Chapter-1: Introduction to Services
Self Assessment Questions
1. The ................................. reflects the view that the intangible aspects of products are
becoming the key features that differentiate the product in the marketplace.
a. services marketing
b.
Servuction model
c. service imperative
d. benefit concept
2. Which of the following businesses would be characterized as a pure service?
a. farming
b. mining
c. engineering
d. there is no such thing as a pure service
3. General Motors, the manufacturing giant's, largest supplier is:
a. Blue Cross-Blue Shield Insurance
b. GMAC Financing
c. a parts supplier
d. a legal firm
4. Which of the following sets of terms best describes a service?
a. effort, objects, and deeds
b. things, devices, and performances
c. objects, devices, and things
d. deeds, effort, and performances
5. Deeds, efforts and performances define:
a. products
b. ideas
c. services
d. goods
6. The continuum that ranges from tangible-dominant to intangible-dominant is referred to
as:
a. the services triangle
b. the Servuction model
c. the scale of market entities
d. the service-profit chain
7. Businesses such as fast food restaurants would fall where along the Scale of Market
Entities?
a. on the extreme end of the intangible-dominant side
b. on the extreme end of the intangible-dominant side
c. in the middle of the continuum
d. left of the middle towards the tangible-dominant side
8. Which of the following fields would be least likely to be described as intangibledominant?
a. manufacturing
b. education
c. insurance
d. banking
9. Which of the following products is an example of intangible dominant?
a. car rental agency
b. a funeral
c. a magazine subscription
d. math tutoring
10. Which of the following statements is not true?
a. Firms that define their businesses too narrowly have developed marketing myopia.
b. Goods are tangible-dominant.
c. Service knowledge is obtained through the experience of receiving the actual service.
d. All the above are true.
11. ......................_ results in the practice of too narrowly defining one’s business:
a. Services marketing
b. Marketing management
c. Marketing myopia
d. Scale of market entities
12. ......................__ involves a pictorial representation of the relationship between the
tangible and intangible elements of a firm’s operation.
a. Molecular Model
b. Servuction Model
c. Benefit concept
d. Industrial Management Model
13. Which of the following could NOT be included in the airline molecular model?
a. long-term parking
b. financing arrangements
c. rental car availability
d. gate attendants
14. The encapsulation of the benefits of product in the consumer's mind is called:
a. the Servuction Model
b. the benefit concept
c. the Service Triangle
d. the Service-Profit Chain
15. According to the Servuction Model, factors that influence the customer's service
experience include all of the following except:
a. price
b. contact personnel/service providers
c. other customers
d. servicescape
16. Which of the following components of the Servuction Model is not visible to consumers?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
17. A customer who notices dirty silverware and a dirty floor in his/her favorite restaurant
has been influenced by which of the following components of the Servuction Model?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
18. Servicescape consists of which of the following features:
a. inanimate objects
b. signs
c. symbols
d. all of the above
19. The component of the Servuction Model over which most service firms have the least
control is:
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
20. If an office did not schedule as many people as were needed during a busy period, which
of the following components of the Servuction Model has influenced the customer's
experience?
a. servicescape
b. organization and systems
c. other customers
d. contact personnel
Answers for Self Assessment Questions
1. (c)
2.(d)
3.(b)
4.(d)
5.(c)
6. (c)
7.(c)
8. (a)
9.(d)
10.(d)
11.(c)
12.(a)
13.(b)
14.(b)
15. (a)
16.(b)
17.(a)
18.(d)
19.(c)
20. (b)
Chapter-2: Service Industries
Self Assessment Questions
1. We define a ...................... as anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need.
a. service variability
b. service encounter
c. product
d. private brand
2. Product is a key element in ....................... At one extreme, it may consist of pure tangible
goods or at the other extreme, pure services.
a. the market offering
b. brand equity
c. brand extension
d. the market experience
3. Product planners need to think about products and services on three levels. The most
basic level is the ......................, which addresses the question, "What is the buyer really
buying?"
a. core benefit
b. exchange
c. augmented product
d. co-branding
4. Product planners must design the actual product and find ways to ...................... it in order
to create the bundle of benefits that will create the most customer value.
a. brand
b. present
c. augment
d. package
5. ...................... are products and services bought by final consumers for personal
consumption. These include convenience products, shopping products, specialty products,
and unsought products.
a. Services
b. Straight extensions
c. Consumer products
d. Industrial products
6. ...................... are consumer products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make a special purchase
effort.
a. Industrial products
b. Unsought products
c. Shopping products
d. Specialty products
7. ...................... are those products purchased for further processing or for use in conducting
a business.
a. Shopping products
b. Specialty products
c. Unsought products
d. Industrial products
8. ...................... are industrial products that aid in the buyer's production or operations,
including installations and accessory equipment.
a. Supplies
b. Capital items
c. Materials
d. Specialty items
9. ...................... is defined as the use of commercial marketing concepts and tools in
programs designed to influence individuals' behavior to improve their well-being and that
of society.
a. Unsought product marketing
b. Interactive marketing
c. Social marketing
d. Internal marketing
10. Developing a product or service involves defining the benefits that it will offer. These
benefits are communicated and delivered by ...................... such as quality, features, and style
and design.
