors and to put oneself in their own
management's shoes by conducting an internal corporate analysis for each of
these competitors. T
 26.United Church Homes & Services offers housing to retirees. This is an
example of a market focused strategy. F
27.Rentokil started off as a firm that manufactured rat poison and a pesticide for
killing leeches. F
28.Yotel and Qbic are capsule hotel chains. T
29.Bright Horizons used low-cost strategies to achieve their competitive
advantage. F
30.Google has expanded its offerings to include Google Earth and You Tube in
order increase sales and attract new customers. T
IV.
1. ____________ facilitate use of the core product and add value and
differentiation to the customer's overall experience.
a. Fixed services
b. Value-added provisions
c. Marketing theories
d. Supplementary services
e. Service providers
2. ____________ supply the central, problem-solving benefit that customers
seek.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services
3. ____________ augment the core product, both facilitating its use and
enhancing its value and appeal.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services
4. A company's ____________ helps to determine which supplementary
services should be included.
a. location
b. delivery system
c. key service representative
 d. service atmosphere
e. market positioning strategy
5. The order-taking process should be ____________, ____________, and
____________ so that customers do not waste time and endure unnecessary
mental physical effort.
a. short; curt; abrupt
b. simple; slow; effortful
c. short; sweet; ineffective
d. powerful; simple; abrupt
e. polite; fast; accurate
6. ____________ represent a special type of order taking that entitles
customers to a specific unit of service.
a. Suggestions
b. Reservations
c. Trackers
d. Repossessions
e. Contracts
7. At its simplest, ____________ consists of immediate advice from a
knowledgeable service person in response to the request: "What do you
suggest?"
a. billing
b. payment
c. consultation
d. hospitality
e. selling
8. Which of the following is NOT considered an example of a hospitality
element?
a. Greeting
b. Toilets and washrooms
c. Advice
d. Food and beverages
e. Transport
9. Which of the following is NOT one of the eight basic steps to developing
and delivering a branded customer experience?
a. Target profitable customers, employing behavior segmentation rather than
 demographics.
b. Achieve a superior understanding of what your targeted customers value.
c. Design facilities that delight your customers and reduce complaints.
d. Give employees the skills, tools, and supporting processes needed to
deliver the defined customer experience.
e. Make everyone a brand manager.
10.Which of the following is NOT one of the seven categories of new services?
a. Target profitable customers, employing behavior segmentation rather than
demographics.
b. Achieve a superior understanding of what your targeted customers value.
c. Design facilities that delight your customers and reduce complaints.
d. Give employees the skills, tools, and supporting processes needed to
deliver the defined customer experience.
e. Make everyone a brand manager
11.DHL offers customers the opportunity to track the movements of their
packages, which have been assigned a unique identification number. This is
an example of ____________.
a. order-taking
b. safekeeping
c. information
d. consultation
e. exceptions
12.Customers who visit Giordano outlets are greeted with a cheerful "Hello"
and "Thank you" when they enter and leave the store. That is an example of
____________ .
a. consultation
b. hospitality
c. exceptions
d. courtesy
e. safekeeping
13.Which of the following is an example of a special request in advance of
service delivery?
a. Dietary requirements
b. Complaints
c. Warranties
 d. Refunds
e. Suggestions
14.Singapore Airlines Raffles Class is an example of a(n) ____________.
a. branded house
b. endorsed brand
c. house of brands
d. sub-brand
e. clear strategy
15.Which of the following is NOT one of British Airways seven distinct air
travel products?
a. Deluxe service (First Class)
b. Club World (Business Class)
c. Club Britain (Business Class)
d. Club Europe (Business Class)
e. Euro-Traveler (Economy Class)
16. For self-service payment, customers may make payment by inserting coins,
banknotes, tokens or cards into machines. T
17.Singapore Airlines is well recognized for both their superior meals and
attentive cabin crew. T
18.The difference between a product and a service is that a product is a bundle
of output while a service is a bundle of supplementary services. F
19. The term "branded house" is used to describe firms like Virgin Group, that
uses distinct individual brand names to cover a range of diverse service
offerings in unrelated fields. F
20.Westin hotels are wholly owned subsidiaries of Marriott Group that are
usually not identified as part of Marriott to protect Westin's exclusive image.
