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A Framework for Marketing Management, 5e (Kotler)
Chapter 11 Designing and Managing Services
1) Which of the following is a characteristic of a service?
A) It is essentially tangible.
B) It does not result in the ownership of anything.
C) Its production is majorly tied to a physical product.
D) Services are typically produced and consumed at different times.
E) A client's presence is not required for rendering a service.
2) Which of the following is an example of a pure tangible good?
A) massage
B) shampoo
C) e-mail
D) restaurant meal
E) air travel
3) To which of the following categories of services does a cell phone belong?
A) major service with accompanying minor services
B) major service with accompanying minor goods
C) pure service
D) pure tangible good
E) tangible good with accompanying services
4) A computer falls into the ________ category of service mix.
A) pure tangible good
B) tangible good with accompanying services
C) hybrid
D) major service with accompanying minor goods
E) pure service
5) Which of the following is an example of a hybrid service?
A) teaching
B) car
C) restaurant meal
D) soap
E) air travel
6) A flight with complementary drinks is an example of a ________.
A) major service with accompanying minor goods and services
B) pure service
C) pure tangible good
D) tangible good with accompanying services
E) hybrid
7) Which of the following is an example of a pure service?
A) air travel
B) psychotherapy
C) baby oil
D) a laptop
E) a restaurant meal
8) Which of the following is true for services?
A) All services are people-based, while goods are equipment-based.
B) Service providers can be both for-profit or nonprofit.
C) All service companies follow the same process to deliver their services.
D) The client's presence is a hindrance during the service delivery process.
E) Service providers develop similar marketing programs for personal services and business
services.
9) Some services require that the client be present to conduct the service. Which of the following
is an example of such a service?
A) pest control
B) furniture polishing
C) surgery
D) car repairing
E) tax services
10) Services high in ________ have characteristics that the buyers can evaluate before purchase.
A) search qualities
B) experience qualities
C) credence qualities
D) privacy qualities
E) storing qualities
11) Services high in ________ qualities have characteristics that the buyer can evaluate after
purchase.
A) privacy
B) experience
C) credence
D) search
E) stock
12) Services high in ________ are those services that have characteristics the buyer normally
finds hard to evaluate even after consumption.
A) trial qualities
B) search qualities
C) experience qualities
D) privacy qualities
E) credence qualities
13) Which one of the following would be considered high in credence qualities?
A) an interior of a house
B) a restaurant
C) a haircut
D) psychotherapy
E) a computer
14) Which one of the following is highest in search qualities?
A) a play at a theater
B) a meal at a restaurant
C) a haircut
D) psychotherapy
E) a computer
15) Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they
are bought. This is known as the ________ aspect of services.
A) inseparability
B) intangibility
C) variability
D) perishability
E) heterogeneity
16) Which of the following is true regarding services?
A) Services are typically produced, stored, and then consumed.
B) Services are generally low in experience and credence qualities.
C) Service providers develop similar marketing programs for personal services and business
services.
D) There is less risk associated with the purchase of services than with the purchase of goods.
E) Provider-client interaction is a special feature of services marketing.
17) The fact that services are typically produced and consumed simultaneously is known as the
________ aspect of services.
A) perishability
B) intangibility
C) heterogeneity
D) inseparability
E) variability
18) Service quality depends on who provides them, when and where, and to whom. Thus,
services are highly ________.
A) inseparable
B) tangible
C) variable
D) perishable
E) intangible
19) Which of the following will help a service provider overcome the limits imposed by the
inseparability of services?
A) using differential pricing
B) working with larger customer groups
C) providing complementary services
D) concentrating on physical evidence and presentation
E) standardizing the service process
20) Which of the following steps will help service firms to increase their quality control?
A) standardizing the service-performance process
B) providing complementary services to customers
C) giving personnel authority in handling situations
D) adopting differential pricing
E) cultivating nonpeak demand
21) Jake had an appointment at the doctor's, but couldn't make it on time because he was caught
in traffic. By the time he reached the doctor's office, the doctor had already begun with the next
patient. This illustrates the ________ of services.
A) variability
B) heterogeneity
C) perishability
D) intangibility
E) homogeneity
22) In which of the following cases is a service provider trying to increase non-peak demand?
A) A fine dining restaurant is promoting a breakfast service in addition to its popular lunch and
dinner options.
B) An upscale restaurant has a cocktail lounge where customers can wait until a table is ready.
C) AXA Bank set up automated teller machines so that its customers could avoid standing in
line.
D) Chesterton College hired part-time teachers as enrollment increased significantly.
E) Big department stores usually hire extra staff to handle the rush during the holiday season.
23) The Caesar Park Hotel generally caters to business customers during the week, but has now
decided to promote minivacation weekends for non-business customers as well. What is the
Caesar Park trying to do?
A) It is implementing premium pricing.
B) It is trying to cultivate nonpeak demand.
C) It is promoting complementary services.
D) It is putting reservation systems in place.
E) It is implementing differential pricing.
24) Walmart has decided to hire extra clerks during the holiday season. It is said to be ________.
A) matching its supply with the existing demand
B) generating non-peak demand
C) increasing its customer participation
D) sharing its services
E) facilitating for its future expansion
25) Kaya, a chain of skin clinics, requests each new visitor to fill up their own details on a
printed form. This is a step in ________.
A) increasing its peak-time efficiency
B) creating nonpeak demand
C) increasing consumer participation
D) sharing its services
E) facilitating its future expansions
26) Customers today want separate prices for each service element and they also want the right
to select the elements they want. The customers are said to be pressing for ________.
A) complementary services
B) perishable services
C) variable services
D) unbundled services
E) shared services
27) ________ refers to the normal work of preparing, pricing, distributing, and promoting the
service to customers.
A) Interactive marketing
B) Internal marketing
C) External marketing
D) Promotional marketing
E) Direct marketing
28) ________ refers to training and motivating employees to serve customers well.
A) External marketing
B) Promotional marketing
C) Direct marketing
D) Internal marketing
E) Interactive marketing
29) ________ describes the employees' skill in serving the client.
A) External marketing
B) Internal marketing
C) Promotional marketing
D) Direct marketing
E) Interactive marketing
30) Susanna wanted to check out a new salon in her locality, so she decided to go for a hair
styling session. She was very happy with the way her stylist connected and related with her
concerns. She is judging the service based on its ________.
A) promotional marketing
B) functional quality
C) technical quality
D) search qualities
E) external marketing
31) In which of the following does a customer respond to the technical quality of a service?
A) Sara's preferred hair stylist is some miles away, but Sara goes to him because his styles suit
her looks.
B) Kathy tries out a new restaurant every week, because she likes to experience the variety.
C) Bill has gone to the same chiropractor for the past fifteen years, because he is friendly and
takes the time to listen to Bill.
D) Ray avoids going to the bank as much as possible because the manager is rude and unhelpful.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
32) Charles Schwab's best customers are instantly directed to customer service representatives,
while other customers have to wait longer. Charles Schwab is trying to ________.
A) monitor its service systems
B) empower the customers
C) retain the patronage of profitable customers
D) increase consumer participation
E) standardize the service-performance process
33) Belling Hotels provides complimentary breakfast buffets to all its guests. This is an example
of a ________.
A) primary service package
B) service interface
C) service support
D) service frequency
E) secondary service feature
34) Angela switched to a new hair stylist after getting a bad haircut from her previous stylist.
This is an example of which of the following factors leading to customer switching behavior?
A) service encounter failure
B) core service failure
C) response to service failure
D) involuntary switching
E) competition
35) Dean recently had a BRZ broadband connection installed. However, the connection was bad
and he didn't get the quality he required. He contacted BRZ about the problem, but the company
did not solve his problem. Dean switched to Blue Broadband. Which of the following was the
cause of Dean's switching behavior?
A) involuntary switching
B) competition
C) response to service failure
D) service encounter failures
E) inconvenience
36) MGC Inc. organizes a company-wide picnic once a year. The organizers arranged for the
best possible menu thinking that food would be a priority, but the staff were disappointed
because the activities were very poorly planned. What kind of a gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
37) Which of the following is an example of a gap between management perception and the
service-quality specifications?
A) The college brochure showed state-of-the-art classrooms, but when the visitors walked in,
they saw peeling walls and dull lighting.
B) A nurse visits a patient to show care, but the patient interprets this as an indication that
something is very wrong.
C) The hotel administrators think that guests want better food, but guests are more concerned
with the courtesy of the waiters.
D) A service center manager has asked his subordinates to provide fast service, but has not
specified a time for the service to be performed.
E) Customer service representatives are asked to give ample time to each customer, but must
serve a minimum of 50 customers a day.
38) The customer service representatives at a call center have been asked to handle each call in
not more than five minutes. A recent customer survey by the company revealed that customers
appreciate it when employees take the time to answer their questions fully and listen to their
grievances. What kind of service gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
39) The customer service representatives at a call center have been asked to handle each call in
not more than five minutes. At the same time, they have been asked to answer all customer
queries in detail and provide appropriate solutions. What kind of service gap is apparent here?
A) gap between perceived service and expected service
B) gap between service delivery and external communications
C) gap between service-quality specifications and service delivery
D) gap between management perception and service-quality specification
E) gap between consumer expectation and management perception