a. consumer products
b. private brands
c. marketing tools
d. product attributes
11. ...................... is an approach in which all the company's people are involved in constantly
improving the products, services, and business processes.
a. Positioning
b. Specialty product marketing
c. Brand equity
d. Total quality management
12. Which of the following types of quality refers to freedom from defects and consistency in
delivering a targeted level of performance?
a. product
b. adherence
c. private brand
d. conformance
13. ...................... contributes to a product's usefulness as well as to its looks.
a. Package
b. Design
c. Brand
d. Style
14. ...................... involves designing and producing the container or wrapper for a product.
a. Branding
b. Product line
c. Packaging
d. Labeling
15. At the very least, the ...................... identifies the product or brand. It might also describe
several things about the product.
a. package
b. label
c. line extension
d. specialty product
16. Many companies now use a combination of phone, e-mail, fax, Internet, and other
technologies to provide .......................
a. packaging advantages
b. brand equity
c. support services
d. labeling information
17. Maheu Piano Company can expand its product line in one of two common ways. Which
of the following is one of the ways that might prove productive?
a. product mix
b. line filling
c. social marketing
d. internal marketing
18. When a company lengthens its product line beyond its current range, it is .......................
a. product line filling
b. product mixing
c. product line stretching
d. building brand equity
19. Product mix ...................... refers to the number of different product lines the company
carries. Procter & Gamble markets around 250 brands organized into many product lines.
a. height
b. width
c. perimeter
d. length
20. A company can increase its business in four ways. Which is not one of these ways?
a. It can increase the consistency of its product mix.
b. It can add more versions of each product and thus deepen its product mix.
c. It can discontinue some of its lines.
d. It can add new product lines, thus widening its product mix.
Answers for Self Assessment Questions
1. (c)
2.(d)
3.(a)
4.(c)
5.(c)
6. (d)
7.(d)
8. (b)
9.(c)
10.(d)
11.(d)
12.(d)
13.(b)
14.(c)
15. (b)
16.(c)
17.(b)
18.(c)
19.(b)
20. (c)
Chapter-3: Services Marketing Concept
Self Assessment Questions
1. The service marketing mix comprises off the……...
a. 7’p’s
b. 8’p’s
c. 5’p’s
d. 4’p’s
2. An essential ingredient to any service provision is the use of appropriate staff and………..
a. customer
b. people
c. business
d. money
3. The heart of a service is the encounter between the ……….and the customer.
a. people
b. server
c. business
d. staff
4. The Four Stages result in a new model for ensuring Brand Promises, Business Processes
and Customer Experiences are………aligned.
a. 100%
b. 60%
c. 50%
d. 30%
5. All commercial organizations have a legal responsibility to account for their finances
including for the goods and services that they procure.
a. True
b. False
6. An individual customer’s zone of tolerance increases or decreases depending on a number
of factors, including company-controlled factors such as price.
a. True
b. False
7. Before implementation of the CPM system, finance did…………% of the budget.
a. 40 to 50
b. 45 to 75
c. 30 to 70
d. 50 to 60
8. The first phase of the CPM system implementation was rolled out to financial personnel
in…………..
a. 1999
b. 2000
c. 2005
d. 2012
9. A SPM system encompasses planning, budgeting, forecasting, financial consolidation,
reporting, and analysis and treats them as a single, continuous process.
a. True
b. False
10. Customer expectations are beliefs about service delivery that serve as standards or
reference points against which performance is judged.
a. True
b. False
11. The sales volume at which a service becomes profitable is called the.........................
a. gross margin
b. net margin
c. break-even point
d. net profit
12. All monetary expenditures incurred by customers in purchasing and consuming a
service are called..........................
a. non-financial outlays
b. virtual outlays
c. financial outlays
d. intangible outlays
13. ...........................may include put ting up with noise, unpleasant smells, drafts, excessive
heat or cold, uncomfortable seating or lighting, visually unappealing environments, and
even unpleasant tastes.
a. Time expenditures
b. Physical effort
c. Psychological burdens
d. Sensory burdens
14. An approach to costing based on identifying the activities being performed and then
determining the resources that each consumes is called....................
a.
cost-based pricing
b. activity-based costing
c. competition-based pricing
d. value-based pricing
15. Which of the following describes techniques for separating customers so that segments
for which the service offers high value are unable to take advantage of lower prices offers?
a. rate fences
b. price buckets
c.
auctions p
d. critical incidents
16. The costs associated with adding an extra student to a college class are called elastic
costs.
a. True
b. False
17. Contribution is the difference between the variable cost of selling an extra unit of service
and the money received for that service.
a. True
b. False
18. Internal communications are............................
a. communications from management to employees in a service organization.
b. communications within a private electronic network.
c. communications conducted using email and the Internet.
d. communications with a corporate Web site which customers access with a password.
19. All of the following are examples of common educational and promotional objectives in
service settings EXCEPT:
a. create memorable images of specific companies and their brands.
b. avoid comparing a service with competitors offerings and do not counter
competitive claims.
c. reposition a service relative to competing offerings.
d. encourage trial by offering promotional incentives.
