Chapter 1:

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.
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
3. The following are all business trends transforming service markets except ____________.
a. push to increase shareholder value
b. growth of franchising
c. new agreements on trade in services
d. marketing emphasis by non-profit organizations
e. focus on quality and customer satisfaction
4. The three broad categories of things processed in services are ____________, ____________,
and ____________.
a. people; physical objects; data
b. people; organizations; documents
c. people; data; projects
d. physical objects; data; documents
e. physical objects; organizations
5. The two considerations used to categorize service are ____________ and
____________.
a. promotion versus place; price versus product
b. place versus time; people versus ideas
c. place versus people; time versus money
d. people versus possession; tangible versus intangible
e. people versus intangible; tangible versus possession
6. A 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
7. Which of the following is an example of co-production?
a. Withdrawing from an ATM.
b. Eating fast food.
 c. Touring an aquarium.
d. Buying a stereo.
e. Selling items on eBay.
8. Customers being turned away or having to wait is an implication of which aspect of
services?
a. People may be a part of the service experience.
b. Intangible elements usually dominate value creation.
c. Services are often difficult to visualize and understand.
d. Customers may be involved in co-production.
e. Most services cannot be inventoried.
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
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 to services
d. managing the customer interface
e. implementing profitable service strategies
11. A movie theater seat is an example of _____________.
a. renting durable goods
b. closely engaging customers in the service process
c. renting portions of a larger physical entity
d. the centrality of time to services
e. differences in customer choice criteria
12. Education is an example of a/an _____________ service.
a. people-processing
b. information processing
c. mental stimulus processing
d. possession-processing
e. physical processing
13. Service firms have reservations systems because.
a. intangible elements usually dominate value creation.
b. most service products cannot e inventoried.
c. distribution may take place through non-physical channels
d. customers may be involved in co-production
e. all of the above
14. Which of the following is the best example of a supplementary service?
a. Appliance maintenance
b. Hotel room rental
 c. Fast food consumption
d. House cleaning
e. Landscaping
15. Online educational programs offered by the University of Phoenix are an example of
_____________.
a. revolutionary products/services
b. collective products/services
c. additional services
d. supplementary services
e. core products/services

Keys: D, C, C, A, D, B, A, E, C, B, C, C, B, A, E

Chapter 2:

1. The three stages in the consumer decision making process are ____________,
____________, and ____________.
a. pre-awareness stage, pre-purchase, purchase stage
b. pre-purchase stage, awareness stage, post-purchase stage
c. service encounter stage, pre-purchase stage, post-purchase stage
d. pre-purchase stage, awareness stage, purchase stage
e. pre-purchase stage, service encounter stage, post-purchase stage
2. The key concepts in the pre-purchase stage include all the following except ____________.
a. servuction system
b. evoked set
c. perceived risk
d. zone of tolerance
e. credence attributes
3. The prepurchase stage begins with ____________.
a. perceived risk
b. formation of expectations
c. moments of truth
d. evoked set
e. need arousal
4. Tangible characteristics that customers can evaluate prior to purchase are termed
____________.
a. search attributes
b. experience attributes
c. credence attributes
d. satisfaction attributes
e. capital attributes
5. Characteristics that customers find hard to evaluate even after consumption are termed
____________.
a. search attributes
b. experience attributes
c. credence attributes
 d. satisfaction attributes
e. capital attributes
6. Which of the following is NOT a type of perceived risk in purchasing and using services?
a. Functional
b. Permanent
c. Financial
d. Physical
e. Social
7. Consumer preferences for involvement in the service process may reflect which of the following
factors?
a. Variability in price structures.
b. Willingness to travel to a service facility.
c. Desire to be served by employee's face-to-face.
d. A and C only.
e. B and C only.
8. The service operations system does not include ____________.
a. physical facilities
b. equipment
c. other customers
d. technical core
e. personnel
9. In the theater metaphor, the elements include all but the following ____________.
a. positions
b. roles
c. scripts
d. service facilities
e. personnel
10. During the post-purchase stage, consumers may make satisfaction judgments that
___________ their experience.
a. negatively confirm, positively confirm, disconfirm
b. positively disconfirm, confirm, negatively disconfirm
c. disconfirm, positively confirm, negatively disconfirm
d. negatively disconfirm, positively disconfirm, positively confirm
e. positively confirm, negatively confirm, negatively disconfirm
11. To develop effective marketing strategies, marketers must understand how people make
decisions about buying and using service, what the experience of service delivery and
consumption is like for customers, and ____________.
a. how they evaluate competitors
b. how they evaluate the experience
c. how often they utilize competitors
d. how often they complain to the service firm
e. the length of their relationship with the service firm
12. An example of a service high in credence attribute is _____________.
a. Extreme sports
b. vacation
 c. spa
d. musical performance
e. surgery
13. XL Capital portrays its logo as a giant obelisk between cliffs and a lighthouse to
____________.
a. build trust with its clientele and generate a moment of truth.
b. demonstrate its size and fundamental strength in protecting companies from risk.
c. provide detailed information about its financial solubility.
d. provide a visual example of its prowess to enhance experiential attributes.
e. act as an advertisement that highlights important aspects of the company.
14. For customers of credit card companies, which of the following statements are true?
a. When they make calls to the call center, these are usually the few moments of truth.
b. There is very little of the theater performance.
c. They usually experience high-contact with the service personnel.
d. Only A and B.
e. All of the above.
15. Dental customers ____________ to avoid delays and ensure effective use of dental
professionals' time.
a. sit quietly in the waiting room
b. commit positive word-of-mouth
c. confirm and honor appointments
d. should get to know hygienists
e. provide accurate histories

