MGMT2140 PRACTICE EXAM 2026/2027 COMPLETE
CURRENT TESTING Q&A, Exams of Service Management
Section 1: Brief Introduction
This MGMT2140 Service Management practice exam contains 132 questions that mirror
current course testing across service fundamentals and strategy, service design and
blueprinting, capacity, demand and queuing management, service quality (SERVQUAL, the
Gap Model, Kano), customer relationship management, service recovery, the ITIL 4
framework, service technology, and global service management. Items blend knowledge
recall, case-based application, and strategic analysis, and each is followed by the correct
answer (bold, cyan) and an evidence-based rationale.
Section 2: The Complete Exam
1. Which characteristic of services means that production and consumption occur at the
same time?
A. Inseparability
B. Intangibility
C. Heterogeneity
D. Perishability
Rationale: Inseparability describes the simultaneous production and consumption of services,
placing the customer inside the 'factory.' Intangibility refers to the inability to touch or see a
service before purchase, perishability to the inability to inventory services, and heterogeneity
to variability across encounters.
2. An airline cannot sell yesterday's empty seats today. This illustrates which service
characteristic?
A. Inseparability
B. Heterogeneity
C. Intangibility
D. Perishability
Rationale: Perishability means unused service capacity is lost forever because services cannot
be stored. This drives revenue management and demand-smoothing practices in airlines,
,hotels, and restaurants. Intangibility and heterogeneity concern the nature and variability of
the offering, not its timing.
3. According to the service-dominant logic proposed by Vargo and Lusch, value is:
A. Embedded in the product at the point of manufacture
B. Co-created with the customer and determined by the beneficiary in use
C. Created solely by the firm and delivered to the customer
D. Measured only by the price paid
Rationale: Service-dominant logic holds that firms can only offer value propositions; value is
realized (value-in-use) when the customer integrates resources and experiences the service.
Goods-dominant logic treats value as embedded in outputs at exchange.
4. In the service package framework, the 'supporting facility' refers to:
A. Psychological benefits the customer senses vaguely
B. Benefits readily observed by the senses
C. Material purchased or consumed by the customer
D. The physical resources that must be in place before a service can be offered
Rationale: The service package consists of supporting facility (e.g., hospital building, ski lift),
facilitating goods (e.g., food, replacement parts), information, explicit services (sensory
benefits), and implicit services (psychological benefits).
5. Which of the following best describes the 'service economy' trend in developed nations?
A. Manufacturing has grown faster than services since 1990
B. Services account for the majority of GDP and employment
C. Services are shrinking as automation replaces jobs
D. Agriculture remains the primary employer
Rationale: In most developed economies, services represent roughly 70–80% of GDP and
employment, driven by rising incomes, urbanization, technology, and the outsourcing of
business functions. Manufacturing and agriculture shares have declined proportionally.
6. Schmenner's Service Process Matrix classifies a law firm as a:
A. Service shop (low labor intensity, high customization)
, B. Professional service (high labor intensity, high customization)
C. Mass service (high labor intensity, low customization)
D. Service factory (low labor intensity, low customization)
Rationale: The matrix uses labor intensity and degree of interaction/customization.
Professional services (lawyers, doctors, consultants) are high on both. Airlines and hotels are
service factories; hospitals and repair shops are service shops; retail and schools are mass
services.
7. The concept of 'customer as co-producer' implies that:
A. Firms should minimize all customer contact
B. Only employees affect service outcomes
C. Service quality partly depends on the customer's own inputs and
participation
D. Customers should be excluded from back-office operations
Rationale: Because customers participate in many service processes (self-checkout, providing
accurate information to a physician), their effort, knowledge, and behavior influence
outcomes. Managing customer roles through training and design is a core service
management task.
8. Which of the following is an example of a 'high-contact' service?
A. Mail-order pharmacy
B. Automated car wash
C. Online banking
D. Hair salon
Rationale: High-contact services require the customer's physical presence and substantial
interaction with personnel, making the front stage and employee behavior critical. Online
banking, mail-order pharmacy, and automated washes are low-contact, technology-mediated
services.
9. The 'servicescape' concept developed by Bitner refers to:
A. The physical environment in which the service is delivered and its effect on
customers and employees
B. The digital interface for online service delivery
, C. The organizational chart of a service firm
D. The geographic market area served
Rationale: Servicescape includes ambient conditions, spatial layout and functionality, and
signs, symbols, and artifacts. These cues shape cognitive, emotional, and physiological
responses that influence approach/avoidance behaviors of customers and staff.
10. In the customer contact model, back-office operations should be:
A. Eliminated in favor of customer self-service
B. Decoupled from the front office to achieve manufacturing-like efficiency
C. Staffed by the same personnel as the front office
D. Fully visible to customers to build trust
Rationale: Chase's customer contact approach separates low-contact activities so they can be
scheduled, standardized, and optimized without customer-induced variability, while high-
contact activities focus on interpersonal skills and flexibility.
11. Which of the following is a 'facilitating good' in a restaurant service package?
A. The attentiveness of the server
B. The feeling of being welcomed
C. The building and kitchen equipment
D. The food and beverages consumed
Rationale: Facilitating goods are items purchased or consumed by the customer as part of
the service. The building is the supporting facility, attentiveness is an explicit service, and a
feeling of welcome is an implicit service.