F
21.Information processing services tend to be the most demanding in terms of
supplementary elements. F
22.The search for competitive advantage rarely centers on supplementary
services. F
23.The delivery process surrounding the core product of an overnight hotel stay
includes scheduling, nature of process, customer role and service level. T
24.Service marketers need to create a coherent offering in which each element
is compatible with the others and all are mutually reinforcing. T
25.Core products are surrounded by supplementary elements from each of the
eight clusters of supplementary services. T

26.To obtain full value from any good or service, customers need relevant
information. T

27.Hospitality represents a more subtle approach to consultation because it

28."Exceptions" involve supplementary services that fall outside the routine of

29.Branding can only be used at the company level for service businesses. F

30.Supplementary service innovations are the most common type of innovation.

V. Chap 5
1. When customers visit the service site, which factor/(s) must be
considered in the design of the service?
a. How expensive the service is.
b. Convenience of the location.
c. Operational hours.
d. A & B only.
e. B & C only.
2. _______________ is a key driver of channel choice.
a. Risk reduction
b. Convenience
c. Colorful photos of the product
d. Internet access
e. Lower prices
3. A truck stop is a good example of a ____________.
a. centralized control center
 b. single-source facility
c. k-minus strategy
d. multi-purpose facility
e. cash cow
4. Which of the following is NOT one of the factors that encourage
extended operating hours?
a. Availability of employees to work during "social" hours.
b. Economic pressure from consumers.
c. Changes in laws.
d. Economic incentives to improve the use of assets.
e. Automated self-service facilities.
5. The four interesting innovations for service delivery arising from the
Internet are all of the following EXCEPT _____________.
a. creation of websites as a delivery channel for information-based
services
b. DVDs that can store huge amounts of information
c. development of "smart" mobile phones linking users to the Internet
wherever they are
d. usage of voice recognition technology that allows customers to give
information and request service by speaking into a microphone
e. smart card containing a microchip acting as an electronic purse
containing digital money
6. All of the factors below are luring customers into virtual stores
EXCEPT ____________.
a. potential for better prices
b. ease of search
c. broader selection
d. opportunities for networking
e. 24-hour service with prompt delivery
7. Integrating mobile devices into the service delivery infrastructure can
be used as a means to ____________ services, ____________
customers to opportunities or problems, and ____________ information
in real time to ensure that it is continuously accurate and relevant.
a. Access; alert; update
b. Complement; alert; conceal
c. Access; attract; conceal
 d. Access; guide; conceal
e. Complement; guide; conceal
8. ____________ has become a popular way to expand delivery of an
effective service concept, embracing all of the seven Ps, to multiple
sites, without the level of investment capital that would be needed for
rapid expansion of company-owned and managed sites.
a. The Internet
b. International trade
c. Franchising
d. Sole proprietorship
e. Limited partnership
9. Franchisors usually seek to exercise control over all aspects of the
service performance through tightly defined ____________.
a. service standards
b. procedures
c. scripts
d. physical presentations
e. all of the above
10.A local presence may be necessary when exporting information-based
services for which of the following reasons?
a. Appeasing local citizens.
b. Conducting secondary research.
c. Building personal relationships.
d. Bargaining for cheaper facilities.
e. Restructuring out of date systems.
11.Service delivery is shifting to arm's length transactions for many
services due to advances in telecommunications. T
12. The convenience of service factory locations and operational schedules
assumes great importance when a customer has to physically present
throughout the service delivery or even just to initiate and terminate the
transaction. F
13.In general, service providers are more likely to visit corporate customers
at their premises than to visit individuals in their homes. T
14.Physical logistics services now find themselves competing with
telecommunications services. This is a result of the instantaneous
delivery capability of information-based products. T
15.All customers will eventually voluntarily shift from high-contact
delivery environments to new electronic channels. F
16.The need for economies of scale often restricts choice of location for
service facilities. T
17.A ministore is a single-site service business that involves creating an
innovative service factory. F
18.Franchising is not an appealing strategy for growth-oriented service
firms because franchisees tend to be less motivated and less concerned
about quality than managers in company-owned stores. F
19.An ongoing problem of franchising is that when franchisees gain
experience, they may start to feel that they should not be paying the
various fees to the franchisor. T
20.People, possession, and information-based services have strikingly
similar requirements on an international distribution strategy. F
21.______________ is an example of a service where the main mode of
delivery is for the service provider to go to their customers.
