Deck 11: Services marketing

Question 1

Services often are custom-made.

Answer 1

True

Question 2

Because services cannot be stored, much greater responsiveness to demand fluctuation must exist, and therefore much greater pricing flexibility must be maintained.

Answer 2

True

Question 3

Customers frequently service themselves or cooperate in the delivery of services.

Answer 3

True

Question 4

Electronic commerce has not opened up new horizons for global services reach because of the drastic reduction to domestic trade.

Question 5

Sensitivity to culture, beliefs and preferences is imperative in the services industry.

Question 6

The initial contract of sale often includes unimportant service dimensions.

Question 7

Many service industries that do market abroad, especially Indian ones, have at their disposal large organisations, specialised technology or advanced professional expertise.

Question 8

The issue of quality control for international services may be much more difficult to deal with due to different service uses, changing expectations and varying national regulations.

Question 9

Surgeons can perform operations in a distant country if proper computer linkages can drive roboticised medical equipment.

Question 10

Because services are delivered directly to the user, they are frequently much less sensitive to cultural factors than are products.

Question 11

The fastest-growing sector of world trade is in the services industries.

Question 12

Increase in employment in services is a common feature of economic development.

Question 13

Unlike products, customers cannot be closely involved in the production of a service.

Question 14

Even though the intangibility of services is a primary differentiating criterion, it is not always present.

Question 15

Services are more intangible and homogeneous than goods.

Question 16

When services are clear, comparable and available to all interested parties, this is known as market transparency.

Question 17

When direct delivery and short distribution channels do not exist, service providers need to be distribution innovators in order to reach their market.

Question 18

Increasingly, services compete against goods and become an alternative offering.

Question 19

Transportation and travel services account for three quarters of both exports and imports of services in Australia.

Question 20

Buyers have more problems in observing and evaluating services than goods.

Question 21

Which of the following languages is the second most common website language?

A)Spanish
B)Korean
C)English
D)French

Question 22

For which of the following types of services can the importance of cultural aspects have a relatively high impact?

A)People-processing services
B)Possession-processing services
C)Information-based services
D)Media-processing services.

Question 23

A commercial airline seat that goes unsold and unused as a plane takes off is an example of___________.

A)perishability
B)intangibility
C)heterogeneity
D)inseparability

Question 24

What is the best description of data collected on service transactions?

A)The data are quite poor.
B)The data are nonexistent.
C)Information on services is more extensive than that on products.
D)Product data are self-reported, whereas service data are government reported.

Question 25

The Australian economy has also increasingly become a service economy, with the service sector accounting for almost ___________ of GDP.

A)15 per cent
B)45 per cent
C)60 per cent
D)80 per cent

Question 26

Regulations that may be inconvenient and may hamper business operations are known as:

A)moderating laws.
B)barriers to trade.
C)'par' laws.
D)non-discriminatory regulations.

Question 27

Which is Australia's main export market for services and the main source of imports?

A)China
B)Indonesia
C)USA
D)UK

Question 28

Which of the following statements is false?

A)Call centres - which featured in the 2008 hit film Slumdog Millionaire - have become such a successful part of the economy that Indian firms are offshoring to other countries.
B)Most of the large management consulting firms derive more than half their revenue from international sources.
C)The largest advertising agencies serve customers around the globe, some of them in more than a hundred countries.
D)None of the above

Question 29

According to the textbook, numerous services have great potential for internationalisation.Which of the following is not listed as one of those services?

A)Banking services
B)Online gambling and gaming services
C)Construction, design and engineering.
D)Legal and accounting services

Question 30

What is offshoring?

A)Production outsourced to third-party service providers at home
B)Production outsourced to third-party providers abroad
C)A situation where a company decides to sell its services to international customers
D)A situation where company that decides to buy services from international suppliers

Question 31

Businesses are increasingly routing their software projects to ________, ________ and ___________.

A)India; China; Brazil
B)Taiwan; China; India
C)South Korea; India; China
D)India; China; Central Europe

Question 32

Which of the following is not a cause of the rapid advancement of service marketing?

A)Decreased self-regulation by industry groups
B)Innovations in technology
C)Rapid transmission of data
D)Improvements in data regulations

Question 33

What website was on the first position of the Top 20 global websites in the world (both goods and services providers)in 2012?

A)Apple
B)Facebook
C)Google
D)Wikipedia

Question 34

Rules and laws that impose larger operation costs on foreign firms than on local competitors, and that provide subsidies to local firms only or that deny competitive opportunism to foreign suppliers, are:

A)economic sanctioned regulations.
B)non-discriminatory regulations.
C)discriminatory regulations.
D)preference laws.

Question 35

Which of the following is not a unique characteristic of services?

A)Intangibility
B)Homogeneity
C)Perishability
D)Inseparability

Question 36

Which one of the following is not a reason for the rapid rise in international services marketing?

A)The business environment
B)Innovations in technology
C)Reduction of government regulation
D)Foreign plants that make goods in border (free-trade zone)cities

Question 37

To be successful, the international service marketer must first determine the nature and aim of the service offering; that is, whether the service will be aimed at ________ or at _________, and whether the service act in itself will result in _______ or _______ actions.

A)people; things; standardised; non-standardised
B)companies; people; standardised; non-standardised
C)people; things; tangible; intangible
D)companies; people; tangible; intangible

Question 38

Which of the following statements is true about services international trade?

A)The data collected on services are very accurate nowadays.
B)It is easy to imagine how many data collection problems are encountered in countries with elaborate systems and high amount of funds for such efforts.
C)Insufficient knowledge and information have led to a lack of transparency.
D)None of the above

Question 39

Which of the following statements about the importance of trade to Australian organisations is true?

A)Between 2010 and 2011, Australia recorded annual surplus on its international trade in services.
B)Between 2010 and 2011, the Australian economy showed an increase in travel services.
C)China is the Australia's main export market.
D)Many of Australia's traditional trading partners such as the UK and Japan have shown significant decreases in exports.

Question 40

Which of the following plays an overwhelming role in the customer choice process?

A)The impression of the service provider
B)The reputation of the service provider
C)The customers of the service provider
D)The image of the service provider

Question 41

What is not a reason for having multilingual website?

A)To facilitate a shift toward non-English-speaking internet users
B)To access new customers
C)To be picked up by more search engines
D)To increase sales due to high investment

Question 42

What is true about the distribution of international services?

A)The channels are short and direct.
B)The channels are long and indirect.
C)The channels are long and direct.
D)The channels are short and indirect.

Question 43

Why can Indian companies offer data-entry services at a rate much lower than more industrialised cities?

A)Because they have lower wage rates
B)Because they are geographically centred
C)Because they have high technology penetration levels
D)Because they have adapted to cultural barriers

Question 44

Explain how the role of international services in the world economy has increased in the past decade.

Question 45

Explain the two major types of typical obstacles to service trade.

Question 46

Service providers whose activities are independent from goods:

A)should search for market situations abroad that are similar to the domestic market.
B)should team with a goods provider in order to provide some tangibility in the offering.
C)should search for service economies overseas, except when they can team with a goods provider.
D)should recognise that similar problems are not likely to be found in 'similar' situations offshore.

Question 47

How have the four unique characteristics of services had an impact on the international trade of services?

Question 48

What are the top four host countries for international students in the world?

A)USA, UK, France and Australia
B)USA, UK, Australia and Canada
C)USA, UK Germany and Australia
D)USA, UK, France and Canada

Question 49

Because services cannot be stored:

A)much greater pricing flexibility must be maintained.
B)much greater responsiveness to demand fluctuation must exist.
C)much greater service emphasis must be used to counter demand and price fluctuation.
D)much greater pricing flexibility must be maintained and much greater responsiveness to demand fluctuation must exist.

Question 50

Which of the following is not cited as a way that global demand for education has been answered with new technology?

A)Video conferencing
B)Email office hours
C)Online grading
D)Internet-related teaching materials

Question 51

Which of the following is characteristic of the typical measurement of services capacity and delivery efficiency of an international service marketer?

A)It is tactical in nature.
B)Is usually qualitative.
C)Is usually quantitative.
D)It has inert pressure.

Question 52

Because services are difficult to explain, mass communication should be supported by:

A)billboards.
B)one-on-one follow-up.
C)foreign market forecasting.
D)intensive analysis.

Question 53

What is the first step an international service marketer must take to be successful?

A)Notify the local government officials
B)Tie the service to a tangible good
C)Publish information about the service
D)Determine the nature of the service offering

Question 54

At the governmental level, services frequently are not recognised as a major facet of world trade or are viewed with suspicion because of a lack of understanding and because:

A)they threaten the position of local companies.
B)the government has little data collected on services.
C)services contribute less to the GNP than manufacturing
D)countries discriminate against foreign service providers

Question 55

Communicating the service offer is:

A)more difficult than communicating the offer for a good.
B)easier than communicating an offer for a good.
C)a perishable offering.
D)dependent on service capacity and delivery efficiency.

Question 56

For services that are delivered mainly in the support of or in conjunction with goods, the most sensible approach for the international novice is to:

A)follow the path of goods.
B)search for market situations abroad that are similar to the domestic market.
C)set up a website.
D)establish an online presence.

Question 57

The __________ and ____________ of service functions have become increasingly important characteristics of contemporary firms.

A)outsourcing; offshoring
B)intangibility; perishability
C)customisation; mass-customisation
D)outsourcing; exporting

Question 58

The role of personnel deserves special consideration in the international marketing of services because:

A)the customer is the service person's intangible.
B)the service person is neither the producer nor the marketer of the service.
C)the person will communicate the spirit, value and attitudes of the service corporation.
D)the service person both 'recruits and trains' his or her clients.