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End Semester Examination June 2016

OPERATIONS RESEARCH

Time: Three Hours Maximum Marks: 100

Note:

1. The paper is divided in to three sections: SECTION-A.


2. There are fifty questions in SECTION-A, each carries one mark.
3. SECTION-B has twenty-five questions; each carries two marks.

SECTION A

1. Services marketing becomes difficult due to

A. Intangibility.

B. Less demand

C. More complex market.

D. Difficult to enter the market.

2. Which of the following businesses would be characterized as a pure service?

A. Insurance.

B. Farming.

C. Mining.

D. There is no such thing as a pure service.

3. Which of the following sets of terms best describes a service?

A. Objects, devices, and performances.

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B. Effort, objects, and deeds.

C. Things, devices, and performances.

D. Deeds, effort, and performances.

4. Which of the following statements about the pricing of services (compared to the pricing of goods) is

false?

A. The demand for services tends to be more elastic than the demand for goods.

B. Cost-oriented pricing is more difficult for services.

C. Comparing prices of competitors is more difficult for service consumers.

D. Consumers are less able to stockpile services by taking advantage of discount prices.

5. Charging customers different prices for essentially the same service is called:

A. Price discrimination.

B. Supply and demand.

C. Complementary.

D. Substitutes.

6. Businesses such as fast food restaurants would fall where along the Scale of Market Entities?

A. On the extreme end of the intangible-dominant side.

B. On the extreme end of the tangible-dominant side.

C. In the middle of the continuum.

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D. Left of the middle towards the tangible-dominant side.

7. Which of the following fields would be least likely to be described as intangible-dominant?

A. Engineering.

B. Education.

C. Insurance.

D. Banking.

8. Which of the following statements is correct?

A. Customer satisfaction leads to perceived service quality.

B. Service quality leads to customer satisfaction.

C. Service quality leads to increased purchasing behavior.

D. Customer satisfaction leads to increased purchasing behavior.

9. Understanding the customer is a critical step toward minimizing or completely eliminating the:

A. Knowledge gap.

B. Standards gap.

C. Delivery gap.

D. Communications gap.

10. Results in the practice of too narrowly defining one's business

A. Services marketing.

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B. Marketing management.

C. Marketing myopia.

D. Customer experience.

11. The demand for services marketing knowledge has increased for all of the following reasons except

A. The tremendous growth in service-sector employment.

B. Increasing service-sector contributions to the world economy.

C. The deregulation of many service industries.

D. The decline in service sector jobs.

12. A buyer's perception of value is considered a tradeoff between

A. Product value and psychic cost.

B. Total customer value and total customer cost.

C. Image value and energy cost.

D. Service value and monetary cost.

13. Services are characterized by all of the following characteristics except for

A. Intangibility.

B. Homogeneity.

C. Perishability.

D. Inseparability.

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14. Which of the following statements is false?

A. Services cannot be touched or seen in the same manner as goods.

B. Consumer judgments about services tend to be more subjective than objective.

C. Services are first produced, then sold, then consumed.

D. Customers involvement affects service quality.

15. Of the four unique service characteristics that distinguish goods from services, the one that is the

primary source of the other three characteristics is:

A. Intangibility.

B. Inseparability.

C. Perishability.

D. Heterogeneity.

16. Which of the following is not a marketing problem caused by intangibility?

A. Services lack the ability to be stored.

B. Services lack patent protection.

C. Services are difficult to communicate to consumers.

D. Consumers are involved in the service production process.

17. Services that occur without interruption, confusion, or hassle to the customer is called:

A. Seamless service.

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B. Service audit.

C. Functional service.

D. Departmental service.

18. The primary cost of producing a service is

A. Rent.

B. Overhead.

C. Labour.

D. Promotional expenses.

19. The mental energy spent by customers to acquire service is referred to as _____.

A. Image costs.

B. Monetary price.

C. Energy costs.

D. Psychic costs.

20. The unique service characteristic that reflects the interconnection between the service firm and its

customer is called

A. Intangibility.

B. Inseparability.

C. Homogeneity.

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D. Perishability.

21. Marketing problems caused by inseparability include all of the following except for

A. The service provides physical connection to the service.

B. The involvement of the customer in the production process.

C. Service standardization and quality control are difficult to achieve.

D. The involvement of other customers in the production process.

22. The fact that services are sold and then produced and consumed simultaneously is attributed to

A. Intangibility.

B. Inseparability.

C. Homogeneity.

D. Perishability.

23. Which of the following statements pertain to inseparability is false?

A. As customer contact increases, the efficiency of the firm decreases.

B. Customers can affect the type of service desired.

C. Customers can affect the length of the service transaction.

D. Customers can affect the cycle of demand.

24. The centralized mass production of services is difficult due to

A. Inseparability.

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B. Intangibility.