Keys: E, A, E, A, C, B, E, C, A, B, B, E, B, D, C

Chapter 4:

1. ____________ facilitate use of the core product and add value and differentiation to the
customer's overall experience.
a. Fixed services
b. Value-added provisions
c. Marketing theories
d. Supplementary services
e. Service providers
2. ____________ supply the central, problem-solving benefit that customers seek.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services
3. ____________ augment the core product, both facilitating its use and enhancing its value and
appeal.
a. Core products
b. Supplementary services
c. Delivery processes
 d. Sustaining processes
e. Conditional services
4. A company's ____________ helps to determine which supplementary services
should be included.
a. location
b. delivery system
c. key service representative
d. service atmosphere
e. market positioning strategy
5. The order-taking process should be ____________, ____________, and ____________ so that
customers do not waste time and endure unnecessary mental physical effort.
a. short; curt; abrupt
b. simple; slow; effortful
c. short; sweet; ineffective
d. powerful; simple; abrupt
e. polite; fast; accurate
6. ____________ represent a special type of order taking that entitles customers to a specific unit
of service.
a. Suggestions
b. Reservations
c. Trackers
d. Repossessions
e. Contracts
7. At its simplest, ____________ consists of immediate advice from a knowledgeable service
person in response to the request: "What do you suggest?"
a. billing
b. payment
c. consultation
d. hospitality
e. selling
8. Which of the following is NOT considered an example of a hospitality element?
a. Greeting
b. Toilets and washrooms
c. Advice
d. Food and beverages
e. Transport
9. Which of the following is NOT one of the eight basic steps to developing and delivering a
branded customer experience?
a. Target profitable customers, employing behavior segmentation rather than
demographics.
b. Achieve a superior understanding of what your targeted customers value.
c. Design facilities that delight your customers and reduce complaints.
d. Give employees the skills, tools, and supporting processes needed to deliver the
defined customer experience.
e. Make everyone a brand manager.
 10. Which of the following is NOT one of the seven categories of new services?
a. Target profitable customers, employing behavior segmentation rather than
demographics.
b. Achieve a superior understanding of what your targeted customers value.
c. Design facilities that delight your customers and reduce complaints.
d. Give employees the skills, tools, and supporting processes needed to deliver the
defined customer experience.
e. Make everyone a brand manager
11. DHL offers customers the opportunity to track the movements of their packages, which have
been assigned a unique identification number. This is an example of ____________.
a. order-taking
b. safekeeping
c. information
d. consultation
e. exceptions
12. Customers who visit Giordano outlets are greeted with a cheerful "Hello" and "Thank you" when
they enter and leave the store. That is an example of ____________ .
a. consultation
b. hospitality
c. exceptions
d. courtesy
e. safekeeping
13. Which of the following is an example of a special request in advance of service delivery?
a. Dietary requirements
b. Complaints
c. Warranties
d. Refunds
e. Suggestions
14. Singapore Airlines Raffles Class is an example of a(n) ____________.
a. branded house
b. endorsed brand
c. house of brands
d. sub-brand
e. clear strategy
15. Which of the following is NOT one of British Airways seven distinct air travel products?
a. Deluxe service (First Class)
b. Club World (Business Class)
c. Club Britain (Business Class)
d. Club Europe (Business Class)
e. Euro-Traveler (Economy Class)

