Chapter 1 Introduction to Services Marketing

GENERAL CONTENT Multiple Choice uestions

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. ore companies are outsourcing some of their service components. !d" oderate" p. #$ %. Service markets are shaped by all of the following e&cept ''''''''''''. a. government policies b. social changes c. global economic change d. business trends e. advances in information technology !c" (asy" p. )$ *. The following are all business trends transforming service markets e&cept ''''''''''''. a. push to increase shareholder value b. growth of franchising c. new agreements on trade in services d. marketing emphasis by non-profit organi+ations e. focus on ,uality and customer satisfaction !c" oderate" p. )$ -. The three broad categories of things processed in services are ''''''''''''. ''''''''''''. and ''''''''''''. a. people" physical ob/ects" data b. people" organi+ations" documents c. people" data" pro/ects d. physical ob/ects" data" documents e. physical ob/ects" organi+ations !a" (asy" p. 10$

0. The two considerations used to categori+e service are '''''''''''' and ''''''''''''. f. promotion versus place" price versus product

g. h. i. /. !d"

place versus time" people versus ideas place versus people" time versus money people versus possession" tangible versus intangible people versus intangible" tangible versus possession oderate" p. 10$

#. 1 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 !b" (asy" p. 1)$ 2. Which of the following is an e&ample of co-production? a. Withdrawing from an 1T . b. (ating fast food. c. Touring an a,uarium. d. 3uying a stereo. e. Selling items on e3ay. !a" Challenging" p. %4$ 5. Customers being turned away or having to wait is an implication of which aspect of services? a. 6eople may be a part of the service e&perience. b. 7ntangible elements usually dominate value creation. c. Services are often difficult to visuali+e and understand. d. Customers may be involved in co-production. e. ost services cannot be inventoried. !e" (asy" p. %4$ ). The three additional 6s of services marketing that e&tend the original four 6s 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 !c" oderate" p. %*$ 14. The service framework for developing effective service strategies e&cludes '''''''''''''''''. a. understanding service products. consumers and markets b. managing the competitive landscape c. applying the - 6s to services d. managing the customer interface

e. implementing profitable service strategies !b" oderate" p. %0$

Chapter ! Custo"er #ehavior in a Services Conte$t

GENERAL CONTENT Multiple Choice uestions

1. The three stages in the consumer decision making process are ''''''''''''. ''''''''''''. and ''''''''''''. f. pre-awareness stage. pre-purchase. purchase stage g. pre-purchase stage. awareness stage. post-purchase stage h. service encounter stage. pre-purchase stage. post-purchase stage i. pre-purchase stage. awareness stage. purchase stage /. pre-purchase stage. service encounter stage. post-purchase stage !e" (asy" p. *-$ %. The key concepts in the pre-purchase stage include all the following e&cept ''''''''''''. f. servuction system g. evoked set h. perceived risk i. +one of tolerance /. credence attributes !a" (asy" p. *-$ *. The prepurchase stage begins with ''''''''''''. f. perceived risk g. formation of e&pectations h. moments of truth i. evoked set /. need arousal !e" oderate" p. *0$ -. Tangible characteristics that customers can evaluate prior to purchase are termed ''''''''''''. f. search attributes g. e&perience attributes h. credence attributes i. satisfaction attributes /. capital attributes !a" oderate" p. *#$

0. Characteristics that customers find hard to evaluate even after consumption are termed ''''''''''''. f. search attributes g. e&perience attributes h. credence attributes i. satisfaction attributes /. capital attributes !c" oderate" p. *#$ #. Which of the following is 89T a type of perceived risk in purchasing and using services? f. :unctional g. 6ermanent h. :inancial i. 6hysical /. Social !b" oderate" p. *2$ 2. Consumer preferences for involvement in the service process may reflect which of the following factors? f. ;ariability in price structures. g. Willingness to travel to a service facility. h. <esire to be served by employee=s face-to-face. i. 1 and C only. /. 3 and C only. !e" oderate" p. -4$ 5. The service operations system does not include ''''''''''''. a. physical facilities b. e,uipment c. other customers d. technical core e. personnel !c" oderate" p. -2$ ). 7n the theater metaphor. the elements include all but the following ''''''''''''. a. positions b. roles c. scripts d. service facilities e. personnel !a" (asy" p. -5$ 14. <uring the post-purchase stage. consumers may make satisfaction /udgments that ''''''''''' their e&perience. f. negatively confirm. positively confirm. disconfirm g. positively disconfirm. confirm. negatively disconfirm

h. disconfirm. positively confirm. negatively disconfirm i. negatively disconfirm. positively disconfirm. positively confirm /. positively confirm. negatively confirm. negatively disconfirm !b" oderate" p. 04$

Chapter % &ositioning Services in Co"petitive Markets

GENERAL CONTENT Multiple Choice uestions

1. 3rand positioning can do all of the following e&cept ''''''''''''. k. generate interest in a service l. create awareness for a service m. meet customers= needs for a service n. differentiate a service o. increase adoption of a service !c" Challenging" p. 05$ %. Which of the following is 89T one of the four basic focus strategies? k. Service focused l. >nfocused m. :ully focused n. ?efocused o. arket focused !d" (asy" p. 0)$ *. 1 '''''''''''' is composed of a group of buyers who share common characteristics. needs. purchasing behavior. or consumption patterns. k. target class l. class m. focal segment n. market segment o. target segment !d" oderate" p. #4$ -. 1!n$ '''''''''''' is one that a firm has selected from among those in the broader market and may be defined on the basis of several variables. k. general segment l. segmentation field m. target segment n. holistic segment o. mass customi+ation

!c" (asy" p. #4$ 0. The same individuals may set different priorities for attributes according to all (@C(6T which of the following? k. The purpose of using the service. l. Who makes the decision. m. The timing of use. n. Whether the individual is using the service alone or with a group. o. The cost of the service. !e" oderate" p. #*$ #. Which of the following is the best e&ample of a determinant characteristic for airline travel? k. 9&ygen masks l. 6lane si+e m. Auality of food and drinks n. Baving cocktail service o. :loatation devices !c" oderate" p. #*$ 2. ''''''''''''. refers to an e&plicit form of positioning strategy that is based upon offering several price-based classes of service concept. each based on packaging a distinct level of service performance across many attributes. a. Service tiering b. Service conscription c. 3road-basing d. 6rice-setting e. atching !a" Challenging" p. #-$ 5. Which of the following is 89T one of the four principles of positioning according to Cack Trout? k. 1 company must maintain a strong labor base. l. 1 company must establish a position in the minds of its targeted customers. m. The position should be singular. providing one simple and consistent message. n. The position must set a company apart from its competitors. o. 1 company cannot be all things to all peopleDit must focus its efforts. !a" oderate" p. #0$ ). arket analysis addresses all of the following factors (@C(6T ''''''''''''. k. overall level of demand l. trend of demand m. government regulations n. geographic location of demand o. market analysis addresses all of the above factors !c" (asy" p. #5$

14. Competitive analysis addresses all of the following factors (@C(6T ''''''''''''. a. e&amines competitors= strengths b. identifies competitors= future positioning c. e&amines competitors= current positioning d. e&amines competitors= weaknesses e. suggests opportunities for differentiation !b" oderate" p. #5$