a. Banyan Tree Resorts
b. Barnes and Nobles
c. Royal Flying Doctor
d. Starbuck
e. Dunkin' Donuts
22.Elaborate statistical analysis, in the form of ____________, is
sometimes used to aid decisions on where to locate supermarkets and
similar large stores relative to prospective customers' homes and
workplaces.
a. binary regression
b. cluster analysis
c. structural equation models
d. gravity models
e. predictive models
23.Which one of the following methods is NOT a banking service that can
be delivered
 remotely?
a. Face-to-face.
b. Internet.
c. Mobile phone.
d. Call centers.
e. All of the above are bank service delivery methods.
24.Firms like Dunkin' Donuts and Subway sharing space with quick service
restaurants is an example of a(n) ____________.
a. single source market
b. economy of scale
c. ministore
d. economy of scope
e. multi-brand strategy
25.Which of the following is an example of a franchised service firm?
a. Saks
b. Wal-Mart
c. Barnes & Noble
d. Starbucks
e. Pier One Imports
26._______________ is a key driver of channel choice.
a.
Risk reduction
b.
Convenience
c.
Colorful photos of the product
d.
Internet access
e.
Lower prices
27.Which of the following is NOT one of the factors that encourage
extended operating hours?
a.Availability of employees to work during "social" hours.
b.Economic pressure from consumers.
c.Changes in laws.
 d.Economic incentives to improve the use of assets.
e.Automated self-service facilities.
28.The four interesting innovations for service delivery arising from the
Internet are all of the following EXCEPT _____________.
a.creation of websites as a delivery channel for information-based
services
b.DVDs that can store huge amounts of information
c.development of "smart" mobile phones linking users to the Internet
wherever they are
d.usage of voice recognition technology that allows customers to give
information and request service by speaking into a microphone
e.smart card containing a microchip acting as an electronic purse
containing digital money
29.All of the factors below are luring customers into virtual stores
EXCEPT ____________.
a.potential for better prices
b.ease of search
c.broader selection
d.opportunities for networking
e.24-hour service with prompt delivery
30.Integrating mobile devices into the service delivery infrastructure can be
used as a means to ____________ services, ____________ customers to
opportunities or problems, and ____________ information in real time
to ensure that it is continuously accurate and relevant.
a.Access; alert; update
b.Complement; alert; conceal
c.Access; attract; conceal
d.Access; guide; conceal
e.Complement; guide; conceal
31.____________ has become a popular way to expand delivery of an
effective service concept, embracing all of the seven Ps, to multiple
sites, without the level of investment capital that would be needed for
rapid expansion of company-owned and managed sites.
a.The Internet
b.International trade
c.Franchising
 d.Sole proprietorship
e.Limited partnership
32.Franchisors usually seek to exercise control over all aspects of the
service performance through tightly defined ____________.
a.service standards
b.procedures
c.scripts
d.physical presentations
e.all of the above
33.A local presence may be necessary when exporting information-based
services for which of the following reasons?
a.Appeasing local citizens.
b.Conducting secondary research.
c.Building personal relationships.
d.Bargaining for cheaper facilities.
e.Restructuring out of date systems.
34.Which one of the following methods is NOT a banking service that can
be delivered remotely?
a.Face-to-face.
b.Internet.
c.Mobile phone.
d.Call centers.
