Services Marketing MCQ Quiz With Answers

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Services Marketing MCQ Quiz With Answers - Quiz

How well do you know about service marketing? Here's an incredible 'services marketing MCQ quiz' that you can play to test your knowledge about service marketing and its related concepts. Service marketing can be referred to as a strategy that focuses on promoting or marketing a service or an intangible commodity among the target audience. It is also often considered a very important branch of marketing. Let's test your understanding of service marketing concepts with the quiz given below.


Services Marketing MCQ Questions and Answers

  • 1. 

    The act of delivering a product is by definition called a __________. 

    • A.

      Service

    • B.

      Courier

    • C.

      Benefit

    • D.

      Performance

    Correct Answer
    A. Service
    Explanation
    The act of delivering a product is by definition called a service. In this context, a service refers to the process of providing or supplying a product to a customer or client, which can include the physical delivery of goods or the provision of a service-based product, such as software or consulting services. The term "service" encompasses various aspects of the delivery process, including timeliness, quality, and customer satisfaction.

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  • 2. 

    Which of the following are NOT considered as 'services'?

    • A.

      A transfer of title

    • B.

      An exchange of tangible goods

    • C.

      Tangible products

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    None of the options listed (a transfer of title, an exchange of tangible goods, tangible products) are considered services. Services are intangible offerings that involve the provision of labor, skills, or expertise, rather than the transfer or exchange of physical goods or titles. Examples of services include consulting, software development, transportation, or maintenance activities, which provide value to customers through their performance and outcomes.

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  • 3. 

    Hairdressing is a good example of a service purchased by an individual for their own private consumption. Hairdressing is also an example of ____________. 

    • A.

      Outsourcing

    • B.

      Business-to-business service

    • C.

      Customer service

    • D.

      A tangible product

    Correct Answer
    C. Customer service
    Explanation
    Hairdressing is a good example of a customer service, as it is a service provided directly to an individual consumer for their personal use. Customer service refers to the assistance and support provided by businesses to their customers, ensuring their needs are met and their experience is satisfactory. In the case of hairdressing, the service is tailored to the individual's preferences and requirements, making it a personalized customer service experience.

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  • 4. 

    Services are usually provided through the application of intellectual or physical efforts to a _____ or physical object. As such, services involve a _____ component.

    • A.

      Plan, service

    • B.

      Person, physical

    • C.

      Person, service

    • D.

      Plan, delivery

    Correct Answer
    C. Person, service
    Explanation
    Services are usually provided through the application of intellectual or physical efforts to a person or service. Services involve a person component, as they often require direct interaction between the service provider and the customer. This interaction is a key aspect of service delivery, as it enables the service provider to understand the customer's needs and tailor their offering accordingly. Additionally, services involve a service component, which refers to the intangible value created through the application of skills, expertise, or knowledge to address the customer's requirements.

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  • 5. 

    Many products are provided using a combination of equipment and physical efforts. They are considered services because the intangible inputs into the services comprise the largest proportion of the value delivered by the product. Which of the following are services?

    • A.

      A mechanic changing a car's oil

    • B.

      A tyre re-alignment

    • C.

      Fiting a new timing belt and brake pads

    • D.

      All of the options listed

    Correct Answer
    D. All of the options listed
    Explanation
    All of the options listed (a mechanic changing a car's oil, a tyre re-alignment, fitting a new timing belt and brake pads) are considered services. These activities involve the application of physical efforts and expertise to maintain or improve a car's performance, which falls under the category of vehicle maintenance and repair services. The value delivered by these services comes primarily from the intangible inputs, such as the mechanic's knowledge, skills, and experience, rather than the tangible components like the oil, tyres, or brake pads themselves. As a result, they are classified as services, even though they may involve the use of physical products or equipment.

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  • 6. 

    The characteristics that formally distinguish services from goods are intangibility, inseparability, _____ and perishability

    • A.

      Benefits

    • B.

      Heterogeneity

    • C.

      Homogeneity

    • D.

      Tangibility

    Correct Answer
    B. Heterogeneity
    Explanation
    The characteristics that formally distinguish services from goods are intangibility, inseparability, heterogeneity, and perishability. Heterogeneity refers to the variability or inconsistency in the delivery and consumption of services, as they are often tailored to individual customer needs and can be influenced by factors such as the service provider's skills or the customer's involvement in the service process. This variability can make it challenging to standardize services and ensure consistent quality, which sets them apart from physical goods that can be produced uniformly. Intangibility means that services cannot be physically touched or possessed, inseparability indicates that services are typically produced and consumed simultaneously, and perishability refers to the fact that services cannot be stored or inventoried, as they lose their value over time if not used.

