SHANTI BUSINESS SCHOOL

PGDM TRIMESTER- III END TERM EXAMINATION

JULY - 2015
SERVICE MARKETING
TIME: 3 HRS. Max. Marks: 100
Instructions:
1. The answers to Part A (MCQ) questions are to be written only in OMR sheet provided to you.
2. Only 30 minutes will be given to answer the MCQ. After that it will be collected . Use only
blue/black pen to darken the circle of OMR sheet.
3. Answers should be written neatly, briefly and to the point.
4. Main and sub question numbers should be clearly specified in the answer book.
5. Answer to sub questions of main question should be written in continuous sequence.

PART A
Total Marks: 25
1. Which of the following is not a tangible dominant?
a) Detergents
b) Automobiles
c) Investment Management
d) Software
2. Evaluation of Medical Diagnosis is mainly depended on:
a) High in experience quality
b) High in credence quality
c) High in search quality
d) Both a and b
3. --------is defined as the caring, individualized attention that the firm provides to its customers.
a) Empathy
b) Responsiveness
c) Sympathy
d) Assurance
4. Which of the following is not a types of service encounter?
a) Remote encounter
b) Phone encounter
c) Face to face encounter
d) Check in encounter
5. ------are the only service distributors which do not require any direct human interactions:
a) Electronic channels
b) SSTs
c) Direct Service Channels

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 d) All the above
6. Which of the following sets of terms best describe the service:
a) Object, device, performance
b) Effort, object, deeds
c) Object, device, things
d) Deeds, efforts, performance
7. The primary solution to overcome the centralized mass production problems attributed to
inseparability is:
a) The careful selection of service employees
b) The management of service consumers
c) The use of multisite locations to distribute services
d) The training of public contact personnel
8. Which of the following is not an advantage of standardized service?
a) Less expensive
b) Meet customer’s needs
c) Deliver faster
d) More consistent
9. Solutions used to minimize the marketing problems attributed to heterogeneity include:
a) standardizing or customizing the service
b) using multisite locations
c) stressing tangible clues
d) appealing to different market segments with different demand patterns
10. Complications attributed to perish ability include all of the following except:
a) Services which are not sold when they become available cease to exist.
b) The production and consumption of services cannot be separated by time and space.
c) Statistical sampling techniques are of little use in services.
d) All of the above are complications associated with perish ability.
11. Which of the following strategies increases the supply of service available to consumers?
a) The use of creative pricing strategies
b) The use of reservation systems
c) Developing nonpeak demand
d) Capacity sharing
12. Service consumers tend to be more brand loyal than goods consumers because _____:
a) More choices are available.
b) Brand loyalty lowers the amount of perceived risk.
c) Each service provider provides many brands.
d) The prices of their main provider are usually less expensive for loyal customers.
13. Customer Ultimately determines:

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 a) The level of marketing effectiveness and operational efficiency
b) The cycle of demand
c) The length of the service experience
d) All the above
14. Total customer cost consists of all of the following except:
a) Time cost
b) Psychic cost
c) Social cost
d) Energy cost
15. Customer frustration resulting from receiving poor service is most similar to:
a) Image costs
b) Monetary costs
c) Psychic costs
d) Time costs
16. Differentiation approaches such as competence, courtesy, reliability, and responsiveness are forms
of:
a) product differentiation
b) personnel differentiation
c) image differentiation
d) service differentiation
17. A firm that offers "service guarantees" is attempting to accomplish which of the following
guidelines for developing service communications?
a) Tangibilize the intangible
b) Develop a word-of-mouth communication's network
c) feature the working relationship between provider and customer
d) None of the above
18. Customer retention, positive word-of-mouth, and customer referrals are most likely due to:
a) Customer Loyalty
b) Service Quality
c) Customer Satisfaction
d) External Service Value
19. Strategies developed to minimize this "principle of waiting" have led to increased profit
opportunities for the firm because:
a) preprocess waits feel longer than in process waits
b) unoccupied time feels longer than occupied time
c)  anxiety makes the wait seem longer
d) uncertain waits are longer than known, finite waits

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20. Disney informs guests how long the wait will be along various points of the lines that form for
each of its attractions. This strategy helps minimize the effects of which of the following
"principles of waiting?"
a) uncertain waits are longer than known, finite waits
b) unoccupied time feels longer than occupied time
c) the more valuable the service, the longer the customer will wait
d) preprocess waits feel longer than in process waits
21. __________ is the level of service quality customer believes is likely to occur.
a) desired service
b) predicted service
c) adequate service
d) ideal service
22. The firm's overemphasis on cost reduction and short-term profits will increase the size of the:
a) knowledge gap
b) delivery gap
c) standards gap
d) service gap
23. Which of the following is NOT a factor influencing the delivery gap?
a) willingness to perform
b) role ambiguity
c) overpromising
d)  inadequate support
24. Which of the following is not a benefit of customer satisfaction?
a) the firm is more insulated from price competition
b) the firm provides a positive work environment for its employees
c) satisfied customers make purchases more frequently
d) all the above
25. As a service organization's hierarchy becomes more complex and more levels of management are
added, the firm is more likely to experience a:
a) knowledge gap
b) standards gap
c) communications gap
d) standards gap

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 PART B
TOTAL MARKS: 50
Answer the following questions: (Any six)
1. What is self-Service Technology? Explain the types of self-service technology. Explain the
implications of self-service technology on marketing of services.
2. Explain the concept of Flower of Service and describe each of its petals and their managerial
implications.
3. What is Servicescape? Explain the strategies of the Servicescape.
4. What is Service Recovery? Explain the principles of service recovery.
5. Explain the seven categories of new service development.
6. Explain the different approaches to Pricing of Services.
7. Describe the strategies to enhance customer participation in service delivery.
8. What is customer service expectation and perception? What factors influence customer
expectations and perception of service?

PART C
TOTAL MARKS: 25
Read the following case and answers the following questions in detail:

1. Due to changes taking place as part of globalization, the financial sector is facing intense
competition. Banks are aggressively marketing their products and concentrating on attracting new
customers so as to maintain or increase their market share. Customers have more options
compared to the situation prevalent a decade ago. If customers are not satisfied, they shift their
accounts to other banks. Thus, it has become important for banks to know customer perceptions
about services provided by them. The resultant increase in competition has made service quality a
key differentiating factor for banks attempting to improve their market and profit positioning.

Explain the various service quality dimensions and important aspects in each dimension that banks
need to focus to stand against stiff competition.

2. GAP model is useful to measure and improve service quality. The model is indicative for service
marketer of the requirements for providing high quality service. The gaps can be used for
continuous improvement of service by pinpointing the areas of service failures.
a) Draw the diagram of GAP model.
b) Explain the GAP model with a hypothetical example of any online service business.

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