20. Which of the following definitions best describes the marketing communication mix?
a. The full set of communication channels available to marketers.
b. the allocation of advertising dollars among different media.
c. Customer involvement with two-way communications.
d. Failure to communicate with customers effectively during arm’s length transactions.
Answers for Self Assessment Questions
1.(a)
2. (c)
3. (c)
4. (a)
5. (a)
6. (a)
7. (d)
8. (c)
9. (b)
10. (a).
11. (c)
12. (c)
13. (d)
14. (b)
15. (a)
16. (b)
17. (a)
18. (a)
19. (b)
20. (a)
Chapter-4: Service Quality
Self Assessment Questions
1. ssessing service quality is an imperative and Berry, Parasuraman and Zeithaml developed
the service assessment model called SERVQUAL (1985). They listed 10 main criteria that
covered the service interaction and divided them into 'outcomes of the service experience'
and 'influencing the quality of the inputs'. Which of the following criteria are defined as
'inputs' to the service process?
a. Access; reliability; credibility; security; understanding the customer.
b. Access; credibility; security; responsiveness; courtesy; competence; tangibles.
c. Responsiveness; courtesy; competence; communication; tangibles.
d. Reliability; security; understanding the customer; competence; communication.
2. One of the greatest problems of intangibility is that it is difficult to assess which of the
following, both during and after the service, has been experienced?
a. Service level.
b. Quality.
c. Quantity.
d. Value.
3. With service products the involvement of the customer in the service experience means
that there can be no prior production, no storage and that consumption takes place
simultaneously with production. The service delivery therefore can be separated from the
service provider and is known as ......................__.
a. separability
b. perishability
c. conformability
d. intangibility
4. Due to simultaneous production and consumption and the involvement of service staff,
services can be difficult to standardise. Services are said to be which of the following?
a. Homogeneous.
b. Homologous.
c. Heterogeneous.
d. Heuristic.
5. In service situations price can play an important role in managing demand. Customers
can use price as a weapon negotiating lower prices than advertised. This is often as a result
of which of the following?
a. Inseparability.
b. Heterogeneity.
c. Perishability.
d. Homogeneity.
6. The ability of staff to cope with customers, to deliver the service reliably to the required
standard and to present an image consistent with what the organisation would want are
vital concerns to the service provider. This is known as which of the following?
a. Internal marketing.
b. Organisational marketing.
c. Indirect marketing.
d. Direct marketing.
7. The role of customers in the service is known as which of the following?
a. Reactive marketing.
b. People marketing.
c. Selective marketing.
d. Interactive marketing.
8. In the relationship marketing firms focus on ......................__ relationships with
......................__.
a. Short term; customers and suppliers
b. Long term; customers and suppliers
c. Short term; customers
d. Long term; customers
9. Political campaigns are generally examples of:
a. Cause marketing
b. Organization marketing
c. Event marketing
d. Person marketing
10. The Coca Cola organisation is an official sponsor of the Olympics. The firm is engaging
in:
a. Place marketing
b. Event marketing
c. Person marketing
d. Organization marketing
11. Today's marketers need...
a. Neither creativity nor critical thinking skills
b. Both creativity and critical thinking skills
c. Critical thinking skills but not creativity
d. Creativity but not critical thinking skills
12. Which of the following is NOT an element of the marketing mix?
a. Distribution
b. Product
c. Target market
d. Pricing
13. The term "marketing mix" describes:
a. A composite analysis of all environmental factors inside and outside the firm
b. A series of business decisions that aid in selling a product
c. The relationship between a firm's marketing strengths and its business weaknesses
d. A blending of four strategic elements to satisfy specific target markets
14. Newsletters, catalogues, and invitations to organisation-sponsored events are most
closely associated withthe marketing mix activity of:
a. Pricing
b. Distribution
c. Product development
d. Promotion
15. The way in which the product is delivered to meet the customers' needs refers to:
a. New product concepts and improvements
b. Selling
c. Advertising and promotion activities
d. Place or distribution activities
16. The key term in the American Marketing Association's definition of marketing is:
a. Process
b. Customers
c. Stakeholders
d. Value
17. A critical marketing perspective is the process of determining:
a. The value of a product, person, or idea
b. How places compete with each other
c. The worth and impact of marketing activities
d. Which type of promotional strategy works best
18. When customer expectations regarding product quality, service quality, and value-based
price are met orexceeded, ........... is created.
a. Customer satisfaction
b. Planning excellence
c. A quality rift
d. A value line
19. A market orientation recognizes that:
a. Price is the most important variable for customers
b. What the customer thinks he or she is buying is what is important
c. Selling and marketing are essentially the same thing
d. Sales depend predominantly on an aggressive sales force
20. Four competing philosophies strongly influence the role of marketing and marketing
activities within anorganization. Which if the following is NOT a marketing management
philosophy?
a. Customer orientation
b. Profitability orientation
c. Marketing orientation
d. Competitor orientation
Answers for Self Assessment Questions
1. (c)
2.(b)
3.(a)
4.(c)
5.(c)
6. (a)
7.(d)
8. (b)
9.(d)
10.(b)
11.(b)
12.(c)
13.(d)
14.(d)
15. (d)
16.(d)
17.(c)
18.(a)
19.(b)
20. (b)
Chapter-5: Assessment of Marketing
Self Assessment Questions
1. Which of the following increased marketers' interest in consumer behaviour in the 1950s
and 1960s?
a. marketers realised that current marketing theory failed to explain consumers' actions
b. consumers became more aware of environmental issues
c. the opening of international and global markets
d. all of the above
2. Marketing efforts and sociological influences on the consumer are aspects of which stage
in the consumer decision-making model?
a. the post-purchase evaluation
b. the output stage
c. the input stage
d. the process stage
3. How do the marketing concept and the societal marketing concept differ?
a. The marketing concept focuses on the needs of the individual and the producer. The
societal marketing concept balances these needs with societal needs.
b. The societal marketing concept considers it unethical to fulfil target audiences' needs
if, by doing so, the individual or society is harmed.
c. The marketing concept focuses on short-term increases in market shares and quick
profits. The societal marketing concept focuses on long-term profit, based on
customer loyalty and healthier societies.
d. all of the above
4. Which consumer-oriented marketing strategy assumes that marketers should make and
sell what customers want or need?
a. the societal marketing concept
b. the consumer concept
c. the marketing concept
d. the selling concept
5. Consumer behaviour is an interdisciplinary science drawing heavily on the research and
theories from which other discipline?
a. cultural anthropology
b. sociology
c. economics
d. all of the above
6. Which stage in the decision-making process considers both purchase and post-purchase
evaluation?
a. psychological field
b. output stage
c. sociocultural environment
d. process stage
7. We study consumer behaviour for which of the following reasons?
a. to assist in the development of consumer protection legislation and public policy
b. computer technology and statistical techniques have made it easier to research
consumer behaviours
c. the public is becoming increasingly concerned about environmental issues
d. all of the above
8. Which marketing strategy assumes that marketers should actively and aggressively
persuade consumers to purchase the product?
a. product orientation
b. production orientation
c. marketing concept
d. selling orientation
9. ......................____ is the process of dividing a market into subsets of consumers with
common needs or characteristics.
a. market segmentation
b. targeting
c. the marketing mix
d. positioning
10. Which of the following is not a reason why small reductions in customer defections
produce significant increases in profit?
a. loyal customers buy more products
b. loyal customers are less price sensitive
c. servicing existing customers who are familiar with the firm and its products is
cheaper
d. none of the above
11. ............................................__ is the individual's perception of the performance of the
product or service in relation to his or her expectations.
a. positioning
b. customer satisfaction
c. customer value
d. customer profitability-focused marketing
12. ......................____ is developing a distinct image for the product or service in the mind of
consumers.
a. market segmentation
b. the marketing mix
c. targeting
d. positioning
13. The X-Cel Corporation has announced that it will implement the very latest in
computerized research systems. The firm is planning to implement a
............................................ system
a. CATS
b. random-digit dialing
c. CATI
d. CARP
14. The most common type of self-administered survey is the:
a. direct mail survey.
b. mail panel survey.
c. telephone interview.
d. drop-off surveys.
15. The X-Cel Corporation feels that simulation offers the best way to assess potential store
layouts, packaging, and pricing. Which of the following techniques may best allow the firm
to accomplish these goals while avoiding the problems of small samples and the costs of
constructing physical props?
a. telephone interviews
b. self-administered surveys
c. virtual reality research
d. mail-intercepts
16. Situational factors of importance in the selection of a survey method include:
a. the required completion date.
b. the depth and breadth of data required.
c. the level of generalizability required.
d. all of the above.
17. The choice of the survey method used to collect raw data will be influenced by such task
characteristics as:
a. stimuli needed to elicit responses.
b. the amount of information needed/respondent.
c. the sensitivity of the research topic.
d. all of the above.
18. Ideally, survey respondents would rank “high” on all of the following characteristics
except:
a. incident rate.
b. diversity rate.
c. ability to participate.
d. willingness to participate.
19. Increasing the size of the sample will impact most favorably upon:
a. construct development error.
b. non-response error.
c. random sampling error.
d. data analysis error.
20. Which of the following telephone interview techniques best assures that all telephones in
a specified target area have an equal chance of being selected?
a. plus-one dialing
b. random digit dialing
c. full-coverage dialing
d. automated dialing
Answers for Self Assessment Questions
1. (d)
2.(c)
3.(d)
4.(c)
5.(d)
6. (b)
7.(d)
8. (d)
9.(a)
10.(d)
11.(b)
12.(d)
13.(a)
14.(a)
15. (c)
16.(d)
17.(d)
18.(b)
19.(c)
20. (b)
Chapter-6: Marketing Research
Self Assessment Questions
1. Marketing research:
a. is used to obtain information for management to make more informed decision
making.
b. is the collection and analysis of data from a sample or census of individuals or
organizations.
c. includes all forms of market, opinion and social research such as consumer and
industrial surveys.
d. is work undertaken to determine either structural characteristics of the industry of
concern.
2. Marketing research, by presenting pertinent information in a useful format:
a. provides managers with a means to judge worker performance.
b. aids marketing decision makers in analysing data and in suggesting possible actions
for strategic marketing direction.
c. provides sufficient information about a situation after it occurs to be able follow its
path of occurrence.
d. provides consumers with information concerning why the product or service is
useful to them.
3. A marketing research firm contracts with clients to conduct a complete marketing
research project from data collection, analysis and reporting. It is a......................__ firm.
a. consultant
b. field agency
c. full-service agency
d. tabulation agency
4. Marketers usually decide whether to conduct marketing research study internally or
through an outside organization based on certain criteria. Which of the following criterion is
not used?
a. Whether the study offers value for money.
b. The agency's reputation.
c. The likelihood that the research design will provide insights into the management
problem.
d. The size of the agency.
5. The organized, professional approach to collection, analysis, and distribution of timely,
accurate, and useful information as intelligence products is referred as:
a. competitive intelligence.
b. data mining.
c. analytical information.
d. customer relationship management.
6. Once the agency has discussed the brief with the client, the agency provides a detailed
outline of how they intend to investigate the problem. This document is called the
......................____:
a. research brief.
b. research proposal.
c. research question.
d. research programme.
7. Second-hand data, collected for someone else's purposes, is known as......................____:
a. primary research.
b. descriptive research.
c. causal research.
d. secondary research.
8. When little is known about the problem, research seeking to discover the cause of a
problem by discussing the problem with informed sources and examining pre-existing data
is undertaken. This type of research is:
a. situation analysis.
b. information investigation.
c. exploratory research.
d. bottom-line analysis.
9. Which of the following is not one of the categories of research design?
a. Exploratory research.
b. Descriptive research.
c. Causal research.
d. Desk research.
10. Which technique is used to collect data that has been previously collected for a purpose
other than the current research situation?
a. Secondary research.
b. Primary research.
c. Desk research.
d. Secondary research and desk research.
11. A common research technique, used particularly in retailing (on- and off-line) where
consumers are recruited by researchers to act as anonymous buyers in order to evaluate
customer satisfaction is referred to as:
a. qualitative research.
b. mystery shopping.
c. quantitative research.
d. Ethnography.
12. Information collected for the first time specifically for a marketing research study is
called:
a. secondary research.
b. primary research.
c. soft research.
d. experimental research.
13. Secondary data has two important advantages over primary data. It is:
a. capable of compensating for rapid environmental changes and technical
improvements.
b. always available and complete.
c. seldom obsolete and usually fits the dimensions of your problem.
d. generally cheaper to gather than primary data and takes less time to find.
14. Primary data are:
a. data collected for the first time specifically for a marketing research study.
b. less time-consuming to acquire and less costly than secondary data.
c. newly-published results of government investigations.
d. part of a strategic planning activity to ensure proper resource allocation.
15. A group of people chosen from a defined population to be survey respondents or
research participants is called a:
a. quota.
b. cluster.
c. sample.
d. community.
16. A probability sample constructed so that randomly selected sub-samples of different
groups are represented in the total sample is called a:
a. stratified sample.
b. convenience sample.
c. quota sample.
d. cluster sample.
17. Types of non-probability samples include:
a. convenience and quota samples.
b. cluster and convenience samples.
c. stratified and convenience samples.
d. random and cluster samples.
18. What is the term used to describe the degree to which the data elicited in a study is
replicated in a repeat study?
a. Replication.
b. Pre-code.
c. Reliability.
d. Convenience.
19. One thing that is usually true of focus groups is that:
a. most groups involve a small number of participants.
b. they usually average 5 to 10 minutes in length.
c. the moderator's job is to keep the group busy for the entire time and not let anyone
leave.
d. the questions used are highly structured and response-driven.
20. Which type of research methods are designed to elicit responses to predetermined,
standardized questions from a large number of respondents?
a. Quantitative.
b. Qualitative.
c. Non-probability.
d. Probability.
Answers for Self Assessment Questions
1. (a)
2.(b)
3.(c)
4.(d)
5.(a)
6. (b)
7.(d)
8. (c)
9.(d)
10.(a)
11.(b)
12.(b)
13.(d)
14.(a)
15. (c)
16.(a)
17.(a)
18.(c)
19.(a)
20. (a)
Chapter-7: Consumer Behavior in Services
Self Assessment Questions
1. ...................... is never simple, yet understanding it is the essential task of marketing
management.
a. Brand personality
b. Understanding the difference between primary and secondary data
c. Consumer buying behavior
d. Consumption pioneering
2. The starting point to understanding how consumers respond to various marketing efforts
is the ...................... model of a buyer's behavior.
a. subculture
b. postpurchase dissonance
c. stimulus-response
d. postpurchase feeling
3. In the model of buyer behavior, which of the following is not a major type of force or
event in the buyer's environment?
a. technological
b. cultural
c. channels
d. economic
4. Marketers are always trying to spot ...................... in order to discover new products that
might be wanted.
a. groups
b. attitudes
c. cultural shifts
d. dissonance
5. ...................... are becoming a very attractive market: they are the ideal market for exotic
travel, restaurants, high-tech home entertainment products, leisure goods and services, and
designer furniture and fashions.
a. Mature consumers
b. Italians
c. East Europeans
d. Europeans of African origin
6. ...................... are society's relatively permanent and ordered divisions whose members
share similar values, interests, and behaviors.
a. Social classes
b. Lifestyles
c. Purchase decisions
d. Subcultures
7. Family is one of the ...................... factors that influence consumer behavior.
a. social
b. business
c. personal
d. psychological
8. ...................... are groups to which an individual wishes to belong, as when a teenage
football player hopes to play someday for Inter Milan.
a. Leading adopter groups
b. Leisure groups
c. Aspirational groups
d. Social class groups
9. Opinion leaders are sometimes referred to as .......................
a. buzz marketers
b. the upper class
c. the middle class
d. the influentials
10. A ...................... consists of the activities people are expected to perform according to the
persons around them.
a. role
b. motive
c. life-cycle
d. lifestyle
11. A buyer's decisions are influenced by ...................... such as the buyer's age and life-cycle
stage, occupation, economic situation, lifestyle, and personality and self-concept.
a. personal characteristics
b. reference groups
c. habitual buying behavior
d. psychographics
12. All of the following make up a person's lifestyle except .......................
a. AIO dimensions
b. work
c. interests
d. dissonance-reducing buying behavior
13. ...................... refers to the unique psychological characteristics that lead to relatively
consistent and lasting responses to one's own environment. It is usually described in traits
such as self-confidence, dominance, sociability, autonomy, defensiveness, adaptability, and
aggressiveness.
a. Culture
b. Alternative evaluations
c. Personality
d. Self-awareness
14. Brand personality is a mix of human traits attributed to a brand. Which of the following
is not identified as a brand personality trait?
a. emotion
b. competence
c. excitement
d. sophistication
15. A ...................... is a need that is sufficiently pressing to direct a person to seek
satisfaction.
a. culture
b. motive
c. stimulus
d. perception
16. Maslow's theory is that ...................... are arranged in a hierarchy from the most pressing
at the bottom to the least pressing at the top.
a. human needs
b. stimuli
c. beliefs and attitudes
d. perceptions
17. What is the least pressing in Maslow's Hierarchy of Needs?
a. physiological needs
b. self-actualization
c. esteem needs
d. social needs
18. People cannot focus on all of the stimuli that surround them each day. A person's
tendency to screen out most of the information to which he or she is exposed is called
.......................
a. selective perception
b. selective attention
c. selective distortion
d. selective retention
19. People forget much that they learn. They tend to retain information that supports their
attitudes and beliefs. This is called .......................
a. selective retention
b. selective distortion
c. perceptual vigilance
d. selective attention
20. ...................... describes changes in an individual's behavior arising from experience.
a. Perception
b. Learning
c. Lifestyle
d. Aggressiveness
Answers for Self Assessment Questions
1. (c)
2.(c)
3.(c)
4.(c)
5.(a)
6. (a)
7.(a)
8. (c)
9.(d)
10.(a)
11.(a)
12.(c)
13.(c)
14.(a)
15. (b)
16.(a)
17.(b)
18.(b)
19.(a)
20. (b)
Chapter-8: Services Marketing Concept
Self Assessment Questions
1.
………… is the manipulation of a brand or family of brands to create a positive
perception in the eyes of the public.
a. Market segmentation
b. Market positioning
c. Targeting
d. Both a and b
2.
...................is the only effective way to optimize marketing resources.
a. Target marketing
b. Distribution Segmentation
c. Media segmentation
d. All of these.
3.
Market positioning is not the manipulation of a brand or family of brands to create a
positive perception in the eyes of the public.
a. True
b. False
4.
Packaging makes a strong statement. Make sure it is delivering the message we
intend.
a. True
b. False
5.
.................is less common but can be highly effective.
a. Time segmentation
b. Media segmentation
c. Distribution Segmentation
d. None of these.
6.
…….. is never simple; yet understanding it is the essential task of marketing
management.
a. Consumer buying behavior
b. Consumption pioneering
c. Brand personality
d. None of these.
7.
The location, size of the area, density, and climate zone of our customers.
a. Geographic
b. Political
c. Channels
d. Economic
8.
...................is a tricky process. Companies need to see how consumers perceive their
product.
a. Media segmentation
b. Market segmentation
c. Market positioning
d. business
9.
Marketers are always trying to spot ……… in order to discover new products that
might be wanted.
a. group
b. attitude
c. lifestyle
d. cultural shifts
10.
Most segmentation analyses are based upon various types of “cluster analysis”.
a. True
b. False
11. How do the marketing concept and the societal marketing concept differ?
a. The societal marketing concept considers it unethical to fulfil target audiences' needs
if, by doing so, the individual or society is harmed.
b. The marketing concept focuses on short-term increases in market shares and quick
profits. The societal marketing concept focuses on long-term profit, based on
customer loyalty and healthier societies.
c. The marketing concept focuses on the needs of the individual and the producer. The
societal marketing concept balances these needs with societal needs.
d. all of the above
12. Which consumer-oriented marketing strategy assumes that marketers should make and
sell what customers want or need?
a. the consumer concept
b. the selling concept
c. the societal marketing concept
d. the marketing concept
13. Consumer behaviour is an interdisciplinary science drawing heavily on the research and
theories from which other discipline?
a. social psychology
b. psychology
c. sociology
d. all of the above
14. Which stage in the decision-making process considers both purchase and post-purchase
evaluation?
a. input stage
b. output stage
c. psychological field
d. sociocultural environment
e. process stage
15. We study consumer behaviour for which of the following reasons?
a. the public is becoming increasingly concerned about environmental issues
b. computer technology and statistical techniques have made it easier to research
consumer behaviours
c. product life cycles have shortened
d. all of the above
16. Which marketing strategy assumes that marketers should actively and aggressively
persuade consumers to purchase the product?
a. marketing concept
b. product orientation
c. production orientation
d. selling orientation
17. ......................____ is the process of dividing a market into subsets of consumers with
common needs or characteristics.
a. market segmentation
b. positioning
c. the marketing mix
d. targeting
18. Which of the following is not a reason why small reductions in customer defections
produce significant increases in profit?
a. servicing existing customers who are familiar with the firm and its products is
cheaper
b. loyal customers are less price sensitive
c. loyal customers refer other customers
d. none of the above
19. ............................................__ is the individual's perception of the performance of the
product or service in relation to his or her expectations.
a. customer value
b. positioning
c. customer profitability-focused marketing
d. customer satisfaction
20. ......................____ is developing a distinct image for the product or service in the mind of
consumers.
a. targeting
b. the marketing mix
c. positioning
d. market segmentation
Answer for Self Assessment Questions
1 (b)
2 (a)
3 (b)
4 (a)
5 (a)
6 (a)
7 (a)
8 (c)
9 (d)
10 (a)
11.(d)
12.(d)
13.(d)
14.(b)
15. (d)
16.(d)
17.(a)
18.(d)
19.(d)
20. (c)
Chapter-9: Service Positioning
Self Assessment Questions
1. Market ...................... is the process of identifying groups of customers with basically
similar wants, needs, preferences or buying behaviours.
a) Development
b) Positioning
c) Segmentation
d) Targeting
2. Which of the following is NOT a recognised basis for segmenting markets?
a) Socio-economic
b) Demographic
c) Competitive position
d) Psychographic
3. Which of the following bases for segmentation is likely to be important for segmenting
business markets, but relatively unimportant for segmenting consumer markets?
a) Attitudes
b) Lifestyle
c) The formality of the buying process
d) Demographics
4. Marketers still refer to the A/B/C1/C2/D/E basis of classification because:
a) It fully explains the link between each class and their buying behaviour.
b) It is simple and there is shared understanding about the general characteristics of the
people in each group.
c) It has never been improved upon.
d) There is a legal requirement to use it for reporting purposes.
5. For marketers, geodemographic classification is essentially based on an assumption that:
a) Attitudes lead to the development of a lifestyle
b) Lifestyle leads to the development of an attitude
c) Where you live affects the things you buy
d) Social class is independent of geographical location
6. Which of the following is NOT a criterion used for segmenting consumer markets?
a) Size of the segment
b) Size of the company
c) Accessibility by the company to the segment
d) The extent to which members of the segment can be identified
7. Positioning of a product is based on:
a) The price charged for the product
b) The promotional pitch for the product
c) Product characteristics
d) All of the above
8. A commonly used system for segmenting people on the basis of where they live is
referred to as:
a) MOSAIC
b) MINTEL
c) CIM
d) CMR
9. A marketer needs to be aware of the criteria by which the effectiveness of their
segmentation procedures can be assessed. Which of the following is NOT a criterion for
evaluating the resulting market segments?
a) Perishability
b) Size of the resulting segment
c) Measurability
d) Accessibility
10. Marketers use a number of definitions of household income in their segmentation and
targeting activities. What does disposable income refer to?
a) The income that individuals have available to spend after taxation
b) Income before the deduction of taxes
c) Total gross income
d) Income less child benefit receipts
11. When competitors use differentiated or concentrated marketing, ...................... marketing
can be disastrous.
a. customized
b. localized
c. undifferentiated
d. concentrated
e. differentiated
12. A product's position is based on important attributes as perceived by .......................
a. managers
b. consumers
c. market conditions
d. competitors
13. Which one of the listed choices is not a positioning task?
a. Select an overall positioning strategy.
b. Identify a set of possible competitive advantages upon which to build a position.
c. Survey frequent uses of the product.
d. Effectively communicate and deliver the chosen position to the market.
14. Which type of differentiation is used to gain competitive advantage through the way a
firm designs its distribution coverage, expertise, and performance?
a. channel differentiation
b. services differentiation
c. people differentiation
d. price differentiation
15. Ad man Rosser Reeves believes that firms should develop a USP for each brand and stick
to it. What does USP stand for?
a. universally strategic practice
b. unique selling product
c. unique selling proposition
d. unique sales pitch
16. You have just created the "perfect" ad. It communicates the full mix of benefits upon
which the brand is positioned. This full positioning is called .......................
a. capturing the consumers' attention
b. the brand's value proposition
c. value profiling
d. differentiated marketing
17. What competitive positioning strategy can attack a more-for-more strategy by
introducing a brand offering with comparable quality but at a lower price?
a. more-for-less
b. less-for-much-less
c. all-or-nothing
d. more-for-the-same
18. "Less-for-much-less" positioning involves meeting consumers' .......................
a. lower quality requirements in exchange for a lower price
b. quality performance requirements at a lower price
c. high quality requirements at a discounted rate
d. high quality requirements at the lower possible price
19. Which type of statement first states the product's membership in a category and then
shows its point-of-difference from other members of the category?
a. positioning statement
b. mission statement
c. statement of intent
d. vision statement
20. Once it has chosen a position, a company must take strong steps to deliver and
communicate the desired position to target consumers. Which step is not correct?
a. The company's marketing mix efforts must support the positioning strategy.
b. The company must deliver the position first.
c. Positioning the company calls for concrete action, not just talk.
d. The company's service personnel must be highly trained and provide superior
service.
Answer for Self Assessment Questions
1. (c)
2.(b)
3.(c)
4.(b)
5.(c)
6. (b)
7.(d)
8. (a)
9.(a)
10.(a)
11.(c)
12.(b)
13.(c)
14.(a)
15. (c)
16.(b)
17.(d)
18.(a)
19.(a)
20. (d)
Chapter-10: Value and Price
Self Assessment Questions
1. Which of the following is most correct as a statement in defining demand for a product?
a. Total market value of demand = £12.5 million
b. Market price of £12.50
c. 2,000 units per day at £1 each in the UK
d. Potential demand for sales of 10,000 units per year
2. A demand curve shows, for a given market, during a given time period, which factors?
a. Price and quantity
b. Price and time
c. Demand and supply
d. Price and elasticity
3. Price elasticity of demand refers to:
a. The percentage change in price divided by the percentage change in supply.
b. The percentage change in price divided by the percentage change in volume.
c. The percentage change in volume demanded divided by the percentage change in
price.
d. The absolute increase in demand.
4. A product whose volume of demand increases greatly following a small reduction in price
is said to be:
a. Inelastic
b. Highly inelastic
c. Highly elastic
d. Perfectly elastic
5. Which of the following is an example of an "inferior" good?
a. Pawnbroking services
b. The Daily Star newspaper
c. Coca-Cola
d. Cigarettes
6. A supply curve shows price on the vertical axis and volume on the horizontal. An upward
shift to a higher supply curve indicates:
a. More is supplied at any given price level.
b. Less is supplied at any given price level.
c. For any given level of supply, price is lower.
d. An increase in supply, but no change in price.
7. Standby air tickets are best described as an example of:
a. Cost-plus pricing
b. Marginal cost pricing
c. Full-cost pricing
d. Demand based pricing
8. The maximum selling price that a firm can sustain for a product is determined by:
a. What it costs to produce
b. Competitor's prices
c. What customers are prepared to pay for it
d. Competitive parity
9. The key feature of oligopolistic competition is:
a. Emphasis on price competition
b. Emphasis on product differentiation
c. Interdependence of suppliers
d. Complete absence of competition
10. Regulation of prices is deemed particularly necessary for industries where:
a. Demand equals supply
b. Supply is excessive relative to demand
c. Competition results in all service providers incurring losses
d. Technology provides market entry barriers
11. The direct online contribution effectiveness refers to:
a. the proportion of sales influenced by the website.
b. the reach of audience volume of a site.
c. the proportion of business turnover achieved by e-commerce transactions.
d. none of the above
12. Achieve a direct online revenue contribution of 15% by 2014. This objective is an example
of which of the following?
a. Speak.
b. Save.
c. Serve.
d. Sell.
13. Increase the awareness of the website to 80% of customer base by 2014. This objective is
an example of which of the following?
a. Sell.
b. Serve.
c. Speak.
d. Save.
14. Increase the brand favorability and customer satisfaction with the site. This objective is
an example of which of the following?
a. Serve.
b. Sell.
c. Sizzle.
d. Speak.
15. Matching of internal resources against external demands forms part of. This objective is
an example of which of the following?
a. Situation analysis.
b. Tactics.
c. Objective setting.
d. Strategy.
16. Developing a plan for search engine marketing forms part of. This objective is an
example of which of the following?
a. Objective setting.
b. Situation analysis.
c. Strategy.
d. Tactics.
17. The situation analysis which involves reviewing the online marketplace and internal
situation is:
a. Internet SWOT analysis.
b. stage model analysis.
c. demand analysis.
d. competitor analysis.
18. The situation analysis which involves benchmarking site characteristics is:
a. demand analysis.
b. competitor analysis.
c. stage model analysis.
d. Internet SWOT analysis.
19. The typical stages in development of an online presence for a retailer are:
a. information collection, transactions, customer support, image and product
information.
b. transactions, image and product information, information collection, customer
support.
c. image and product information, Transactions, information collection, customer
support.
d. none of the above.
20. The aspect of the online marketing mix that most closely relates to online branding is:
a. Price.
b. Place.
c. Product.
d. Promotion.
Answers for Self Assessment Questions
1. (c)
2.(a)
3.(c)
4.(c)
5.(a)
6. (b)
7.(b)
8. (c)
9.(d)
10.(d)
11.(c)
12.(d)
13.(c)
14.(c)
15. (a)
16.(d)
17.(a)
18.(b)
19.(d)
20. (c)