SERVICE MARKETING EXAM LATEST UPDATED QUESTIONS AND ANSWERS 2025

SERVICE MARKETING EXAM LATEST UPDATED QUESTIONS AND ANSWERS 2025 - Clinics - ANSWER-- Critical incident technique (is one that contributes to or detracts from the general aim of the activity in a significant way, a critical incident is a specific example of a positive or negative service or product performance, I loved this or I hated that) - Focus groups (qualitative data), what does focus groups? - ANSWER-1) Group interview - specific discussion topic 2) The group has a leader, in order to keep the group on the right course 3) The composition of the group is carefully planned - In depth-interviews - ANSWER-- Collaboration with customers in development situations - Interviews (discussions, very rich data - customers about their lives, uses of products etc - to get new ideas and refine concepts) - ANSWER-- Surveys (what does surveys?) - Ladderings - ANSWER-- Value surveys and segmentation - Unobtrusive/nonreactive measures - ANSWER-- Project techniques - User ideation (idea generation by customers in-situ, capture ideas as they emerge in use) - ANSWER-- Lead user methodology (the source of innovations often among users) is built on identify a trend, identify leaders of the trend, involve these users to develop new products 1) Distributive (resource allocations and outcomes) - ANSWER-2) Procedural (how conflicts are resolved) 1) They allow us to understand customer attitudes and preferences etc. 2) Can help us gain insights in segments 3) Requires deep knowledge in construction and analysis - ANSWER-To maintain and improve quality gradually (not for creative product or service) 2) Blueprint the physical evidence of service - ANSWER-3) Clarify strategic roles of the servicescape 2) Customer inputs can affect organization's productivity - ANSWER-... 2) Customers know their context and their needs (only they know, no one else), so here the interaction occurs when suppliers value facilitation and customer's own value creation meet - ANSWER-3) Customers can contribute with new ideas (the knowledge of your own domain can make you more prone to see barriers, and less open to opportunities) 2) Develop measurement strategy - ANSWER-3) Implement research programme 2) Few firms follow the standard servitization path (change is not always gradual) - ANSWER- 2) Information search (How do customers learn about different alternatives?) - ANSWER-3) Evaluation of alternatives (What does the customer's process for evaluation look like) 2) Interaction quality - ANSWER-3) Physical environment quality 2) Procedural fairness - the policy rules and timeliness of the complaint process, rule that all complaints are dealt with within two weeks - ANSWER-3) Interactional fairness - the interpersonal treatment received during the complaint process, for example attitude of individuals assigned to deal with the complaint 2) Voicers (complain to the provider, but do not spread word of mouth. They are the service provider's best friends, since they point out the problems) - ANSWER-3) Irates (complain and spread a lot of WOM and easily switch) 3) Interactional (the manner in which information is exchanged) - ANSWER-All these perceptions are systematically affected by service recovery attributes, including: compensation, response speed, apology, initiation 4) Activists (complain, WOM and contacts third parties) - ANSWER- 4) Assess and identify physical evidence opportunities - ANSWER-5) Be prepared to update and modernize the evidence 4) Collect and tabulate data - ANSWER-5) interpret and analyze findings 4) Customers innovate! So why not learn from them? - ANSWER-5) There are so many customer's - increase innovative capacity (creating a platform for innovation open to others can increase your total capacity for innovation) 4) Purchase (How can you reduce perceived risks?) - ANSWER-5) Consumer experience (How do you create customer experience when the service is a process?) 6) Post-purchase evalutaions (Will customers come back? What is the word of mouth?) - ANSWER- 6) Report findings - ANSWER-- 6) Work cross-functionally (send consistent and compatible messages through all forms of evidence, and with providing the type of service evidence the target customers want and can understand). - ANSWER- Assurance (knowledge and courtesy of employees and their ability to inspire trust and confidence) - ANSWER-Tangibles (physical facilities, equipment, and appearance of personnel) But other customers can enhance satisfaction: - mere presence - socialization/friendship - roles: assistants, teachers, supporters, mentors - ANSWER- Centralized mass production of services is difficult due to their - ANSWER-Inseparability Check competition today - from product to experience focus - ANSWER-I blocket Check customer perceptions of quality and customer satisfaction - ANSWER-På papper Check factors that