Question 1: Which of the following best defines service management?

a) The process of
manufacturing products to meet customer demand b) The coordination and integration of
resources to deliver value to customers through services c) The management of physical goods
throughout their lifecycle d) The process of marketing products to consumers

Answer: b) The coordination and integration of resources to deliver value to customers through
services

Explanation: Service management involves organizing, coordinating, and optimizing resources

to deliver value to customers through services, ensuring their satisfaction and meeting their needs
effectively.

Question 2: What is the primary goal of service management? a) To maximize profits b) To

minimize costs c) To deliver value to customers d) To increase market share

Answer: c) To deliver value to customers

Explanation: The primary goal of service management is to deliver value to customers by

meeting their needs and expectations, thereby enhancing customer satisfaction and loyalty.

Question 3: Which of the following is NOT a key component of service management? a) Service
design b) Service pricing c) Service delivery d) Service improvement

Answer: b) Service pricing

Explanation: While pricing is important in service management, it is not considered a key

component. The key components typically include service design, service delivery, and service
improvement.

Question 4: What does the Service Profit Chain model emphasize? a) Maximizing revenue b)
Customer satisfaction and loyalty driving profitability c) Cost reduction d) Market expansion

Answer: b) Customer satisfaction and loyalty driving profitability

Explanation: The Service Profit Chain model emphasizes the relationship between employee
satisfaction, customer satisfaction, and business profitability, highlighting the importance of
customer satisfaction and loyalty in driving long-term profitability.

Question 5: Which of the following is an example of an intangible service? a) Smartphone b) Car

c) Insurance policy d) Laptop

Answer: c) Insurance policy

Explanation: An insurance policy is an example of an intangible service because it is not a

physical product but rather a promise to provide financial protection or compensation in the
event of a specified loss.
Question 6: What is the role of service blueprinting in service management? a) To design
physical products b) To map out the customer experience and service delivery process c) To
manufacture goods d) To price services

Answer: b) To map out the customer experience and service delivery process

Explanation: Service blueprinting is a tool used in service management to visually map out the
customer experience and service delivery process, identifying key touchpoints, interactions, and
potential areas for improvement.

Question 7: Which of the following is NOT a characteristic of services? a) Tangibility b)

Perishability c) Inseparability d) Variability

Answer: a) Tangibility

Explanation: Services are intangible in nature, meaning they cannot be touched or felt. The other
characteristics of services include perishability, inseparability, and variability.

Question 8: What is the purpose of a service level agreement (SLA) in service management? a)
To establish pricing for services b) To outline the terms and conditions of a service contract c)
To define the expected level of service quality and performance d) To manage service delivery
costs

Answer: c) To define the expected level of service quality and performance

Explanation: A service level agreement (SLA) is a contract between a service provider and a
customer that defines the expected level of service quality, performance, and responsibilities,
helping to ensure clarity and accountability.

Question 9: Which of the following is NOT a component of the SERVQUAL model? a)

Reliability b) Assurance c) Tangibility d) Responsiveness

Answer: c) Tangibility

Explanation: The SERVQUAL model consists of five dimensions: reliability, assurance,

responsiveness, empathy, and tangibles. Tangibility refers to the physical evidence of the service
and is not a component of the SERVQUAL model.

Question 10: What is the role of capacity management in service management? a) To ensure the
availability of physical products b) To manage the capacity of manufacturing facilities c) To
optimize the utilization of resources to meet service demand d) To determine the pricing of
services

Answer: c) To optimize the utilization of resources to meet service demand

Explanation: Capacity management involves optimizing the utilization of resources, such as
personnel, equipment, and facilities, to meet service demand effectively and efficiently, ensuring
that the right level of capacity is available at the right time.

Question 11: Which of the following is an example of a service encounter? a) Purchasing a

product online b) Ordering food at a restaurant c) Buying groceries at a supermarket d) Renting a
car

Answer: b) Ordering food at a restaurant

Explanation: A service encounter refers to the interaction between a customer and a service
provider during the delivery of a service. Ordering food at a restaurant involves a direct
interaction between the customer and the restaurant staff, making it a service encounter.

Question 12: What is the purpose of service recovery in service management? a) To prevent
service failures b) To compensate customers for service failures c) To manage service costs d)
To increase service variability

Answer: b) To compensate customers for service failures

Explanation: Service recovery involves taking actions to resolve service failures or customer
complaints effectively, often including compensation or remediation to restore customer
satisfaction and loyalty.

