Question: What primarily differentiates services from goods according to Kotler?
A. Tangibility
B. Storage ability
C. Ownership transfer
D. Standardization
Correct Answer: A

Question: Which of the following is not a key characteristic of services?
A. Inseparability
B. Perishability
C. Tangibility
D. Variability
Correct Answer: C

Question: Inseparability in services means that
A. Services are produced and consumed simultaneously
B. Services can be stored for later use
C. Services are highly standardized
D. Services can be easily inventoried
Correct Answer: A

Question: Variability in services arises because
A. Human performance differs across providers
B. Equipment is standardized
C. Tangible goods are predictable
D. Delivery is automated
Correct Answer: A. Human performance differs across providers

Question: Perishability of services refers to
A. Inability to store unused service capacity
B. Decline in service quality
C. Poor customer feedback
D. Inventory obsolescence
Correct Answer: A

Question: In service marketing, “moment of truth” refers to
A. Each customer interaction that shapes perception
B. Pricing decision point
C. Supplier evaluation
D. Promotion approval
Correct Answer: A

Question: The SERVQUAL model measures
A. Service quality based on five key dimensions
B. Employee training effectiveness
C. Product lifecycle
D. Service profitability
Correct Answer: A. Service quality based on five key dimensions

Question: Which of the following is not part of SERVQUAL?
A. Tangibles
B. Reliability
C. Empathy
D. Durability
Correct Answer: D. Durability

Question: Reliability in service quality means
A. Performing promised service dependably and accurately
B. Providing quick responses
C. Giving personal attention
D. Having attractive facilities
Correct Answer: A. Performing promised service dependably and accurately

Question: Responsiveness refers to
A. Willingness to help customers and provide prompt service
B. Physical appearance of facilities
C. Consistency of performance
D. Level of empathy shown
Correct Answer: A. Willingness to help customers and provide prompt service

Question: Assurance in SERVQUAL captures
A. Employees’ knowledge, courtesy, and ability to inspire trust
B. Speed of delivery
C. Cost efficiency
D. Convenience of location
Correct Answer: A. Employees’ knowledge, courtesy, and ability to inspire trust

Question: Empathy in service quality means
A. Providing caring and individualized attention
B. Maintaining standardized procedures
C. Increasing physical facilities
D. Speeding up service time
Correct Answer: A. Providing caring and individualized attention

Question: Tangibles in service quality relate to
A. Physical facilities, equipment, and appearance of personnel
B. Speed of service
C. Personalization
D. After-sales support
Correct Answer: A. Physical facilities, equipment, and appearance of personnel

Question: Service blueprinting is used to
A. Visually map service processes, interactions, and front/back-stage activities
B. Design tangible product prototypes
C. Estimate financial costs
D. Plan marketing campaigns
Correct Answer: A. Visually map service processes, interactions, and front/back-stage activities

Question: The service-profit chain links
A. Employee satisfaction → Service quality → Customer loyalty → Profitability
B. Product innovation → Pricing → Promotion → Sales
C. Supplier → Distributor → Customer → End user
D. Price → Demand → Supply → Output
Correct Answer: A. Employee satisfaction → Service quality → Customer loyalty → Profitability

Question: Internal marketing in services means
A. Training and motivating employees to deliver service excellence
B. Advertising to internal stakeholders
C. Outsourcing internal functions
D. Promoting products to suppliers
Correct Answer: A. Training and motivating employees to deliver service excellence

Question: Interactive marketing refers to
A. Employee-customer interaction during service delivery
B. Digital advertising
C. Supplier engagement
D. Internal HR campaigns
Correct Answer: A. Employee-customer interaction during service delivery

Question: External marketing in services focuses on
A. Promising the service to customers
B. Training employees
C. Managing back-office systems
D. Developing internal culture
Correct Answer: A. Promising the service to customers

Question: The 7Ps of service marketing include all except
A. People
B. Process
C. Physical evidence
D. Production
Correct Answer: D. Production

