Deck 4: Developing service products: core and supplementary service elements

Question 1

The manner in which a service is provided and the physical environment is often referred to as the:

A)service atmosphere
B)service environment
C)servicescape
D)service metrics
E)service blueprint

Answer 1

C

Question 2

_______ services are indispensable to delivery and consumption of the core service.

A)Enhancing
B)Supporting
C)Facilitating
D)Consultation
E)Augmented

Answer 2

C

Question 3

Which of the following is NOT a benefit of consultation?

A)Allows development of a tailored solution for customers
B)Facilitates formation of a trusting relationship
C)Provides opportunities to convey value offered
D)Helps customers to better understand their own situation
E)Allows offering of a standardised service

Answer 3

E

Question 4

Some service firms require a formal membership relationship with customers so they can:

A)gather as much information as possible for use by their other companies
B)screen out consumers who don't meet basic enrolment criteria
C)charge higher prices for the added membership benefits
D)gather relevant information
E)b and d

Question 5

Which of the following is NOT a facilitating service in Lovelock's 'Flower of Service'?

A)Billing
B)Payment
C)Technical systems
D)Information
E)Order taking

Question 6

The strategy of surrounding the core product with supplementary value-adding services is known in product marketing circles as the process of creating the:

A)product
B)service product
C)supplementary product
D)augmented product
E)expected product

Question 7

Supplementary services hold strategic value for a firm because they:

A)are less expensive to offer
B)encourage consumer trial and switching
C)create a barrier to consumer switching
D)can be offered instead of expensive staff contact
E)are more flexible and can be changed quickly

Question 8

Which of the following types of services generally offer more supplementary services?

A)People-processing
B)Possession-processing
C)Information-processing
D)Mental-stimulus-processing
E)All do so, equally

Question 9

Creating a formal relationship with customers is important for some service providers.Which of the following is least likely to require this form of relationship?

A)Banks
B)Insurance companies
C)Medical benefits funds
D)All of the above
E)None of the above

Question 10

A motel offers parking facilities for recreational vehicles, a kennel area for pets and a storage facility for excess baggage.These are examples of the:

A)facilitating service element of augmentation
B)enhancing service element of hospitality
C)enhancing service element of safekeeping
D)facilitating service element of hospitality
E)support service element of atmospherics

Question 11

Pricing, delivery, appearance of facilities and personnel, and personality of service people are included in which of the following bands of Levitt's 'total product concept'?

A)Core product
B)Expected product
C)Augmented product
D)Potential product
E)None of the above

Question 12

The four groups of facilitating services are:

A)information, order-taking, billing, payment
B)consultation, information, order-taking, billing
C)order-taking, information, exceptions,
D)hospitality, information, order-taking, billing
E)exceptions, hospitality, safekeeping, order-taking

Question 13

Everything potentially feasible to attract and hold customers is included in which of the following bands of Levitt's 'total product concept'?

A)Core product
B)Expected product
C)Augmented product
D)Potential product
E)None of the above

Question 14

An auto repair service has a coffee machine and magazines in its waiting room and offers pick-up and delivery from customers' places of work.These are examples of the:

A)facilitating service element of augmentation
B)enhancing service element of hospitality
C)enhancing service element of augmentation
D)facilitating service element of hospitality
E)support service element of atmospherics

Question 15

What Levitt called 'the total product concept' consists of all of the following EXCEPT:

A)supplementary product
B)core product
C)expected product
D)augmented product
E)potential product

Question 16

Examples of order-taking are divided into what three main elements?

A)Membership in organisations, professional appointments, applications
B)Subscription services, order entry, admissions to restricted facilities
C)Applications, order entry, reservations
D)Order entry, reservations subscription services
E)Order entry, reservations, professional appointments

Question 17

Bills for services should NOT be:

A)timely
B)accurate
C)illegible
D)complete
E)itemised

Question 18

Delivery ______ concern the place and manner of service ______, and how we have been _______.

A)processes; delivery; treated
B)services; provided; advised
C)actions; attributes; treated
D)processes; delivery; advised
E)experiences; delivery; advised

Question 19

Which of the following is NOT a supporting service in Lovelock's 'Flower of Service'?

A)Consultation
B)Hospitality
C)Safekeeping
D)Exceptions
E)Technical facilitation

Question 20

In Levitt's 'total product concept' the basic benefit the customer is buying is the:

A)core product
B)expected product
C)augmented product
D)potential product
E)none of the above

Question 21

If required, an airline offers special meals for diabetic passengers, complimentary game packs and nappies for children, wheelchair access to its lounges and a special area for religious observances.These are examples of the:

A)supplementary exception of special requests
B)enhancing service element of hospitality
C)facilitating service element of safekeeping
D)supplementary exception of problem solving
E)support service element of atmospherics

Question 22

Which of the following best describes a service shop?