Question 13: Which of the following is a characteristic of perishability in services? a) Services

cannot be stored for future use b) Services are produced and consumed simultaneously c)
Services are consistent in quality d) Services are easily replicated

Answer: a) Services cannot be stored for future use

Explanation: Perishability refers to the inability to store services for future use or resale. Unlike
physical products, services cannot be inventoried, making it challenging to manage fluctuations
in demand.

Question 14: What is the purpose of service differentiation in service management? a) To

standardize service offerings b) To increase competition c) To create unique value propositions
that distinguish a service from competitors d) To decrease service variability

Answer: c) To create unique value propositions that distinguish a service from competitors

Explanation: Service differentiation involves creating unique value propositions that distinguish
a service from competitors, helping to attract customers, increase market share, and build brand
loyalty.
Question 15: What is the role of customer relationship management (CRM) in service
management? a) To manage service delivery costs b) To track and analyze customer interactions
and data c) To decrease service variability d) To optimize service pricing strategies

Answer: b) To track and analyze customer interactions and data

Explanation: Customer relationship management (CRM) involves tracking, managing, and

analyzing customer interactions and data to build and maintain strong relationships, enhance
customer satisfaction, and drive business growth.

Question 16: Which of the following is NOT a strategy for managing service quality? a) Service
guarantees b) Employee training and empowerment c) Customer segmentation d) Continuous
improvement

Answer: c) Customer segmentation

Explanation: Customer segmentation is a marketing strategy aimed at dividing customers into

groups based on shared characteristics or behaviors. While it contributes to service
customization, it's not a direct strategy for managing service quality.

Question 17: What is the primary focus of service recovery strategies? a) Preventing service
failures b) Compensating customers for service failures c) Restoring customer satisfaction after
service failures d) Increasing service variability

Answer: c) Restoring customer satisfaction after service failures

Explanation: Service recovery strategies are focused on restoring customer satisfaction and
loyalty after service failures occur, often through compensation, apologies, and corrective
actions.

Question 18: Which of the following is a benefit of effective service management? a) Increased
customer dissatisfaction b) Decreased customer loyalty c) Higher profitability d) Reduced
employee morale

Answer: c) Higher profitability

Explanation: Effective service management can lead to higher profitability by enhancing

customer satisfaction, loyalty, and repeat business, as well as optimizing resource utilization and
reducing costs.

Question 19: What is the purpose of service guarantees in service management? a) To decrease
service quality b) To compensate customers for service failures c) To ensure consistent service
quality and reliability d) To increase service variability

Answer: c) To ensure consistent service quality and reliability

Explanation: Service guarantees are commitments made by service providers to deliver a certain
level of service quality and reliability to customers, providing assurance and confidence in the
service experience.

Question 20: Which of the following is a characteristic of service variability? a) Consistency in

service delivery b) Predictability in service outcomes c) Standardization of service processes d)
Variation in service quality from one encounter to another

Answer: d) Variation in service quality from one encounter to another

Explanation: Service variability refers to the inconsistency or variation in service quality,

delivery, and outcomes that can occur from one service encounter to another, often due to factors
such as human interaction, process variation, or environmental conditions.

Question 21: What role does employee empowerment play in service management? a) It
decreases employee morale b) It increases employee satisfaction and accountability c) It
standardizes service delivery processes d) It reduces service variability

Answer: b) It increases employee satisfaction and accountability

Explanation: Employee empowerment involves granting employees the authority and autonomy
to make decisions and take actions to meet customer needs and resolve issues, leading to
increased job satisfaction and accountability.

Question 22: What is the significance of service recovery paradox in service management? a) It
emphasizes the importance of service guarantees b) It highlights the potential for increased
customer satisfaction after a service failure is resolved c) It indicates the need for continuous
improvement in service quality d) It suggests that service failures are inevitable

Answer: b) It highlights the potential for increased customer satisfaction after a service failure is
resolved

Explanation: The service recovery paradox refers to the phenomenon where customers who
experience a service failure that is effectively resolved may have higher satisfaction and loyalty
than if no failure had occurred. It underscores the importance of effective service recovery
strategies.