Question: Physical evidence in services includes
A. Environment, design, and tangible cues that support service delivery
B. Employee wages
C. Price structure
D. Advertising layout
Correct Answer: A. Environment, design, and tangible cues that support service delivery

Question: The Gaps Model identifies
A. Discrepancies between customer expectations and perceptions of service
B. Differences in pricing strategy
C. Distribution gaps
D. Communication noise
Correct Answer: A. Discrepancies between customer expectations and perceptions of service

Question: Gap 1 in the service quality model is the difference between
A. Customer expectations and management perceptions
B. Service delivery and external communication
C. Actual performance and promised service
D. Internal policy and marketing mix
Correct Answer: A. Customer expectations and management perceptions

Question: Service recovery refers to
A. Efforts to rectify service failures and restore customer satisfaction
B. Financial loss management
C. Process redesign
D. Employee compensation
Correct Answer: A. Efforts to rectify service failures and restore customer satisfaction

Question: Empowering employees in service organizations helps
A. Respond quickly to service failures
B. Reduce salary costs
C. Eliminate external communication
D. Increase bureaucracy
Correct Answer: A. Respond quickly to service failures

Question: Relationship marketing in services focuses on
A. Building long-term customer loyalty and engagement
B. Short-term sales targets
C. Seasonal promotions
D. Mass advertising
Correct Answer: A. Building long-term customer loyalty and engagement

Question: Customer retention is crucial because
A. It costs less than acquiring new customers
B. It is more difficult to measure
C. It increases production cost
D. It has no financial benefit
Correct Answer: A. It costs less than acquiring new customers

Question: Service differentiation can be achieved by
A. People, process, or physical evidence
B. Price reduction only
C. Outsourcing production
D. Eliminating customization
Correct Answer: A. People, process, or physical evidence

Question: High-contact services are those
A. Involving extensive customer interaction during delivery
B. Fully automated with no contact
C. Provided online only
D. Industrial services only
Correct Answer: A. Involving extensive customer interaction during delivery

Question: Low-contact services include
A. ATM transactions and online banking
B. Restaurant dining
C. Hair salon services
D. Hospital surgeries
Correct Answer: A. ATM transactions and online banking

Question: Managing service productivity means
A. Balancing quality and efficiency in service delivery
B. Increasing staff numbers
C. Reducing employee autonomy
D. Eliminating variability completely
Correct Answer: A. Balancing quality and efficiency in service delivery

Question: The zone of tolerance represents
A. The range between desired and adequate service levels
B. Customer dissatisfaction
C. Market segmentation boundaries
D. Price flexibility
Correct Answer: A. The range between desired and adequate service levels

Question: Word-of-mouth is especially powerful in services because
A. Services are intangible and rely on personal recommendations
B. Services have fixed pricing
C. Customers rarely talk about experiences
D. Advertising dominates perceptions
Correct Answer: A. Services are intangible and rely on personal recommendations

Question: A service guarantee signals
A. Confidence in service quality and risk reduction for the customer
B. A promotional discount
C. Free product sampling
D. Supplier relationship
Correct Answer: A. Confidence in service quality and risk reduction for the customer

Question: Customer delight occurs when
A. Performance exceeds customer expectations
B. Prices are reduced
C. Delivery is standardized
D. Complaints increase
Correct Answer: A. Performance exceeds customer expectations

Question: Servicescape design focuses on
A. Physical environment influencing customer experience
B. Employee training
C. Pricing models
D. Product innovation
Correct Answer: A. Physical environment influencing customer experience

Question: Frontline employees in services are also known as
A. Boundary spanners
B. Internal marketers
C. Process designers
D. Production agents
Correct Answer: A. Boundary spanners

Question: Managing service demand and capacity includes
A. Scheduling, queuing, and differential pricing
B. Reducing employee benefits
C. Increasing advertising
D. Limiting promotions
Correct Answer: A. Scheduling, queuing, and differential pricing