Keys: D, A, B, E, E, B, C, C, C, C, C, B, A, D, C

Chapter 5:
1. When customers visit the service site, which factor/(s) must be considered in the design of the
service?
a. How expensive the service is.
b. Convenience of the location.
c. Operational hours.
d. A & B only.
e. B & C only.
2. _______________ is a key driver of channel choice.
a. Risk reduction
b. Convenience
c. Colorful photos of the product
d. Internet access
e. Lower prices
3. A truck stop is a good example of a ____________.
a. centralized control center
b. single-source facility
c. k-minus strategy
d. multi-purpose facility
e. cash cow
4. Which of the following is NOT one of the factors that encourage extended operating hours?
a. Availability of employees to work during "social" hours.
b. Economic pressure from consumers.
c. Changes in laws.
d. Economic incentives to improve the use of assets.
e. Automated self-service facilities.
5. The four interesting innovations for service delivery arising from the Internet are all of the
following EXCEPT _____________.
a. creation of websites as a delivery channel for information-based services
b. DVDs that can store huge amounts of information
c. development of "smart" mobile phones linking users to the Internet wherever they are
d. usage of voice recognition technology that allows customers to give information and
request service by speaking into a microphone
e. smart card containing a microchip acting as an electronic purse containing digital
money
6. All of the factors below are luring customers into virtual stores EXCEPT ____________.
a. potential for better prices
b. ease of search
c. broader selection
d. opportunities for networking
e. 24-hour service with prompt delivery
7. Integrating mobile devices into the service delivery infrastructure can be used as a
means to ____________ services, ____________ customers to opportunities or
problems, and ____________ information in real time to ensure that it is continuously
accurate and relevant.
a. Access; alert; update
 b. Complement; alert; conceal
c. Access; attract; conceal
d. Access; guide; conceal
e. Complement; guide; conceal
8. ____________ has become a popular way to expand delivery of an effective service
concept, embracing all of the seven Ps, to multiple sites, without the level of investment
capital that would be needed for rapid expansion of company-owned and managed sites.
a. The Internet
b. International trade
c. Franchising
d. Sole proprietorship
e. Limited partnership
9. Franchisors usually seek to exercise control over all aspects of the service performance through
tightly defined ____________.
a. service standards
b. procedures
c. scripts
d. physical presentations
e. all of the above
10.  A local presence may be necessary when exporting information-based services for which of the
following reasons?
a. Appeasing local citizens.
b. Conducting secondary research.
c. Building personal relationships.
d. Bargaining for cheaper facilities.
e. Restructuring out of date systems.
11. _____________ is an example of a service where the main mode of delivery is for the service
provider to go to their customers.
a. Banyan Tree Resorts
b. Barnes and Nobles
c. Royal Flying Doctor
d. Starbuck
e. Dunkin' Donuts
12. Elaborate statistical analysis, in the form of ____________, is sometimes used to aid
decisions on where to locate supermarkets and similar large stores relative to
prospective customers' homes and workplaces.
a. binary regression
b. cluster analysis
c. structural equation models
d. gravity models
e. predictive models
13. Which one of the following methods is NOT a banking service that can be delivered
remotely?
a. Face-to-face.
b. Internet.
 c. Mobile phone.
d. Call centers.
e. All of the above are bank service delivery methods.
14. Firms like Dunkin' Donuts and Subway sharing space with quick service restaurants is an
example of a(n) ____________.
a. single source market
b. economy of scale
c. ministore
d. economy of scope
e. multi-brand strategy
15. Which of the following is an example of a franchised service firm?
a. Saks
b. Wal-Mart
c. Barnes & Noble
d. Starbucks
e. Pier One Imports

Keys: E, B, D, A, B, D, A, C, E, C, C, D, A, C, A

Chapter 6:

