Deck 15: Global Services

Question 1

Recent growth in the service sector is a global phenomenon.

Answer 1

True

Question 2

One of the most rapidly growing areas within electronic technology is in the education industry.

Answer 2

True

Question 3

To be successful, the international service marketer must first determine the nature and the aim of the service offering, that is, whether the service will be aimed at people or at things and whether the service act in itself will result in tangible or intangible actions.

Answer 3

True

Question 4

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

Question 5

Purchasing a car is buying a good; leasing a car is buying a service.

Question 6

One of the benefits of being in the service business is that it is easy to have standardization and/or uniformity in the offering of a service.

Question 7

Rules and laws that impose larger operating costs on foreign firms than on local competitors, that provide subsidies to local firms only, or that deny competitive opportunities to foreign suppliers are known as regulatory practices.

Question 8

There tends to be low customer involvement when a consumer purchases a service.

Question 9

Services are usually tangible.

Question 10

Maintaining constant service capacity at levels necessary to satisfy peak demand is inexpensive.

Question 11

Electronic commerce has opened up new horizons for global services reach and has drastically reduced the meaning of distance.

Question 12

When governments create trade obstacles, these obstacles are known as barriers to entry.

Question 13

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

Question 14

It is difficult for governments to track transactions in the service sector.

Question 15

Services produce over 60 percent of the GDP throughout the world.

Question 16

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

Question 17

Infant industries are those service industries that cater specifically to parents with small children, who usually rely heavily on extra services.

Question 18

Products are more sensitive to cultural factors than services are.

Question 19

The rapid rise in international services marketing is the result of major shifts in the business environment and innovations in technology.

Question 20

Services are strong in intangibility, but they tend to have high perishability.

Question 21

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

A) perishability.
B) longevity.
C) marketing myopia.
D) situational confluence.

Question 22

Service industries that do market abroad often have at their disposal all of these except:

A) Large organizations
B) Specialized technology
C) Advanced professional expertise
D) External goods

Question 23

Services differ from goods most strongly in their ______.

A) customer involvement
B) capacity
C) intangibility
D) perishability

Question 24

The degree of recipient participation in the production of a service is called:

A) programming.
B) design.
C) customer involvement.
D) pie slicing.

Question 25

What percentage of revenue does the service sector bring to the United States' GDP?

A) 10%
B) 25%
C) 80%
D) 100%

Question 26

"With sufficient time to develop on our own, we can compete in world markets" is often the mantra of what type of industry?

A) Commercial medical
B) Hospital equipment
C) Infant
D) Natural resources

Question 27

When a country wants to protect the welfare (economic, cultural or military) of its people, obstacles to trade, including creating tariffs and barriers to entry, are often established to ensure such protection. This act of protection is known as:

A) sovereignty.
B) boosting.
C) vectoring.
D) national security.

Question 28

When a service is presented with uniformity or standardization in an offering, this is called:

A) posting.
B) service consistency.
C) jostling.
D) service longevity.

Question 29

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

A) Deregulation
B) Innovations in technology
C) Rapid transmission of data
D) Invention of sonic data revisions

Question 30

Market transparency is:

A) only involved in the delivery of products in cross-border situations.
B) the invisibility of the tangible offerings.
C) the clarity of the offering made to the customer.
D) exclusive to grocery and agricultural situations.

Question 31

Which of the following fields is not affected by regulatory practices?

A) Banking
B) Insurance
C) Advertising
D) Accounting

Question 32

Which of the following statements about the service sector is true?

A) Global services are tangible.
B) The service is a global phenomenon.
C) Only services are marketed abroad.
D) Services are only sold in conjunction with a product.

Question 33

When a government creates obstacles to trade, this is referred to as:

A) barriers to entry.
B) trade shortening.
C) entry bending.
D) barricading.

Question 34

With growth rates _____ when compared to other sectors such as agriculture and manufacturing, services are instrumental in job creation in certain countries.

A) highly fluctuating
B) lower
C) relatively close
D) higher

Question 35

Barriers to services destined for the U.S. market result mainly from

A) preventable regulations.
B) regulatory practices.
C) discriminatory regulations.
D) pretense laws.

Question 36

What is the fastest-growing sector of world trade?

A) Manufacturing
B) Services
C) Products
D) Agriculture

Question 37

Which of the following best describes what a service is?

A) An idea
B) A tangible item
C) A product
D) A deed, performance, or effort

Question 38

What is the term for the reduction of governmental involvement in the marketplace?

A) Waste
B) Political marketing
C) Deregulation
D) Trade legislation

Question 39

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

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

Question 40

Rules and laws that may be inconvenient and hamper business operations but are imposed in an even-handed manner without discriminating between local and foreign suppliers are called:

A) interstate regulations.
B) zip regulations.
C) fleeting laws.
D) non-discriminatory regulations.

Question 41

Which country or region is not considered a financial giant (based on technology)?

A) United States
B) Australia
C) Japan
D) Europe

Question 42

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

A) Because they have lower wage rates.
B) Because they are geographically centered.
C) Because they do not participate in wars.
D) Because they do not have cultural barriers.

Question 43

Which one of the following possession service acts is considered tangible?

A) Accounting
B) Banking
C) Refueling
D) Programming

Question 44

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

A) Video conferencing
B) Email office hours
C) On-line grading
D) Internet-relayed teaching materials

Question 45

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 46

The U.S. agency that provides leads for international service opportunities is called the:

A) U.S. Senate.
B) Commerce Society.
C) U.S. Agency for International Development.
D) President's Commission on Service Industry.

Question 47

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 48

What technology has opened up new horizons for global services reach?

A) Air conditioning
B) Electronic commerce
C) Individual transporters
D) GPS wrist watches

Question 49

Which of the following is considered an intangible action?

A) Advertising/public relations
B) Health care
C) Physical therapy
D) Funeral services

Question 50

Why is the service sector important in international marketing?

Question 51

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 52

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

A) billboards.
B) one-on-one follow-up.
C) interior forecasting.
D) intense cribbing.

Question 53

What is the difference between a good and a service?

Question 54

Which international organization does not provide leads for international service opportunities?

A) The International Red Cross
B) The United Nations
C) The International Finance Corporation
D) The World Bank

Question 55

What is true about the service person in a service transaction?

A) The customer is intangible.
B) The customer is the owner.
C) The customer is both the producer and the marketer of the service.
D) The customer is the service corporation.

Question 56

Management expertise that is shared by firms to institutions, and corporations around the globe is called:

A) sidestepping.
B) placating.
C) management consulting.
D) an international expenditure.

Question 57

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