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  • 7. 

    The characteristic of services which most fundamentally distinguishes them from goods is their ____________. 

    • A.

      Benefits

    • B.

      Heterogeneity

    • C.

      Homogeneity

    • D.

      Intangibility

    Correct Answer
    D. Intangibility
    Explanation
    The characteristic of services that most fundamentally distinguishes them from goods is their intangibility. Intangibility refers to the fact that services cannot be physically touched, held, or seen, unlike tangible goods. Services are experiences or processes that provide value to customers through the application of skills, knowledge, or expertise, rather than through the transfer of ownership of a physical product. This intangibility makes it more difficult to evaluate and measure the quality of services, as customers cannot rely on physical attributes to assess their value. Instead, the perceived value of a service is often based on subjective factors, such as the customer's satisfaction with the experience, the level of personalization, or the reputation of the service provider.

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  • 8. 

    The characteristic of being produced and consumed simultaneously is known as

    • A.

      Inseparability

    • B.

      Intangibility

    • C.

      Perishability

    • D.

      Homogeneity

    Correct Answer
    A. Inseparability
    Explanation
    The characteristic of being produced and consumed simultaneously is known as inseparability. Inseparability is a key feature of services, as it emphasizes the interconnectedness between the production and consumption processes. Unlike goods, which can be manufactured, stored, and consumed at different times, services are typically produced and consumed concurrently. For example, a haircut is performed and experienced simultaneously by the customer, and a teacher's lesson is delivered and absorbed by students at the same time. This simultaneity often requires direct interaction between the service provider and the customer, which can influence the quality and outcome of the service experience. Inseparability also highlights the importance of the service encounter and the role of the customer in co-creating value, as their input and engagement can impact the effectiveness and perceived quality of the service.

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  • 9. 

    Tickets to a concert that never get sold are an example of __________ type of service. 

    • A.

      Heterogeneity

    • B.

      Intangibility

    • C.

      Perishability

    • D.

      Homogeneity

    Correct Answer
    C. Perishability
    Explanation
    Tickets to a concert that never get sold are an example of the perishability type of service. Perishability refers to the fact that services, unlike physical goods, cannot be stored or inventoried for later use or sale. Once the time for the service has passed, its value is lost, and it cannot be regained or resold. In the case of concert tickets, if they are not purchased before the event, the opportunity to experience the concert is lost, and the potential revenue from the unsold tickets cannot be recovered. Perishability highlights the importance of effective demand management and capacity planning in service industries, as companies must carefully balance supply and demand to maximize utilization and minimize wasted capacity. This can involve strategies such as variable pricing, overbooking, or offering incentives for off-peak consumption, to ensure that services are delivered to as many customers as possible within their limited time frame.

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  • 10. 

    Which factor is most controllable in the delivery of a service?

    • A.

      The organisations customers

    • B.

      The organisations competitors

    • C.

      The organisations staff

    • D.

      The organisations product

    Correct Answer
    C. The organisations staff
    Explanation
    The factor most controllable in the delivery of a service is the organization's staff. While an organization may have limited influence over its customers, competitors, or the external environment, it has direct control over its employees and their actions. By investing in hiring, training, and managing its staff effectively, an organization can significantly improve the quality and consistency of its service delivery. Employees play a crucial role in the service encounter, as they are responsible for interacting with customers, understanding their needs, and providing solutions that meet or exceed their expectations. By ensuring that staff members are skilled, knowledgeable, and customer-focused, an organization can create a positive service experience and build strong relationships with its customers. Furthermore, fostering a supportive and collaborative work environment can enhance employee motivation and job satisfaction, which can translate into better service performance and customer outcomes.

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  • 11. 

    Accountants, lawyers, architects, and investment advisers manage their customers closely as individuals and provide each with a service tailored to their unique circumstances and needs. They are known as _____________. 

    • A.

      Business service providers

    • B.

      Professional service providers

    • C.

      Customer service providers

    • D.