Question 23: What does the RATER model assess in service quality management? a) Employee
performance b) Customer satisfaction c) Service delivery processes d) Service quality
dimensions

Answer: d) Service quality dimensions

Explanation: The RATER model assesses service quality based on five dimensions: reliability,
assurance, tangibles, empathy, and responsiveness, providing a framework for evaluating and
improving service quality.
Question 24: Which of the following is NOT a component of the service encounter triad? a)
Customer b) Service provider c) Physical evidence d) Competitors

Answer: d) Competitors

Explanation: The service encounter triad consists of three components: the customer, the service
provider, and the physical evidence or environment where the service is delivered. Competitors
are external entities and not part of the service encounter triad.

Question 25: What is the role of service recovery in customer retention? a) It has no impact on
customer retention b) It decreases customer loyalty c) It enhances customer satisfaction and
loyalty d) It increases service variability

Answer: c) It enhances customer satisfaction and loyalty

Explanation: Effective service recovery can enhance customer satisfaction and loyalty by
resolving service failures or complaints promptly and effectively, demonstrating a commitment
to customer service excellence.

Question 26: Which of the following is NOT a common service encounter type? a) Remote
encounter b) Face-to-face encounter c) Telephone encounter d) Internal encounter

Answer: d) Internal encounter

Explanation: Internal encounter is not a common service encounter type. Common service
encounter types include face-to-face encounters, remote encounters (e.g., online or mobile
interactions), and telephone encounters.

Question 27: What is the purpose of service customization in service management? a) To

standardize service offerings b) To decrease customer satisfaction c) To tailor services to meet
individual customer needs and preferences d) To reduce service variability

Answer: c) To tailor services to meet individual customer needs and preferences

Explanation: Service customization involves tailoring services to meet the specific needs,
preferences, and requirements of individual customers, enhancing their satisfaction and
perceived value.

Question 28: Which of the following is a characteristic of service inseparability? a) Services are
consistent in quality b) Services are produced and consumed simultaneously c) Services can be
stored for future use d) Services are easily replicated

Answer: b) Services are produced and consumed simultaneously

Explanation: Service inseparability refers to the simultaneous production and consumption of
services, meaning that services are often created and consumed in real-time interactions between
customers and service providers.

Question 29: What is the primary focus of service quality management? a) Decreasing customer
satisfaction b) Reducing service variability c) Meeting or exceeding customer expectations d)
Maximizing service costs

Answer: c) Meeting or exceeding customer expectations

Explanation: The primary focus of service quality management is to meet or exceed customer
expectations by consistently delivering high-quality services that satisfy customer needs and
requirements.

Question 30: Which of the following is a characteristic of service tangibility? a) Services cannot
be stored for future use b) Services are consistent in quality c) Services are easily standardized d)
Services are visible and tangible to customers

Answer: d) Services are visible and tangible to customers

Explanation: Service tangibility refers to the physical evidence or cues associated with the
service delivery process that are visible and tangible to customers, such as the appearance of
facilities, equipment, or personnel.

Question 31: What is the primary objective of service recovery in service management? a) To
prevent service failures b) To compensate customers for service failures c) To restore customer
satisfaction after service failures d) To decrease service variability

Answer: c) To restore customer satisfaction after service failures

Explanation: Service recovery aims to restore customer satisfaction and trust after a service
failure occurs, often through actions like apology, compensation, or corrective measures.

Question 32: What is the significance of the "moment of truth" in service management? a) It
refers to the point when a customer makes a purchase decision b) It represents the critical points
of interaction between customers and service providers c) It signifies the moment when a service
failure occurs d) It indicates the moment when a service encounter begins

Answer: b) It represents the critical points of interaction between customers and service
providers

Explanation: The "moment of truth" refers to the critical points of interaction between customers
and service providers where customers form perceptions about the quality of service.

Question 33: Which of the following is NOT a dimension of service quality in the SERVQUAL
model? a) Reliability b) Assurance c) Convenience d) Empathy
Answer: c) Convenience

Explanation: While convenience is important in service delivery, it's not included as a dimension
in the SERVQUAL model, which focuses on reliability, assurance, responsiveness, empathy, and
tangibles.

Question 34: What is the purpose of service recovery paradox in service management? a) To
emphasize the importance of effective service recovery strategies b) To highlight the potential
for increased customer satisfaction after a service failure is resolved c) To indicate the
inevitability of service failures d) To suggest that service failures can be prevented

Answer: b) To highlight the potential for increased customer satisfaction after a service failure is
resolved

Explanation: The service recovery paradox suggests that effective resolution of service failures
can lead to increased customer satisfaction and loyalty, sometimes even higher than if no failure
had occurred.

Question 35: Which of the following is NOT a benefit of effective complaint management in
service management? a) Increased customer satisfaction b) Improved service quality c) Higher
service variability d) Enhanced customer loyalty

Answer: c) Higher service variability

Explanation: Effective complaint management can lead to benefits like increased customer
satisfaction, improved service quality, and enhanced customer loyalty, but it does not contribute
to higher service variability.

Question 36: What role does service blueprinting play in service management? a) To design
physical products b) To map out the customer experience and service delivery process c) To
manage service delivery costs d) To reduce service variability

Answer: b) To map out the customer experience and service delivery process

Explanation: Service blueprinting is a tool used in service management to visually map out the
customer experience and service delivery process, helping to identify touchpoints, interactions,
and areas for improvement.

Question 37: What is the primary focus of service marketing in service management? a) To
decrease customer satisfaction b) To increase service variability c) To promote and communicate
the value of services to customers d) To minimize service quality

Answer: c) To promote and communicate the value of services to customers

Explanation: Service marketing focuses on promoting and communicating the value of services
to customers, highlighting their benefits, features, and unique selling propositions.
Question 38: Which of the following is a characteristic of service variability? a) Predictability in
service outcomes b) Consistency in service delivery c) Variation in service quality from one
encounter to another d) Standardization of service processes

Answer: c) Variation in service quality from one encounter to another

Explanation: Service variability refers to the inconsistency or variation in service quality,

delivery, and outcomes that can occur from one service encounter to another.

Question 39: What is the purpose of service guarantees in service management? a) To decrease
service quality b) To compensate customers for service failures c) To ensure consistent service
quality and reliability d) To increase service variability

Answer: c) To ensure consistent service quality and reliability

Explanation: Service guarantees are commitments made by service providers to deliver a certain
level of service quality and reliability to customers, providing assurance and confidence in the
service experience.

Question 40:

Which of the following is NOT a characteristic of services?

A) Tangibility
B) Heterogeneity
C) Perishability
D) Simultaneity

Answer:
A) Tangibility

Explanation:
Services are intangible in nature, meaning they cannot be seen, touched, or felt before they are
consumed. Tangibility is a characteristic of goods, not services.

Question 41:

In services marketing, the term "heterogeneity" refers to:

A) The inability to be standardized

B) The inability to be inventoried
C) The variation in quality from one service encounter to another
D) The simultaneous production and consumption

Answer:
C) The variation in quality from one service encounter to another
Explanation:
Heterogeneity, or variability, in services refers to the inconsistency in service quality that
customers may experience, even from the same service provider, due to factors such as employee
performance, customer perceptions, and situational factors.

Question 42:

Which of the following is an example of a perishable service?

A) Haircut
B) Car rental
C) Legal consultation
D) Software development

Answer:
A) Haircut

Explanation:
Perishability in services refers to the inability to store or inventory services for future use.
Haircuts are an example of a perishable service because they cannot be stored or inventoried for
later consumption.

Question 43:

The concept of "simultaneity" in services management refers to:

A) The simultaneous production and consumption of services

B) The need for services to be delivered at the right time
C) The synchronization of service delivery across multiple channels
D) The real-time monitoring of service quality

Answer:
A) The simultaneous production and consumption of services

Explanation:
Simultaneity, or simultaneous production and consumption, is a key characteristic of services.
Unlike goods, which are produced, stored, and then consumed later, services are often produced
and consumed simultaneously.

Question 44:

Service quality is best defined as:

A) Meeting customer expectations

B) Consistently achieving high customer satisfaction scores
C) Conformance to specifications
D) The extent to which a service meets or exceeds customer needs and expectations

Answer:
D) The extent to which a service meets or exceeds customer needs and expectations

Explanation:
Service quality refers to the degree of excellence or superiority of a service in meeting customer
needs and expectations. It goes beyond merely satisfying customers to ensuring that their needs
and expectations are fully met or even exceeded.

Question 45:

Which of the following is NOT a dimension of service quality according to the SERVQUAL
model?

A) Reliability
B) Assurance
C) Responsiveness
D) Conformity

Answer:
D) Conformity

Explanation:
The SERVQUAL model identifies five dimensions of service quality: reliability, assurance,
responsiveness, empathy, and tangibles. "Conformity" is not a recognized dimension in this
model.

Question 46:

Which of the following is an example of a service encounter?

A) Purchasing a book online

B) Buying groceries at a supermarket
C) Attending a concert
D) Repairing a broken appliance

Answer:
C) Attending a concert

Explanation:
A service encounter refers to the interaction between a customer and a service provider, where a
service is delivered.
Question 47:

Which of the following is NOT a type of service provider?

A) Retailer
B) Manufacturer
C) Government agency
D) Consultant

Answer:
B) Manufacturer

Explanation:
Manufacturers produce tangible goods, while service providers deliver intangible services.

Question 48:

Which service marketing mix element refers to the processes and systems used to deliver a
service?

A) Product
B) Place
C) Process
D) Promotion

Answer:
C) Process

Explanation:
Process in the service marketing mix refers to the procedures, mechanisms, and flow of activities
involved in service delivery.

Question 49:

Which of the following is NOT a stage in the service marketing process?

A) Service design
B) Service pricing
C) Service production
D) Service promotion

Answer:
C) Service production
Explanation:
Service production is often considered part of the service delivery process, not the marketing
process.

Question 50:

Which of the following is an example of a service gap identified in the GAP model of service
quality?

A) Knowledge gap
B) Market gap
C) Technology gap
D) Distribution gap

Answer:
A) Knowledge gap

Explanation:
The GAP model identifies several gaps that can lead to differences between customer
expectations and perceptions, with the knowledge gap being one of them.

Question 51:

Which service quality measurement technique involves directly asking customers to rate their
satisfaction with various aspects of a service?

A) SERVQUAL
B) GAP analysis
C) Mystery shopping
D) Customer satisfaction survey

Answer:
D) Customer satisfaction survey

Explanation:
Customer satisfaction surveys are a common method used to measure service quality by
collecting direct feedback from customers.

Question 52:

Which of the following is NOT a dimension of service quality according to the RATER model?

A) Reliability
B) Assurance
C) Tangibles
D) Empathy
Answer:
C) Tangibles

Explanation:
The RATER model includes reliability, assurance, tangibles, empathy, and responsiveness as
dimensions of service quality.

Question 53:

Which of the following is a strategy for managing service capacity during peak demand periods?

A) Demand shifting
B) Demand reduction
C) Demand smoothing
D) Demand segmentation

Answer:
A) Demand shifting

Explanation:
Demand shifting involves encouraging customers to use the service during off-peak times to
balance demand.

Question 54:

Which of the following is NOT a potential risk associated with service recovery?

A) Customer loyalty
B) Negative word-of-mouth
C) Customer defection
D) Brand reputation damage

Answer:
A) Customer loyalty

Explanation:
Service recovery aims to restore customer satisfaction and loyalty after a service failure or
complaint. It is not typically associated with risks to customer loyalty.

Question 55:

Which of the following is NOT a component of the service-profit chain model?

A) Customer loyalty
B) Employee satisfaction
C) Profit margin
D) Market share

Answer:
D) Market share

Explanation:
The service-profit chain model emphasizes the relationship between employee satisfaction,
customer loyalty, and profitability but does not directly include market share as a component.

Question 56:

Which of the following is a key element of effective service recovery?

A) Denying responsibility
B) Offering compensation
C) Blaming the customer
D) Ignoring the complaint

Answer:
B) Offering compensation

Explanation:
Offering compensation is a crucial aspect of service recovery, as it demonstrates
acknowledgment of the customer's issue and a commitment to make amends.

Question 57:

Which of the following is an example of a service encounter failure due to provider

incompetence?

A) Service variability
B) Service tangibility
C) Service inadequacy
D) Service intangibility

Answer:
C) Service inadequacy

Explanation:
Service inadequacy refers to a failure in service delivery due to provider incompetence, such as
lack of skills, training, or resources.

Question 58:
Which service delivery model involves the customer performing some of the service tasks
themselves?

A) Self-service
B) Remote service
C) Face-to-face service
D) Assisted service

Answer:
A) Self-service

Explanation:
Self-service models require customers to perform certain service tasks independently, such as
online banking or self-checkout at supermarkets.

Question 59:

Which of the following is a factor contributing to service encounter satisfaction?

A) Service complexity
B) Service unpredictability
C) Service personalization
D) Service disintermediation

Answer:
C) Service personalization

Explanation:
Service personalization involves tailoring services to meet the individual needs and preferences
of customers, which can contribute to higher satisfaction levels.

Question 60:

Which service marketing strategy focuses on building long-term relationships with customers?

A) Transactional marketing
B) Relationship marketing
C) Guerrilla marketing
D) Viral marketing

Answer:
B) Relationship marketing

Explanation:
Relationship marketing emphasizes the importance of building and maintaining long-term
relationships with customers through personalized interactions and continuous communication.
Question 61:

Which of the following is NOT a characteristic of effective service guarantees?

A) Easy to understand
B) Broad and vague
C) Meaningful to customers
D) Backed by compensation

Answer:
B) Broad and vague

Explanation:
Effective service guarantees should be specific and clear, outlining what the customer can expect
and the compensation offered if expectations are not met.

Question 62:

Which service delivery innovation allows customers to access services via mobile devices?

A) Telecommuting
B) Teleconferencing
C) Telemedicine
D) Mobile commerce

Answer:
D) Mobile commerce

Explanation:
Mobile commerce, or m-commerce, enables customers to access and use services through mobile
devices such as smartphones and tablets.

Question 63:

Which of the following is NOT a type of service encounter?

A) Remote service encounter

B) Face-to-face service encounter
C) Tangible service encounter
D) Telephone service encounter

Answer:
C) Tangible service encounter
Explanation:
Service encounters can be classified based on the medium or channel through which they occur,
such as face-to-face, remote, or telephone encounters. "Tangible" does not describe the type of
encounter but rather refers to the tangibility of services themselves.

Question 64:

Which of the following is a characteristic of service recovery paradox?

A) Customers are less likely to return after a service failure is resolved

B) Customers are more likely to recommend the service after a failure is resolved
C) Service failures have no impact on customer loyalty
D) Service failures are irreversible

Answer:
B) Customers are more likely to recommend the service after a failure is resolved

Explanation:
The service recovery paradox refers to the phenomenon where customers who experience a
service failure that is effectively resolved may become more loyal and satisfied than customers
who never experienced a failure.

Question 65:

Which term describes the process of turning non-users into users of a service?

A) Service augmentation
B) Service penetration
C) Service commodification
D) Service obsolescence

Answer:
B) Service penetration

Explanation:
Service penetration refers to the process of expanding a service's market share by converting
non-users into users.

Question 66:

Which of the following is NOT a type of customer complaint?

A) Verbal
B) Written
C) Non-verbal
D) Internal
Answer:
D) Internal

Explanation:
Internal complaints refer to complaints within an organization, whereas customer complaints
typically involve feedback or dissatisfaction expressed by external customers.

Question 67:

Which service marketing strategy focuses on enhancing the perceived value of a service?

A) Positioning
B) Differentiation
C) Cost leadership
D) Focus

Answer:
A) Positioning

Explanation:
Positioning involves creating a distinctive image and perception of a service in the minds of
customers to differentiate it from competitors and enhance its value.

Question 68:

Which of the following is NOT a characteristic of service blueprinting?

A) Visual representation
B) Sequential process mapping
C) Customer segmentation
D) Frontstage/backstage differentiation

Answer:
C) Customer segmentation

Explanation:
Service blueprinting focuses on mapping the service delivery process, including frontstage
(customer-facing) and backstage (internal) activities, but it typically does not involve customer
segmentation.

Question 69:

Which service quality measurement technique involves evaluating service quality based on the
comparison of customer expectations and perceptions?
A) Benchmarking
B) Mystery shopping
C) GAP analysis
D) SERVPERF

Answer:
C) GAP analysis

Explanation:
GAP analysis compares customer expectations with actual service performance to identify gaps
and areas for improvement in service quality.

Question 70:

Which of the following is NOT a stage in the customer decision-making process for services?

A) Evaluation of alternatives
B) Purchase decision
C) Post-purchase evaluation
D) Product development

Answer:
D) Product development

Explanation:
Product development is typically not part of the customer decision-making process but rather an
internal process of creating or improving services.

Question 71:

Which service marketing strategy involves offering a range of services targeted at different
market segments?

A) Mass marketing
B) Niche marketing
C) Segmented marketing
D) Customized marketing

Answer:
C) Segmented marketing

Explanation:
Segmented marketing involves targeting different market segments with tailored service
offerings based on their specific needs and preferences.
Question 72:

Which of the following is NOT a type of service encounter design?

A) Standardized
B) Customized
C) Adaptive
D) Differential

Answer:
D) Differential

Explanation:
Differential is not a common type of service encounter design. Standardized, customized, and
adaptive designs are more commonly used in service delivery.

Question 73:

Which of the following is a characteristic of service convenience?

A) Customer engagement
B) Service customization
C) Accessibility
D) Service reliability

Answer:
C) Accessibility

Explanation:
Service convenience refers to how easily accessible and available a service is to customers.

Question 74:

Which service marketing strategy emphasizes creating a unique and memorable customer
experience?

A) Service standardization
B) Service customization
C) Service personalization
D) Service differentiation

Answer:
D) Service differentiation
Explanation:
Service differentiation involves highlighting unique features or aspects of a service to set it apart
from competitors and attract customers.

Question 75:

Which of the following is NOT a dimension of service quality according to the Nordic model?

A) Tangibility
B) Empathy
C) Assurance
D) Responsiveness

Answer:
A) Tangibility

Explanation:
The Nordic model of service quality includes dimensions such as reliability, responsiveness,
assurance, empathy, and tangibility.

Question 76:

Which of the following is a benefit of effective complaint handling?

A) Increased customer loyalty

B) Decreased customer satisfaction
C) Reduced brand reputation
D) Lower service recovery costs

Answer:
A) Increased customer loyalty

Explanation:
Effective complaint handling can lead to increased customer loyalty as customers feel valued and
their concerns are addressed promptly and satisfactorily.

Question 77:

Which service innovation involves offering services through digital platforms or applications?

A) Telecommuting
B) E-commerce
C) Telemedicine
D) Franchising
Answer:
B) E-commerce

Explanation:
E-commerce involves the buying and selling of goods and services over the internet, making
services accessible through digital platforms.

Question 78:

Which of the following is a strategy for managing service wait times?

A) Service bundling
B) Service disintermediation
C) Service queuing
D) Service commodification

Answer:
C) Service queuing

Explanation:
Service queuing involves managing customer wait times by implementing efficient queuing
systems or strategies.

Question 79:

Which service recovery strategy involves empowering frontline employees to resolve customer
complaints?

A) Standardization
B) Decentralization
C) Centralization
D) Outsourcing

Answer:
B) Decentralization

Explanation:
Decentralization involves empowering frontline employees with the authority and autonomy to
resolve customer complaints and issues without needing approval from higher levels of
management.

Question 80:

Which of the following is a potential outcome of service failure?

A) Increased customer loyalty
B) Positive word-of-mouth
C) Customer defection
D) Enhanced brand reputation

Answer:
C) Customer defection

Explanation:
Service failure can lead to customer dissatisfaction and defection, where customers switch to
competitors or stop using the service altogether.

Question 81:

Which service marketing concept emphasizes the importance of considering both tangible and
intangible aspects of a service?

A) Service consistency
B) Service tangibility
C) Service inseparability
D) Service quality

Answer:
D) Service quality

Explanation:
Service quality encompasses both tangible (e.g., physical facilities) and intangible (e.g.,
customer service) aspects of a service, highlighting their combined impact on customer
perceptions and satisfaction.

Question 82:

Which of the following is a characteristic of service encounter scripts?

A) Flexibility
B) Spontaneity
C) Consistency
D) Adaptability

Answer:
C) Consistency

Explanation:
Service encounter scripts provide guidelines and instructions for employees to follow during
service interactions, ensuring consistency in service delivery.
Question 83:

Which of the following is a characteristic of service blueprinting?

A) Focuses only on customer interactions

B) Represents the service from the customer's perspective
C) Does not involve mapping service processes
D) Excludes frontline employee roles

Answer:
B) Represents the service from the customer's perspective

Explanation:
Service blueprinting involves mapping the entire service process, including customer
interactions, from the customer's point of view.

Question 84:

Which service recovery strategy involves providing compensation to customers affected by a

service failure?

A) Empowerment
B) Service guarantee
C) Apology
D) Recovery paradox

Answer:
B) Service guarantee

Explanation:
Service guarantees assure customers of compensation or corrective action if service standards are
not met.

Question 85:

Which of the following is a characteristic of online service delivery?

A) Limited accessibility
B) High interpersonal interaction
C) Direct physical presence required
D) Automation

Answer:
D) Automation
Explanation:
Online service delivery often involves automation and digital interactions, reducing the need for
direct physical presence.

Question 86:

Which service marketing concept emphasizes the need for consistency in service quality across
different service encounters?

A) Service variability
B) Service customization
C) Service consistency
D) Service tangibility

Answer:
C) Service consistency

Explanation:
Service consistency emphasizes maintaining uniformity and reliability in service quality across
various service encounters.

Question 87:

Which of the following is NOT a dimension of the SERVQUAL model?

A) Reliability
B) Assurance
C) Adaptability
D) Empathy

Answer:
C) Adaptability

Explanation:
The SERVQUAL model focuses on dimensions such as reliability, assurance, empathy,
responsiveness, and tangibles, but does not include adaptability.

Question 88:

Which service marketing strategy involves tailoring services to meet the specific needs and
preferences of individual customers?

A) Mass marketing
B) Niche marketing
C) Customized marketing
D) Undifferentiated marketing
Answer:
C) Customized marketing

Explanation:
Customized marketing involves offering personalized services tailored to the unique
requirements of individual customers.

Question 89:

Which of the following is a challenge associated with service standardization?

A) Inconsistent service quality

B) Lack of scalability
C) Difficulty in measuring performance
D) Reduced customer satisfaction

Answer:
A) Inconsistent service quality

Explanation:
Service standardization may lead to inconsistent service quality if not implemented effectively
across all service delivery channels.

Question 90:

Which service marketing concept emphasizes the need for effective communication and
interaction between service providers and customers?

A) Service tangibility
B) Service inseparability
C) Service variability
D) Service perishability

Answer:
B) Service inseparability

Explanation:
Service inseparability highlights the close interaction between service providers and customers
during service delivery.

Question 91:

Which of the following is a characteristic of service guarantee?

A) Shifts responsibility to customers

B) Increases uncertainty for customers
C) Provides assurance to customers
D) Ignores service quality issues

Answer:
C) Provides assurance to customers

Explanation:
Service guarantee provides assurance to customers by promising compensation or corrective
action if service standards are not met.

Question 92:

Which service marketing strategy involves targeting a small, specialized segment of the market?

A) Mass marketing
B) Differentiated marketing
C) Niche marketing
D) Concentrated marketing

Answer:
C) Niche marketing

Explanation:
Niche marketing focuses on serving a small, specialized segment of the market with unique
needs and preferences.

Question 93:

Which of the following is a characteristic of self-service technology in service delivery?

A) High interpersonal interaction

B) Limited customer control
C) Reduced service efficiency
D) Increased customer empowerment

Answer:
D) Increased customer empowerment

Explanation:
Self-service technology empowers customers by allowing them to control their service
experience, such as using automated kiosks or online platforms.

Question 94:

Which service marketing concept emphasizes the need for customers to be involved in the
service production process?
A) Service tangibility
B) Service inseparability
C) Service variability
D) Service consistency

Answer:
B) Service inseparability

Explanation:
Service inseparability highlights the close involvement of customers in the service production
process, where their participation influences service outcomes.

Question 95:

Which of the following is NOT a common service recovery strategy?

A) Empowerment
B) Compensation
C) Apology
D) Avoidance

Answer:
D) Avoidance

Explanation:
Avoidance is not a service recovery strategy; rather, it refers to avoiding service failures or issues
altogether through preventive measures.

Question 96:

Which service marketing strategy involves targeting multiple market segments with different
service offerings?

A) Mass marketing
B) Differentiated marketing
C) Niche marketing
D) Undifferentiated marketing

Answer:
B) Differentiated marketing

Explanation:
Differentiated marketing involves offering distinct service offerings tailored to different market
segments to meet their specific needs and preferences.

Question 97:
Which of the following is a characteristic of virtual service encounters?

A) Direct physical presence required

B) Limited accessibility
C) Lack of customization options
D) Remote interactions

Answer:
D) Remote interactions

Explanation:
Virtual service encounters involve remote interactions between service providers and customers,
often facilitated by digital platforms or communication technologies.

Question 98:

Which service quality measurement technique involves observing and evaluating service
delivery firsthand?

A) SERVQUAL
B) Mystery shopping
C) GAP analysis
D) SERVPERF

Answer:
B) Mystery shopping

Explanation:
Mystery shopping involves sending trained evaluators to interact with service providers as
typical customers to assess service quality.

Question 99:

Which of the following is a challenge associated with service personalization?

A) Reduced customer satisfaction

B) Increased operational efficiency
C) Difficulty in maintaining consistency
D) Limited customer engagement

Answer:
C) Difficulty in maintaining consistency

Explanation:
Service personalization may pose a challenge in maintaining consistency across different
customer interactions and service encounters.
Question 100:

Which service delivery innovation allows customers to access services on-demand via a
subscription-based model?

A) Telecommuting
B) Subscription service
C) Telemedicine
D) Digitalization

Answer:
B) Subscription service

Explanation:
Subscription services offer customers access to services on-demand or on a regular basis through
a subscription-based model, often via digital platforms or applications.