1. Which of the following is NOT an objective for service pricing?

A. Build supply.
B. Build demand.
C. Seek profit.
D. Cover costs.
E. Build a user base.
2. ____________ recognizes that resource expenses are linked to the variety and complexity of
goods and services produced and not just on physical volume.
A. Break-even analysis
B. Variable cost
C. Fixed cost
D. Activity-based costing
E. Semi-fixed cost
3. ____________ is defined as the sum of all the perceived benefits minus the sum of all the
perceived costs of service.
A. Net value
B. Consumer surplus
C. Gross value
D. Moderate value
E. Consumer demand
4.  ____________, also known as customized or personalized pricing, refers to the practice of price
discrimination.
A. Critical ratio pricing
B. Dynamic pricing
C. Collective pricing
 D. Fixed pricing
E. Classical pricing
5. Which of the following intensifies price competition?
A. Non-price-related costs of using competing alternatives are high.
B. Wider distribution of competitor and or substitution offers.
C. Personal relationships have been established.
D. Switching costs are high.
E. Customer need for time and location specificity.
6. Which of the following reduces price competition?
A. Increasing the number of competitors.
B. Increasing the number of substituting offers.
C. Wider distribution of competitor and/or substitution offers.
D. High switching costs for consumers.
E. Increasing surplus capacity in the industry.
7.  Revenue management is the most effective when applied to firms characterized by all the
following conditions EXCEPT ______________.
a. perishable inventory
b. relatively fixed capacity
c. varying customer price sensitivity
d. fixed inventory
e. variable demand
8. Price elasticity is computed as ____________.
a. percentage change in demand / percentage change in price
b. percentage change in price / percentage change in demand
c. percentage change in supply / percentage change in price
d. percentage change in demand / percentage change in supply
e. percentage change in price / percentage change in supply
9. Which of the following is NOT an example of a non-physical fence?
A. Time or duration of use.
B. Group membership.
C. Service level.
D. Flexibility of ticket usage.
E. Location of reservation.
10. Putting service pricing into practice includes thinking of all the following questions EXCEPT
____________.
A. What should be the specified basis for pricing?
B. How much to charge?
C. What kind of customers should be charged more?
D. Who should collect payment?
E. When should payment be made?
11. Which of the following is NOT a firm that uses dynamic pricing?
A. Easyinternetcafe.com
B Yahoo.com
C Tickets.com
 D. Amazon.com
E All of the above firms use dynamic pricing.
12. Which of the following is NOT listed in the chapter as a firm that uses online reverse auctions?
A. Priceline.com
B. Hotwire.com
C. eBay.com
D. Lowestfare.com
E. All of the above use online reverse auctions.
13. The amount of seats reserved for each class of American Airlines passengers on a flight is
referred to as a ____________.
A. field
B. row
C. column
D. bucket
E. gamble
14. Which of the following is the best example of a service industry that utilizes price complexity?
A. Fast food
B. Education
C. Cellular phone
D. Moving/transportation
E. Roofing
15. Which of the following is the best example of a service firm that attracts customers with low
base prices and then piles on additional fees.
A. Rental cars
B. Fast food
C. Education
D. Roofing
E. Consulting

Key: a, d, a, b, b, d, d, a, c, c, b, c, d, c, a

Chapter 7:

1. ____________ and ____________ represent important ways to add value to a product.

A. Reciprocation; classification
B. Information; classification
C. Information; consultation
D. Reciprocation; consultation
E. Reciprocation; mediation
2. One approach to training customers, recommended by advertising experts is to ____________.
A. train employees like customers
B. use radio advertising
C. show service delivery in action
D. design palpable service environments
E. explain service procedures in advance
3. In ____________ services, where much of the firm's expertise is hidden, firms may need
to illustrate equipment, procedures, and employee activities that are taking place
____________.
A. high-contact; front-stage
B. low-contact; backstage
C. high-contact; backstage
D. low-contact; front-stage
E. high-contact; intangibly
4. Which of the following is NOT one of the four problems for marketers seeking to promote a
service's benefits?
A. Distribution
B. Abstractness
C. Generality
D. Non-searchability
E. Mental impalpability
5. ____________ outside peak demand periods poses a serious problem for service industries with
____________, like hotels.
A. Low demand; high fixed costs
B. Low demand; low fixed costs
C. High demand; high fixed costs
D. High demand; low fixed costs
E. High demand; low variable costs
6. Which of the following would be classified under generality in intangibility?
A. Safety.
B. A hamburger.
C. An airline seat.
D. Facility appearance.
E. Expert advice.
7. Ads based on ____________ strategies are often perceived as more informative than
____________ ads.
A. visualization; text-only
B. expert; power
C. visualization; affective
D. utilitarian; text-only
E. visualization; expert
8. Which of the following represents a broad target audience category?
A. Donors
B. Competitors
C. Employees
D. Contractors
E. Franchisers
9. Which of the following is NOT a common educational and promotional objective in
service settings?
A. Build awareness of and interest in an unfamiliar service or brand.
B. Reposition a service relative to competing offerings.
 C. Familiarize customers with service processes in advance of use.
D. Encourage trial of competing products.
E. Recognize and reward valued customers and employees.
10. Which of the following is NOT a communication task for which marketers use the
Internet?
A. Promoting consumer awareness and interest.
B. Providing information and consultation.
C. Facilitating two-way communications with customers through e-mail and chat rooms.
D. Enabling customers to place orders.
E. Reducing service demand through electronic tracking.
11.  ____________ uses the metaphor of reaching the top to appeal to their customers.
A. Prudential
B. Allstate
C. Accenture
D. MasterCard
E. Merrill Lynch
12. Tesco's success is built on ____________.
a. direct marketing
b. advertising
c. personal selling
d. sales promotion
e. public relations
13. SAS International Hotels devised which of the following sales promotions targeted at
older consumers?
A. First to provide senior citizen discounts.
B. Provided a discount percent equivalent to their age.
C. A free hotel room if large family gatherings were held at the hotel.
D. Free ballroom service for large family gatherings.
E. Discount for large family gatherings.
14. ____________ refers to a group of technologies for distributing audio or video programs over
the Internet using a publisher/subscriber method.
A. Podcasting
B. Webcasting
C. Websiting
D. Webenabling
E. Webscribing
15. _____________ technology facilitates the rise of user-generated content.
A. Podcasting
B. Narrowcasting
C. TiVo
D. YouTube
E. Web 2.0

