Question 1

Which of the following is NOT one of the factors that encourage extended operating hours?

Accepted Answer

Availability of employees to work during "social" hours does not necessarily encourage extended operating hours. Instead, it's factors like economic pressure from consumers, changes in legislation, economic incentives to improve asset utilization, and automated self-service facilities that directly encourage businesses to operate for longer periods.

Question 2

Which of the following is NOT listed as a factor in favoring adoption of transnational strategies?

Accepted Answer

Language barriers can present obstacles to the adoption of transnational strategies, making it a factor that may not necessarily favor such approaches. The other factors listed (market, competition, technology, and cost) can all be drivers of transnational strategy adoption.

Question 3

Franchisors usually seek to exercise control over all aspects of the service performance through tightly defined ____________.

Accepted Answer

Franchisors seek to exercise control over all aspects of the service performance through tightly defined service standards, procedures, scripts, and physical presentations. Therefore, all of the options given are correct.

Question 4

Service delivery is shifting to arm's length transactions for many services due to advances in telecommunications.

Accepted Answer

Advances in telecommunications, such as the internet, have allowed for more remote communication and service delivery, making arm's length transactions more common.

Question 5

All customers will eventually voluntarily shift from high-contact delivery environments to new electronic channels.

Accepted Answer

While electronic channels are becoming more prevalent and convenient for many customers, some may still prefer high-contact delivery environments for certain services or interactions. Additionally, not all customers may have access to or be comfortable using electronic channels. Therefore, it is not a universal truth that all customers will eventually shift to electronic channels.

Question 6

The convenience of service factory locations and operational schedules assumes little importance when a customer has to be physically present throughout the service delivery or even just to initiate and terminate the transaction.

Accepted Answer

The statement implies that the convenience of service factory locations and operational schedules is important, which contradicts the truth. Therefore, the answer is false.

Question 7

Franchising is not an appealing strategy for growth-oriented service firms because franchisees tend to be less motivated and less concerned about quality than managers in company-owned stores.

Accepted Answer

This statement is not necessarily true for all service firms. While there may be some cases where franchisees are less motivated or less concerned about quality, there are also many examples of successful service franchises that have maintained high standards of quality and customer service through effective franchisor training and support programs. Ultimately, the decision to pursue franchising as a growth strategy will depend on a variety of factors, including the nature of the service being provided, the target market, and the franchisor's ability to effectively manage and support its franchisees.

Question 8

A ministore is a single-site service business that involves creating an innovative service factory.

Accepted Answer

A ministore is typically a small retail store that specializes in a specific product category, while a service factory involves creating a system for efficient and effective service delivery. While a ministore may provide services as well as retail products, it is not necessarily considered a service factory.

Question 9

What three interrelated elements does distribution embrace in a typical sales cycle?

Accepted Answer

Distribution in a sales cycle typically involves the flow of information and promotion to inform and persuade customers, negotiation flow to reach agreements, and product flow to deliver the goods or services.

Question 10

The need for economies of scale often restricts choice of location for service facilities.

Accepted Answer

Service facilities often need to be located in areas where they can benefit from economies of scale, such as access to a larger customer base, cheaper resources, or specialized labor. As a result, the choice of location may be limited by these factors, and businesses may have to prioritize them over other considerations, such as proximity to suppliers or regulatory requirements.

Question 11

Integrating mobile devices into the service delivery infrastructure can be used as a means to ____________ services, ____________ customers to opportunities or problems, and ____________ information in real time to ensure that it is continuously accurate and relevant.

Accepted Answer

Integrating mobile devices can provide access to services, alert customers to opportunities or problems, and update information in real time to ensure accuracy and relevancy. The other options either do not make sense or do not accurately describe the benefits of integrating mobile devices.

Question 12

Which of the following is an example of an economic incentive to improve asset utilization?

Accepted Answer

By extending hours, the incremental costs incurred can be covered by the increased revenue generated by decreased crowding. This provides an economic incentive to improve asset utilization.

Question 13

The Internet is superior to traditional channels because ____________.

Accepted Answer

The answer of The Internet is superior to traditional channels...

Question 14

A local presence may be necessary when exporting information-based services for which of the following reasons?

Accepted Answer

Building personal relationships with local partners, clients, and suppliers is crucial in many cultures when conducting business. It helps to establish trust and can facilitate communication and collaboration, which is necessary for successful exporting of services.

Question 15

Physical logistics services now find themselves competing with telecommunications services. This is a result of the instantaneous delivery capability of information-based products.

Accepted Answer

The statement is true. With the rise of e-commerce and digital technologies, physical logistics services (such as shipping and transportation) are now competing with telecommunications services that can provide instantaneous delivery of information-based products (such as software and media).

Question 16

____________ has become a popular way to expand delivery of an effective service concept, embracing all of the seven Ps, to multiple sites, without the level of investment capital that would be needed for rapid expansion of company-owned and managed sites.

Accepted Answer

Franchising allows for the expansion of a service concept to multiple sites without the need for a large investment capital as franchisees bear the majority of the costs associated with opening and operating a new location. Franchising also encompasses all seven Ps of service marketing, including product, price, promotion, place, people, process, and physical evidence.

Question 17

Banks seeking to move into investment services will often act as the distributor for mutual fund products created by an investment firm that lacks extensive distribution channels of its own.

Accepted Answer

This statement is true. Banks often partner with investment firms to offer their mutual fund products to their customers. The banks act as distributors in this case, providing access to the investment firm's products to customers who may not have other means of accessing them.

Question 18

A truck stop is a good example of a ____________.

Accepted Answer

A truck stop typically offers a variety of services such as fuel, food, restrooms, showers, and potentially even lodging. This makes it a multi-purpose facility that caters to the needs of truck drivers and travelers.

Question 19

People, possession, and information-based services have strikingly similar requirements on an international distribution strategy.

Accepted Answer

People, possession, and information-based services often have different requirements on an international distribution strategy due to their inherent characteristics. People-based services (like education or healthcare) often require the physical presence of the customer, possession-based services (like retail or repair services) involve tangible products, and information-based services (like consulting or software) can often be distributed digitally, leading to varying strategic needs.

Question 20

In general, service providers are more likely to visit corporate customers at their premises than to visit individuals in their homes.

Accepted Answer

Service providers typically have commercial contracts with corporate customers, hence they are more likely to visit their premises to maintain or repair equipment, install new systems or provide training. On the other hand, individual customers usually go to a service provider's location or contact them by phone, email or online chat.

Quiz 5: Distributing Services through Physical and Electronic Channels