35.Customers would NOT prefer self-service channels when________
a.The services are perceived as complex and high risks
b.Customers look for functional aspects of the transaction
c.Customers are highly confidence and knowledge about the service
d.Customers are technology savvy
e.Customers seeking for convenient
36.What would NOT be distributed in service context
a.Information flow
b.Promotion flow
c.Performance flow
d.Negotiation flow
e.Product flow
 37.Which would NOT be an available distribution option for car wash
service?
a.Customer goes to service organization
b.Service organization comes to customer
c.Customer and services organization transact remotely
d.All options would be suitable for carwash service
38.Which service would not suitable for remote transaction
a.House cleaning
b.Banking
c.Psychology consultation
d.Retail shop
e.CD rentings
39.Who is NOT going to choose electronic self-service channels over
personal channels?
a.Customers with higher confidence
b.Customers with higher knowledge
c.Customers who look for functional aspects of service
d.Customers with social motives
e.Customers who like technology
40.Following are success factors for franchisors EXCEPT____________
a.The ability to achieve a larger size with a more recognitzable brand
name
b.Offering franchisees fewer supporting services but longer term
contracts
c.Building controlling relationship with franchisees
d.Having lower overhead per outlet
e.Providing accurate and realistic information for franchisees
31.
41.Shanghai's Maglev train helps to overcome the locational constraint of
having the airport sited in a far away place. T
42.Taco-Bell's K-Minus strategy is an example of an innovation in locating
in multi-purpose facilities. F
43.First Direct is an example of a bank with too many branches. F
44.First Direct describes itself as the largest virtual bank in the world. T
 45.Yellow pages has come up with a global positioning service so that
customers can click and download information to help them get from
one place to another. F
VI.
1. Which of the following is NOT an objective for service pricing?
A. Build supply.
B. Build demand.
C. Seek profit.
D. Cover costs.
E. Build a user base.
2. ____________ recognizes that resource expenses are linked to the variety
and complexity of goods and services produced and not just on physical
volume.
A. Break-even analysis
B. Variable cost
C. Fixed cost
D. Activity-based costing
E. Semi-fixed cost
3. . ____________ is defined as the sum of all the perceived benefits minus the
sum of all the perceived costs of service.
A. Net value
B. Consumer surplus
C. Gross value
D. Moderate value
E. Consumer demand
4. 4. ____________, also known as customized or personalized pricing, refers
to the practice of price discrimination.
A. Critical ratio pricing
B. Dynamic pricing
C. Collective pricing
D. Fixed pricing
E. Classical pricing
5. Which of the following intensifies price competition?
A. Non-price-related costs of using competing alternatives are high.
B. Wider distribution of competitor and or substitution offers.
 C. Personal relationships have been established.
D. Switching costs are high.
E. Customer need for time and location specificity.
6. Which of the following reduces price competition?
A. Increasing the number of competitors.
B. Increasing the number of substituting offers.
C. Wider distribution of competitor and/or substitution offers.
D. High switching costs for consumers.
E. Increasing surplus capacity in the industry.
7. Revenue management is the most effective when applied to firms
characterized by all the following conditions EXCEPT ______________.
a. perishable inventory
b. relatively fixed capacity
c. varying customer price sensitivity
d. fixed inventory
e. variable demand
8. Price elasticity is computed as ____________.
a. percentage change in demand / percentage change in price
b. percentage change in price / percentage change in demand
c. percentage change in supply / percentage change in price
d. percentage change in demand / percentage change in supply
e. percentage change in price / percentage change in supply
9. Which of the following is NOT an example of a non-physical fence?
A. Time or duration of use.
B. Group membership.
C. Service level.
D. Flexibility of ticket usage.
E. Location of reservation.
10.Putting service pricing into practice includes thinking of all the following
questions EXCEPT ____________.
A. What should be the specified basis for pricing?
B. How much to charge?
C. What kind of customers should be charged more?
D. Who should collect payment?
E. When should payment be made?
11.Pricing is less complex in services than it is in manufacturing. F
12.Customers will often pay more for services than they think they are worth. F
13.Because quality is subjective, all customers have the expertise to assess the
quality and value they receive. F
14.Business owners often fail to recognize the fixed costs that need to be
recouped when providing service. F
15.Customers often incur significant financial costs in searching for,
purchasing, and using a service, above and beyond the purchase price paid to
the supplier. T
16.Shopbots help consumers combat dynamic pricing online. T
17.Shopbots collect price and product information from multiple electronic
vendors and provide it to consumers. T
18. Psychological costs relate to unpleasant sensations affecting any of the five
senses. F
19.Firms do not need to consider post-purchase costs, as they occur after the
firm has already secured a purchase. F
20.Firms that are always reacting to competitors' price changes run the risk of
pricing higher than might really be necessary F
21.Which of the following is NOT a firm that uses dynamic pricing?