influence adequate service - ANSWER-I blocket Check factors that influence desired and predicted service: what can be influenced? - ANSWER-På papper Check how is service quality experienced - ANSWER-På papper Check how service marketers can influence factors (1+2) - ANSWER-På papper Check Linking quality to financial results - ANSWER-I blocket Check the "service recovery strategies" - ANSWER-Aktivt dokument 2 Check the "value co-creation: dyadic view" - ANSWER-Aktivt dokument 2 Check the continuum of evaluation for different types of products and services - ANSWER-I blocket Check the conventional path of servitization - ANSWER-Aktivt dokument 2 Check the current model of customer satisfaction - ANSWER-På papper Check the customer complaint actions following service failre - ANSWER-På papper Check the customer's value creation - ANSWER-I blocket Check the gap model - ANSWER-På papper Check the good-services continuum - ANSWER-I blocket Check the Grönroos 2011 - ANSWER-I blocket Check the hierarchy of needs - ANSWER-På papper Check the inverted services marketing triangle - ANSWER-På papper Check the Langeard & Eigliers Servuction Model + implications - ANSWER-På papper Check the Leadership underlies the Chain's Success (relationship between customer satisfaction and loyalty) - ANSWER-I blocket Check the model of service recovery - ANSWER-På papper Check the possible levels of customer expectations - ANSWER-På papper Check the products and services: differences in production - ANSWER-Aktivt dokument 2 Check the service blueprinting (10 steg) - ANSWER-På papper Check the service logic - ANSWER-I blocket Check the service quality: different types of responses - ANSWER-I blocket Check the service-profit chain model - ANSWER-I blocket Check the servicescape model - ANSWER-På papper Check the SPAT model - ANSWER-På papper Check the strategies for enhancing customer participation - ANSWER-På papper Check the zone of tolerance + different service dimensions - ANSWER-På papper Credence qualities (characteristics that may be impossible to evaluate even after purchase and consumption) - ANSWER- Cumulative satisfaction, which is... - ANSWER-A customer's overall evaluation of the performance of an offering to date Customer evaluation of service is based not only on delivered service but also by - ANSWER-expected service Describe the service marketing triangle - ANSWER-I blocket (Service marketing triangle is a dynamic model where there are three interlinked groups that work together to develop, promote and deliver services. These key players are labelled on the points of the triangle.) Describe the servuction model - ANSWER-I blocket (The servuction model demonstrates that consumers are an integral part of service process. Managers must understand the interactive nature of services) Differentiator - the design of the physical facility can differentiate a firm from its competitors and signal the market segment that the service is intended for. Given its power as a differentiator, changes in the physical environment can be used to reposition a firm and/or attract new market segments. - ANSWER- Empathy (caring, individualized attention the firm provides its customers) - ANSWER-Responsiveness (willingness to help customers and provide prompt service) Employee satisfaction or commitment? - ANSWER-Having happy employees is insufficient. The goal and challenge is to create an environment and culture where employees are motivated and committed to delivering superior customer service. Expectation or importance measures are collected directly from customers - ANSWER-The focus is on the moment of truth Facilitator - the servicescape can also serve as a facilitator in aiding the performance of persons in the environment. How the setting is designed can enhance or inhibit the efficient flow of activities in the service setting, making it easier or harder for customers and employees to accomplish their goals - ANSWER-Socializer - the design of the servicescape aids in the socialization of both employees and customers in the sense that it helps convey expected roles, behaviours, and relationships (it facilitates interaction between customer and employees and customers and fellow customers) Gap 2: not having the right service designs and standards - ANSWER-Gap 3: not delivering to service standards Gap 4: not matching performance to promises - ANSWER-MAIN GOAL: IS TO CLOSE THE GAPS How can customers be seen as productive resources? - ANSWER-1) Customers can be thought of as "partial employees", contributing effort, time, or other resources to the service production process How can knowledge and skills be transferred? - ANSWER-1) Directly 2) Through education or training 3) Indirectly by embedding them in objects How can you understand the expressed needs from the customers? - ANSWER-From feedback from surveys or complaints (reactive customer