      Individual service providers

    Correct Answer
    B. Professional service providers
    Explanation
    Accountants, lawyers, architects, and investment advisers are known as professional service providers. These professionals offer specialized expertise and knowledge in their respective fields, tailoring their services to meet the unique needs and circumstances of individual clients. Professional service providers often have advanced education, training, and credentials, enabling them to deliver high-quality, customized solutions that address complex issues and challenges faced by their clients. The close management of customers as individuals and the provision of personalized services are hallmarks of professional service providers. These professionals work closely with their clients to understand their specific needs, goals, and preferences, and then apply their expertise to develop tailored solutions that achieve the desired outcomes. This client-centered approach emphasizes the importance of trust, communication, and collaboration in the professional-client relationship, which is crucial for the successful delivery of professional services.

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  • 12. 

    When sources of sustainable differentiation are relatively few, service providers can use a _____ to create a unique market position

    • A.

      Service culture

    • B.

      Pricing strategy

    • C.

      Professional strategy

    • D.

      Consumer strategy

    Correct Answer
    A. Service culture
    Explanation
    When sources of sustainable differentiation are relatively few, service providers can use a service culture to create a unique market position. A service culture refers to the values, norms, and behaviors that shape the way an organization delivers its services and interacts with customers. By cultivating a strong and distinct service culture, organizations can differentiate themselves from competitors and create a competitive advantage.A service culture can be developed by focusing on various aspects such as:Customer orientation: Prioritizing customer needs and expectations, and empowering employees to go above and beyond in meeting them.Empowerment and autonomy: Encouraging employees to make decisions and take actions that improve service delivery and customer satisfaction.Teamwork and collaboration: Fostering a supportive work environment where employees work together to achieve common goals and deliver exceptional service.Continuous improvement: Promoting a culture of learning and innovation, where employees are encouraged to identify and implement improvements in service processes and practices.By emphasizing these aspects, organizations can create a unique service culture that enhances the customer experience and sets them apart from competitors, even when other sources of differentiation are limited.

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  • 13. 

    A potential airline customer can evaluate the _____ qualities of timetables, destinations and prices before making their purchase and experiencing the service. Many services, however, lack these qualities and instead customers rely on other qualities

    • A.

      Professional

    • B.

      Experience

    • C.

      Credence

    • D.

      Search

    Correct Answer
    D. Search
    Explanation
    A potential airline customer can evaluate the search qualities of timetables, destinations, and prices before making their purchase and experiencing the service. Search qualities refer to the tangible and objective aspects of a service that can be easily evaluated by customers prior to making a purchase decision. In the case of airlines, customers can compare factors such as flight schedules, routes, and ticket prices to determine which option best meets their needs.However, many services lack these search qualities, and instead, customers rely on other qualities to make their choices. These qualities can include:Experience qualities: Aspects of a service that can only be evaluated during or after the service consumption, such as the comfort of the airplane seats or the quality of in-flight service.Credence qualities: Characteristics that are difficult for customers to assess, even after consumption, due to a lack of expertise or information, such as the technical competence of the airline's pilots or maintenance crew.In these cases, customers may rely on factors such as reputation, word-of-mouth recommendations, or third-party reviews to help them make informed decisions when search qualities are limited or unavailable.

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  • 14. 

    Services high in credence qualities include

    • A.

      Furniture and jewellery

    • B.

      Root canal therapy and automotive repairs

    • C.

      Holidays and haircuts

    • D.

      Restaurant meals and childcare

    Correct Answer
    B. Root canal therapy and automotive repairs
    Explanation
    Services high in credence qualities include root canal therapy and automotive repairs. Credence qualities refer to aspects of a service that are difficult for customers to evaluate, even after consumption, due to a lack of expertise, knowledge, or information. In such cases, customers must trust the service provider's abilities, skills, and professionalism to ensure that the service has been performed effectively and to the required standards. Root canal therapy and automotive repairs are examples of services with high credence qualities, as most customers lack the technical knowledge or expertise to assess the quality of these services on their own. They must rely on the credentials, reputation, and trustworthiness of the dentist or mechanic to ensure that the service has been performed correctly and effectively. In contrast, the other options listed (furniture and jewelry, holidays and haircuts, and restaurant meals and childcare) have more search or experience qualities, which are easier for customers to evaluate before or during the service consumption.

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  • 15. 

    In line with the five common dimensions which customers use to evaluate service quality, empathy can be explained as __________________. 

    • A.

      Care and attentiveness

    • B.

      Trust and confidence in the service provider

    • C.

      Willing and able to provide the service

    • D.

