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. More companies are outsourcing some of their service components.
(d; Moderate)
2. Service markets are shaped by all of the following except ____________.
a. government policies
b. social changes
c. global economic change
d. business trends
e. advances in information technology
(c; Easy)
3. Developments in IT and communication include all of the following, except
____________.
a. User-generated content
b. Artificial technologies
c. Internet of Things
d. Social Changes
(d; Moderate)
4. The non-ownership perspective to define Services includes the following.
a. Time-based
b. Rental
c. Exchange for money, time and effort
d. Expectation to obtain value
(b, Moderate)
5. Which of the following are included in the four categories of services processing.
a. People processing
b. Possession processing
c. Mental stimulus processing
d. Information processing
6. In order to design and implement effective service processes, which of the following
are important considerations.
a. Operational inputs and outputs can vary
b. Customers are often involved in co-production
c. Demand and capacity need to be balanced.
d. a & b
e. a, b, & c
(e, Moderate)
7. Which of the following is an example of co-production?
a. Withdrawing from an ATM
b. Easting fast food
c. Touring an aquarium
d. Selling items on eBay
e. Buying a stereo
(a, Challenging)
8. 8. Links in the Service-Profit Chain include all of the following except
a. Customer loyalty,
b. Revenue growth
c. Service quality
d. Employee loyalty
e. Top management leadership
(b, Moderate)
9. The three additional Ps of services marketing that extend the original four Ps 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; Moderate)
10. The service framework for developing effective service strategies excludes
_________________.
a. understanding service products, consumers and markets
b. managing the competitive landscape
c. applying the 4 Ps of marketing to services
d. designing and managing the customer interface
e. developing customer relationships
(b; Moderate)
11. Services account for 65% to 80% of the GDP in most developed nations.
(True, Easy)
12. The dramatic development of Government policies is the most important force
transforming service markets
(False, Easy)
13. Services require a form of acquisition through which customers can obtain
benefits.
(False, Moderate)
14. Service production and consumption are always simultaneous
(True, Difficult)
15. One way of avoiding turning customers away or having them wait is to use,
dynamic pricing and reservations.
(True, Difficult)
16. HR is often seen from a strategic perspective than a staff function
(False, Easy)
17. The service-profit chain includes collaboration between marketing, operations, IT
and HR
(True, Easy)
18. Service distribution can take place through physical channels only
(False, Easy)
19. Customers may go beyond the money to assess how much time and effort are
involved in service consumption
(True, Easy)
20. Despite advances in technology, many services will always need direct interaction
between customers and service employees.
(True, Easy)
Short Answer
21. What are the five broad categories within the non-ownership framework?
Rented goods, defined space and place rentals, labor and expertise rental, access to
shared physical environments, and systems and networks: access and usage.
(Moderate)
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