Question 1

Which of the following is not considered a criterion for evaluating the triple bottom line?

Accepted Answer

Market share is not considered a criterion for evaluating the triple bottom line. The triple bottom line focuses on social progress, economic growth, and environmental stewardship. Market share pertains to a company's portion of the total sales in a particular market, which is not directly related to sustainability or social responsibility.

Question 2

Not satisfied with just meeting customer expectations, this category of service firms expands upon the expectations to levels that competitors find difficult to meet.

Accepted Answer

World class service delivery refers to service firms that go above and beyond customer expectations, providing exceptional levels of service that competitors struggle to match.

Question 3

Real-time information technologies that have a focus on internal operations can play a competitive role in increasing revenue opportunities. Which one of the following uses of information does not play a role in generating revenue?

Accepted Answer

Expert systems are used for internal process improvements and decision-making, but they do not directly generate revenue. Yield management and point of sale are both revenue-generating activities, and the sale of information can also be a profitable business model.

Question 4

Which one of the following does SWOT analysis not have as its aim?

Accepted Answer

SWOT analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning. It does not directly aim to determine the competitive intensity, which is more related to analyzing the level of competition within an industry or market.

Question 5

Which one of the following is not a dimension of scalability?

Accepted Answer

The answer of Which one of the following is not...

Question 6

Kraft targeted its cream cheese flavors to match the tastes of a store's customers using off-line analysis of POS (point-of-sale) data. This is an example of:

Accepted Answer

Kraft's use of POS data to target cream cheese flavors to match the tastes of a store's customers is an example of micromarketing, which involves tailoring marketing efforts to a specific group of consumers or even an individual. This approach is becoming more popular with advancements in data analytics and allows for a more personalized and effective marketing strategy.

Question 7

Which of the following is an example of the competitive use of information in generating revenue?

Accepted Answer

Micromarketing involves using detailed information about individual customers or small groups of customers to tailor products, services, and marketing efforts specifically to them, thus leveraging information competitively to generate revenue.

Question 8

Porter's five forces analysis does not include which one of the following considerations.

Accepted Answer

Pricing power is not explicitly one of the five forces in Porter's framework. The five forces include the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry within an industry.

Question 9

Bar coding and checkout scanner technology have created a wealth of consumer buying information that can be used to target customers with precision. This process is an example of:

Accepted Answer

Micromarketing refers to the practice of targeting specific groups of customers or even individuals with tailored marketing messages, based on data such as their purchasing behavior. The use of bar coding and checkout scanner technology enables retailers to collect and analyze detailed information about what customers are buying, which can be used to develop more effective marketing strategies.

Question 10

The nature of the service act depends on to whom or to what the service is directed and the degree of "tangibility" of the service provided. An example of a tangible service directed to the possessions of a customer would be:

Accepted Answer

A full-service car wash is a tangible service that is directed towards the possessions of a customer, i.e. their car. The service involves physically cleaning and detailing the car, making it a tangible experience for the customer. The other options mentioned are either intangible services (investment advising, fortune telling) or don't necessarily involve tangible possessions (hotel stay).

Question 11

American Airlines' SABRE reservation system fills the following strategic role of information:

Accepted Answer

The SABRE reservation system creates barriers to entry by establishing a strong technological infrastructure that is difficult for new competitors to replicate, thus maintaining American Airlines' competitive advantage.

Question 12

Services can create barriers to entry by __________

Accepted Answer

All of the choices (using economies of scale, creating switching costs, and using databases and information technology) can create barriers to entry in the service industry. By utilizing economies of scale, a larger service provider can offer lower prices due to lower costs, making it difficult for new entrants to compete. Creating switching costs, such as requiring customers to sign long-term contracts or buy expensive equipment, makes it challenging for them to switch to a new service provider. Lastly, using databases and information technology can give established firms an advantage by allowing them to gather and analyze data more effectively, making it difficult for new firms to catch up.

Question 13

Which of the following is not a role of information technology?

Accepted Answer

The answer of Which of the following is not a...

Question 14

Which of the following stages of a firm's competitiveness describes customers who seek out a firm based upon its sustained reputation for meeting customer expectations?

Accepted Answer

The stage of distinctive competence achieved describes customers who seek out a firm based upon its sustained reputation for meeting customer expectations. At this stage, the firm has developed a unique set of capabilities that sets it apart from competitors, leading to customer loyalty and sustained competitive advantage. The other options - available-for-service, journeyman, and world class service delivery - do not specifically describe customers seeking out a firm based on its reputation for meeting customer expectations.

Question 15

In which of the following cases does the use of information raise ethical issues?

Accepted Answer

Yield management involves pricing goods or services based on demand, which can lead to discrimination against certain groups. Selling information can raise privacy concerns if the information is not obtained ethically or if it is being sold without the knowledge or consent of the individuals involved. Micromarketing involves targeting individuals based on specific characteristics, which can lead to concerns about discrimination and invasion of privacy. Therefore, all of the given options raise ethical issues related to information use.

Question 16

Which one of the following is not a key characteristic that leads to a difficult competitive environment for service industries?

Accepted Answer

The lack of government regulation and oversight does not necessarily lead to a difficult competitive environment for service industries. In fact, some industries may benefit from less regulation and oversight. The other options (low barriers to entry, lack of sustainable competitive advantage, and low switching costs for customers) are all key characteristics that can make it difficult for service industries to compete effectively.

Question 17

Using the dimensions of strategic focus and competitive use of information can identify four strategic roles of information. Which of the following is not a strategic role of information?

Accepted Answer

Providing global communications is not considered a strategic role of information, as it is more of a basic function rather than a strategic use of information. The other choices (A, B, and C) all represent strategic roles of information, such as creating barriers to entry for competitors, generating revenue through information-based products or services, and creating a valuable database asset that can be used for analysis and decision-making.

Question 18

Which of the following service quality descriptions would be considered "World Class?"

Accepted Answer

The answer of Which of the following service quality descriptions...

Question 19

The innovation of moving from a "country" store where the proprietor fills the shopper's list with items that are kept behind the counter to a self-service supermarket where the shopper fills a cart with items represents a move between which of the following pairs of competitive stages?

Accepted Answer

The transition from a "country" store to a self-service supermarket represents a significant innovation in service delivery, moving from a basic level of service (available-for-service) to a more advanced and efficient system (distinctive competence achieved) that enhances customer experience and operational efficiency.

Quiz 2: Service Strategy