A)High degree of personal interaction and customisation, low in labour intensity
B)High degree of personal interaction, customisation and labour intensity
C)Low degree of personal interaction and customisation but high in labour intensity
D)Low degree of personal interaction, customisation and labour intensity
E)Low degree of personal interaction, high degree of customisation and labour intensity

Question 23

According to Ulrike de Brentani (2000) there are at least four areas that require particular attention in the process used for creating, developing and launching new services.Which of the following is NOT one of them?

A)Unique value proposition and differentiation
B)New service synergy
C)Customer involvement
D)Backstage's role during the new service development process
E)Frontline role during the new service development process

Question 24

The process of reengineering involves _______ processes to achieve _______ performances.

A)analysing and organising; faster and better
B)analysing and redesigning; faster and smoother
C)analysing and redesigning; faster and better
D)analysing and redesigning; efficient and economic
E)analysing and organising; efficient and economic

Question 25

Which of the following is NOT a classification of service concepts in Maister and Schmenner's system?

A)Core service
B)Professional service
C)Mass service
D)Service shop
E)Service factory

Question 26

Which of the steps in the planning, creating and delivering of services involves clarifying specific benefits offered to customers and the costs incurred in return?

A)The market positioning statement
B)The market opportunity analysis
C)Service operations concept
D)Strategic service concept statement
E)Service marketing concept

Question 27

In the framework for service design, 'increased perception of control' is provided by which service redesign concept?

A)Bundled the service
B)Direct service
C)Self-service
D)Pre-service
E)Physical service

Question 28

From the marketer's perspective, non-controllable external brand communications involving word-of-mouth and publicity are important because they affect the strength of the service _______.

A)brand
B)communication
C)initiation
D)disseminations
E)experience

Question 29

In the development process of a service product strategy, what are the three essential elements that must be considered by a service firm?

A)Nature and benefits of the service, place and manner of service provision, and requisite enabling resources
B)Nature and benefits of the service, place and manner of service provision, and the organisation's financial resources
C)Nature and benefits of the service, customer's perception of quality, and requisite enabling resources
D)Customer's perception of quality, place and manner of service provision, and requisite enabling resources
E)Customer's perception of quality, place and manner of service provision, and the organisation's financial resources

Question 30

Most _______ services represent _______ to _______ needs.

A)augmented; responses; customers
B)supplementary; answers; organisations
C)supplementary; information; customers
D)supplementary; responses; customers
E)core; responses; customers

Question 31

The provision of services within the fast food industry is an excellent example of:

A)service factory
B)mass service
C)service shop
D)professional service
E)labour intensity

Question 32

Exceptions involve a group of supplementary services that fall outside the routine of normal service delivery.Which of the following is NOT one of the types of such exceptions?

A)Special requests
B)Problem solving
C)Handling payment
D)Handling complaints
E)Restitution

Question 33

In the new service development process, what is essential to consider in the early stages?

A)Performance evaluation
B)Differentiation
C)Test marketing
D)Product introduction
E)Re-engineering

Question 34

Heany (1983) proposed seven categories of innovation which include:

A)major service innovations
B)major process innovations
C)supplementary service innovations
D)service redesign
E)all of the above

Question 35

Which of the following statements is NOT true?

A)Value-adding supplementary services enhance the core offering.
B)People-processing services tend to be more demanding in terms of supplementary elements.
C)Possession-processing services often place heavy demands on safekeeping elements.
D)Supplementary elements do not assist in differentiation.
E)Companies competing on low-cost often offer fewer supplementary elements.

Question 36

Brands in which the product brand name dominates, but the corporate name is still featured, are referred to as:

A)endorsed brands
B)house brands
C)development brands
D)company brands
E)none of the above

Question 37

Which of the following could be considered as a product line extension for a service organisation?

A)The introduction of online book purchasing over the Internet
B)The first creation of search engines for the Internet
C)A retailer offering financial services to its customers
D)An airline that instigates a new route to a different destination for its customers
E)A restaurant that now offers credit card payment facilities

Question 38

When developing service products, core and supplementary service elements, core products, supplementary services, reliability levels and accessibility are all part of the:

A)strategic service concept
B)market positioning
C)service marketing concept
D)service operations concept
E)none of the above

Question 39

Which of the following is most aptly applied to the 'mass service' classification within the system created by Maister and later expanded by Schmenner (1986)?

A)Low degree of personal, interaction, customisation and labour intensity
B)Low degree of personal interaction and customisation but high in labour intensity
C)High degree of personal interaction and customisation and low in labour intensity
D)High in personal interaction, customisation and labour intensity
E)Low in personal interaction, customisation and high in labour intensity

Question 40

_______ concept defines the essential nature of the service(s) to be offered with reference to the nature and needs of the market(s) to be targeted, and leads to a specification of what resources will be required to make the concept a reality.

