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Test Bank ― Chapter 1 Page 1
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
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.
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
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. 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.
8. 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.
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 of marketing to services
d. designing and managing the customer interface
e. developing customer relationships
True/False
11. In most highly developed nations, services account for between three-fifths and four-
fifths of the GDP.
12. Typically service jobs are not well-paid positions and require little education.
13. 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.
14. Systems and networks access and usage is an example of the ownership of services.
15. Other customers typically do not impact the satisfaction of other consumers in
service settings.
16. Time is of great importance in services so operations managers have to be concerned
about minimizing customer waiting time.
17. Marketers should not attempt to shape customer roles and behaviors.
18. Failures are inevitable in service industries.
19. The appearance of buildings, landscaping, vehicles, and uniforms provide tangible
evidence of a firm’s service quality.
20. Servicescape is only a consideration if customers have to enter a service factory.
Short Answer
21. What are the five broad categories within the non-ownership framework?
22. Define services.
23. What are the eight common differences between products and services?
24. Provide an example of a service that lies at each end of the tangible-dominant to
intangible-dominant spectrum.
25. What are the three vital roles of promotion and education?
Providing needed information and advice, persuading target customers of the merits
Test Bank ― Chapter 1 Page 5
Essay
26. Give an example of how the Internet is changing the face of service industries.
27. How can firm develop effective marketing strategies?
APPLICATION CONTENT
Multiple Choice Questions
28. A movie theater seat is an example of _____________.
29. Education is an example of a/an _____________ service.
30. Service firms have reservations systems because
31. Which of the following is the best example of a supplementary service?
32. Online educational programs offered by the University of Phoenix are an example of
_____________.
True/False
33. China is experiencing rapid economic growth and this stimulates demand for
production and business services.
34. IBM is a good example of a firm that has shifted from manufacturing intensive
operations to service intensive operations.
35. The Internet is transferring power from suppliers to customers, especially in
consumer markets.
Test Bank ― Chapter 1 Page 7
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
36. Services can be outsourced today to cheaper destinations anywhere in the world.
37. The best way to help customers visualize your service is to highlight
credentials/experience and educate consumers to make good choices.
Short Answer
38. Give an example of a government policy that has stimulated the transformation of a
service industry.
39. Give an example of an industry where the Internet has transferred power from
suppliers to customers.
40. Give an example of a service that offers labor and expertise rental.
Car repair, surgery, management consultancy, etc.
41. Give an example of a service that offers access to physical environments as a form of
rental.
42. Give an example of an industry where production and consumption are separable.
Test Bank ― Chapter 1 Page 8
Essay
43. Describe the possible differences in customer choice criteria between car rentals and
outright purchases.
44. Provide an example of a service industry where customers are involved in co-
production and explain the implications and marketing-related tasks that would be
associated with that service.
45. Describe the seven Ps of service that would be involved in a banking service.
