CHAPTER 1
MULTIPLE CHOICE QUESTIONS
1. The _____________ reflects the view that the intangible aspects of products are
becoming the key features that differentiate the product in the marketplace.
a. services marketing
b. Servuction model
c. service imperative
d. benefit concept
e. industrial management model
2. 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
3. General Motors, the manufacturing giant’s, largest supplier is:
a. Blue Cross-Blue Shield Insurance
b. GMAC Financing
c. a parts supplier
d. a legal firm
e. a trucking company
4. Which of the following sets of terms best describes a service?
a. objects, devices, and performances
b. effort, objects, and deeds
c. things, devices, and performances
d. objects, devices, and things
e. deeds, effort, and performances
5. Deeds, efforts and performances define:
a. products
b. ideas
c. services
d. goods
e. places
6. The continuum that ranges from tangible-dominant to intangible-dominant is referred
to as:
a. the services triangle
b. the Servuction model
c. the scale of market entities
d. the service-profit chain
e. the Q continuum
7. 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
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
8. 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
9. Which of the following products is an example of intangible dominant?
a. Outback steakhouse
b. car rental agency
c. a funeral
d. a magazine subscription
e. math tutoring
10. Which of the following statements is NOT true?
a. Service knowledge is obtained differently than goods knowledge.
b. Firms that define their businesses too narrowly have developed marketing
myopia.
c. Goods are tangible-dominant.
d. Service knowledge is obtained through the experience of receiving the actual
service.
e. All the above are true.
11. _______ results in firms that produce tangible products and overlook the service
aspect of their product.
a. Services marketing
b. Marketing management
c. Services marketing myopia
d. Scale of market entities
e. Customer experience
12. __________ involves a pictorial representation of the relationship between the
tangible and intangible elements of a firm’s operation.
a. Molecular Model
b. Servuction Model
c. Benefit concept
d. Industrial Management Model
e. Market-focused Model
13. Which of the following could NOT be included in the airline molecular model?
a. long-term parking
b. financing arrangements
c. rental car availability
d. gate attendants
e. baggage handlers
14. The encapsulation of the benefits of product in the consumer’s mind is called:
a. the Servuction Model
b. the benefit concept
c. the Service Triangle
d. the Service-Profit Chain
e. the Scale of Market Entities
15. According to the Servuction Model, factors that influence the customer’s service
experience include all of the following except:
a. price
b. contact personnel/service providers
c. other customers
d. servicescape
e. organization and systems
16. Which of the following components of the Servuction Model is invisible to
consumers?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
17. A customer who notices dirty silverware and a dirty floor in his/her favorite
restaurant has been influenced by which of the following components of the Servuction
Model?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
18. Servicescape consists of which of the following features:
a. personal artifacts
b. inanimate objects
c. signs
d. ambient conditions
e. all of the above
19. The component of the Servuction Model over which most service firms have the
least control is:
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
20. If an office did not schedule as many people as were needed during a busy period,
which of the following components of the Servuction Model has influenced the
customer’s experience?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
6
21. 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. servicescape
b. organization and systems
c. other customers
d. contact personnel
e. service providers
22. The demand for services marketing knowledge has increased for all of the following
reasons except:
a. the tremendous growth in service-sector employment
b. increasing service-sector contributions to the world economy
c. the emergence of technologically based e-services
d. developing sustainable services marketing business practices
e. the decline in service sector jobs
23. Ranking from highest to lowest, the countries with the largest service sector
employment are:
a. United Kingdom, United States, Japan
b. Hong Kong, Bahamas, Israel, United Kingdom
c. United States, United Kingdom, Japan
d. United States, United Kingdom, Hong Kong
e. Japan, Bahamas, United States, Israel
24. With regards to service sector employment in the United States, which of the
following statements is FALSE?
a. Between 2002 and 2012, 65% of all jobs were service jobs.
b. 79% of the U.S. labor force is employed in service sector jobs in the year 2009.
c. Between 2002 and 2012, 96% of all new jobs will be service jobs.
d. 30% of the U.S. labor force was employed in the service sector in the year 1900.
e. All the above statements are false.
25. What approximate percentage of the United States’ Gross Domestic Product is
generated by the service sector?
a. 87%
b. 77%
c. 67%
d. 57%
e. 47%
26. Economies throughout the world tend to transition from an agricultural economy to
an industrial economy to a service economy. Who was the first economy in the modern
world to make this transition?
a. Hong Kong
b. United Stated of America
c. United Kingdom
d. Bahamas
e. Japan
27. What are E-services?
a. Application of science to solve problems or conduct transactions
b. Customer service activities via the net
c. Technologically based services that help customers help themselves
d. An electronic service available via the net that completes tasks
e. All of the above
28. Which of the following service industries have NOT employed self-service
technologies?
a. banks
b. insurance companies
c. hotels
d. movie rental chains
e. manufacturing operations
29. Most people tend to associate this term with being “green” and protecting the
environment.
a. sustainability
b. tangibility
c. intangibility
d. social responsibility
e. none of the above
30. Which of the following areas is NOT a sustainable business practice that
companies hope to pursue as a source of competitive advantage?
a. eco-efficiency
b. environmental cost leadership
c. e-service
d. beyond compliance leadership
e. eco-branding strategies
SHORT-ANSWER ESSAYS
31. What is a service?
32. What are the seven categories of complaints that customers have toward service
providers?
33. Discuss the components of the Servuction Model. What does the model attempt to
explain?
34. Why has the demand for services marketing knowledge increased in recent years?
35. Discuss the service sector contributions to the world economy.
36. Describe the four areas of improvement in which a company can achieve
sustainability.
