Deck 1: The Service Economy

Question 1

Retail and wholesale trade had the greatest percentage of U.S. employment by industry in 2014.

Answer 1

True

Question 2

Both manufacturing and services can suffer from technological obsolescence.

Answer 2

True

Question 3

The fact that services can be inventoried is an important characteristic, which distinguishes them from manufacturing.

Answer 3

False

Question 4

From a marketing perspective, services, unlike goods, involve transfer of ownership.

Question 5

Sharing service resources among customers presents a challenge for managers.

Question 6

The consumer participates in the service process, which is not the case in manufacturing.

Question 7

Reduction of the role played by the consumer is an effective way of improving productivity and decreasing the cost of the service.

Question 8

In contrast to manufacturing, the aesthetics of the environment play a major role in the customer's perception of the service.

Question 9

A study of service systems must begin with the fundamental idea that the basic inputs are supporting facility, facilitating goods, labor, and capital. The output is the service offered.

Question 10

The service experience defined as escapism requires the most commitment from the customer.

Question 11

The classification of service systems using the "service process matrix" is based on two considerations: degree of labor intensity, and the degree of service customization.

Question 12

It is convenient and often necessary to combine the operations and marketing functions for service organizations.

Question 13

The Clark-Fisher hypothesis notes the shift of employment from one sector of the economy to another.

Question 14

The decrease in the proportion of income spent on the basic necessities of life has encouraged the demand for more services and accelerated the transition to post-industrial society.

Question 15

Services are deeds, processes, and performances.

Question 16

The fall in employment in the agricultural sector is the primary reason for the increase in service sector employment.

Question 17

From an open-systems view, the output of a service system consists of satisfied customers.

Question 18

Little or no interaction between customer and service provider is required when the service is customized.

Question 19

Personnel training is a criterion for evaluating the explicit services feature of the service package.

Question 20

Services are time-perishable. An opportunity to provide a service, if forgone, is lost forever.

Question 21

An empty airline seat or hotel room not occupied best illustrates the characteristic of a service's ________.

A) time perishability
B) labor intensity
C) intangibility
D) simultaneous production and consumption

Question 22

Division of labor is the central concept of ________.

A) industrial societies
B) preindustrial societies
C) agrarian societies
D) postindustrial societies

Question 23

Which of the following is not a type of service in the non-ownership classification?

A) Goods rental.
B) Information.
C) Labor and expertise.
D) Network usage.

Question 24

The service process matrix classification consists of four categories of services. Which one of the four features listed below is not included in this classification?

A) Service factory.
B) Service shop.
C) Public service.
D) Professional service.

Question 25

Marketing helps smooth demand to match capacity in service operations.

Question 26

The major input into a large public hospital from a service point of view would be ________.

A) physicians' services
B) patients
C) nursing services
D) federal reimbursement (Medicare/Medicaid)

Question 27

Which type of service falls under the category of "high labor intensity/low interaction and customization?"

A) Service factory.
B) Service shop.
C) Mass service.
D) Professional service.

Question 28

Which of the following is not true of services?

A) The customer is the input.
B) The customer takes an active part in the service.
C) A service can be inventoried.
D) Production and consumption occur simultaneously.

Question 29

Value for the "business service experience" is derived from co-creation.

Question 30

Service-dominant logic is the foundation of "service science."

Question 31

The service package consists of five features. Which one of the features listed below is not included in the package?

A) Explicit services.
B) Supporting facility.
C) Information.
D) Cost of service.

Question 32

Which among the following strategies is used by fast-food restaurants to reduce costs?

A) Increase advertising via the Internet.
B) Allowing the customer to play an active part in the service process.
C) Increase prices.
D) Increasing menu items to cater to varying tastes.

Question 33

Capital decisions, technological advances, and managing demand are some managerial challenges for a ________.

A) service factory
B) service shop
C) mass service
D) professional service

Question 34

Which one of the following is not a value-added service provided by a manufacturer to increase profits?

A) Financing or leasing.
B) Customer-support call center.
C) After-sales maintenance.
D) Network and communication services.

Question 35

Which service offering is best described by the following service mix: a high degree of customer interaction and a high degree of labor intensity?

A) Public university.
B) Cruise ship.
C) Plumbing repair.
D) Chiropractor.

Question 36

The key technology of a postindustrial society is ________.

A) machines
B) energy
C) information
D) intellectual capital of the workers

Question 37

Which of the following is not a feature of the new experience economy?

A) The experience is memorable.
B) The experience is customized.
C) The customer is treated as a guest.
D) The experience is staged.

Question 38

A standardized experience is a feature of the new experience economy.

Question 39

Which one of the following reasons best explains the recession-resistant nature of services?

A) Services cannot be inventoried.
B) Many services, such as healthcare, are essential.
C) Many service employees, such as those who work on commission, do not need to be laid off during recessions.
D) The number of jobs in maintenance and repair services increases during recessions.

Question 40

A business service experience (B2B) has three dimensions: co-creation of value, relationships, and sustainability.

Question 41

Which of the following does not describe a business service experience?

A) Themed.
B) Co-creation.
C) Collaboration.
D) Problem solving.

Question 42

The concept of economies of scale is best described as ________.

A) the replacement of fixed costs with variable costs
B) selling a wider range of products
C) a synonym for economies of scope
D) the replacement of variable costs with fixed costs

Question 43

Which one of the following is not a dimension of a business service experience?

A) Co-creation of value.
B) Problem solving.
C) Relationships.
D) Service capability.

Question 44

________ is a foundation premise of Service-Dominant Logic

A) The customer is always right
B) Only post-industrial economies are service economies
C) Goods are distribution mechanisms for service provision
D) Money is the fundamental basis of exchange

Question 45

Which of the following is not a principle on which service experience design is based?

A) Theme the experience.
B) Eliminate negative cues.
C) Mix in memorabilia.
D) Encourage customer feedback.

Question 46

The concept of economies of scope is best described as ________.

A) a synonym for economics of scale
B) the use of brand extensions
C) using existing channels of distribution to introduce a new product
D) extending existing distribution channels to reach new customers

Question 47

Which of the following is an example of a business service (B2B)?

A) Communications.
B) Auditing.
C) Retailing.
D) Leasing.

Question 48

In an experience economy the method of supply is ________.

A) revealed over time
B) stored in bulk
C) delivered on demand
D) inventoried

Question 49

The presence of a friendly desk clerk in a budget hotel is an example of which of the four features of a service package?

A) Supporting facility.
B) Facilitating goods.
C) Explicit services.
D) Implicit services.

Question 50

The realms of an experience include all but one of the following.

A) Entertainment.
B) Education.
C) Estheticism.
D) Elation.