C. Homogeneity.

D. Perishability.

25. Possible solutions that firms use to minimize the problems caused by inseparability include all of the

following except

A. The careful selection of service employees.

B. The management of service consumers.

C. The use of multi-site locations to distribute services.

D. Appealing to market segments with different demand patterns.

26. The primary solution to overcome the centralized mass production problems attributed to

inseparability is

A. The careful selection of service employees.

B. The management of service consumers.

C. The use of multi-site locations to distribute services.

D. The training of public contact personnel.

27. The service characteristic that reflects the variation in consistency from one service transaction to

the next is

A. Inseparability.

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B. Intangibility.

C. Homogeneity.

D. Heterogeneity.

28. Which of the following statements pertaining to heterogeneity is false?

A. It is almost impossible for a service operation to achieve 100 percent

B. Perfect quality on an ongoing basis.

C. Customization decreases quality.

D. Standardization and quality control are difficult to achieve.

29. Which of the following is not an advantage of standardized services?

A. Less expensive.

B. Meets the customer's exact needs.

C. Delivered faster.

D. More consistent.

30. Solutions used to minimize the marketing problems attributed to heterogeneity include

A. Standardizing or customizing the service.

B. Using multi-site locations.

C. Stressing tangible clues.

D. Appealing to different market segments with different demand patterns.

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31. The unique service characteristic that deals specifically with the inability to inventory services is

A. Inseparability.

B. Intangibility.

C. Homogeneity

D. Perishability.

32. Complications attributed to perishability include all of the following except

A. Services which are not sold when they become available cease to exist.

B. The production and consumption of services cannot be separated by time and space.

C. Statistical sampling techniques are of little use in services.

D. Due to the lack of inventories, marketing and operations must work much closer together.

33. Which of the following scenarios is likely to lead to the highest levels of customer dissatisfaction?

A. Higher demand than maximum available supply.

B. Higher demand than optimal supply levels.

C. Lower demand than optimal supply levels.

D. Demand and supply at optimal levels.

34. Which of the following strategies increases the supply of service available to consumers?

A. The use of creative pricing strategies.

B. The use of reservation systems.

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C. Capacity sharing.

D. Developing complementary services.

35. 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.

36. The demand strategy in which service providers utilize their downtime by marketing to different

segments with different demand patterns is associated with which of the following?

A. The use of creative pricing strategies.

B. The use of reservation systems.

C. Capacity sharing.

D. Developing complementary services.

37. Which of the following statements pertaining to the SERVQUAL scale is incorrect?

A. The SERVQUAL dimensions were obtained through extensive focus group interviews.

B. SERVQUAL is a 44-item scale.

C. SERVQUAL consists of five service quality dimensions.

D. SERVQUAL compares perceptions to what a customer should expect from a firm the delivers

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high-quality services.

38. Which of the following statements most accurately reflects a marketing logic?

A. Cost reduction can be obtained through mass production.

B. "Families" of personnel should reinforce one another on the job.

C. Personnel should be able to break organization rules in the context of serving the customer.

D. Customers should be provided with options that enable them to meet their needs.

39. Which one of the following statements is true?

A. The use of third parties increases the supply of service.

B. Reservation systems can be used to alter the demand for services.

C. Customer participation in services may result in some loss of control by the service establishment.

D. The marketing department of service organizations must maintain a much closer relationship with

the rest of the organization than what is typical in a goods business.

40. The __________ dimension is an assessment of the firm's consistency and dependability in service

performance.

A. Empathy.

B. Responsiveness.

C. Assurance.

D. Reliability.

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41. Which one of the following strategies is used to alter consumer demand?

A. Utilizing third parties.

B. Utilizing creative pricing strategies.

C. Sharing capacity.

D. Preparing in advance for expansion

42. Which of the following would not be considered a tangible clue?

A. The quality of instruction in an educational setting.

B. The appearance of employees.

C. The appearance of the firm's physical facilities.

D. The smile on an employee's face.

43. Minimizing the amount of role conflict and role ambiguity experienced by employees will help

reduce the size of this gap is known as ____________.

A. Knowledge gap.

B. Standards gap.

C. Delivery gap.

D. Communications gap.

44. Standardization and quality control are difficult due to

A. Intangibility.

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B. Inseparability.

C. Heterogeneity.

D. Perishability.

45. Cannot protect services through patents due to

A. Intangibility.

B. Inseparability.

C. Heterogeneity.

D. Perishability.

46. Prices are difficult to set due to

A. Intangibility.

B. Inseparability.

C. Heterogeneity.

D. Perishability.

47. Other customers are involved in the production process due to

A. Intangibility.

B. Inseparability

C. Heterogeneity.

D. Perishability.

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48. Which of the following is not a component of a service quality information system?

A. Mystery shopping.

B. Customer retention interviews.

C. After-sale surveys.

D. Total market service quality surveys.

49. Services that do not meet customer expectations are called

A. Service failures.

B. Critical incidents.

C. Service recovery.

D. Instrumental complaints.

50. _________emphasize the selection and training of public contact personnel.

