MCQ Question Bank: Industry and Service Management (50 Questions)

### Module 1: Basics of Industry Management

#### Concept of Industry Management

1. What does Industry Management primarily deal with?

a) Household management

b) Organizing and controlling industrial operations

c) Retail shop management

d) Public administration

**Answer: b**

2. Which of the following is NOT a characteristic of Industry Management?

a) Planning and organizing

b) Random decision-making

c) Effective utilization of resources

d) Leadership

**Answer: b**

3. What are the main types of Industry Management?

a) Product-based and Service-based

b) Financial and Operational

c) Strategic and Managerial

d) Domestic and International

**Answer: a**
4. One of the advantages of Industry Management is:

a) Reduction in productivity

b) Increased operational efficiency

c) Lack of focus on goals

d) Unorganized structure

**Answer: b**

5. Which is a disadvantage of Industry Management?

a) High employee motivation

b) Bureaucratic delays

c) Better decision-making

d) Transparent processes

**Answer: b**

#### Industry Analysis

6. Porter's Five Forces framework analyzes:

a) National policies

b) Market competitiveness and industry profitability

c) Technological advancements only

d) Financial statements

**Answer: b**

7. Which of the following is NOT one of Porter's Five Forces?

a) Bargaining power of suppliers

b) Threat of substitutes

c) Government regulations

d) Rivalry among competitors

8. The "Threat of New Entrants" in Porter's Five Forces is high when:

a) Entry barriers are low

b) Suppliers have low power

c) Customers are loyal

d) Substitutes are unavailable

**Answer: a**

9. In which stage of the Industry Life Cycle does innovation peak?

a) Decline

b) Growth

c) Introduction

d) Maturity

**Answer: b**

10. During the decline stage of the Industry Life Cycle:

a) Sales peak

b) Market competition is highest

c) Sales and profits decrease

d) Investments are highest

**Answer: c**

11. Technological advancement affects industries by:

a) Decreasing efficiency

b) Increasing production costs

c) Enhancing productivity
 d) Discouraging innovation

**Answer: c**

12. Government regulations impact industries by:

a) Only increasing competition

b) Setting rules and compliance standards

c) Eliminating market challenges

d) Promoting unethical practices

**Answer: b**

### Module 2: Basics of Service Management

#### Concept of Service and Service Management

13. Which of the following best describes services?

a) Tangible products

b) Intangible and perishable products

c) Recyclable goods

d) Durable consumer goods

**Answer: b**

14. Service Management focuses on:

a) Managing physical goods

b) Delivering high-quality service experiences

c) Stockpiling inventory

d) Minimizing customer interaction

**Answer: b**
15. One of the characteristics of services is:

a) Tangibility

b) Uniformity

c) Perishability

d) Transferability

**Answer: c**

16. Why is the service industry important?

a) It reduces GDP

b) It creates employment opportunities

c) It depends only on exports

d) It replaces industrial products

**Answer: b**

#### Scope and Classification of Services

17. Services are classified into which three broad categories?

a) Specialized, Customer, Industrial

b) Strategic, Financial, Operational

c) Tangible, Intangible, Hybrid

d) Domestic, International, Regional

**Answer: a**

18. Specialized services include:

a) Manufacturing services

b) Legal and consultancy services

c) Customer complaint handling

d) Routine product support

19. Customer services are aimed at:

a) Improving customer satisfaction

b) Developing industrial products

c) Focusing only on operational management

d) Eliminating service offerings

**Answer: a**

20. Industrial services refer to:

a) Business-to-business services

b) Consumer retail services

c) Direct-to-consumer marketing

d) Financial investments

**Answer: a**

21. What is a primary reason for the growth of the service industry in India?

a) Decline in the agricultural sector

b) Increased demand for skilled services

c) Shift away from manufacturing industries

d) Limited innovation in other industries

**Answer: b**

22. Which factor contributes most to the rapid growth of services in India?

a) Low literacy rate

b) Globalization and IT advancements

c) Lack of labor in rural areas

**Answer: b**

23. The service industry's growth is closely linked to:

a) Urbanization and disposable income

b) Decline in global demand

c) Reduction in trade policies

d) Minimal customer interactions

**Answer: a**

24. Which of the following is an intangible aspect of services?

a) Physical product

b) Customer experience

c) Machinery usage

d) Raw material

**Answer: b**

25. Perishability in services means:

a) Services can be stored for later use

b) Services cannot be stored

c) Services are always tangible

d) Services are durable

**Answer: b**

26. The heterogeneity of services refers to:

a) Uniformity of service delivery

b) Variability in service quality

d) Tangibility of services

**Answer: b**

27. What is one of the reasons for the increased importance of customer

services?