investigation), or you can discover, understand and satisfy latent customer needs by digging deeper in behaviours and life situations and needs (proactive method) How do you do proactive methods? - ANSWER-- History and fundamental national factors How do you do reactive methods? - ANSWER-- Comment cards How does Vargo & Lusch (2004) define service logic? - ANSWER-Service is the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself. How to make a good service recovery: - ANSWER-Treat the customer: - be personalized - be quick - occur at the first point of contact - keep the customer informed Identify areas in which service delivery could be simplified... - ANSWER-Identify areas in which customers could be helped to better use the service If customer role is central in many services, how can we design services that deliver desired benefits? - ANSWER-Service process mapping! Same as blueprinting Implicit service promises (hints from service provider, such as nice table cloth at a restaurant) and - ANSWER-Word of mouth and past experience Implicit service promises are --- that indirectly lead to customer expectations about what the service should and will be like: - ANSWER-Past experiences In the Gaps model, the customer gap is the difference between: - ANSWER-Customer expectations and customer perceptions Lecture 1 - Introduction - ANSWER-Okay Lecture 2 - Customer expectations and perceptions; service quality - ANSWER-Okay Lecture 3 - Customer's role in services, service logic and gap model - ANSWER-Okay Lecture 4 - Listening to customers through research - ANSWER-Okay Lecture 5 - Service innovation - ANSWER-Okay Lecture 6 - Service recovery - ANSWER-Okay Lecture 7 - Servitization - ANSWER-Okay Lecture 8 - The sharing economy - ANSWER-Okay Mindset of the firm: - complaints are good - make complaining easy - be an active listener - ask customers about specific service issues - do short surveys - ANSWER- Mystery shopping is - ANSWER-Researching a service by experiencing it as a customer would Offerings high in --- qualities are the easiest to evaluate? - ANSWER-Experience Old exam questions - ANSWER-Okay Old exam questions - ANSWER-Okay Or - ANSWER-"The innovation of organisation's capabilities and processes to better create mutual value through a shift from selling product to selling Product-Service Systems" Organization vs. client - organization's benefit or customer benefit? - ANSWER-Client vs. client - fairness between customers? adaptation for each customer? conflicts between customers? Other perceived risks are: - ANSWER-1) Potentially higher impact of word-of-mouth information 2) Need to "tangibilize" the service 3) Guarantees 4) Trial periods Perceived risks - ANSWER-Given the higher relevance of experience and credence qualities, services are typically perceived as more risky purchases than products Proactive methods: - ANSWER-include all available information that is needed to better understand underlying customer needs Schumpeters view of innovation - ANSWER-- Innovation is something which is carried into practice - Innovation is something which provides benefit to its developer - Innovation is something which reproducible Search qualities (attributes that can be determined prior to purchase of a product) - ANSWER-Experience qualities (attributes that can be determined after purchase, or during consumption, of a product or service) Service quality assessments are formed on judgments of: - ANSWER-1) Outcome quality Service-profit chain (SPC) - - ANSWER-why service quality matters? Services are produced and consumed simultaneously; this service characteristic is referred to as: - ANSWER-Inseparability Services as a type of offering - different from products... - ANSWER-What are the four aspects? Services cannot be produced ahead of time and inventoried, which is called - ANSWER-Perishability Services lack the tactile quality of goods, which is called - ANSWER-Intangibility Servitization - ANSWER-It involves firms (often manufacturing firms) developing the capabilities they need to provide services and solutions that supplement their traditional product offerings. So what does the service process maps? - ANSWER-Help visualize the service system design as a "performance chronology", but also... The economic impact of customer satisfaction and retention is a function of at least two factors: - ANSWER-1) The "front-loading" of customer costs 2) The "back-loading" of customer revenues The extent to which customers recognize and are willing to accept variations in service performance in called the: - ANSWER-Zone of tolerance The prevailing service business model is Heskett et al. (1994), SPC - ANSWER-The SPC is a simple form of "linked activities". Favourable financial outcomes depend on attracting and retaining the right customers, whose loyalty is assured by attracting and retaining the right employees, and enabling