Designing and Managing Services - Quiz

1. Question: The 7Ps of service marketing include all except

Production

People

Process

Physical evidence

2. Question: Customer Lifetime Value (CLV) measures

Number of service encounters per month

Net profit from a customer over their entire relationship

Customer review frequency

Average purchase size

3. Question: The “zone of tolerance” in service quality refers to

Service provider error rates

Customer dissatisfaction levels

Employee turnover rate

Acceptable variation between desired and adequate performance

4. Question: Empathy in service quality means

Speeding up service time

Maintaining standardized procedures

Increasing physical facilities

Providing caring and individualized attention

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

Fixed schedules only

Reducing supply permanently

Flexible staffing and dynamic pricing

Eliminating customer variation

6. Question: Variability in services arises because

Delivery is automated

Equipment is standardized

Tangible goods are predictable

Human performance differs across providers

7. Question: Complaint handling effectiveness determines

Long-term loyalty and recovery satisfaction

Sales promotion success

Brand awareness only

Distribution network strength

8. Question: Customer co-production in services means

Customers play an active role in creating the service experience

Suppliers collaborate on production

Customers only provide feedback

Employees manage output alone

9. Question: Customer retention is crucial because

It is more difficult to measure

It costs less than acquiring new customers

It has no financial benefit

It increases production cost

10. Question: In the SERVQUAL model, Gap 5 represents the difference between

Customer and employee satisfaction

Internal marketing and external marketing

Service delivery and design

Expected and perceived service

Question 1 of 10