Services Marketing
Exam Answer Key
Course Introduction
Services Marketing focuses on the unique challenges and strategies involved in marketing intangible services rather than physical goods. The course explores key concepts such as service quality, customer expectations, relationship management, service delivery, and the critical role of employees in service encounters. Students examine the service marketing mix, including product, price, place, promotion, people, process, and physical evidence, and learn how organizations create value, satisfy customers, and build loyalty in service-based industries. Real-world case studies and industry examples help illustrate frameworks for designing effective service strategies and managing customer experiences in sectors such as hospitality, healthcare, financial services, and information technology.
Recommended Textbook
Services Marketing Concepts Strategies and Cases 5th Edition by K. Douglas Hoffman
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15 Chapters
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Chapter 1: An Introduction to Services
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Sample Questions
Q1) Which of the following statements is NOT true?
A)Consumers evaluate goods and services differently.
B)Firms that define their businesses too narrowly by overlooking the service aspects have developed service marketing myopia.
C)Goods are intangible-dominant.
D)Consumers evaluate services based on the experiential aspects provided.
E)The term<b> product</b> refers to both goods and services.
Answer: C
Q2) 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
Answer: E
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3
Chapter 2: The Services Sector: Supersectors and Ethical
Considerations
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Q1) Discuss how the term materialismo snobbery is related to service wages.
Answer: Materialismo snobbery reflects the belief that without manufacturing there will be less for people to service and more people available to do service work.
.As a result,the supply of labor will go up as the demand for labor goes down,which will drive wages down.
Q2) Which of the following statements is NOT an explanation for why service consumers are particularly vulnerable to ethical misconduct?
A)Services possess few search attributes.
B)Services are often specialized and/or technical.
C)Services are deeds,efforts,or performances.
D)The time lapse between performance and evaluation is sometimes significant.
E)Many services are sold without guarantees and warranties.
Answer: C
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4
Chapter 3: Fundamental Differences Between Goods and Services
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Q1) The centralized mass production of services is difficult due to:
A)inseparability.
B)intangibility.
C)homogeneity.
D)perishability.
E)heterogeneity.
Answer: A
Q2) Cannot protect services through patents.
A)intangibility
B)inseparability
C)heterogeneity
D)Perishability
Answer: A
Q3) Which of the following would NOT be considered a tangible clue?
A)the quality of instruction in an educational setting
B)the appearance of employees
C)the appearance of the firm's physical facilities
D)the smile on an employee's face
E)the quality of paper stock use to produce a firm's brochures.
Answer: A
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Chapter 4: Serviced Consumer Behavior
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Sample Questions
Q1) The consumer decision process consists of:
A)stimulus,problem awareness,and purchase stages.
B)prepurchase,consumption,and postpurchase stages.
C)problem awareness,evaluation of alternatives,and postpurchase behavior.
D)stimulus,information search,and postpurchase behavior.
E)information search,purchase,and postpurchase behavior.
Q2) Discuss the special considerations about services during the postchoice stage of the consumer decision process.
Q3) Which of the following formulas correctly illustrates the expectancy confirmation theory?
A)Confirmation = Customer satisfaction Perceptions Expectations
B)Customer satisfaction = Perceptions Expectations
C)Customer satisfaction = Perceptions Expectations
D)Customer satisfaction = Perceptions + Expectations
E)Confirmation = Customer satisfaction Expectations
Q4) Discuss the special considerations about services during the consumption stage of the consumer decision process.
Q5) Discuss the special considerations about services during the prepurchase stage of the consumer decision process.
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Chapter 5: The Service Delivery Process
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Q1) The objective of decoupling is:
A)separating consumption in time and space.
B)unbundling services so that they may be purchased separately.
C)separating the technical core of the operation from the high customer contact areas of the firm so that efficiencies may be achieved.
D)managing consumers so that they do not negatively influence one another's service experience.
E)separating co-workers who,due to their differences,decrease the operational efficiency of the system.
