Designing and Managing Services - Quiz

1. Question: Customer retention is crucial because

It has no financial benefit

It increases production cost

It costs less than acquiring new customers

It is more difficult to measure

2. Question: Managing service productivity means

Balancing quality and efficiency in service delivery

Reducing employee autonomy

Increasing staff numbers

Eliminating variability completely

3. Question: Customer Lifetime Value (CLV) measures

Customer review frequency

Net profit from a customer over their entire relationship

Number of service encounters per month

Average purchase size

4. Question: What primarily differentiates services from goods according to Kotler?

Standardization

Tangibility

Ownership transfer

Storage ability

5. Question: Fluctuating demand in services can be managed through

Flexible staffing and dynamic pricing

Fixed schedules only

Reducing supply permanently

Eliminating customer variation

6. Question: Word-of-mouth is especially powerful in services because

Services are intangible and rely on personal recommendations

Advertising dominates perceptions

Services have fixed pricing

Customers rarely talk about experiences

7. Question: In a service blueprint, the line of visibility separates

Management and customers

Front-stage and back-stage actions

Process and policy

Marketing and operations

8. Question: Variability in services arises because

Delivery is automated

Equipment is standardized

Human performance differs across providers

Tangible goods are predictable

9. Question: Technology in service delivery improves

Tangibility of products

Manual labor dependency

Cost inefficiency

Efficiency, accuracy, and convenience

10. Question: Gap 1 in the service quality model is the difference between

Actual performance and promised service

Customer expectations and management perceptions

Internal policy and marketing mix

Service delivery and external communication

Question 1 of 10