Question: Fluctuating demand in services can be managed through
A. Flexible staffing and dynamic pricing
B. Fixed schedules only
C. Reducing supply permanently
D. Eliminating customer variation
Correct Answer: A. Flexible staffing and dynamic pricing

Question: Service quality improvement starts with
A. Understanding customer expectations
B. Cutting operational costs
C. Reducing employee involvement
D. Standardizing communication only
Correct Answer: A. Understanding customer expectations

Question: Internal service quality affects
A. Employee satisfaction and ultimately external service quality
B. Physical product features
C. Market share only
D. Advertising frequency
Correct Answer: A. Employee satisfaction and ultimately external service quality

Question: A service culture emphasizes
A. Valuing customer service as a part of organizational DNA
B. Price competition
C. Bureaucratic efficiency
D. Product innovation
Correct Answer: A. Valuing customer service as a part of organizational DNA

Question: Customer co-production in services means
A. Customers play an active role in creating the service experience
B. Suppliers collaborate on production
C. Employees manage output alone
D. Customers only provide feedback
Correct Answer: A. Customers play an active role in creating the service experience

Question: Queue management improves service experience by
A. Reducing perceived waiting time and frustration
B. Eliminating physical contact
C. Lowering product prices
D. Adding extra paperwork
Correct Answer: A. Reducing perceived waiting time and frustration

Question: Complaint handling effectiveness determines
A. Long-term loyalty and recovery satisfaction
B. Sales promotion success
C. Brand awareness only
D. Distribution network strength
Correct Answer: A. Long-term loyalty and recovery satisfaction

Question: The “Service Triangle” connects
A. Company, employees, and customers
B. Product, price, and promotion
C. Supplier, retailer, and consumer
D. Quality, cost, and speed
Correct Answer: A. Company, employees, and customers

Question: Service innovation involves
A. Creating new or improved service concepts, delivery systems, or processes
B. Advertising new offers only
C. Reducing workforce
D. Price discounting
Correct Answer: A. Creating new or improved service concepts, delivery systems, or processes

Question: Technology in services improves
A. Efficiency, consistency, and accessibility
B. Tangibility of output
C. Product durability
D. Sales force autonomy
Correct Answer: A. Efficiency, consistency, and accessibility

Question: Service standardization ensures
A. Predictable quality and consistent customer experience
B. Maximum customization
C. Lower employee satisfaction
D. Variable performance
Correct Answer: A. Predictable quality and consistent customer experience

Question: What does the service continuum represent?
A. The range from pure goods to pure services
B. The value chain of production
C. The steps in product standardization
D. The process of automation
Answer: A

Question: Which pricing method helps manage fluctuating demand for services?
A. Value-based pricing
B. Peak-load pricing
C. Bundled pricing
D. Tiered pricing
Answer: B

Question: The term “service encounter” refers to
A. A moment when the brand is advertised
B. Any interaction between a customer and a service employee
C. The point of payment
D. Post-purchase survey
Answer: B

Question: In the SERVQUAL model, Gap 5 represents the difference between
A. Expected and perceived service
B. Service delivery and design
C. Internal marketing and external marketing
D. Customer and employee satisfaction
Answer: A

Question: The first step in designing a new service is
A. Creating a budget
B. Identifying customer needs
C. Testing prototype models
D. Hiring more staff
Answer: B

Question: Which of the following is a high-contact service?
A. ATM withdrawal
B. Online booking
C. Hair salon
D. Postal drop box
Answer: C

Question: In a service blueprint, the line of visibility separates
A. Management and customers
B. Front-stage and back-stage actions
C. Marketing and operations
D. Process and policy
Answer: B

Question: The main challenge in service quality is
A. Variability
B. Tangibility
C. Homogeneity
D. Standardization
Answer: A