Q2) Production-lining a service operation can be achieved through:
A)utilizing hard technologies.
B)customizing services.
C)utilizing soft technologies.
D)meeting individual customer needs.
E)utilizing hard and soft technologies.
Q3) Define the fundamental components of a service blueprint.
Q4) Discuss the type of operation that would typify peak efficiency.
Q5) Describe the difficulties associated with applying efficiency models to service organizations.
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Chapter 6: The Pricing of Services
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Q1) Effective service providers enhance the ____ value of services.
A)product
B)service
C)image
D)time
E)personnel
Q2) A consumer's price sensitivity will decrease as:
A)the perceived number of substitutes increase.
B)switching costs decrease.
C)the shared costs with third parties increase.
D)the perceived unique value of the service decreases.
E)the customer's ability to build an inventory increases.
Q3) Discuss the demand considerations that differentiate the pricing of services from the pricing of goods.
Q4) Discuss the concept of cross-price elasticity as it relates to service pricing.
Q5) Discuss satisfaction-based,relationship,and efficiency approaches to pricing.
Q6) In general,what guidelines should a service provider follow when formulating a pricing strategy?
Q7) Discuss the circumstances under which price segmentation is most effective.
Q8) Discuss how consumers relate value and price.
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Chapter 7: Developing the Service Communication Strategy
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Q1) The array of communication tools available to marketers including advertising,personal selling,publicity,sales promotions,and sponsorships are called:
A)the communication mix.
B)the communication strategy.
C)the impersonal sources.
D)face-to-face sources.
E)the noncommunication strategy.
Q2) The ____ is an overall favorable impression or unfavorable impression based on early stages of the service encounter.
A)cognitive dissonance
B)environmental stimulus
C)visual pathway
D)halo effect
E)technical service quality
Q3) What conflicts often arise in turning professional service providers into proactive marketing personnel?
Q4) Discuss the basic guidelines for developing service communications.
Q5) Discuss the concept of "visual pathway."
Q6) Explain the difference between type 1,type 2,and type 3 service personnel.
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Chapter 8: Managing the Firms Physical Evidence
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Sample Questions
Q1) Which of the following is an example of an avoidance behavior?
A)spending money
B)interacting with employees
C)browsing
D)ignoring service providers
E)all of these
Q2) Consumer moods and attitudes are types of:
A)physiological customer responses.
B)emotional customer responses.
C)individual approach behaviors.
D)internal response moderators.
E)cognitive customer responses.
Q3) The ____ model helps explain the effects of the service environment on consumer behavior.
A)servuction model
B)scale of market entities
C)conceptual model of service quality
D)service blueprint
E)stimulus-organism-response
Q4) List the stages of a servicescape development plan.
10
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Chapter 9: People As Strategy: Managing Service Employees
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Q1) The two primary roles that boundary-spanning personnel fulfill are:
A)sales and profit-production.
B)sales and customer service.
C)information transfer and representation.
D)process flow and service.
E)information transfer and profit production.
Q2) Discuss the role of boundary-spanning personnel.
Q3) Initially,bank tellers were uncomfortable with their new task of selling services to customers.They viewed themselves as bank tellers and not salespersons.This is an example of which type of conflict?
A)precise-duty conflict
B)channel conflict
C)organization/client conflict
D)inter-client conflict
E)person/role conflict
Q4) Discuss the customer profiles developed to assist customer contact personnel in dealing with "customers from hell."
Q5) The technology involved with the business is nonroutine and complex.
A)control-oriented approach
B)involvement-oriented approach
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Chapter 10: People As Strategy: Managing Service Customers
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Q1) What is an approach for service firms trying to accelerate the creation of their own expert performers?
A)Discourage novice consumers.
B)Audit consumer performance.
C)Let consumers watch each other.
D)Use self-service technology.
E)Encourage novice and expert interaction.
Q2) Which of the following statements related to attribution is NOT true?
A)There is a proven tendency for people to claim more responsibility for success in situations where theoutcome is produced with others.
