Marketing Management, 14e (Kotler/Keller)
Chapter 13 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 will most help service providers overcome the limitation of
intangibility of services when positioning itself?
A) using brand symbols
B) sharing services
C) working with larger groups
D) cultivating non-peak demand
E) creating a service blueprint
17) A brand that is action-oriented and causes consumers to engage in physical actions appeals to
the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social
18) BRZ Shoes targets the youth market with vibrant, visually appealing ads in modern styles.
BRZ ads appeal to the ________ dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social
19) BRZ Shoes positions itself as a young, adventurous brand. Its logo and brand communication
try to give consumers a feeling of excitement and bravery. These ads appeal to the ________
dimension of brand experience.
A) sensory
B) affective
C) behavioral
D) intellectual
E) social
20) ________ refer(s) to logos, symbols, characters, and slogans that service providers use in
order to make the service and its key benefits more tangible.
A) Brand engagement
B) Brand orientation
C) Brand elements
D) Brand loyalty
E) Brand equity
21) 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.
22) 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
23) 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
24) 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
25) 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
26) In order to map out the service process, the points of customer contact, and the evidence of
service from the customer’s point of view, service firms should develop a ________.
A) marketing plan
B) service floor plan
C) Gantt chart
D) business plan
E) service blueprint
27) 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
28) When a theater sells matinee movie tickets at low prices, it aims to shift some demand from
the peak to the off-peak period. What is the strategy that the theater is said to be adopting?
A) It is providing complementary services.
B) It is increasing peak-time efficiency.
C) It is using linear pricing.
D) It is using differential pricing.
E) It is sharing services.
29) A travel agency offers weekend discounts for car rentals. What can be deduced from this?
A) It is increasing peak-time efficiency.
B) It is using differential pricing.
C) It is using linear pricing.
D) It is cultivating peak demand.
E) It is providing complementary services.
30) 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.
31) 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 Hotel 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.
32) Cocktail lounges in restaurants are examples of ________.
A) differential pricing
B) cultivating nonpeak demand
C) complementary services
D) reservation systems
E) shared services
33) Which of the following is an example of a complementary service?
A) Big department stores usually hire extra staff to handle the rush during the holiday season.
B) 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.
C) More paramedics are on hand to assist physicians during times when emergency admissions
are highest.
D) AXA Bank set up automated teller machines so that its customers could avoid standing in
line.
E) Chesterton College hires part-time teachers when enrollment goes up.
34) 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
35) 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
36) 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
37) Often, a service problem arises from a customer’s lack of understanding or ineptitude. Which
of the following can help to minimize customer failures?
A) giving customers exclusive primary service packages
B) redesigning processes to simplify service encounters
C) using differential pricing and shared services
D) minimizing service intangibility
E) working with more customers at the same time
38) ________ 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
39) ________ 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
40) ________ describes the employees’ skill in serving the client.
A) External marketing
B) Internal marketing
C) Promotional marketing
D) Direct marketing
E) Interactive marketing
41) 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
42) 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 far 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.
43) In which of the following does a customer respond to the functional 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’s mechanic charges high prices for service, but his work is good and worth the price.
E) Alex has no interest in theater, but goes often because her best friend loves plays.
44) Firms have decided to raise fees and lower service for those customers who barely pay their
way and to coddle big spenders to retain their patronage as long as possible. This is an example
of organizing customers by ________.
A) retailer convenience
B) profit tiers
C) psychographic characteristics
D) social influence
E) customer preference
45) 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
46) The ________ rates the various elements of the service bundle and identifies required
actions.
A) company performance analysis
B) voice of customer measurement
C) customer factor measurement
D) importance-performance analysis
E) customer importance analysis
47) Customers who view a service as homogeneous ________.
A) only patronize a preferred service provider
B) judge services on the basis of the providers
C) care less about the provider than about the price
D) pick a service provider based on functional attributes
E) opt for the service with the highest price, irrespective of quality
48) 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
49) Although Brenda previously used the U.S. Postal Service because it offered better prices on
package shipping, she now uses only FedEx, because it gives her the facility of shipping from
any FedEx Kinkos location 24 hours a day. Which of the following factors led to Brenda’s
customer switching behavior?
A) inconvenience
B) pricing
C) response to service failure
D) ethical problems
E) involuntary switching
50) 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
51) 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
52) 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
53) 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.
54) 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
55) 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
56) Which of the following is an example of a gap between service delivery and external
communications?
A) The employees at GBL have been asked to take time to listen to customers, but they must
serve them fast as well.
B) Amanda chose to shop at Alison’s Fashions because the store’s website offered on-the-spot
alterations. However, when she did buy a dress, she had to wait a week to get it altered.
C) Customers at LUX appreciate the personalized services the salespeople offer, but do not like
the store design.
D) Clearwater Spa attendants are well-trained in massage therapy and the services they offer, but
customers rarely return because they don’t like the attendants’ impersonal service.
E) When sales dropped, Styx modernized its stores in order to retain customers, but didn’t realize
that the product quality was the main problem.
57) Ellen came across an ad for a new restaurant which promised authentic French cuisine. When
she ate there, however, she was disappointed to find that the food was mediocre and not very
authentic. Which of the following gaps of service performance does this demonstrate?
A) gap between service-quality specifications and service delivery
B) gap between perceived service and expected service
C) gap between service delivery and external communications
D) gap between consumer expectation and management perception
E) gap between management perception and service-quality specification
58) When Aaron went to his doctor for his annual checkup, he was asked to undergo a number of
tests. Although the doctor assured Aaron that the tests were routine, Aaron thinks that the doctor
is hiding a grave problem from him. 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
59) The most important determinant of service quality is ________ which refers to the ability to
perform the promised service dependably and accurately.
A) empathy
B) assurance
C) responsiveness
D) reliability
E) tangibles
60) The customer service representatives at G.K.’s customer service center must know as much
about the products as possible, so that they can help the customers solve their difficulties without
sounding hesitant or unsure of themselves. Which of the following determinants of service
quality are they being asked to demonstrate?
A) responsiveness
B) assurance
C) empathy
D) reliability
E) tangibility
61) Josh gets his bike serviced at Dean’s Garage even though there’s another garage much closer
to home. He prefers Dean’s because the work is usually done quickly and the staff try to solve the
issues with the bike as soon as possible. Dean’s Garage excels at which of the following five
determinants of service quality?
A) reliability
B) responsiveness
C) assurance
D) empathy
E) tangibles
62) The ________ determinant of service quality refers to the knowledge and courtesy of
employees and their ability to convey trust and confidence in the service they provide.
A) conscientious
B) assurance
C) empathy
D) reliability
E) responsiveness
63) Leo’s manager has asked him and his teammates to demonstrate caring towards customers.
They are instructed to learn the customers’ names, and use the customers’ names while
interacting with them. Repeat customers should get special attention, and the team members
should remember their preferences and habits. The manager is asking the team to be ________.
A) assuring
B) candid
C) empathetic
D) reliable
E) responsive