Keys: C, C, B, A, A, C, A, C, D, E, D, A, B, A, E

Chpater 8:
1. Blueprinting is a more complex form of ____________.
a. linear graphing
b. flow charting
c. Cox & Snell analysis
d. non-linear graphing
e. cluster analysis
2. The first step in developing a service blueprint is ____________.
a. to reach a consensus on which activities are more important than others
b. to identify all the key activities involved in creating and delivering the service
c. to identify the links between a set of alternative service possibilities
d. to identify the key employees who will be enacting the service blueprint
e. to identify the key customers who will be participating in the service
3. Service blueprints ____________, and how these are supported by backstage activities
and systems.
a. enhance servicescape features such as furniture and lighting
b. complicate employee handling of special requests
c. clarify the interactions between customers and employees
d. enhance customer technical know-how
e. diminish customer complaining capacity
4. The line of ____________ divides front-stage activities from backstage activities.
a. service standards and scripts
b. physical evidence
c. internal physical interaction
d. internal IT interaction
e. visibility
5. Which of the following is NOT a key component of a service blueprint?
a. Line of transference
b. Line of interaction
c. Line of visibility
d. Backstage actions by customer contact personnel
e. Front-stage actions by customer contact personnel
6. The ____________ or ____________ includes both the ____________ and
____________ of a service facility.
a. roll; retrieval; implicit aspects; explicit aspects
b. stage; servicescape; exterior; interior
c. stage; service area; customers; employees
d. roll; canopy; employees; equipment
e. roll; service area; front-stage; backstage
7. Server ____________ ensure that service staffs do things correctly, as requested, in the right
order, and at the right speed.
a. kanbans
b. poka-yokes
c. jidokas
d. banzais
e. sodokus
8. Service process redesign efforts typically focus on achieving all EXCEPT which of the following
key performance measures?
a. Reduced number of service failures.
b. Reduced cycle time.
c. Enhanced productivity.
d. Increased profitability.
e. Increased customer satisfaction.
9. Service process redesign can be categorized into all EXCEPT which of the following types?
a. Getting rid of non-value adding steps.
b. Shifting to self-service.
c. Delivering direct service.
d. Separating services.
e. Redesigning the physical aspect of service processes
10. Which of the following is NOT an advantage of self-service technologies?
a. Greater choice of products
b. Higher perceived level of customization.
c. Convenience of location.
d. Greater control over service delivery.
e. Cost and time savings
11.  How many "acts" does a meal at Chez Jean consist of?
a. One act
b. Two acts
c. Three acts
d. Four acts
e. Five acts
12. Banks ensure eye contact by requiring tellers to record ____________ on a checklist at the start
of a transaction.
a. the customer's eye color
b. the customer's bank account number
c. the customer's shirt size
d. the customer's account type
e. the customer's nationality
13.  Examples of preparing customers for service encounters include all of the following
EXCEPT ____________.
a. printing dress code requests on invitations
b. sending reminders of dental appointments
c. printing guidelines on customer cards
d. billing customers for services rendered
e. all of the above are examples of preparing customers for service encounters
14. Marriage counseling is a service that requires a ____________ level of participation from
customers.
a. minimal
b. high
c. moderate
 d. low
e. absolute
15. The internet kiosk with a touchscreen in Vienna, Austria is getting popular for the
following reasons EXCEPT ____________.
a. it is conveniently located
b. it saves customers from having to deal with other undesirable customers
c. it is accessible 24/7
d. it doesn't make mistakes, unlike employees
e. it has easy access to websites

Keys: B, B, C, E, A, B, B, D, D, A, C, A, D, B, B

Chapter 9: