MIDTERM EXAM POOL ITEMS FOR SERVICES MARKETING COURSE

SERVICES MARKETING (MKTG430) MIDTERM EXAM POOL ITEMS
*** WILL NOT INCLUDE Numbers (#, %, $), Dates, or Names of People ***
Chapter 2
1) It is generally accepted that the ____ economy includes the "soft parts" of the economy consisting of nine industry
supersectors.
a. service
b. industrial
c. agriculture
d. information
e. goods
2) Who provides an overview of each of the nine supersectors as well as a career guide?
a.A government
b. U.S. Bureau of Labor Statistics
c. Federal Trade Commission
d. Federal Communication Commission
e. American Marketing Association
3) The financial activities supersector consists of all the following except:

a. Finance.
b. Insurance.
c. Social Assistance.
d. Investments.
e. Securities.
4) The world's largest industry in the private sector and highest projected generator of jobs is:
a. business services.
b. the hospitality industry.
c. health services.
d. professional services.
e. the food service industry
5) Which subsector is the second-largest employment industry, accounting for 13.3 million jobs?
a. educational services
b. healthcare
c. social assistance
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d. professional services
e. food services
Chapter 2 (Cont.)
6) Which of the following subsectors of the government supersector is also called the not-for-profit sector?
a. federal government
b. state and local government
c. advocacy, grant making, and civic organizations
d. information sector
e. arts, entertainment, and recreation
7) Which of the following is true regarding the insurance industry?

a. It is one of the nine supersectors of the services industry.
b. It is a subsector of the education and health services supersector.
c. Employment in the insurance industry is expected to grow by 20% between 2015 and 2020.
d. Future job growth is limited in part by Internet sales methods.
e. Office and administrative personnel are typically college-educated.
8) All of the following are subsectors of the leisure and hospitality industry except:
a. food services and drinking places.
b. hotels and other accommodations.
c. arts, entertainment, and recreation.
d. advertising and public relations.
e. None of these are exceptions
9) More than ____% of the workforce within the arts, entertainment, and recreation subsector have no formal
education beyond high school.
a. 35
b. 40
c. 45
d. 50
e. 55
10) More than one out of ____ employees within the food service and drinking establishments subsector are
between the ages of 16 and 19.
a. three
b. four
c. five
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d. six
e. seven
Chapter 2 (Cont.)
11) The professional and business supersector includes all of the following subsectors except _____ services.
a. computer systems design and related
b. management, scientific, and technical consulting
c. transportation
d. employment
e. advertising and public relations
12) All of the following are true regarding the information supersector except:
a. It is wide in scope, accounting for 16% of all employment.
b. Software publishing is the fastest-growing subsector.
c. Major players include publishing, motion picture, and broadcasting industries.
d. It includes data processing services.
e. Google and Yahoo are part of this industry.
13) All of the following are true regarding the wholesale and retail trade supersector except:
a. most wholesalers are large, employing more than 200 workers.
b. a high school education is sufficient for most jobs within the wholesaling subsector.
c. in clothing, grocery, and general merchandise retail, employment growth is expected to be small, but there
are many job openings due to high turnover.
d. employment in automotive sales is projected to grow at 11 percent.
e. weekly wages are high and job opportunities promising for automotive service technicians who have
completed formal training.
14) A bank looking to the best practices of other banks in the industry for service improvement ideas is an example of:
a. materialismo snobbery.
b. service myopia.
c. dichotomization of services.
d. service vigilance.
e. organizational relationships
15) All of the following are beliefs of materialismic snobs except:

a. only manufacturing can create real wealth.
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b. all nonmanufacturing sectors of the economy are parasitic and/or inconsequential.

c. without manufacturing, there will be little for people to service.
d. the continued shift to a service economy will jeopardize the American way of life.
e. the increase in service jobs will increase the standard of living in the United States.
Chapter 2 (Cont.)
16) The service industry criticism that as manufacturing jobs continue to decline, the supply of labor for service
jobs will increase, driving service wages lower is referred to as:
a. materialismo snobbery.
b. the dichotomization of wealth.
c. material dichotomization.
d. manufacturing superiority.
e. service myopia.
17) Paying close attention to whether one's actions are right or wrong and why one is behaving in that manner is referred to as:
a. business ethics.
b. dichotomization of wealth.
c. ethical vigilance.
d. service ethics.
e. materialismo snobbery.
18) The principles of moral conduct that guide behavior in the business world are called:
a. business ethics.
b. ethics.
c. ethical vigilance.
d. service ethics.
e. organizational ethics
19) Consumers often have a difficult time objectively evaluating services before purchase. This is due primarily to:
a. intangibility.
b. inseparability.
c. perishability.
d. standardization.
e. heterogeneity.
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20) Which of the following statements is NOT an explanation for why service consumers are particularly
vulnerable to ethical misconduct?
a. Services possess few search attributes.
b. Services are often specialized and/or technical.
c. Services are deeds, efforts, or performances.
d. The time lapse between performance and evaluation is sometimes significant.
e. Many services are sold without guarantees and warranties.
Chapter 2 (Cont.)
21) Which of the following statements is NOT an explanation for why service consumers are particularly
vulnerable to ethical misconduct?
a. Services are often provided by boundary-spanning personnel.
b. Variability in service performance is somewhat accepted.
c. Reward systems are often outcome-based as opposed to behavior-based.
d. Consumers are active participants in the production process.
e. Other consumers are involved in the production process.
22) Consumer participation in production increases opportunities for ethical misconduct by service providers because:
a. it increases opportunities for coercive influence strategies used by the service provider.
b. the service provider is not under the direct supervision of a manager.
c. the customer's participation voids any guarantees.
d. of the time lapse between participation and results.
e. of increased search attributes
23) Sam and Gloria, who deliver services outside the firm's physical facilities, are examples of:
a. roaming salespeople.
b. expanding service providers.
c. boundary-spanning personnel.
d. area coordinators.
e. regional responders
24) Situations where the service provider feels torn between the needs of the customer, the organization, and
the service provider's own personal interest are referred to as:
a. cognitive moral development.
b. conflict of interest.
c. organizational relationships.
d. structure conflict.
e. relationship conflict
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25) As an auditor, Joe learned of promising breakthrough technology not yet known to the public. He
immediately purchased a large number of shares of stock to resell after the technology was made public. This
type of ethical issue falls under:
a. cognitive moral development.
b. structure conflict.
c. organizational relationships.
d. conflict of interest.
e. relationship conflict.
Chapter 2 (Cont.)
26) Ethical improprieties have been linked to:
a. customer dissatisfaction.
b. employee dissatisfaction.
c. unfavorable word-of-mouth publicity.
d. job-related tension and anxiety.
e. all of these.
27) The process through which an individual adapts and comes to appreciate the values, norms, and required
behavior patterns of an organization is called:
a. a code of ethics.
b. standards of conduct.
c. employee socialization.
d. rules for ethical conduct.
e. conduct regulations.
28) Formal standards of conduct that assist in defining proper organizational behavior are called:
a. a code of ethics.
b. standards of conduct.
c. employee socialization.
d. rules for ethical conduct.
e. conduct regulations
29) Which of the following statements regarding ethics is correct?

a. Research indicates that employees desire a code of ethics.
b. Research indicates that employees of firms that have codes of ethics believe that violators of the code
should be punished.
c. Leaders must be examples of the standards of ethical conduct.
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d. Employees often emulate the behavior of their supervisors.

e. All of these are correct
30) Which of the following is NOT a suggested strategy for controlling and managing ethical behavior?
a. employee socialization
b. corrective control
c. service/product knowledge
d. follower training
e. standards of conduct
Chapter 4
1) Which of the following statements is NOT true?
a. Many service firms continue to be operations dominated rather than customer oriented.
b. Consumer orientation lies at the heart of the marketing concept.
c. Researchers clearly understand how consumers make decisions.
d. Differences exist between the ways consumers make decisions regarding services versus goods.
e. A variety of models have been developed to explain how consumers make decisions.
2) The consumer decision process consists of:

a. stimulus, problem awareness, and purchase stages.
b. prepurchase, consumption, and postpurchase stages.
c. problem awareness, evaluation of alternatives, and postpurchase behavior.
d. stimulus, information search, and postpurchase behavior.
e. information search, purchase, and postpurchase behavior.
3) The prepurchase stage consists of all of the following activities except:

a. the approach.
b. problem awareness.
c. information search.
d. stimulus.
e. evaluation of alternatives
4) Consumers determine a shortage or an unfulfilled desire exists during which step of the consumer decision process?
a. problem awareness
b. stimulus
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c. evaluation of alternatives
d. postpurchase evaluation
e. the choice stage
5) Multi-attribute models are used most during which step of the consumer decision process?
a. stimulus
b. problem awareness
c. information search
d. consumption
e. evaluation of alternatives
Chapter 4 (Cont.)
6) Bill's parents finally convinced him to get a haircut. Bill's decision process was prompted by a:
a. physical cue.
b. psychological cue.
c. pressure cue.
d. social cue
e. commercial cue
7) Which of the following is NOT an example of an external search for college selection?
a. campus visit
b. consumer's own memories
c. talking to friends
d. reading college magazines
e. asking professor questions
8) During the evaluation of alternatives stage, consumers sometimes rely on their "gut-level feelings." This type
of decision making is called:
a. the lexicographic approach.
b. a systematic evaluation.
c. a nonsystematic evaluation.
d. the linear compensatory evaluation.
e. the evoked set approach.
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9) During which stage of the consumer decision process do acquisition, production, and consumption become
an entangled process?
a. the prepurchase stage
b. the consumption stage
c. the postpurchase stage
d. the information search stage
e. the problem awareness stage
10) The ____ is the fifth step in the consumer decision process.
a. postpurchase evaluation
b. evaluation of alternatives
c. problem awareness
d. stimulus
e. choice
Chapter 4 (Cont.)
Exhibit 4-1
Attributes Providers
(in order of
Avis Hertz Budget Alamo
importance)
Price 9 9 10 8
Courtesy 7 6 9 9
Selection 10 10 7 8
Location 10 10 8 8
(10 = best/most; 1 = worst/least)
11) Refer to Exhibit 4-1. Using a linear compensatory approach, which car rental firm should be selected?
a. Avis
b. Hertz
c. Budget
d. Alamo
e. Each customer's choice will differ based on his/her gut-level feelings.
12) Refer to Exhibit 4-1. Using a lexicographic approach, which car rental firm should be selected?
a. Avis
b. Hertz
c. Budget
d. Alamo
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13) Refer to Exhibit 4-1. Using a nonsystematic approach, which car rental firm should be selected?
a. Avis
b. Hertz
c. Budget
d. Alamo
14) Pressure to perform as others wait behind them leads consumers to opt out of using a self-checkout. This is
an example of which kind of perceived risk?
a. financial risk
b. performance risk
c. social risk
d. psychological risk
e. physical risk
Chapter 4 (Cont.)
15) Co-producer risk is directly related to the concept of:
a. intangibility.
b. heterogeneity.
c. inseparability.
d. perishability.
e. nonstandardization
16) Which of the following statements is NOT true?

a. Service purchases are perceived as riskier than goods purchases.
b. The participation of the consumer in the service process increases the amount of perceived risk.
c. The variability in services increases the perceived risk associated with the purchase.
d. Consumers of services have less prepurchase information versus goods.
e. Services are primarily characterized by search
17) Attributes such as price, fit, and feel are called:

a. experience.
b. credence.
c. clear water.
d. revival.
e. search.
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18) Services tend to be characterized by:

a. search attributes.
b. experience attributes.
c. credence attributes.
d. search and experience attributes.
e. experience and credence attributes.
19) The reason services have few search attributes is primarily attributed to:
a. inseparability.
b. heterogeneity.
c. intangibility.
d. perishability.
e. nonstandardization
20) Which of the following statements is NOT correct?

a. Service consumers are more brand loyal.
b. Personal sources of information are more important to service consumers versus nonpersonal sources.
c. Service consumers have fewer alternatives to consider.
d. Self-service is a viable alternative for many services.
e. Customers always prefer customized services to standardized services.
Chapter 4 (Cont.)
21) Service consumers tend to be more brand loyal than goods consumers because:
a. more choices are available.
b. brand loyalty lowers the amount of perceived risk.
c. each service provider provides many brands.
d. the prices of their main provider are usually less expensive.
e. location of the provider is the major driver in the consumer selection process.
22) The costs associated with changing from one provider to another are referred to as _____ costs.
a. performance
b. economic
c. selection
d. switching
e. financial
23) The switching costs associated with the time it takes simply thinking about making a change in service
providers are called _____ costs.
a. emotional
b. cognitive
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c. learning
d. performance
e. customer habit
24) Switching costs generally associated with changing from one service provider to another include all of the following except:
a. performance costs.
b. loyal customer discounts.
c. emotional costs.
d. cognitive costs.
e. search costs.
25) When changing dentists, the patient was required to pay for a new set of X-rays. This type of switching cost is referred to as:
a. performance costs.
b. loyal customer discounts.
c. emotional costs.
d. cognitive costs.
e. transaction costs.
Chapter 4 (Cont.)
26) Consumers of services tend to rely on personal sources of information more than nonpersonal sources for all of the
following reasons except:
a. many service providers are small and lack the resources or expertise to use nonpersonal sources.
b. opinion leaders play an important role in the purchase of services.
c. due to intangibility, mass media are more effective in communicating the qualities of a service than personal sources.
d. the use of personal sources reduces the risk associated with the purchase.
e. professional restrictions may limit the use of nonpersonal sources of information in some service sectors.
27) With regards to the number of service alternatives available, which of the following statements is true?
a. Consumers are aware of fewer alternatives because less prepurchase information is available.
b. Self-service, in some instances, is a viable alternative.
c. In general, individual service providers tend to offer only one brand of service
d. In comparison with goods, the evoked set for services is smaller.
e. Services tend to have a larger number of outlets providing the same service.
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28) Which of the following statements about the consumption stage of the consumer decision process for services is NOT true?
a. The activities of production, acquisition, and use of services occur in a definite order and have clear boundaries between them.
b. The concept of disposal is irrelevant with regards to services.
c. The consumption stage is more complex for services than goods.
d. Consumer evaluation of the service occurs during and after consumption.
e. Service marketers are able to change consumer evaluations during the service encounter.
29) In which of the following postpurchase models do consumers evaluate services by comparing expectations with perceptions?
a. the role congruence model
b. the perceived-control model
c. the expectancy disconfirmation model
d. the script perspective
e. the servuction model
30) The postpurchase model in which consumers evaluate services by the amount of influence they have over the service encounter is the:
a. role congruence model.
b. perceived-control model.
c. expectancy disconfirmation model.
d. script perspective.
e. servuction model.
Chapter 4 (Cont.)
31) The postpurchase model that is based on the idea that in a service encounter, customers and employees
perform roles, and that satisfaction is a function of role congruence is called:
a. the dissonance model.
b. the perceived-control model.
c. the expectancy disconfirmation model.
d. the script perspective.
e. the servuction model
32) What type of control has the ability to control what is actually going on?
a. behavioral control
b. cognitive control
c. service control
d. perception of control
e. none of these
33) Which of the following formulas correctly illustrates the expectancy confirmation theory?
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a. Confirmation = Customer satisfaction Perceptions Expectations

b. Customer satisfaction = Perceptions Expectations
c. Customer satisfaction = Perceptions Expectations
d. Customer satisfaction = Perceptions + Expectations
e. Confirmation = Customer satisfaction Expectations
34) Which of the following best describes the perceived control perspective?
a. The more confident and in control the service provider, the more relaxed and satisfied the consumer will be
with the service.
b. Customer satisfaction is achieved through the effective control of customer perceptions and expectations.
c. Customers are controlled through the use of scripts, and their satisfaction is a function of script congruence.
d. The higher the level of control over the situation perceived by consumers, the higher their satisfaction
with the service will be.
e. Rules must be acknowledged and obeyed by all participants if satisfactory outcomes are to be generated.
35) According to the perceived-control perspective, which of the following statements is true?
a. If a firm is due to make changes in its operation that will have an impact on consumers, it is important to not tip off
consumers that the changes are coming.
b. The more service providers concede control to customers, the higher their job satisfaction.
c. When considering strategies to increase consumer and employee control, it is equally important for the service firm
itself to maintain control of the service experience.
d. When consumers experience cognitive control, the effect is not the same as that achieved by behavioral control.
e. Predictability provides behavioral control
Chapter 10
1) A patient's participation in the service process at the doctor's office is referred to as _____ performance.
a. consumer
b. marketing
c. service
d. operational
e. patient
2) The benchmark against which a consumer will evaluate a service experience is the:
a. attribution.
b. theatrical analogy.
c. technical core.
d. approximate script.
e. expected script
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3) An individual who has expertise in the choice process of buying is called a(n):
a. expert customer.
b. expert consumer.
c. novice consumer.
d. novice customer.
e. consumer performer
4) For a service business, buffering the technical core does NOT mean:
a. minimizing dependence on consumer performance.
b. production-lining the parts of the operation that can be isolated.
c. decoupling production from the environment and customer as much as possible.
d. offering more personalized service.
e. ensuring that the core of the service is able to run as efficiently as possible.
5) Which of the following is true of a high-contact system?