A. Intangibility.

B. Inseparability.

C. Heterogeneity.

D. Perishability.

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SECTION B

51. It is generally accepted that the _______ includes the soft parts of the economy consisting of

several sub-sectors.

A. Service economy.

B. Industrial economy.

C. Agricultural economy.

D. Information economy.

52. 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.

53. Which sector includes the internet provision industry?

A. Educational.

B. Finance.

C. Government.

D. Communications and Media.

54. The service sector that is the fastest growing sector in terms of employment is

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A. Wholesale and retail trade

B. Financial activities

C. Professional and business services

D. Education and health services

55. The leisure and hospitality industry comprises a variety of services. Which of the following is not

one of them?

A. Food service.

B. Lodging.

C. Travel and tourism.

D. Health services.

56. A large proportion of people employed in the hospitality and leisure sector are

A. Young.

B. Female.

C. Part-time employees.

D. Young, female and part-time employees.

57. The professional and business sector includes all of the following except

A. Architectural engineering.

B. Legal advice service.

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C. Hospital service.

D. Accounting service.

58. Which sector should have the most concern for environmental issues?

A. Transport services.

B. Professional and Business Services.

C. Wholesale and Retail Trade.

D. Education and Health Services.

59. Traditional service classification schemes include all of the following except

A. The degree of tangibility.

B. Skill level of the provider.

C. Appearance of the provider.

D. The degree of customer contact.

60. Subsequent service classification schemes include all the following except

A. Labour intensiveness.

B. Nature of the service.

C. Relationship with the customer.

D. Method of service delivery.

61. A Consumer Database or CRM (Customer Relationship Marketing) System is

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A. Electronic database of sales transactions.

B. Electronic storage of customer information.

C. Electronic storage system of stock in the database.

D. Electronic system for tracking consumer marketing relationships.

62. At the Partnership level of the loyalty ladder

A. Commitment is high, trust is low and defection is high.

B. Commitment is high, trust is high and defection is low.

C. Commitment is low, trust is high and defection is high.

D. Commitment is low, trust is low and defection is low.

63. To date, the most successful distribution of e-services has occurred through ______

A. Telecommunication companies (telcos).

B. Internet service providers (ISPs).

C. Enterprise resource planning (ERP) vendors.

D. Application service providers/developers (ASPs).

64. E-services have overcome many of the traditional challenges faced by service marketers. Which of

the following is not challenge overcome by the information-based services?

A. Intangibility.

B. Homogeneity.

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C. Inseparability.

D. Heterogeneity.

65. E-services can overcome some of the challenges provided by intangibility by which of the

following?

A. Appearance of a website.

B. Accuracy of information.

C. Speed of the server.

D. All of the above.

66. Hotel rooms that are not sold on Thursday night cannot be added to the supply of rooms available

for occupancy on Friday night. E-services are not faced with these problems of

A. Perishability.

B. Intangibility.

C. Homogeneity.

D. Inseparability.

67. Replacing tasks that required human labour with machines is called

A. Quantization.

B. Automation.

C. Industrialization.

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D. Customization.

68. The growth in the number of time-pressured consumers has led to an increase in time-saving

services such as

A. Restaurants.

B. Housekeeping.

C. Hairstyling shops.

D. Restaurants, housekeeping and hairstyling shops.

69. The migration of domestic jobs to foreign host countries is called

A. Out servicing.

B. Outsourcing.

C. Off shoring.

D. Industrialization.

70. Several guidelines to success become clear when examining the growth and dominance of the

service sector. Which of the following is not one of them?

A. Excel at niche marketing.

B. Bigger is better.

C. Master technological change.

D. Excel at customer service.

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71. Focusing the firms marketing efforts toward the existing customer base is called

A. Customer retention.

B. Excellent customer service.

C. Conquest retention.

D. Courteous retention.

72. Which of the following statements pertaining to firm's customer retention efforts is true?

A. The marketing costs associated with keeping customers are higher than the costs associated with

obtaining new customers.

B. Existing customers tend to purchase less services less frequently.

C. Current customers are more efficient in their service transactions.

D. Reducing customer defections by 5 percent can increase profits by as much as 90 percent.

73. The pursuit of new customers as opposed to the retention of existing ones is called

A. Services marketing.

B. B2B marketing.

C. Conquest marketing.

D. Consumer marketing.

74. According to the text which one of the following statements is false?

A. Many service firms continue to be operations dominated rather than customer oriented.

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B. Consumer orientation lies at the heart of the marketing concept.

C. Researchers clearly understand how consumers make decisions.

D. Differences exist between the way consumers make decisions regarding purchase of services

versus goods.

75. The consumer decision process consists of

A. Stimulus, problem awareness, and purchase stages.

B. Pre-purchase, consumption, and post-purchase stages.

C. Problem awareness, evaluation of alternatives, and post-purchase behavior.

D. Stimulus, information search, and post-purchase behavior.

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