Question: Effective service recovery includes
A. Ignoring complaints
B. Apologizing promptly and fairly compensating
C. Providing delayed responses
D. Limiting customer contact
Answer: B

Question: Empowerment in service companies means
A. Allowing staff to resolve issues instantly
B. Restricting employee decisions
C. Reducing service variety
D. Centralizing authority
Answer: A

Question: Internal marketing involves
A. Motivating employees to deliver better service
B. Conducting internal audits
C. Hiring consultants
D. Managing digital ads
Answer: A

Question: Interactive marketing emphasizes
A. Employee–customer engagement during service delivery
B. Supplier performance
C. Cost accounting
D. Media scheduling
Answer: A

Question: Capacity management focuses on
A. Balancing service demand and supply
B. Expanding advertising reach
C. Eliminating customer contact
D. Reducing staff motivation
Answer: A

Question: Queue management systems aim to
A. Minimize perceived waiting time
B. Increase promotion effectiveness
C. Reduce back-office operations
D. Extend delivery time
Answer: A

Question: A service audit helps managers
A. Identify process gaps and service improvement areas
B. Select new suppliers
C. Plan mergers
D. Redefine product quality
Answer: A

Question: The “zone of tolerance” in service quality refers to
A. Acceptable variation between desired and adequate performance
B. Customer dissatisfaction levels
C. Service provider error rates
D. Employee turnover rate
Answer: A

Question: Perceived service value can be improved through
A. Exceptional experience and reliability
B. Reducing customer touchpoints
C. Eliminating variety
D. Minimizing staff interaction
Answer: A

Question: In the service triangle, which element delivers the promise?
A. Employees
B. Marketing systems
C. Suppliers
D. Technology
Answer: A

Question: “Service factory” businesses include
A. Hospitals and clinics
B. Airlines and hotels
C. Real estate agencies
D. Law firms
Answer: B

Question: The design of a servicescape affects
A. Customer perceptions and behavior
B. Price elasticity
C. Organizational hierarchy
D. Advertising recall
Answer: A

Question: The link between service quality and profitability is typically
A. Direct and positive
B. Negative
C. Insignificant
D. Cyclical
Answer: A

Question: Which tool helps visualize customer interactions?
A. Service blueprint
B. Business portfolio matrix
C. Product life cycle chart
D. Process audit
Answer: A

Question: The SERVQUAL model was proposed by
A. Levitt and Drucker
B. Parasuraman, Zeithaml, and Berry
C. Kotler and Keller
D. Aaker and Day
Answer: B

Question: Reliability in services means
A. Dependably performing what was promised
B. Adapting processes continuously
C. Increasing marketing frequency
D. Personalizing every transaction
Answer: A

Question: Perishability makes it necessary to
A. Manage capacity and scheduling carefully
B. Produce inventory backups
C. Automate all service tasks
D. Cut employee contact
Answer: A

Question: Active customer participation in a service process is called
A. Co-production
B. Outservicing
C. Co-branding
D. Integration
Answer: A

Question: Yield management is used to
A. Adjust prices according to demand
B. Eliminate customer variability
C. Fix operational budgets
D. Regulate employee schedules
Answer: A

Question: The SERVPERF model measures
A. Service performance as the sole determinant of quality
B. Customer expectations only
C. Employee behavior
D. Tangible facilities
Answer: A

Question: Missing a service appointment is an example of
A. A reliability failure
B. A responsiveness issue
C. A tangibles gap
D. An assurance problem
Answer: A

Question: Customer Lifetime Value (CLV) measures
A. Net profit from a customer over their entire relationship
B. Number of service encounters per month
C. Customer review frequency
D. Average purchase size
Answer: A

Question: Variability in services can be minimized through
A. Employee training and process standardization
B. Increasing automation cost
C. Restricting service range
D. Cutting feedback systems
Answer: A

Question: Assurance in service quality focuses on
A. Employees’ ability to instill trust and confidence
B. Facility appearance
C. Brand reputation
D. Response time
Answer: A