A. Easyinternetcafe.com
B Yahoo.com
C Tickets.com
D. Amazon.com
E All of the above firms use dynamic pricing.
22.Which of the following is NOT listed in the chapter as a firm that uses
online reverse auctions?
A. Priceline.com
B. Hotwire.com
C. eBay.com
D. Lowestfare.com
E. All of the above use online reverse auctions.
23.The amount of seats reserved for each class of American Airlines passengers
on a flight is referred to as a ____________.
A. field
B. row
 C. column
D. bucket
E. gamble
24.Which of the following is the best example of a service industry that utilizes
price complexity?
A. Fast food
B. Education
C. Cellular phone
D. Moving/transportation
E. Roofing
25.Which of the following is the best example of a service firm that attracts
customers with low base prices and then piles on additional fees.
A. Rental cars
B. Fast food
C. Education
D. Roofing
E. Consulting
26.Amazon.com is a good example of a firm that aggravated its customers with
dynamic pricing. T
27.Tickets.com is a good example of a firm that successfully generated more
revenue by implementing dynamic pricing. T
28.Airlines, hotels, and car rental firms are not very good at varying prices in
response to the price sensitivity and needs of different market segments. F
29.Yield management computers can determine who is likely to not show up or
take other flights. T
30.Freight companies often use a combination of distance and weight or shape
of parcel as a basis to price their services. F
31.Which of the following is NOT an objective for service pricing?
A. Build supply.
B. Build demand.
C. Seek profit.
D. Cover costs.
E. Build a user base
32.____________ recognizes that resource expenses are linked to the variety
and complexity of goods and services produced and not just on physical
 volume.
A. Break-even analysis
B. Variable cost
C. Fixed cost
D. Activity-based costing
E. Semi-fixed cost
33.____________ is defined as the sum of all the perceived benefits minus the
sum of all the perceived costs of service.
A. Net value
B. Consumer surplus
C. Gross value
D. Moderate value
E. Consumer demand
34.____________, also known as customized or personalized pricing, refers to
the practice of price discrimination.
A. Critical ratio pricing
B. Dynamic pricing
C. Collective pricing
D. Fixed pricing
E. Classical pricing
35.Which of the following intensifies price competition?
A. Non-price-related costs of using competing alternatives are high.
B. Wider distribution of competitor and or substitution offers.
C. Personal relationships have been established.
D. Switching costs are high.
E. Customer need for time and location specificity.
36.Which of the following reduces price competition?
A. Increasing the number of competitors.
B. Increasing the number of substituting offers.
C. Wider distribution of competitor and/or substitution offers.
D. High switching costs for consumers.
E. Increasing surplus capacity in the industry.
37.Revenue management is the most effective when applied to firms
characterized by all the following conditions EXCEPT ______________.
a. perishable inventory
 b. relatively fixed capacity
c. varying customer price sensitivity
d. fixed inventory
e. variable demand
38. Price elasticity is computed as ____________.
a. percentage change in demand / percentage change in price
b. percentage change in price / percentage change in demand
c. percentage change in supply / percentage change in price
d. percentage change in demand / percentage change in supply
e. percentage change in price / percentage change in supply
39.Which of the following is NOT an example of a non-physical fence?
A. Time or duration of use.
B. Group membership.
C. Service level.
D. Flexibility of ticket usage.
E. Location of reservation.
40.Putting service pricing into practice includes thinking of all the following
questions EXCEPT ____________.
A. What should be the specified basis for pricing?
B. How much to charge?
C. What kind of customers should be charged more?
D. Who should collect payment?
E. When should payment be made?
41.Which of the following is NOT a firm that uses dynamic pricing?
A. Easyinternetcafe.com
B Yahoo.com
C Tickets.com
D. Amazon.com
E All of the above firms use dynamic pricing.
