Question 1

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

Accepted Answer

Lack of government regulation and oversight could actually create a more favorable competitive environment for service industries, especially if there are not strict rules and regulations that limit their ability to operate and innovate. Low barriers to entry, lack of sustainable competitive advantage, and low switching costs for customers are all characteristics that make it harder for service industries to stand out and maintain profitability.

Question 2

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 competitive advantage through advanced technology and extensive network effects, making it difficult for new competitors to enter the market.

Question 3

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

Accepted Answer

All the given choices involve the use of information, which can raise ethical concerns.

A) Yield management involves using customer data to set different prices for different groups of customers. This can lead to issues of discrimination or unfair pricing practices.

B) Selling information, especially personal information, without the knowledge or consent of the individuals concerned can lead to privacy and security concerns.

C) Micromarketing involves targeting individuals or small groups with personalized advertising and promotions based on their personal data. This can raise concerns about invasion of privacy or manipulation of consumer behavior.

Question 4

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 provide internal operational benefits, such as improving decision-making and streamlining processes, but do not directly generate revenue. Yield management and point of sale both involve pricing and sales strategies that can increase revenue. Sale of information can also be a potential revenue stream, such as through the sale of customer data or market research.

Question 5

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

The strategy used by Kraft to match cream cheese flavors to the tastes of a store's customers based on POS data is an example of micromarketing, which involves tailoring marketing efforts to specific groups or individuals based on data analysis. Yield management involves adjusting prices and availability of products to optimize revenue, expert systems are computer programs that mimic human decision-making processes, and data envelopment analysis is a mathematical modeling technique used to evaluate the efficiency of decision-making units. None of these is the best fit for the given scenario.

Question 6

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 directed towards the possessions of the customer (their vehicle) and provides a tangible service of cleaning and maintaining the car's appearance.

Question 7

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

Accepted Answer

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

Question 8

Services can create barriers to entry by______.

Accepted Answer

All of the above choices can create barriers to entry for new potential competitors in a market. Using economies of scale to achieve lower costs through higher production levels can make it difficult for new entrants to match those lower costs. Creating switching costs for customers, such as through long-term contracts or unique services, can make it difficult for new competitors to attract customers away. Using databases and information technology to improve service delivery and customer experiences can also be a barrier to entry if new competitors do not have access to similar resources or lack the capital to invest in such technology.

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 is a marketing approach that involves targeting a specific group of consumers based on their buying habits, preferences, and other data. Bar coding and checkout scanner technology provide detailed information about individual buying patterns, which can be used to target customers with precision. Therefore, the use of this technology is an example of micromarketing. Options A, C, and D are not relevant in this context.

Question 10

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

The strategic roles of information based on the dimensions of strategic focus and competitive use are as follows: 
1) Create barriers to entry 
2) Generate revenue 
3) Create a data base asset 
4) Enhance global communications. Therefore, option D is not a strategic role of information.

Question 11

A difficult economic environment exists for service industries for all but one of the following reasons.

Accepted Answer

Relatively high overall entry barriers are not a reason for a difficult economic environment in service industries. In fact, many service industries have low entry barriers due to the minimal need for physical assets or inventory, allowing new competitors to enter the market more easily.

Question 12

Which of the following is not identified as a strategy common to many successful service providers?

Accepted Answer

A project-oriented organizational structure is not commonly identified as a strategy used by successful service providers. Close coordination between marketing and operations, information exploitation for new business, and redirection of the strategic service vision inward to focus on employees are all commonly identified strategies.

Question 13

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 14

Which one the following is not a subordinate area of data analytics?

Accepted Answer

Descriptive analytics, diagnostic analytics, and predictive analytics are all commonly recognized as major subcategories of data analytics. However, "disruptive analytics" is not a common or recognized subcategory in the field.

Question 15

________ is not a component of big data.

Accepted Answer

Value is not a component of big data, but rather an attribute that can be derived from analyzing big data. The true components of big data are volume, velocity, and variety.

Question 16

Which of the following usually is not a good idea with respect to an overall cost leadership strategy?

Accepted Answer

Offering as many different services as possible may increase complexity and reduce the ability to achieve economies of scale and cost savings. It may also require additional resources to manage and train employees on multiple services. A better approach for an overall cost leadership strategy would be to focus on a narrow range of standardized services and streamline operations wherever possible.

Question 17

The Internet of Things (IoT) trajectory begins with ________.

Accepted Answer

The Internet of Things (IoT) trajectory started with the use of Radio Frequency Identification (RFID) tags. Initially, these tags were used to track products and items in supply chains, but they paved the way for the connectivity of various devices and machines, leading to the development of the modern IoT.

Question 18

Internet of Things (IoT) involves a convergence of multiple technologies but not ________.

Accepted Answer

GPS positioning is not a mandatory or essential technology for IoT. Other technologies like RFID, NFC, or Bluetooth can be used for locating devices.

Question 19

A personal training facility that is located in the exclusive Beverly Hills area with only one other competitor could adopt a service strategy that emphasizes ________.

Accepted Answer

A differentiation strategy emphasizes providing unique products or services that are not easily replicated by competitors. In this case, the personal training facility could offer specialized services, such as personalized training plans, cutting-edge equipment, or exclusive amenities, to differentiate itself from its competitor and appeal to the affluent clientele in Beverly Hills.

Question 20

Of the nine dimensions of service competition, three are regarded as most likely to become service losers. Which of the following is not one of those three vulnerable dimensions?

Accepted Answer

Price is not one of the three dimensions most likely to become service losers.

Quiz 2: Service Strategy