Question: Service quality can be defined as
A. The degree to which performance matches expectations
B. The percentage of service failures
C. Employee satisfaction levels
D. Marketing cost efficiency
Answer: A

Question: Inseparability of services implies that
A. Production and consumption occur at the same time
B. Services can be produced in advance
C. Marketing is not required
D. Tangible ownership is transferred
Answer: A

Question: Differentiation in services is often based on
A. People, process, and physical evidence
B. Discount offers
C. Tangible add-ons
D. Supplier contracts
Answer: A

Question: A good service guarantee must be
A. Unconditional and simple
B. Complex with clauses
C. Expensive to implement
D. Restricted to premium users
Answer: A

Question: Among the 7Ps, the one most critical for services is
A. People
B. Product
C. Price
D. Promotion
Answer: A

Question: The “moment of truth” occurs when
A. A customer directly interacts with the service provider
B. Advertising is launched
C. Service is discontinued
D. Competitor enters the market
Answer: A

Question: Services are mostly evaluated based on
A. Experience and credence qualities
B. Physical attributes
C. Search qualities only
D. Cost-to-performance ratio
Answer: A

Question: Back-stage activities in a blueprint include
A. Support tasks not visible to customers
B. Customer service interactions
C. Marketing promotions
D. Product shipments
Answer: A

Question: Effective service recovery can
A. Increase loyalty after a failure
B. Reduce repeat purchase
C. Delay problem-solving
D. Create negative publicity
Answer: A

Question: The seventh “P” in the services marketing mix is
A. People
B. Profitability
C. Planning
D. Policy
Answer: A

Question: Process design helps service firms
A. Achieve consistency and efficiency
B. Cut customer contact points
C. Increase complexity
D. Eliminate automation
Answer: A

Question: Internal service quality depends on
A. Departmental collaboration and communication
B. Advertising budget size
C. Brand logo design
D. Competitive pricing
Answer: A

Question: The service-profit chain begins with
A. Employee satisfaction
B. Cost reduction
C. Customer loyalty
D. Advertising reach
Answer: A

Question: An example of service innovation is
A. Airport self-check-in kiosks
B. Redesigned product label
C. Added loyalty points
D. Seasonal discount
Answer: A

Question: Technology in service delivery improves
A. Efficiency, accuracy, and convenience
B. Manual labor dependency
C. Tangibility of products
D. Cost inefficiency
Answer: A