42.The amount of seats reserved for each class of American Airlines passengers
on a flight is referred to as a ____________.
A. field
B. row
C. column
 D. bucket
E. gamble
43.Which of the following is the best example of a service industry that utilizes
price complexity?
A. Fast food
B. Education
C. Cellular phone
D. Moving/transportation
E. Roofing
44.Which of the following is the best example of a service firm that attracts
customers with low base prices and then piles on additional fees.
A. Rental cars
B. Fast food
C. Education
D. Roofing
E. Consulting
VII.
1. ____________ and ____________ represent important ways to add value
to a product.
A. Reciprocation; classification
B. Information; classification
C. Information; consultation
D. Reciprocation; consultation
E. Reciprocation; mediation
2. One approach to training customers, recommended by advertising experts
is to ____________.
A. train employees like customers
B. use radio advertising
C. show service delivery in action
D. design palpable service environments
E. explain service procedures in advance
3. In ____________ services, where much of the firm's expertise is hidden,
firms may need to illustrate equipment, procedures, and employee
activities that are taking place ____________.
A. high-contact; front-stage
 B. low-contact; backstage
C. high-contact; backstage
D. low-contact; front-stage
E. high-contact; intangibly
4. Which of the following is NOT one of the four problems for marketers
seeking to promote a service's benefits?
A. Distribution
B. Abstractness
C. Generality
D. Non-searchability
E. Mental impalpability
5. ____________ outside peak demand periods poses a serious problem for
service industries with ____________, like hotels.
A. Low demand; high fixed costs
B. Low demand; low fixed costs
C. High demand; high fixed costs
D. High demand; low fixed costs
E. High demand; low variable costs
6. Which of the following would be classified under generality in
intangibility?
A. Safety.
B. A hamburger.
C. An airline seat.
D. Facility appearance.
E. Expert advice.
7. Ads based on ____________ strategies are often perceived as more
informative than ____________ ads.
A. visualization; text-only
B. expert; power
C. visualization; affective
D. utilitarian; text-only
E. visualization; expert
8. Which of the following represents a broad target audience category?
A. Donors
B. Competitors
 C. Employees
D. Contractors
E. Franchisers
9. Which of the following is NOT a common educational and promotional
objective in service settings?
A. Build awareness of and interest in an unfamiliar service or brand.
B. Reposition a service relative to competing offerings.
C. Familiarize customers with service processes in advance of use.
D. Encourage trial of competing products.
E. Recognize and reward valued customers and employees.
10.Which of the following is NOT a communication task for which
marketers use the Internet?
A. Promoting consumer awareness and interest.
B. Providing information and consultation.
C. Facilitating two-way communications with customers through e-mail
and chat rooms.
D. Enabling customers to place orders.
E. Reducing service demand through electronic tracking.
11.refers to a group of technologies for distributing audio or video programs
over the Internet using a publisher/subscriber method.
a. Podcasting
b. Webcasting
c. Websiting
d. Webenabling
e. Webscribing
12.Virgin Atlantic's advert promotes their 9 inch seatback screens audio and
video system with the message "Play with yourself - 9 inches of
pleasure" is an example of marketing communication help company to:
a. Position and differentiate service
b. Stimulate or dampen demand to match the capacity
c. Promote contribution of personnel and backstage operations
d. Add value through communication content
e. Facilitate customer involvement in production
13.Which of the following is an example of marketing communications help
to stimulate or dampen demand to match the capacity
 a. DHL advert shows the image of one of its staff with the message
"Dedicated to going beyond your expectation"
b. Alton tower gives away 2 free ticket for audience of The Sun
newspaper
c. Easy Jet advertisement with the message "Your low cost hub!"
d. The ads with the picture of KFC founder Colonel Sander carrying a
tray of KFC foods and claiming himself as "woman's best friend"
e. FedEx advertisement showcased the awards it received for being rated
as highest in customer satisfaction for air, ground and international
delivery
14.Which of the following is not a recommended guideline for developing
service communications?
a. Tangibilize the intangible
b. Promise what is possible
c. Reduce consumer fears about the variation in performance
d. Make the service more abstract
e. Feature the working relationship between provider and customer
15.Which of the following is a NOT role played by service marketing
communications?
a. Add value through communication content.
b. Facilitate customer involvement in service production.
c. Positioning to attract investors.
d. Stimulate or dampen demand to match capacity.
e. Position and differentiate the service.