12. The 'moment of truth' concept, popularized by Jan Carlzon of SAS, refers to:
A. The moment a service employee is hired
B. The annual financial audit of a service firm
C. Any interaction in which a customer forms an impression of the service
organization
D. The final invoice delivered to the customer
CURRENT TESTING Q&A, Exams of Service Management
Section 1: Brief Introduction
This MGMT2140 Service Management practice exam contains 132 questions that mirror
current course testing across service fundamentals and strategy, service design and
blueprinting, capacity, demand and queuing management, service quality (SERVQUAL, the
Gap Model, Kano), customer relationship management, service recovery, the ITIL 4
framework, service technology, and global service management. Items blend knowledge
recall, case-based application, and strategic analysis, and each is followed by the correct
answer (bold, cyan) and an evidence-based rationale.
Section 2: The Complete Exam
1. Which characteristic of services means that production and consumption occur at the
same time?
A. Inseparability
B. Intangibility
C. Heterogeneity
D. Perishability
Rationale: Inseparability describes the simultaneous production and consumption of services,
placing the customer inside the 'factory.' Intangibility refers to the inability to touch or see a
service before purchase, perishability to the inability to inventory services, and heterogeneity
to variability across encounters.
2. An airline cannot sell yesterday's empty seats today. This illustrates which service
characteristic?
A. Inseparability
B. Heterogeneity
C. Intangibility
D. Perishability
Rationale: Perishability means unused service capacity is lost forever because services cannot
be stored. This drives revenue management and demand-smoothing practices in airlines,
,hotels, and restaurants. Intangibility and heterogeneity concern the nature and variability of
the offering, not its timing.
3. According to the service-dominant logic proposed by Vargo and Lusch, value is:
A. Embedded in the product at the point of manufacture
B. Co-created with the customer and determined by the beneficiary in use
C. Created solely by the firm and delivered to the customer
D. Measured only by the price paid
Rationale: Service-dominant logic holds that firms can only offer value propositions; value is
realized (value-in-use) when the customer integrates resources and experiences the service.
Goods-dominant logic treats value as embedded in outputs at exchange.
4. In the service package framework, the 'supporting facility' refers to:
A. Psychological benefits the customer senses vaguely
B. Benefits readily observed by the senses
C. Material purchased or consumed by the customer
D. The physical resources that must be in place before a service can be offered
Rationale: The service package consists of supporting facility (e.g., hospital building, ski lift),
facilitating goods (e.g., food, replacement parts), information, explicit services (sensory
benefits), and implicit services (psychological benefits).
5. Which of the following best describes the 'service economy' trend in developed nations?
A. Manufacturing has grown faster than services since 1990
B. Services account for the majority of GDP and employment
C. Services are shrinking as automation replaces jobs
D. Agriculture remains the primary employer
Rationale: In most developed economies, services represent roughly 70–80% of GDP and
employment, driven by rising incomes, urbanization, technology, and the outsourcing of
business functions. Manufacturing and agriculture shares have declined proportionally.
6. Schmenner's Service Process Matrix classifies a law firm as a:
A. Service shop (low labor intensity, high customization)
, B. Professional service (high labor intensity, high customization)
C. Mass service (high labor intensity, low customization)
D. Service factory (low labor intensity, low customization)
Rationale: The matrix uses labor intensity and degree of interaction/customization.
Professional services (lawyers, doctors, consultants) are high on both. Airlines and hotels are
service factories; hospitals and repair shops are service shops; retail and schools are mass
services.
7. The concept of 'customer as co-producer' implies that:
A. Firms should minimize all customer contact
B. Only employees affect service outcomes
C. Service quality partly depends on the customer's own inputs and
participation
D. Customers should be excluded from back-office operations
Rationale: Because customers participate in many service processes (self-checkout, providing
accurate information to a physician), their effort, knowledge, and behavior influence
outcomes. Managing customer roles through training and design is a core service
management task.
8. Which of the following is an example of a 'high-contact' service?
A. Mail-order pharmacy
B. Automated car wash
C. Online banking
D. Hair salon
Rationale: High-contact services require the customer's physical presence and substantial
interaction with personnel, making the front stage and employee behavior critical. Online
banking, mail-order pharmacy, and automated washes are low-contact, technology-mediated
services.
9. The 'servicescape' concept developed by Bitner refers to:
A. The physical environment in which the service is delivered and its effect on
customers and employees
B. The digital interface for online service delivery
, C. The organizational chart of a service firm
D. The geographic market area served
Rationale: Servicescape includes ambient conditions, spatial layout and functionality, and
signs, symbols, and artifacts. These cues shape cognitive, emotional, and physiological
responses that influence approach/avoidance behaviors of customers and staff.
10. In the customer contact model, back-office operations should be:
A. Eliminated in favor of customer self-service
B. Decoupled from the front office to achieve manufacturing-like efficiency
C. Staffed by the same personnel as the front office
D. Fully visible to customers to build trust
Rationale: Chase's customer contact approach separates low-contact activities so they can be
scheduled, standardized, and optimized without customer-induced variability, while high-
contact activities focus on interpersonal skills and flexibility.
11. Which of the following is a 'facilitating good' in a restaurant service package?
A. The attentiveness of the server
B. The feeling of being welcomed
C. The building and kitchen equipment
D. The food and beverages consumed
Rationale: Facilitating goods are items purchased or consumed by the customer as part of
the service. The building is the supporting facility, attentiveness is an explicit service, and a
feeling of welcome is an implicit service.
12. The 'moment of truth' concept, popularized by Jan Carlzon of SAS, refers to:
A. The moment a service employee is hired
B. The annual financial audit of a service firm
C. Any interaction in which a customer forms an impression of the service
organization
D. The final invoice delivered to the customer