      Cosistency and dependability

    Correct Answer
    A. Care and attentiveness
    Explanation
    In line with the five common dimensions which customers use to evaluate service quality, empathy can be explained as care and attentiveness. Empathy refers to the service provider's ability to understand and relate to the customer's feelings, needs, and concerns, and to demonstrate a genuine interest in addressing them. This can involve active listening, showing concern, and making an effort to understand the customer's perspective. When service providers demonstrate empathy, they create a more personal connection with customers, fostering a sense of trust, and improving overall customer satisfaction. Empathy is a crucial aspect of service quality, as it contributes to the development of strong relationships between customers and service providers, and can differentiate a service from its competitors.

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  • 16. 

    Because services are typically _____ and frequently _____ in quality, it is important that service marketers actively manage customers' _____ so that customer service delivery will consistently fall within customers' zone of tolerance

    • A.

      Intangible, variable, expectations

    • B.

      Tangible, variable, expetations

    • C.

      Intangible, consistent, experiences

    • D.

      Tangible, consistent, experiences

    Correct Answer
    A. Intangible, variable, expectations
    Explanation
    Because services are typically intangible and frequently variable in quality, it is important that service marketers actively manage customers' expectations so that customer service delivery will consistently fall within customers' zone of tolerance.Intangible: Services are generally not physical or tangible, making it more difficult for customers to evaluate their quality before consumption.Variable: The quality of services can be inconsistent due to factors such as the involvement of different service providers, varying customer demands, or the impact of external factors on service delivery.Expectations: Customers form expectations about the service they will receive based on various factors such as past experiences, word-of-mouth recommendations, or marketing communications.To ensure that service delivery consistently meets or exceeds customers' expectations, marketers must actively manage these expectations and work to minimize any variability in service quality. This can involve communicating realistic service promises, training employees to deliver consistent service, and implementing quality control measures to monitor and improve service delivery.

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  • 17. 

    The bowel cancer screening and responsible drinking campaigns are both examples of which type of not-for-profit marketing?

    • A.

      Philanthropic

    • B.

      Social

    • C.

      Societal

    • D.

      Community

    Correct Answer
    C. Societal
    Explanation
    The bowel cancer screening and responsible drinking campaigns are both examples of societal not-for-profit marketing. Societal marketing aims to influence public behavior and promote social change for the betterment of society as a whole. These campaigns address important health and social issues by raising awareness, educating the public, and encouraging positive behavioral changes to improve overall well-being. In the context of not-for-profit organizations, societal marketing focuses on creating a positive impact on society by tackling issues related to public health, safety, and welfare. By promoting causes such as cancer screening and responsible drinking, these campaigns contribute to the greater good and help to create a healthier, more informed population.

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  • 18. 

    Many not-for-profit organisations are competing for clients or members and do so by providing desirable products and client satisfaction, while building long-term relationships. Examples of organisations that have a monopoly and therefore do not compete include

    • A.

      St Vincent de Paul Society and the Cancer Council

    • B.

      The Smith Family and the St Vincent de Paul Society

    • C.

      Centrelink and Medicare

    • D.

      The Cancer Council and Amnesty International

    Correct Answer
    C. Centrelink and Medicare
    Explanation
    Centrelink and Medicare are examples of organizations that have a monopoly and therefore do not compete. These government agencies provide essential social services and health coverage to eligible individuals in Australia. As government-run entities, they do not have direct competitors, and their primary focus is on delivering services and benefits to the population rather than competing for clients or members. In contrast, the other options listed (St Vincent de Paul Society and the Cancer Council, The Smith Family and the St Vincent de Paul Society, and the Cancer Council and Amnesty International) are not-for-profit organizations that operate in a more competitive environment. While they may collaborate with each other on certain initiatives, they also compete for funding, donors, and public attention to support their respective missions and causes.

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  • 19. 

    St Vincent de Paul is a not-for-profit organisation assisting needy people. Which of the following is the organisation's core objective?

    • A.

      Financial return

    • B.

      Demonstrating a return on financial investments

    • C.

      Assisting the maximum number of needy people

    • D.

      Limiting the number of people who are needy

    Correct Answer
    C. Assisting the maximum number of needy people
    Explanation
    p409, LO4

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  • Current Version
  • Mar 13, 2024
    Quiz Edited by
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  • Nov 22, 2012
    Quiz Created by
    Byron Byrd
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