16.Which of the following is NOT an example of intangible abstract concept
in service promotion
a. Financial security
b. Expert advice
c. Safe transportation
d. Working timetable
e. Friendly staff
17.Starbucks shows how coffee beans are cultivated, harvested and
produced, highlighting its use of the finest and freshest. This is an
example of _________
a. Position and differentiate service
 b. Stimulate or dampen demand to match the capacity
c. Promote contribution of personnel and backstage operations
d. Add value through communication content
e. Facilitate customer involvement in production
18.Which of the following is NOT an element of a service's firm
communication mix?
a. Personal Selling
b. Sales Promotion
c. Positioning Strategy
d. Advertising
e. Publicity and Public Relation
19.Which of the following is NOT a question in the check list for marketing
communication planning?
a. Who is the target audience?
b. What do we need to communicate and achieve
c. How should we communicate this?
d. How much should we spend?
e. When do the communications need to take places
20.Productions channels communicate with the target audience
through_____________
a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Word-of-mouth
21.Marketing channels communicate with the target audience through
following sources EXCEPT___________
a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Trade shows
22.Following sources are originating within the organization thus they are
controlled by service firms EXCEPT___________
a. Front line staff
 b. Advertising
c. Public Relations
d. Direct Marketing
e. Word-of-mouth
23.Which of the following form of publicity is most porpular for B2B
context?
a. Front line staff
b. Advertising
c. Public Relations
d. Direct Marketing
e. Trade-show
24.Communications is more than just advertising, public relations and
professional salespeople. It is also where marketers explain and promote
the value proposition of their offering. T
25.Customers do not need training to help them perform well because they
already know what they want. F
26.Publicizing price discounts is one way to encourage self-service on an
ongoing basis. T
27.In low-contact services, frontline personnel are central to service delivery
F
28.Advertising and promotions do little to help change the timing of
customer usage. F
29.Mental impalpability refers to the fact that intangibles cannot be searched
or inspected before they are purchased. F
30.Communication messages originate only from the marketing and service
delivery channels of the firm. F
31.Sales promotion includes sampling, coupon, sign-up rebates, gifts, prize
promotions and special events. F
32.Direct marketing involves efforts to stimulate positive interest in an
organization and its products by sending out news releases, holding press
conferences, staging special events, and sponsoring newsworthy
activities put on by third parties. F
33.Blogs (Web logs) are frequently modified Web pages in which entries are
listed in chronological sequence. F
34.____________ uses the metaphor of reaching the top to appeal to their
customers.
A. Prudential
B. Allstate
C. Accenture
D. MasterCard
E. Merrill Lynch
35.Tesco's success is built on ____________.
a. direct marketing
b. advertising
c. personal selling
d. sales promotion
e. public relations
36. SAS International Hotels devised which of the following sales
promotions targeted at older consumers?
A. First to provide senior citizen discounts.
B. Provided a discount percent equivalent to their age.
C. A free hotel room if large family gatherings were held at the hotel.
D. Free ballroom service for large family gatherings.
E. Discount for large family gatherings.
37.____________ refers to a group of technologies for distributing audio or
video programs over the Internet using a publisher/subscriber method.
A. Podcasting
B. Webcasting
C. Websiting
D. Webenabling
E. Webscribing
38._____________ technology facilitates the rise of user-generated content.
A. Podcasting
B. Narrowcasting
C. TiVo
D. YouTube
E. Web 2.0
39.Accenture is a good example of a firm that helps it clients achieve high
performance. T
40.UPS is strongly associated with brown, which gives it the image of being
reliable and trustworthy. T
41.Advertising serves to build awareness, inform, persuade, and remind. T
42.DHL gained significant favorable publicity when it safely transported
two giant pandas from Chengdu, China to the National Zoo in
Washington, D.C. F
43.Pinstorm built a very successful model based on banner advertising. F