Question: When perceived service < expected service, the result is A. Customer dissatisfaction B. Customer delight C. Neutral perception D. Increased loyalty Answer: A Question: The service encounter triad includes A. Customer, employee, and organization B. Supplier, retailer, and consumer C. Product, price, and promotion D. Brand, logo, and market Answer: A Question: Which of these is a credence service? A. Medical surgery B. Car wash C. Retail purchase D. Food delivery Answer: A Question: What does the term “service quality gap model” explain? A. Differences between management and customer expectations B. Profitability levels C. Market segmentation strategy D. Channel conflict Answer: A Question: Which type of services cannot be easily evaluated even after consumption? A. Credence services B. Experience services C. Search services D. Core services Answer: A Question: A “service blueprint” mainly identifies A. Key steps, customer interactions, and support activities B. Brand values C. Advertising layouts D. Competitive pricing levels Answer: A Question: The “service recovery paradox” suggests that A. A well-handled failure can increase customer loyalty B. Every complaint leads to defection C. Recovery always fails D. Customers forget failures automatically Answer: A Question: Which element is most visible to customers in service design? A. Physical evidence B. Internal process C. Information system D. Recruitment strategy Answer: A Question: Services are intangible because they A. Cannot be seen, touched, or stored before purchase B. Have fixed shelf lives C. Are mostly physical D. Are always durable Answer: A Question: Customer satisfaction in services largely depends on A. Meeting or exceeding expectations B. Lower prices C. Advertising volume D. Competitor actions Answer: A Question: A “service guarantee” primarily serves to A. Reduce perceived risk for customers B. Increase costs C. Delay delivery D. Limit accountability Answer: A Question: What does empowerment require from management? A. Trust in employee decision-making B. Hierarchical approval for every action C. Centralized control D. Outsourcing routine work Answer: A Question: Which of these is a people-processing service? A. Airline transportation B. Cloud storage C. Investment management D. Software development Answer: A Question: Which concept measures perceived fairness in service recovery? A. Justice theory B. SERVQUAL C. Expectancy theory D. Kano model Answer: A Question: “Blueprinting” a service helps managers A. Identify potential fail points in the process B. Plan advertising messages C. Train only senior staff D. Set competitor benchmarks Answer: A Question: The service-profit chain shows that A. Employee satisfaction drives customer loyalty and profitability B. Lower wages improve output C. Advertising ensures retention D. Profit leads to satisfaction Answer: A Question: Which dimension of SERVQUAL concerns prompt help? A. Responsiveness B. Assurance C. Reliability D. Empathy Answer: A Question: The marketing of services differs because A. Production, distribution, and consumption are simultaneous B. Prices are regulated C. Services need less training D. Tangibility dominates decisions Answer: A Question: A low-contact service example is A. ATM withdrawal B. Dental treatment C. Hair styling D. Hotel check-in Answer: A Question: The “People” element of 7Ps relates to A. Employees and their interaction with customers B. Market demographics C. Company shareholders D. Government partners Answer: A Question: Process mapping in service operations helps A. Identify bottlenecks and improve flow efficiency B. Track advertising response C. Develop packaging D. Set price tiers Answer: A Question: Employee motivation is critical in services because A. Their behavior directly shapes customer experience B. They work shorter shifts C. They set the final price D. They manage R&D budgets Answer: A Question: Which statement defines “internal customers”? A. Employees or departments that rely on each other’s service B. Outsourced agencies C. Suppliers D. External buyers Answer: A Question: Inseparability makes service capacity A. Time- and location-bound B. Fully flexible C. Infinite D. Tangible Answer: A Question: Customer expectations are shaped by A. Past experiences, word of mouth, and marketing communications B. Price alone C. Employee turnover D. Competitor profit margin Answer: A Question: Which stage in the service-profit chain leads to growth? A. Customer loyalty B. Advertising awareness C. Market entry D. Cost leadership Answer: A Question: “Physical evidence” includes A. Tangible cues that reassure customers about quality B. Supplier contracts C. Employee wages D. Training manuals Answer: A Question: The primary objective of relationship marketing is A. Long-term retention and value creation B. One-time transactions C. Price maximization D. Seasonal offers Answer: A Question: Which of these helps reduce service perishability? A. Differential pricing and flexible scheduling B. Eliminating customer feedback C. Increasing product storage D. Reducing promotion Answer: A Question: Which of the following is a property of high-quality service firms? A. Continuous improvement based on feedback B. Heavy dependence on inventory C. Zero human involvement D. Minimal communication Answer: A Question: Customer co-creation means A. Customers actively participate in producing the service B. Companies