and motivating them to do the right thing. There are three types of justice that customers are looking for following their complaints. - ANSWER-Outcome fairness, Procedural fairness and interactional fairness This is an organization's systematic attempt to correct a service failure and to retain a customer's goodwill - ANSWER-Service recovery This service characteristic indicates that services do not have physical attributes and therefore cannot be perceived by the senses - cannot be tasted, seen, touched, smelt or possessed: - ANSWER-Intangibility Two persons, Lisa and Peter, attended a financial management seminar. As a biology major, Lisa found the course useless because she did not understand the financial terminology. Peter, who majored in marketing, thought the course did not contain any information that he did not already know. Their dissatisfaction with the seminar illustrates: - ANSWER-The importance of the information the customer brings to the service encounter Unlike goods, services are simultaneously produced and consumed, which is called - ANSWER-Inseparability Unlike goods, services cannot be standardized, which is called - ANSWER-Heterogenity What affects customer expectations? - ANSWER-Service promises from service provider and What are the barriers of sharing? - ANSWER-1) Trust (mistrust to strangers etc) 2) Ease of sharing 3) Don't know any users, social proof 4) Time it takes to learn new platforms 5) Insufficient knowledge of how to get started 6) Concerns about scams or fraud, privacy & safety risks What are the benefits of service guarantees? - ANSWER-- A good guarantee forces the company to focus on its customers - An effective guarantee sets clear standards for the organization - A good guarantee generates immediate and relevant feedback from customers - When the guarantee is invoked there is an instant opportunity to recover, thus satisfying the customer and helping retain loyalty. What are the causes of the problems? - ANSWER-Differences in product and service business, Organizational coordination difficulties, Organizational inertia, Mismatch with customer expecations and competences What are the characteristics of an effective service guarantee? - ANSWER-It is 1) unconditional and 2) meaningful. Also easy to understand and communicate. It is also easy to invoke and collect. What are the different types of new services? - ANSWER-1) Major radical innovations 2) Start-up business 3) New services for the currently served market 4) Service line extensions 5) Service improvements 6) Style changes What are the drivers for shared economy? - ANSWER-1) Social drivers 2) Economic drivers 3) Technology drivers What are the evidences of service from the customer's point of view? Finns även i blocket - ANSWER-People Process Physical evidence What are the five dimensions of service quality (SERVQUAL) - ANSWER-Reliability (ability to perform the promised service dependable and accurately) What are the guidelines for physical evidence strategy? - ANSWER-1) Recognize the strategic impact of physical evidence What are the issues to consider when examining the consumers' service experience? - ANSWER-1) Services as processes 2) Service provision as drama 3) Service roles and scripts 4) The compatibility of service customers 5) Customer co-production 6) Emotion and mood What are the provider gaps? - ANSWER-Gap 1: not knowing what customers expect What are the purpose of proactive methods? - ANSWER-They seek to capture a wider range of information and information that are hard to express What are the six stages in the customer research process? - ANSWER-1) Define problem What are the suggested benefits for customers? In servitization - ANSWER-- Focus on own core business and competences - More predictable maintenance costs What are the suggested benefits for solution providers? In servitization - ANSWER-- Higher profitability in comparison to products - More stable revenue - Closer relationships with customers What are the two perspectives on customer satisfaction? - ANSWER-Transactional (a customer's evaluation of his or her experience with and reactions to a particular product transaction, episode, or service encounter What can be the problems with servitization? - ANSWER-1) Few firms actually benefit from servitization (more services is not always better) What can influence this customer evaluation? - ANSWER-Marketing can affect these customer evaluations of service indirectly What does the model say? - ANSWER-- Transition towards more services - Transition towards more complex and knowledge-intensive services - Transition is gradual - Increasingly close relationship with customer What factors influence customer satisfaction? - ANSWER-1) Product and service quality 2) Product or service features 3) Consumer emotions 4) Attributions for service success or failure 5) Perceptions of equity or fairness 6) Other