a. It allows for the use of more traditional manufacturing production line approaches.
b. It minimizes the dependence on consumer performance.
c. This approach argues for the buffering of the technical core.
d. The consumer is an integral part of the process.
e. There is less dependence on managing the way the consumer behaves
Chapter 10 (Cont.)
6) A side benefit of expert consumers is:
a. they can recognize good service and praise employees.
b. they understand the complexity of the system and can be more tolerant of failure.
c. they know how to make good buying choices.
d. they can recognize good service and praise employees, and they understand the complexity of the system
and can be more tolerant of failure.
e. they can recognize good service and praise employees, and they know how to make good buying choices.
7) Which of the following is an example of a business with a low-contact system?

a. self-service gasoline station
b. hair salon
c. self-scanning, self-bagging supermarket
d. maid service while client is out
e. seat-yourself restaurant
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8) A side benefit of expert consumers is:

a. they can recognize good service and praise employees.
b. they understand the complexity of the system and can be more tolerant of failure.
c. they know how to make good buying choices.
d. they can recognize good service and praise employees, and they understand the complexity of the system
and can be more tolerant of failure.
e. they can recognize good service and praise employees, and they know how to make good buying choices.
9) Which of the following is an example of a business with a low-contact system?

a. self-service gasoline station
b. hair salon
c. self-scanning, self-bagging supermarket
d. maid service while client is out
e. seat-yourself restaurant
10) All of the following are true regarding technology except:

a. technology imposes tighter scripts on consumers.
b. machines programmed with if-then branches to provide variations in the script are often regarded
as tedious and boring by customers.
c. machines can be empowered.
d. the introduction of information technology to enhance service operations has produced mixed results.
e. none of these are exceptions
Chapter 10 (Cont.)
11) The allocation of responsibility to self and other people, or even chance, is called:
a. satisfaction.
b. predictability.
c. control.
d. expected script.
e. attribution.
12) A useful metaphor for the service encounter is that of a(n):

a. theatrical drama.
b. medical practice.
c. college admission.
d. amusement park.
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e. fencing duel.
13) Scripts are extremely useful to individuals, because individuals have a deep-set need for:
a. performance.
b. control and predictability.
c. attribution.
d. satisfaction.
e. self service
14) Which of the following statements related to attribution is NOT true?

a. There is a proven tendency for people to claim more responsibility for success in situations where
the outcome is produced with others.
b. There is a proven tendency for people to claim less responsibility for failure in situations where the outcome
is produced with others.
c. With self-service technology, there is a tendency to blame the technology when things go wrong.
d. With self-service technology, there is a tendency for consumers to credit the technology when
the experience is satisfying.
e. A "self-serving bias" has been shown to be applicable to situations of co-production of service.
15) All of the following are key tasks in managing consumer performance except:
a. audit your consumer performance expertise.
b. increase the share of expert consumers.
c. create systems to cope with novices and experts.
d. manage script changes carefully.
e. deviate from the script whenever necessary
Chapter 10 (Cont.)
16) All of the following are strategies firms can adopt to increase the proportion of their customers who are
expert performers except:
a. attract consumers who are more likely to become experts.
b. accelerate the creation of their own experts
c. build loyalty to keep the experts they have.
d. change scripts carefully.
17) What is an approach for service firms trying to accelerate the creation of their own expert performers?
a. Discourage novice consumers.
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b. Audit consumer performance.

c. Let consumers watch each other.
d. Use self-service technology.
e. Encourage novice and expert interaction.
18) The management of a diverse group of customers with different needs within the same service setting is called:
a. consumer socialization.
b. compatibility management.
c. market-focused management.
d. industrial management.
e. service inclusion.
19) From a(n) ____ perspective, consumers have been viewed as partial employees and socialized in similar ways.
a. operations management
b. manufacturing
c. marketing
d. research and development
e. finance
20) Which of the following is considered to feel like the longest wait of all?
a. uncertain wait
b. unoccupied wait
c. preprocess wait
d. in-process wait
e. post-process wait
Chapter 10 (Cont.)
21) Strategies developed to minimize this principle of waiting have led to increased profit opportunities for the firm.
a. Preprocess waits feel longer than in-process waits.
b. Unoccupied waits feel longer than occupied waits.
c. Unfair waits seem longer than equitable waits.
d. Anxiety makes the wait seem longer.
e. Uncertain waits feel longer than known, finite waits.
22) Disney informs guests how long the wait will be along various points of the lines that form for each of its
attractions. This strategy helps minimize the effects of which of the following principles of waiting?
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d. The more valuable the service, the longer the customer will wait.
e. Uncertain waits feel longer than known, finite waits
23) Fast-food restaurants such as Wendy's, Burger King, and Taco Bell employ a single-line strategy. In
comparison, McDonald's employs a multiple line strategy. The single-line strategy helps minimize the effects
of which of the following principles of waiting?
d. Solo waits feel longer than group waits.
e. The more valuable the service, the longer the customer will wait.
24) Doctors' offices frequently stage their patients by asking patients to move from the formal waiting area to
an examination room. This strategy helps minimize effects of which of the following principles of waiting?
b. Solo waits feel longer than group waits.
25) Which of the following statements is NOT correct?

b. Occupied waits feels longer than unoccupied waits.
Chapter 10 (Cont.)
26) Which of the following principles of waiting is stated correctly?

a. Group waits are longer than solo waits.
b. Explained waits are longer than unexplained waits.
c. Unfair waits are longer than equitable waits.
d. In-process waits are longer than preprocess waits.
e. Finite waits are longer than uncertain waits.
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27) Which of the following 15-minute waits likely feels the shortest?
a. A man waits in line at the bank.
b. A group of friends chat while waiting to be allowed into the theater.
c. A woman waits for the doctor to come into the examining room.
d. A teen waits for test results.
e. A driver waits in a traffic jam.
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Chapter 11
1) According to the Journal of the Academy of Marketing Science, the most studied area in marketing is:
a. employee satisfaction.
b. customer satisfaction.
c. green marketing.
d. advertising effectiveness.
e. market reach.
2) Which of the following is NOT one of the reasons that fueled the growth of the 1970s consumerism movement?
a. skyrocketing inflation
b. automation
c. deregulation
d. more informed consumers
e. surplus labor
3) Which of the following statements regarding customer satisfaction is correct?

a. The average business hears from 85% of its unhappy customers.
b. For every complaint received, 9 or 10 people actually have the same problem.
c. Complainers are more likely to do business with you again than noncomplainers.
d. The average person with a problem tells more than 20 people.
e. Customers who have their complaints resolved tell an average of 15 people.
4) Which of the following statements regarding customer satisfaction is incorrect?

a. Bad news is communicated to more people than good news.
b. Complainers are more likely to do business with you again than noncomplainers.
c. The average business hears from more than 10% of its unhappy customers.
d. For every complaint received, 26 customers actually have the same problem.
e. Of customers who have their complaints resolved quickly, 95% will continue to conduct business with the firm
5) The most popular definition of customer satisfaction/dissatisfaction is based on:

a. the SERVQUAL model.
b. the servuction model.
c. the scale of market entities.
d. the expectancy disconfirmation model.
e. the Technical Assistance Research Program (TARP).
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Chapter 11 (Cont.)
6) Positive disconfirmation of consumer expectations occurs when:
a. expectations meet perceptions.
b. expectations exceed perceptions.
c. expectations are less than perceptions.
d. perceptions are less than expectations.
e. expectations meet or exceed perceptions.
7) Customers are most dissatisfied when a ____ occurs.

a. disconfirmation
b. zone of intolerance
c. positive disconfirmation
d. confirmation
e. negative disconfirmation
8) All of the following are benefits of customer satisfaction except:

a. the firm is more insulated from price competition.
b. the firm provides a positive work environment for its employees.
c. positive word-of-mouth communications is generated from satisfied customers.
d. satisfied customers make purchases more frequently.
e. none of these are exceptions.
9) Of the following customer satisfaction measurement methods, which is the least effective in producing meaningful results?
a. the "Scale of 100" approach
b. personal interviews
c. the "very dissatisfied/very satisfied" approach
d. the combined approach
e. employee surveys
10) Of the following customer satisfaction measurement methods, which is the most effective in producing meaningful results?
a. the "Scale of 100" approach
b. personal interviews
c. the "very dissatisfied/very satisfied" approach
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d. the combined approach

e. employee surveys
Chapter 11 (Cont.)
11) In general, the distribution of most companies' customer satisfaction ratings is:
a. bimodal.
b. normal.
c. negatively skewed.
d. positively skewed.
e. erratic.
12) All of the following are indirect measures of customer satisfaction except:
a. sales records.
b. profit reports.
c. registered complaints.
d. the "Scale of 100" approach.
13) Which of the following tactics would yield higher customer satisfaction scores?
a. utilizing mail surveys instead of personal interviews
b. stating the question in a negative (dissatisfied) form instead of a positive (satisfied) form
c. asking general questions prior to specific questions
d. avoiding data collection until a substantial period of time had elapsed since the purchase.
e. all of these would generate lower customer satisfaction scores
14) Under which of the following scenarios is it more likely that a firm would invest the resources necessary to
increase its satisfaction ratings from 95% to 98%?
a. Competing firms have 90% and 88% satisfaction ratings.
b. Competing firms have 85% and 75% satisfaction ratings.
c. Competing firms have 96% and 97% satisfaction ratings.
d. There are many opportunity costs associated with the investment.
e. The market share gained has little effect on the firm's bottom-line profits.
15) The primary contribution of Babich's customer satisfaction models is that it stresses the importance of
knowing _____ satisfaction ratings.
23
a. customer
b. supplier
c. employee
d. competitor
e. stock holder
Chapter 11 (Cont.)
16) According to one group of consultants, on average, ____ of customers who defect to competitors say they
were "satisfied" or "very satisfied" with their former providers.
a. 5% to 25%
b. 15% to 35%
c. 25% to 45%
d. 45% to 65%
e. 65% to 85%
17) ____ is the level of service quality a customer believes is likely to occur.
a. Desired service
b. Predicted service
c. Ideal service
d. Adequate service
e. Derived expectations
18) Customer satisfaction can be defined by comparing:

a. predicted service and perceived service.
b. predicted service and desired service.
c. desired service and perceived service.
d. adequate service and perceived service.
e. expected service and desired service.
19) Which of the following are service quality measures?

a. customer satisfaction
b. desired service
c. perceived service superiority
d. perceived service adequacy
e. perceived service superiority and perceived service adequacy
24
20) ____ is the level of service the customer actually wants to receive.
a. Desired service
b. Predicted service
c. Perceived service
d. Adequate service
e. Derived expectations
Chapter 11 (Cont.)
21) The zone of tolerance is most directly related to which of the following unique service attributes?
a. intangibility
b. perishability
c. heterogeneity
d. inseparability
e. homogeneity
22) The zone of tolerance is defined as the difference between:

a. predicted service and perceived service.
b. predicted service and desired service.
c. desired service and adequate service.
d. adequate service and perceived service.
e. expected service and desired service.
23) Personal factors that are stable over time and that increase a customer's sensitivity to how a service should
be best provided are referred to as:
a. situational factors.
b. explicit service promises.
c. perceived service alternatives.
d. transitory service intensifiers.
e. enduring service intensifiers.
24) Which of the following is NOT a factor that influences predicted service?
a. explicit service promises
b. perceived service alternatives
c. past experience
d. implicit service promises
25
e. word-of-mouth communications
25) Situational factors such as bad weather, catastrophe, and random events of over-demand influence:
a. desired service.
b. perceived service roles.
c. ideal service.
d. adequate service expectations.
e. derived expectations.
Chapter 11 (Cont.)
26) The number of competing alternative service providers available has the biggest influence on:
a. desired service.
b. perceived service roles.
c. ideal service
d. adequate service expectations.
e. derived expectations.
27) One of the major factors driving desired service expectations is:
a. predicted service.
b. the customer's personal service philosophies.
c. adequate service.
d. transitory service intensifiers.
e. perceived service alternatives
28) When forming customer expectations, price acts as a(n):

a. enduring service intensifier.
b. transitory service intensifier.
c. explicit service promise.
d. implicit service promise.
e. situational factor.
29) When forming customer expectations, the firm's physical facility acts as a(n):
26

30) When forming customer expectations, the firm's brochure acts as a(n):
Chapter 11 (Cont.)
31) When forming customer expectations, the firm's brochure acts as a(n):
32) The higher the number of perceived service alternatives the:

a. higher the level of adequate service expectations.
b. lower the level of adequate service expectations.
c. more narrow the zone of tolerance.
d. higher the level of adequate service expectations and the more narrow the zone of tolerance.
e. lower the level of adequate service expectations and the more narrow the zone of tolerance.
33) Greg's flight on United Airlines from Chicago to San Francisco departed two hours late because of a
snowstorm in Chicago. The snowstorm that delayed Greg's flight is a:
a. transitory service intensifier.
b. self-perceived service role.
c. predicted service intensifier.
d. situational factor.
e. personal needs.
34) Inflated satisfaction ratings received from a limited group of respondees is the result of _____ bias.
27
a. response
b. question
c. social desirability
d. collection
e. limited
35) Which of the following is NOT a criticism of customer satisfaction research?

a. It focuses on customers' future needs and fails to investigate current needs.
b. It focuses on registered complaints but many customers who defect never relay their complaints.
c. It tends to focus on global attributes and ignores operational elements.
d. It often excludes the firm's employees from the survey process.
e. Customers may not know what they want.
Chapter 11 (Cont.)
36) Naomi's children are giving her a week at a spa for her seventieth birthday. Their expectations of the
services the spa will provide are much higher because they are selecting the spa for their mother's approval
rather than for their own use. This is an example of a(n) ____ expectations.
a. derived
b. self-perceived
c. explicit service
d. enduring service
e. transitory service
28
Chapter 13
1) According to the text, which of the following is NOT a type of complainer?
a. meek customer
b. aggressive customer
c. high-roller customer
d. rip-off customer
e. ugly customer
2) Services that do not meet customer expectations are called:

a. service failures.
b. critical incidents.
c. servuction failures.
d. service recoveries.
e. instrumental complaints.
3) All of the following are a main service failure category discussed in the text except:
a. unprompted and unsolicited employee actions.
b. failures relating to customer needs and requests.
c. pricing failures
d. core service failures
e. failures relating to problematic customers
4) Under which subgroup of the service failure category relating to customer needs and requests would
preparing a meal for a vegetarian fall?
a. special needs
b. customer preferences
c. disruptive others
d. customer errors
e. level of attention
5) Service failures NOT relating to problematic customers include:

a. uncooperative customers.
b. breaking company policies.
c. drunkenness.
d. admitted customer error.
29
e. verbal and physical abuse.
Chapter 13 (Cont.)
6) Consumer complaints tend to be:
a. instrumental and ostensive.
b. instrumental and reflexive.
c. noninstrumental and ostensive.
d. noninstrumental and reflexive.
e. ostensive and reflexive.
7) ____ complaints are expressed without the expectation that the problem will be solved.
a. Ostensive
b. Instrumental
c. Reflexive
d. Noninstrumental
e. Critical
8) ____ complaints are registered for the expressed purpose of altering an undesirable state of affairs.
a. Ostensive
b. Instrumental
c. Reflexive
d. Noninstrumental
e. Critical
9) In general, individuals avoid making this type of complaint so as not to reinforce negative self-esteem.
a. ostensive
b. instrumental
c. reflexive
d. noninstrumental
e. critical
10) This type of complaint is not usually heard because people seldom want to convey negative attributes about themselves to others.
a. ostensive
b. instrumental
30
c. reflexive
d. noninstrumental
e. critical
Chapter 13 (Cont.)
11) Complaints about the weather being too hot can be classified as:
12) The smallest number of complaints registered by individuals are:

13) All of the following are reasons customers make noninstrumental complaints except:
a. to alter an undesirable state of affairs.
b. to regain some control through indirect retribution.
c. to solicit sympathy.
d. to create the impression of being more intelligent and discerning.
e. to release frustration
14) The manager of a bank branch contacted complaining customers to explain how their voices resulted in
bank policy changes. This is an example of which service recovery basic rule of thumb?
a. Actively encourage complaints.
b. Train employees.
c. Empower the front line.
d. Respond quickly.
e. Close the loop.
15) Why is it that a great percentage of service customers never complain to the offending party?
31
a. They don't think it will do any good.

b. They accept part of the blame since they are directly involved in the process.
c. They don't know who to complain to.
d. They don't want to create a confrontation.
e. All of these are reasons customers do not complain.
Chapter 13 (Cont.)
16) Ritz Carlton employees take initiative to spend up to $2,000 on recovery efforts. This is an example of
which service recovery basic rule of thumb?
a. Measure the costs.
b. Actively encourage complaints.
c. Train employees
d. Empower the front line.
e. Respond quickly.
17) A firm's reaction to a customer complaint that results in customer satisfaction and goodwill is called a:
a. service recovery paradox.
b. service recovery.
c. critical incident.
d. moment of truth.
e. the critical incident technique.
18) A complaining outcome in which the consumer takes action deliberately designed to damage the physical
operation or hurt future business is called:
a. voice.
b. retaliation.
c. service recovery.
d. exit.
e. service recovery paradox.
19) ____ refers to the situation in which the customer rates performance higher if a failure occurs and the
contact personnel successfully recover from it than if the service had been delivered correctly the first time.
a. Service recovery paradox
b. Service recovery
c. Critical incident
d. Moment of truth
32
e. The critical incident technique
20) Perceived justice consists of three components:

a. social, distributive, and ethical justices.
b. procedural, psychological, and social justices.
c. social, interactional, and physical justices.
d. distributive, interactional, and procedural justices.
e. social, ethical, and physical justices.
Chapter 13 (Cont.)
21) The component of perceived justice that refers to the outcomes associated with the service recovery process
is referred to as ____ justice.
a. social
b. procedural
c. interactional
d. distributive
e. ethical
22) During a service recovery effort, the employee promptly refunded the customer's money, but threw the
money at the customer. As a result, the recovery effort violated the customer's ____ justice need.
a. social
b. procedural
c. interactional
d. distributive
e. ethical
23) During a service recovery effort, the employee was very empathetic to the customer's plight and agreed to
replace the defective product. However, it took three months for the replacement product to show up, which was
much later than the customer had anticipated. As a result, the recovery effort violated the customer's ____ justice
need.
a. social
b. procedural
c. interactional
d. distributive
e. ethical
24) Which of the following compensates the customer to offset the cost of the service failure?
a. replacement
b. correction
33
c. substitution
d. front-line
e. coupon
25) Which of the following is NOT one of the broad recovery strategy categories?
a. compensatory strategies
b. restoration strategies
c. apologetic strategies
d. replacement strategies
e. responsive strategies
Chapter 14
1) ____ reflects an emotional attachment as well as a business attachment to the service firm.
a. Customer retention
b. Frequency marketing
c. Aftermarketing
d. Relationship marketing
e. Customer loyalty
2) ____ refers to focusing the firm's marketing efforts toward the existing customer base.
c. Aftermarketing
e. Conquest marketing
3) ____ seeks new customers by offering discounts and developing promotions that encourage new business.
c. Conquest marketing
e. Aftermarketing
4) Which of the following is NOT a reason why customer retention has become increasingly important?
a. relative parity among competing products
34
b. the rising costs of marketing

c. customers are more confident with their service providers
d. domestic markets are stagnant
e. customers are more informed
5) Studies have indicated that as much as ____ percent of profits come from long-term customers via profits
derived from sales, referrals, and reduced operating costs.
a. 95
b. 75
c. 50
d. 35
e. 25
Chapter 14 (Cont.)
6) All of the following statements related to customer retention are true except:
a. One of the key benefits of customer retention is repeat sales.
b. Existing customers are willing to pay more for a firm's services.
c. It costs 3 to 5 times more to keep a customer than to get a new one.
d. Long-term customers tend to have lower maintenance costs.
e. Customer retention often leads to positive referrals.
7) ____ refers to the average dollar amount per sale multiplied by the average number of times customers reorder.
a. Lifetime value of a customer
b. Customer acquisition cost
c. Lifetime profit of a customer
d. Lifetime cost of a customer
e. Customer retention cost
8) At the macro level, firms engaged in relationship marketing recognize that the marketing activity affects:
a. customer markets.
b. employee markets.
c. supplier markets.
d. internal markets.
e. all of these.
35
9) The strategy for cultivating customer loyalty that involves protecting confidential information and telling the
customers the truth, even when it hurts, is:
a. developing a proper perspective.
b. providing discretionary effort.
c. providing incentives.
d. building trust through reliability.
e. staying in touch.
10) The strategy for cultivating customer loyalty that involves communicating to customers that the firm
genuinely cares for their well-being is:
b. setting customer retention goals.
c. staying in touch.
e. providing discretionary effort.
Chapter 14 (Cont.)
11) The strategy for cultivating customer loyalty that promotes the idea that the company exists to meet the
needs and wants of its consumers is:
c. providing incentives.
e. staying in touch
12) The strategy for cultivating customer loyalty that assumes upper management's loyalty to employees will
be passed on by employees to customers is:
c. leading through top-down loyalty.
e. staying in touch
13) ____ is behavior that goes beyond the call of duty. It involves countless personal touches--little things that
distinguish a discrete business transaction from an ongoing relationship.
a. Developing a proper perspective
b. Providing discretionary effort
36
c. Providing incentives
d. Building trust through reliability
e. Staying in touch
14) Under which conditions is it no longer worthwhile to keep a customer?

a. The account is no longer profitable.
b. Customers are abusive to the point where it lowers employee morale.
c. Contract conditions are no longer being met.
d. Customer demands are beyond reasonable.
e. All of these apply.
15) Which of the following is NOT an aftermarketing technique?

a. identifying customers and building a customer database
b. measuring customer satisfaction and continuously making improvements based on customer feedback
c. refraining from negative word of mouth advertising
d. maintaining a relationship with the customer after the initial sale
e. establishing formal customer communication programs
Chapter 14 (Cont.)
16) The guarantee that most likely avoids the appearance of a tacky marketing ploy is called a(n):
a. conditional guarantee.
b. implicit guarantee.
c. specific result guarantee.
d. unconditional guarantee.
e. explicit guarantee
17) An unwritten, unspoken guarantee that establishes an understanding between the firm and its customers is
called a(n) _____ guarantee.
a. conditional
b. implicit
c. specific result
d. unconditional
e. unsolicited
18) Federal Express publicly states that it guarantees overnight delivery. This type of guarantee is called a(n) ___ guarantee.
a. conditional
37
b. implicit
c. specific result
d. unconditional
e. unsolicited
19) A guarantee that applies only to specific steps or outputs in the service delivery process is called a(n) ___ guarantee.
a. conditional
b. implicit
c. specific result
d. unconditional
e. unsolicited
20) The most powerful of all guarantees that promises complete customer satisfaction is the _____ guarantee.
a. conditional
b. implicit
c. specific result
d. unconditional
e. unsolicited
Chapter 14 (Cont.)
21) A specific result guarantee may appear weak compared to the _____ guarantee.
a. conditional
b. implicit
c. explicit
d. unconditional
e. unsolicited
22) All of the following are customer-directed benefits associated with unconditional guarantees except:
a. guarantees that are invoked provide a measurable means of tracking poor service.
b. customers perceive they are getting a better value.
c. the perceived risk associated with the purchase is lower.
d. the consumer perceives the firm to be more reliable.
e. the guarantee helps consumers decide when comparing competing alternatives
23) All of the following are organization-directed benefits associated with offering unconditional guarantees except:
38
a. the guarantee forces the firm to focus on the customer's definition of good service.
b. the guarantee states a clear performance goal that is communicated to employees.
c. offering the guarantee forces the firm to examine its entire service delivery system for failure points.
d. the guarantee provides a means to avoid bankruptcy.
e. the guarantee can be a source of pride and provide a motive for team building within the firm.
24) Experts in the area of guarantees believe that guarantees are most effective for professional service
providers under which of the following conditions?
a. Prices are high.
b. The costs of a negative outcome are high.
c. Buyer resistance is high.
d. Brand recognition is difficult to achieve.
e. All of these conditions apply.
25) ____ is a systematic process that actively attempts to retain customers before they defect.
a. Implicit guarantees
b. Defection management
c. Zero defects model
d. Zero defections model
e. Conquest marketing
Chapter 14 (Cont.)
26) Although appropriate within the manufacturing sector, which of the following does NOT work well within
the service sector?
a. implicit guarantees
b. defection management
c. zero defects model
d. zero defections model
e. conquest marketing
27) While other defector types are primarily externally driven, these defectors leave as a result of problems
with the internal operations of the firm.
a. price defectors
b. product defectors
c. service defectors
d. market defectors
39
e. technological defectors
28) ____ are customers who leave due to relocation.

a. Price defectors
b. Product defectors
c. Service defectors
d. Market defectors
e. Technological defectors
29) Businesses commonly lose ____ percent of their customers each year.
a. 5 to 10
b. 15 to 20
c. 25 to 30
d. 35 to 40
e. 45 to 50
30) The least loyal of any customer type are the _____ defectors.
a. price
b. product
c. service
d. market
e. technological
Chapter 14 (Cont.)
31) The most difficult type of defectors to bring back once they leave are the _____ defectors.
a. price
b. product
c. service
d. market
e. technological
32) A cargo shipper switches from rail carrier to air transportation. This is an example of a _____ defector.
a. price
b. product
c. service
40
d. market
e. technological
33) Bob defected to another service provider due to a friendship that developed through a civic club. Bob is an
example of a(n) _____ defector.
a. price
b. organizational
c. service
d. market
e. technological
34) The defection management process includes all of the following steps except:
a. Communicate to employees the importance of retaining current customers and the benefits obtained by
reducing defections.
b. Minimize service guarantee payouts.
c. Train employees in defection management.
d. Tie incentives to defection rates.
e. Create switching barriers that discourage defections
35) What is the key to defection management?

a. gathering customer information
b. providing specific instructions above what to do with the information
c. instructing employees in how to react to the information
d. encouraging employees to respond to the information
e. creating a zero defections culture within the firm
41

MIDTERM EXAM POOL ITEMS FOR SERVICES MARKETING COURSE

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MIDTERM EXAM POOL ITEMS FOR SERVICES MARKETING COURSE

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SERVICES MARKETING (MKTG430) MIDTERM EXAM POOL ITEMS

3) The financial activities supersector consists of all the following except:

7) Which of the following is true regarding the insurance industry?

15) All of the following are beliefs of materialismic snobs except:

b. all nonmanufacturing sectors of the economy are parasitic and/or inconsequential.

29) Which of the following statements regarding ethics is correct?

d. Employees often emulate the behavior of their supervisors.

2) The consumer decision process consists of:

3) The prepurchase stage consists of all of the following activities except:

e. Each customer's choice will differ based on his/her gut-level feelings.

16) Which of the following statements is NOT true?

17) Attributes such as price, fit, and feel are called:

18) Services tend to be characterized by:

20) Which of the following statements is NOT correct?

a. Confirmation = Customer satisfaction Perceptions Expectations

5) Which of the following is true of a high-contact system?

7) Which of the following is an example of a business with a low-contact system?

8) A side benefit of expert consumers is:

9) Which of the following is an example of a business with a low-contact system?

10) All of the following are true regarding technology except:

12) A useful metaphor for the service encounter is that of a(n):

14) Which of the following statements related to attribution is NOT true?

b. Audit consumer performance.

a. Preprocess waits feel longer than in-process waits.

25) Which of the following statements is NOT correct?

26) Which of the following principles of waiting is stated correctly?

3) Which of the following statements regarding customer satisfaction is correct?

4) Which of the following statements regarding customer satisfaction is incorrect?

5) The most popular definition of customer satisfaction/dissatisfaction is based on:

7) Customers are most dissatisfied when a ____ occurs.

8) All of the following are benefits of customer satisfaction except:

d. the combined approach

18) Customer satisfaction can be defined by comparing:

19) Which of the following are service quality measures?

22) The zone of tolerance is defined as the difference between:

28) When forming customer expectations, price acts as a(n):

c. explicit service promise.

32) The higher the number of perceived service alternatives the:

35) Which of the following is NOT a criticism of customer satisfaction research?

2) Services that do not meet customer expectations are called:

5) Service failures NOT relating to problematic customers include:

e. verbal and physical abuse.

12) The smallest number of complaints registered by individuals are:

a. They don't think it will do any good.

e. The critical incident technique

20) Perceived justice consists of three components:

b. the rising costs of marketing

14) Under which conditions is it no longer worthwhile to keep a customer?

15) Which of the following is NOT an aftermarketing technique?

28) ____ are customers who leave due to relocation.

35) What is the key to defection management?

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