outsource to suppliers C. Customers only consume passively D. Employees design all steps alone Answer: A Question: Which of the following is a mental stimulus-processing service? A. Education B. Banking C. Airline travel D. Restaurant dining Answer: A Question: An empathy failure in services could be A. Staff showing indifference to customer needs B. Technical malfunction C. Delayed advertising D. Lack of automation Answer: A Question: “SERVQUAL” evaluates A. Reliability, responsiveness, assurance, empathy, and tangibles B. Price, promotion, place, and product C. Packaging and labelling D. Quality control standards Answer: A Question: Customer delight occurs when A. Service performance exceeds expectations B. Price meets cost parity C. Delivery matches promise D. Complaints are unresolved Answer: A Question: Which type of capacity strategy adjusts resources with demand? A. Chase demand strategy B. Level capacity strategy C. Constant load strategy D. Independent flow strategy Answer: A Question: Service differentiation through “people” involves A. Recruiting and training employees to create uniqueness B. Changing facility colors C. Introducing new brands D. Lowering prices Answer: A Question: A customer waiting area is part of A. Physical evidence B. Internal marketing C. External promotion D. Cost management Answer: A Question: The “moment of truth” is important because A. Each contact shapes overall perception of service quality B. It reflects production cost C. It tracks advertising D. It measures sales Answer: A Question: Which metric measures service reliability? A. Frequency of error-free transactions B. Advertising recall C. Price variance D. Employee attrition rate Answer: A Question: “Frontline employees” are also called A. Boundary spanners B. Data analysts C. Middle managers D. Policy enforcers Answer: A Question: Which statement describes “process differentiation”? A. Designing unique and efficient service delivery methods B. Building more facilities C. Offering discounts D. Acquiring competitors Answer: A Question: Which service type primarily processes information? A. Banking B. Hospitality C. Restaurant D. Travel agency Answer: A Question: Which customer group spreads positive word of mouth? A. Satisfied and loyal customers B. Price-sensitive switchers C. Dissatisfied customers D. Inactive users Answer: A Question: The role of technology in self-service innovations is to A. Increase convenience and efficiency B. Reduce accessibility C. Replace empathy D. Limit capacity Answer: A Question: In service marketing, productivity is improved by A. Balancing efficiency with quality B. Extending queues C. Hiring more managers D. Cutting training Answer: A Question: What is “service scripting”? A. Standardizing dialogues to ensure consistent interactions B. Writing ad copy C. Creating manuals for machines D. Planning budgets Answer: A Question: A “customer journey map” helps firms A. Visualize all customer touchpoints across the experience B. Track competitor movements C. Forecast costs D. Hire employees Answer: A Question: What is the main purpose of internal marketing? A. Align employees with the brand promise before external marketing B. Reduce salaries C. Outsource training D. Simplify logistics Answer: A Question: Which approach measures post-service evaluation? A. Customer satisfaction surveys B. Market segmentation C. Price tracking D. Ad recall studies Answer: A Question: Which is the most challenging characteristic of services to manage? A. Variability B. Durability C. Costing D. Tangibility Answer: A Question: “Blueprinting” a service reveals A. Customer–provider contact points and fail points B. Staff hierarchy C. Financial statements D. Media planning Answer: A Question: What happens in the “decline” stage of a service life cycle? A. Demand drops and exit strategies are considered B. Sales accelerate C. Growth stabilizes D. Costs peak Answer: A Question: Service standardization ensures A. Predictable quality and consistent delivery B. Product diversification C. Employee redundancy D. Reduced training needs Answer: A Question: A “service script” is most useful for A. Call centers and hospitality sectors B. Advertising firms C. Manufacturing units D. Finance departments Answer: A Question: The purpose of a “recovery strategy” is to A. Correct service failures and restore customer trust B. Train suppliers C. Launch promotions D. Reduce wages Answer: A Question: In services, variability arises mainly from A. Human involvement in delivery B. Automated systems C. Tangible product differences D. Consistent processes Answer: A Question: The “services marketing triangle” links A. Company, employees, and customers B. Price, promotion, and product C. Supplier, distributor, and retailer D. Policy, people, and place Answer: A Question: The primary role of internal communication is to A. Align teams with service standards B. Advertise externally C. Cut training programs D. Manage costs Answer: A Question: Which service quality dimension ensures personalized attention? A. Empathy B. Reliability C. Tangibles D. Assurance Answer: A Question: Service demand can be managed through A. Reservation systems and differential pricing B. Eliminating waiting areas C. Increasing production D. Removing promotions Answer: A Question: A “service failure” becomes an opportunity when A. Recovery is quick and genuine B. It’s ignored C. It’s repeated D. It’s hidden Answer: A