A)The strategic service
B)The service marketing
C)The service operations
D)The service production
E)The service production and consumption

Question 41

In the 'Flower of Service' model, in what sense are supplementary services like petals surrounding the core product?

A)They have short lives.
B)They should be well formed and complement the core.
C)They can become detached from the core.
D)They are delicate and beautiful.
E)They are optional and sometimes unnecessary.

Question 42

Department stores that both offer to provide gift-wrapping and are prepared to look after goods while the customer is shopping are providing a safekeeping element to their services.

Question 43

Professional consultation in, for example, a trip to the doctor or an accountant is a complex and demanding form of consultation.

Question 44

The messages conveyed by the presented brand result in _______.

A)brand promises
B)external brand communications
C)core services
D)brand awareness
E)customer experience

Question 45

Facilitating services are the basic reason for service providers to be in business.

Question 46

While courtesy and consideration for customers is important at all times, it is in the face-to-face rather than remote situation that it is most important.

Question 47

It is unreasonable for customers to expect a variety of payment options, particularly when the organisation is small.

Question 48

Supplementary services can be enhanced by the intelligent use of information technology.

Question 49

When buying electrical goods, the manufacturer's provision of warranties and guarantees against product malfunctions are an example of 'restitution'.

Question 50

Information, order-taking, billing and payment are supporting services.

Question 51

To be successful, what must a branding strategy do?

A)Offer a variable service experience so customers will be surprised
B)Rely on a clever tag line and pleasing graphic elements
C)Deliver the core service
D)Convince customers that there are meaningful differences between brands
E)Take the place of the service's value proposition

Question 52

Which of the following combinations results in the greatest brand equity?

A)Favourable customer experiences and low brand awareness
B)Broad brand meaning and extensive brand communications
C)High brand awareness and no presented brand
D)Low brand awareness and positive brand meaning
E)High brand awareness and positive brand meaning

Question 53

Consultation, hospitality and safekeeping are examples of facilitating services.

Question 54

Colouring, straightening and manicures are all part of the core service offered at the hairdresser.

Question 55

Money is not the only cost that customers incur when buying goods or using a service.

Question 56

The place and manner of service delivery are an integral part of planning the service product offering(s) and marketable benefits.

Question 57

According to Levitt (1974), the expected product represents the customer's minimal expectations.

Question 58

British Airways offers seven distinct air travel products such as Club World, World Traveller Plus, and World Traveller.By choosing one of these, customers understand the characteristics of the service they are purchasing.This is an example of effectively using ____________.

A)sub-brands
B)a house of brands
C)endorsed brands
D)a branded house
E)external brand communications

Question 59

Companies do not need to perform well on core service and should focus on their performance of supplementary services.

Question 60

Characteristics such as a high degree of personal interaction and customisation and low labour intensity would indicate that the description 'service shop' is correct.

Question 61

Major process innovations are new core offerings for markets that have not been previously defined.

Question 62

With the Federal Government's push to increase the number of super clinics, how would you determine what services are required by consumers and how they could best be provided?

Question 63

Using the example of a postal service business, discuss how a supplementary service may be transformed into a core product.

Question 64

A 'service factory' is characterised by low degrees of personal interaction and customisation and high labour intensity.

Question 65

How necessary and possible is it for small organisations to display strong brands? Discuss this in line with The Flower of Service concept.

Question 66

Using the example of a 24/7 medical surgery, differentiate between the core service, facilitating services and supporting services.

Question 67

A small coffee shop that offers table service and a variety of menu items is experiencing financial and service problems.Using the reengineering service process, develop a plan to redress the problems.

Question 68

Using Ulrike de Bretani's process, discuss the changes which have taken place in the MacDonald's group to appeal to a new customer base.

Question 69

The acquisition of Israel Folau to the ranks of the Australian Football League in 2011 raised the question of the power of the brand.Is Folau a brand in his own right and what implication does this have in terms of the organisation's brand?

Question 70

If you were running a legal firm, what steps would you take in planning, creating and delivering an integrated and coherent service product strategy of the firm?

Question 71

Service firms do not need to concern themselves about brand names and branding.

Question 72

'Distinction between facilitating services and supporting services may not be always clear'.Discuss this statement, providing examples from a recent personal service encounter.

Question 73

Assume you are running an optometrist's office or veterinary surgery.Discuss how you can enhance delivery of each of these businesses' supplementary services using information technology.

Question 74

Service redesign includes the following types of service: direct, pre-service,
bundled service and physical service.

Question 75

Adorning company cars with corporate logos and providing employees with new uniforms are examples of process line extensions.