consumers, family members, and coworkers 7) Price What factors influenced desired service? - ANSWER-1) Personal needs 2) Lasting service intensifies (other stable factors that make the customer more sensitive to service. for instance, you want to make sure that your choice of restaurant also pleases your friends.) What is a collaborative economy? - ANSWER-An economy built on decentralised networks and marketplaces that unlocks the value of underused assets by matching needs and haves, in ways that bypass traditional middlemen and disrupt centralised institutions. What is a service guarantee? - ANSWER-A pledge or assurance that a product offered by a firm will perform as promised and, if not, then some form of reparation will be undertaken by the firm. Warranty for tangible products. What is clue management? - ANSWER-Refers to the process of clearly identifying and managing all the various clues that customers use to form their impressions and feelings about the company. What is customer satisfaction? - ANSWER-Customer's evaluation of a product or service in terms of whether that product or service has met the customer's needs and expectations What is economy 1.0? - ANSWER-"Post industrial society", growth driven by consumer demand, product-based innovations What is economy 2.0? - ANSWER-"Knowledge-based society", new ICT enable better service delivery What is economy 3.0? - ANSWER-Service economy, experience economy, sharing economy and on-demand economy What is peer to peer/consumer to consumer? - ANSWER-ICT enables people to get what they need from each other on-demand, rather than from centralized institutions traditionally selling goods and services What is service quality? - ANSWER-The customer's judgment of overall excellence of the service provided in relation to the quality that was expected What is servitization? - ANSWER-The inclusion of service elements in the offerings of traditionally product-based companies What is the concept of innovation in research? - ANSWER-Innovations started to get attention during industrial revolution. From the beginning term or concept associated with science and technical aspects in relation to the industrial revolution What is the critical importance of service employees? - ANSWER-They are the service. They are the organization in the customer's eyes. They are the brand. They are the marketers. What is the customer gap? - ANSWER-Expected vs actual performance What is the difference between an invention and an innovation - ANSWER-Invention is an act of intellectual creativity undertaken without any thought given to its possible economic import. Innovation happens when firms figure out how to craft inventions into constructive changes in their business model What is the difference between latent needs and expressed needs? - ANSWER-Customers may not always be able to express their needs. Latent needs are the needs that customers don't directly express. What is the exit-voice theory? - ANSWER-Hirschman's (1970) exit voice theory provides a theoretical basis for understanding service complaints and service recovery. The presumption is that customer satisfaction leads to retention, while dissatisfaction leads to exit or voice. What is the framework used to understand how the servicescape influences consumer behaviour? - ANSWER-Stimulus-response-model What is the gap model? - ANSWER-It views satisfaction as the difference between expected and actual performance (transaction or episode based)... What is the goal of customer orientation? - ANSWER-Information about customers must be collected to be able to understand customer needs and values, and in which way they are fulfilled by our present goods and services, and how they can be fulfilled by our future goods and services What is the goal with focus groups? - ANSWER-To get people to react to others' ideas and not limit their answers What is the heart and wallet paradox? - ANSWER-"Hybrid economy" with ideological tensions: 1) A logic of economic market-mediated exhange with aspects of profit-maximization 2) A logic of non-market exchange with elements of solidarity, mutuality What is the key issue? - ANSWER-Should customers' roles be expanded or reduced? What is the moment of truth? - ANSWER-It's the moment when a customer/user interacts with a brand, product or service to form or change an impression about that particular brand, product or service. What is the retention-profit link? - ANSWER-Differences in customer satisfaction and retention explain differences in firm profitability What is the servicescape model? - ANSWER-It is how we perceive the surrounding, the servicescape, creates an internal response. Internal response influence our behaviours and interaction. Both customers and employees are influenced by the servicescape. What is the switching path analysis technique? - ANSWER-It's a special form of CIT, the method is used