Chapter 1
Introduction to Services Marketing
GENERAL CONTENT
Multiple Choice Questions
1. There are several reasons why the services sector is increasing in almost all countries
around the world. Which is not one of the contributing reasons?
a. The knowledge-based industries are growing.
b. Countries are less dependent on agriculture.
c. Some manufacturing firms are now focusing on marketing services as well.
d. The construction and manufacturing industries are booming.
e. More companies are outsourcing some of their service components.
(d; Moderate; p. 6)
2. Service markets are shaped by all of the following except ____________.
a. government policies
b. social changes
c. global economic change
d. business trends
e. advances in information technology
(c; Easy; p. 10)
,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
(c; Moderate; p. 12)
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
(a; Easy; p. 15)
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
(d; Moderate; p. 15)
,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
(b; Easy; p. 20)
7. 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.
(e; Easy; p. 21)
8. 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.
(a; Challenging; p. 23)
, 9. The three additional Ps of services marketing that extend the original four Ps of
marketing are _____________, _____________, and _____________.
a. product; price; place; promotion
b. prospects; process; people; promotion
c. physical environment; process; people
d. prosperity; process; people; promotion
e. physical environment; prosperity; planning; process
(c; Moderate; p. 23)
10. The service framework for developing effective service strategies excludes
_________________.
a. understanding service products, consumers and markets
b. managing the competitive landscape
c. applying the 4 Ps of marketing to services
d. designing and managing the customer interface
e. developing customer relationships
(b; Moderate; p. 25)
True/False
11. In most highly developed nations, services account for between three-fifths and four-
fifths of the GDP.
(True; Easy; p. 6)
12. Typically service jobs are not well-paid positions and require little education.
(False; Easy; p. 7)
Introduction to Services Marketing
GENERAL CONTENT
Multiple Choice Questions
1. There are several reasons why the services sector is increasing in almost all countries
around the world. Which is not one of the contributing reasons?
a. The knowledge-based industries are growing.
b. Countries are less dependent on agriculture.
c. Some manufacturing firms are now focusing on marketing services as well.
d. The construction and manufacturing industries are booming.
e. More companies are outsourcing some of their service components.
(d; Moderate; p. 6)
2. Service markets are shaped by all of the following except ____________.
a. government policies
b. social changes
c. global economic change
d. business trends
e. advances in information technology
(c; Easy; p. 10)
,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
(c; Moderate; p. 12)
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
(a; Easy; p. 15)
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
(d; Moderate; p. 15)
,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
(b; Easy; p. 20)
7. 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.
(e; Easy; p. 21)
8. 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.
(a; Challenging; p. 23)
, 9. The three additional Ps of services marketing that extend the original four Ps of
marketing are _____________, _____________, and _____________.
a. product; price; place; promotion
b. prospects; process; people; promotion
c. physical environment; process; people
d. prosperity; process; people; promotion
e. physical environment; prosperity; planning; process
(c; Moderate; p. 23)
10. The service framework for developing effective service strategies excludes
_________________.
a. understanding service products, consumers and markets
b. managing the competitive landscape
c. applying the 4 Ps of marketing to services
d. designing and managing the customer interface
e. developing customer relationships
(b; Moderate; p. 25)
True/False
11. In most highly developed nations, services account for between three-fifths and four-
fifths of the GDP.
(True; Easy; p. 6)
12. Typically service jobs are not well-paid positions and require little education.
(False; Easy; p. 7)