a) Reduction in competition

b) Focus on customer satisfaction

c) Elimination of global markets

d) Limited technological advancements

**Answer: b**

28. Why is the service industry more labor-intensive than manufacturing?

a) It relies on technology only

b) Services require human interaction

c) Services do not involve processes

d) Services are product-based

**Answer: b**

29. Which of the following is an example of specialized services?

a) Banking services

b) Health and legal consultancy

c) Tourism services

d) Retail management

**Answer: b**

30. What role do customer services play in service management?

b) Enhancing customer satisfaction and loyalty

c) Focusing solely on profit margins

d) Limiting interaction with customers

**Answer: b**

31. Which of these is NOT a characteristic of industrial services?

a) B2B focus

b) Mass customization

c) Focus on end consumers

d) Technical support

**Answer: c**

32. What is one challenge faced by the service industry in India?

a) Skilled workforce shortage

b) High level of urbanization

c) Lack of technological innovation

d) Decline in customer demand

**Answer: a**

33. In Porter's Five Forces, a high threat of substitutes means:

a) Many alternative products exist

b) Entry barriers are high

c) Buyers have low power

d) Suppliers dominate the market

**Answer: a**
34. During the maturity stage of the Industry Life Cycle:

a) Sales begin to decline

b) Growth slows down

c) Products are introduced to the market

d) Innovation peaks

**Answer: b**

35. What is the primary focus of service management?

a) Delivering high-quality services to customers

b) Reducing service standards

c) Ignoring customer expectations

d) Manufacturing physical goods

**Answer: a**

36. Which factor has contributed to the rapid growth of IT services in India?

a) High agricultural output

b) Availability of a skilled workforce

c) Lack of foreign investment

d) Minimal globalization

**Answer: b**

37. Services are considered perishable because:

a) They cannot be reused or stored

b) They are always tangible

c) They can be replaced with products

d) They are uniform across industries

**Answer: a**
38. Industrial services are critical because:

a) They focus on direct-to-consumer sales

b) They support manufacturing and other industries

c) They ignore B2B relationships

d) They are standardized globally

**Answer: b**

39. Porter's Five Forces help businesses:

a) Analyze external and internal competition

b) Increase operational inefficiencies

c) Avoid understanding market dynamics

d) Reduce profitability

**Answer: a**

40. The growth stage in the Industry Life Cycle is marked by:

a) Decline in profits

b) Rapid market expansion

c) Decreasing competition

d) Reduction in innovation

**Answer: b**

41. A critical characteristic of services is:

a) Transferability

b) Homogeneity

c) Inseparability

d) Tangibility
 **Answer: c**

42. Legal consultancy is classified as:

a) Customer service

b) Specialized service

c) Industrial service

d) Retail service

**Answer: b**

43. Which of the following is an advantage of technological advancements in

service management?

a) Reduced customer satisfaction

b) Increased efficiency and automation

c) Limited service availability

d) Decreased market demand

**Answer: b**

44. The bargaining power of suppliers is high when:

a) There are many alternative suppliers

b) Suppliers dominate the market

c) Buyers have strong negotiation power

d) Substitutes are easily available

**Answer: b**

45. Which service is considered a part of industrial services?

a) Banking services

b) IT infrastructure support
 c) Retail marketing

d) Hospitality services

**Answer: b**

46. During the introduction stage of the Industry Life Cycle:

a) Market competition peaks

b) Sales and demand are low

c) Products are in the decline phase

d) Customer loyalty is high

**Answer: b**

47. The term "intangibility" in services means:

a) Services can be seen and touched

b) Services cannot be touched or felt

c) Services are physical goods

d) Services are durable

**Answer: b**

48. One of the reasons for the rapid growth of the service industry in India is:

a) Lack of skilled professionals

b) Increased consumer spending and urbanization

c) Limited focus on technology

d) High agricultural dependency

**Answer: b**

49. What is the primary aim of customer services?

a) Reducing operational efficiency

c) Eliminating customer support channels

d) Ignoring customer expectations

**Answer: b**

50. A significant factor impacting the service industry is:

a) Decline in IT services

b) Globalization and technological advancements

c) Lack of industrial support

d) Decline in urbanization

**Answer: b**