for understanding why customers switch What kind of potential conflicts may boundary-spanning employees face? - ANSWER-Person vs. role - service task requires doing tasks against one's personality What kind of smarter regulations can be for sharing economy? - ANSWER-1) more efficient use of physical assets 2) providing each other temporary access 3) consumer-to-consumer platforms What may be the reasons why companies might NOT want to offer a service guarantee? - ANSWER-- Existing service quality is poor - Guarantee does not fit the company's image - Too many uncontrollable external variables - Fears of cheating or abuse by customers - Costs of the guarantee outweight the benefits - Customers perceive little risk in the service What strategies can be applied for managing emotional labour? - ANSWER-Screen for emotional labour abilities/Teach emotional management skills and appropriate behaviours/Construct the physical environment/Allow employees to air their views/Put management in the front line/Give employees a break/Hand over demanding customers to managers What tool or approach can be used to determine likely failure points in service systems? - ANSWER-Blueprints When service is produced via a cooperative effort between customers and service providers, this is referred to as: - ANSWER-Co-production Where is the importance of service employees evident in? - ANSWER-1) The services marketing mix (people). 2) The service-profit chain. 3) The services triangle. Which are the 4 principles of collaborative consumption? - ANSWER-1) a critical mass of users 2) idling or excess capacity of unused goods 3) belief in the common good 4) social trust Which are the consumer evaluation of services? - ANSWER-Different qualities! As... Which are the different types of complainers? - ANSWER-1) Passives (do not take any action) Which are the SIX stages in consumer decision-making and evaluation of services? - ANSWER-1) Need recognition (What needs does the service to fulfill) Which are the strategic roles of the servicescape? - ANSWER-Package - similar to tangible product's package, the servicescape and other elements of physical evidence essentially "wrap" the service and convey to consumers an external image of what is "inside" (convey expectations, influences perceptions) Which are the three different perspectives on services? - ANSWER-1) A category of companies - the service sector 2) A type of offering that's different from products 3) A perspective on business Which are the three types of fairness within service recovery? - ANSWER-1) Outcome fairness - the results that customers receive from complaints, example is refunds Which model can be applied to service recovery? - ANSWER-Equity theory suggests that there are three separate dimensions of perceived justice: Which of the following is an example of a tangible component of the service provided by a hotel? - ANSWER-Guest rooms Which of the following is an example of intangible dominant offering? - ANSWER-Mathematics tutoring Which of the following is NOT a component of a service firm's physical evidence? - ANSWER-Customer satisfaction Which of the following is NOT an example of an ambient condition of the servicescape in a retail environment? - ANSWER-Signs Which of the following service characteristics results because no two customers are precisely alike; each will have unique demands or experience the service in a unique way - ANSWER-Heterogenity Which of the following sets of terms best describes a service? - ANSWER-Deeds, effort and performances Which of the following statements is false? - ANSWER-Services are first produced, then sold, then consumed Which one is the most important dimension in the SERVQUAL model? - ANSWER-service reliability (the ability to perform the promised service dependably and accurately" Which questions are important to consider when implementing a service guarantee? - ANSWER-1) Who decides? 2) When does a guarantee make sense? 3) What type of guarantee should we offer? Which two methods can be used for customer orientation? Also check what you wrote on the paper - ANSWER-Reactive methods: focus on customers reactions on present goods and services Why do we offer service guarantees? - ANSWER-The qualities of many services are difficult to evaluate before consuming the service. Why involve customers in service development? - ANSWER-1) By involving users, you can develop offerings from the outside in Why is there an importance of other customers in service delivery? - ANSWER-Other customers can detract from satisfaction - disruptive behaviours - overly demanding behaviours - excessive crowding - incompatible needs Why study services marketing? Why is it important? - ANSWER-- Service-based economies - Service as a business imperative in manufacturing and IT - Services marketing is different - Service equals profits - Service is driven by technology