B)There is a proven tendency for people to claim less responsibility for failure in situations where theoutcome is produced with others.
C)With self-service technology,there is a tendency to blame the technology when things go wrong.
D)With self-service technology,there is a tendency for consumers to credit the technology when theexperience is satisfying.
E)A "self-serving bias" has been shown to be applicable to situations of co-production of service.
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Chapter 11: Defining and Measuring Customer Satisfaction
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Sample Questions
Q1) The number of competing alternative service providers available has the biggest influence on:
A)desired service.
B)perceived service roles.
C)ideal service
D)adequate service expectations.
E)derived expectations.
Q2) According to the Journal of the Academy of Marketing Science,the most studied area in marketing is:
A)employee satisfaction.
B)customer satisfaction.
C)green marketing.
D)advertising effectiveness.
E)market reach.
Q3) When forming customer expectations,the firm's physical facility acts as a(n):
A)enduring service intensifier.
B)transitory service intensifier.
C)explicit service promise.
D)implicit service promise.
E)situational factor.
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Chapter 12: Defining and Measuring Service Quality
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Q1) List the five dimensions of service quality.Which dimension is typically rated by customers as the most important? Which is typically rated as the least important?
Q2) ____ is a short-term,transaction-specific measure.
A)Customer satisfaction
B)Focus group interviews
C)Noncustomer research
D)Service quality
E)Customer retention
Q3) Management's inability to translate what consumers want into a written business plan will increase the size of the _____ gap.
A)knowledge
B)standards
C)delivery
D)communications
E)confirmation
Q4) Explain why the productivity of education and government services is notoriously difficult to measure.
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14
Chapter 13: Complaint and Service Recovery Management
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Q1) Ritz Carlton employees take initiative to spend up to $2,000 on recovery efforts.This is an example of which service recovery basic rule of thumb?
A)Measure the costs.
B)Actively encourage complaints.
C)Train employees
D)Empower the front line.
E)Respond quickly.
Q2) ____ complaints are registered for the expressed purpose of altering an undesirable state of affairs.
A)Ostensive
B)Instrumental
C)Reflexive
D)Noninstrumental
E)Critical
Q3) a disabledindividual who isunable to gain access to the managing partner's office
A)core service failures
B)failures relating to customerneeds and requests
C)failures relating to unprompted/unsolicited employee actions
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Chapter 14: Customer Loyalty and Retention
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Q1) The strategy for cultivating customer loyalty that involves protecting confidential information and telling the customers the truth,even when it hurts,is:
A)developing a proper perspective.
B)providing discretionary effort.
C)providing incentives.
D)building trust through reliability.
E)staying in touch.
Q2) ____ refers to the average dollar amount per sale multiplied by the average number of times customers reorder.
A)Lifetime value of a customer
B)Customer acquisition cost
C)Lifetime profit of a customer
D)Lifetime cost of a customer
E)Customer retention cost
Q3) Discuss the concepts of frequency marketing,relationship marketing,and aftermarketing.
Q4) Define the concepts and explain the relationship between customer loyalty and customer retention.
Q5) Under what conditions is it no longer worthwhile to keep a customer?
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Chapter 15: Pulling the Pieces Together: Creating a World Class
Service Culture
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Q1) Which informal approach helps firms assess their current culture?
A)direct questioning
B)attitude check
C)observational and indirect questioning
D)service audit
E)consulting
Q2) Which of the following service audit questions belong within the employee productivity component?
A)How does the firm define customer loyalty?
B)Does the firm set employee retention goals?
C)Does the firm measure profits from referrals?
D)How does the firm measure employee productivity?
E)When customers do not return,do we know why?
Q3) Which of the following is NOT one of the key relationships that comprise the market-focused management approach?
A)inconsistency of the service strategy with the systems
B)firm's service strategy must be communicated to its customers
C)firm's service strategy needs to be communicated to the firm's employees
D)the customer/service provider interaction
Page 17
E)the impact of organizational systems upon the customer's service experience
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