Question 1

Knowledge-based services should expand into overseas markets through mergers and acquisitions.

Accepted Answer

Mergers and acquisitions are a common way for knowledge-based services, such as consulting or technology firms, to expand into overseas markets. This allows them to acquire local expertise, talent, and customer bases, as well as establish a presence in the target market more quickly than starting from scratch.

Question 2

All of the factors below are luring customers into virtual stores EXCEPT ____________.
A)potential for better prices
B)ease of search
C)broader selection
D)opportunities for networking
E)24-hour service with prompt delivery

Accepted Answer

Opportunities for networking is not a commonly recognized factor that lures customers into virtual stores, while the other choices, such as potential for better prices, ease of search, broader selection, and 24-hour service with prompt delivery, are well-known incentives for online shopping.

Question 3

An ongoing problem of franchising is that when franchisees gain experience,they may start to feel that they should not be paying the various fees to the franchisor.

Accepted Answer

This is a common problem in franchising as franchisees may start believing that they have gained enough expertise to go solo and may question the need for paying fees to the franchisor.

Question 4

_______________ is a key driver of channel choice.
A)Risk reduction
B)Convenience
C)Colorful photos of the product
D)Internet access
E)Lower prices

Accepted Answer

Convenience is a crucial factor that influences channel choice. Consumers often prefer channels that provide the easiest and most straightforward way to shop or acquire products and services. The convenience factor also includes other aspects such as accessibility, ease of ordering, and delivery options.

Question 5

____________ 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.
A)The Internet
B)International trade
C)Franchising
D)Sole proprietorship
E)Limited partnership

Accepted Answer

Franchising allows for the expansion of a service concept to multiple sites without the need for a large investment in capital or the management of all locations. Franchisees invest in and manage their own locations while following the guidelines and standards set by the franchisor, including the seven Ps of marketing (product, price, place, promotion, people, process, and physical evidence). The franchise model has become popular in many industries, including food, retail, and service industries.

Question 6

The interesting innovations for service delivery arising from the Internet are all of the following EXCEPT _____________.
A)multi-channel banking without branches
B)DVDs that can store huge amounts of information
C)development of "smart" mobile phones linking users to the Internet wherever they are
D)usage of voice recognition technology that allows customers to give information and request service by speaking into a microphone
E)smart card containing a microchip acting as an electronic purse containing digital money

Accepted Answer

DVDs that can store huge amounts of information are not directly related to service delivery innovations arising from the Internet. The other options all involve the Internet and how it has impacted service delivery.

Question 7

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

Accepted Answer

The answer of The convenience of service factory locations and...

Question 8

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

Accepted Answer

Economies of scale refer to the cost advantages that large-scale production provides. Therefore, service facilities may need to be located in areas that allow for large-scale production to achieve these cost advantages, which could restrict the choice of location.

Question 9

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

Accepted Answer

With advances in telecommunications, many services are now being delivered through arm's length transactions, such as online shopping, telemedicine, and virtual customer service.

Question 10

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

Accepted Answer

A ministore is a small retail store or shop that typically sells only a limited range of products, rather than a service business that creates a service factory.

Question 11

When customers visit the service site,which factor/(s)must be considered in the design of the service?
A)How expensive the service is.
B)Convenience of the location.
C)Operational hours.
D)A & B only.
E)B & C only.

Accepted Answer

The factors that must be considered in the design of the service when customers visit the service site are the convenience of the location and operational hours. Convenience of the location is important because customers would want a service that is easily accessible and not too far from their location. Operational hours are also important as customers may have specific times when they are available to visit the service site. The cost of the service is not as important in the design of the service as compared to the other factors. Therefore, the best choice is E, B & C only.

Question 12

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

Accepted Answer

While some customers may prefer electronic channels, not all customers will voluntarily shift from high-contact delivery environments. Some may prefer the personal interaction and human touch that is only possible in a high-contact delivery setting. Additionally, there may be certain products or services that still require a high-contact delivery environment, such as healthcare or certain types of financial services.

Question 13

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 every service firm. Franchising can provide an efficient means for growth and can be successful if the franchisor takes appropriate steps to select, train, and support franchisees.

Question 14

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 such as IT companies, telecom providers, and consulting firms usually provide services to businesses rather than individuals, and are more likely to visit their corporate customers at their offices or premises for meetings, consultations, and installations. However, there may be exceptions where service providers offer home delivery, installation, or repair services to individual customers as well.

Question 15

A truck stop is a good example of a ____________.
A)centralized control center
B)single-source facility
C)k-minus strategy
D)multi-purpose facility
E)cash cow

Accepted Answer

A truck stop is a multi-purpose facility that offers a range of services to truck drivers and travelers, such as fuel, food, restrooms, parking, and often, a convenience store and a repair shop.

Question 16

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.
A)Access; alert; update
B)Complement; alert; conceal
C)Access; attract; conceal
D)Access; guide; conceal
E)Complement; guide; conceal

Accepted Answer

Integrating mobile devices can provide access to services, alert customers to opportunities or problems, and update information in real-time to ensure it is accurate and relevant. Complementing services and guiding customers are also potential benefits of mobile integration, but they are not mentioned in the question. Concealing information is not a desirable outcome of mobile integration.

Question 17

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

With the rise of e-commerce and digital technologies, logistics services have to ensure that they can compete with the speed and efficiency of online communication and data transfer. As a result, physical logistics providers are now competing with telecommunications services to provide faster and more reliable delivery options.

Question 18

Franchisors usually seek to exercise control over all aspects of the service performance through tightly defined ____________.
A)service standards
B)procedures
C)scripts
D)physical presentations
E)all of the above

Accepted Answer

Franchisors typically seek to exercise control over all aspects of the service performance through tightly defined service standards, procedures, scripts, and physical presentations. This level of control helps to ensure consistency and quality across all franchise locations.

Question 19

When there is a high degree of customer interaction required,the most suitable way to enter international markets is through __________.
A)exporting directly
B)licensing
C)foreign direct investment
D)franchising
E)joint venture

Accepted Answer

Foreign direct investment (FDI) is most suitable when high customer interaction is required, as it allows a company to have full control over operations and maintain close relationships with customers.

Question 20

Which of the following is NOT one of the factors that encourage extended operating hours?
A)Availability of employees to work during "social" hours.
B)Economic pressure from consumers.
C)Changes in laws.
D)Economic incentives to improve the use of assets.
E)Automated self-service facilities.

Accepted Answer

Extended operating hours are often encouraged by economic pressures, changes in laws, economic incentives, and automation, but not by the availability of employees to work during "social" hours, which typically refers to standard working hours.

Quiz 5: Distributing Service Through Physical and Electronic Channels

Knowledge-based services should expand into overseas markets through mergers and acquisitions.

All of the factors below are luring customers into virtual stores EXCEPT ____________.

An ongoing problem of franchising is that when franchisees gain experience,they may start to feel that they should not be paying the various fees to the franchisor.

_______________ is a key driver of channel choice.

____________ 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.

The interesting innovations for service delivery arising from the Internet are all of the following EXCEPT _____________.

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

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

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

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

When customers visit the service site,which factor/(s) must be considered in the design of the service?

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

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.

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

A truck stop is a good example of a ____________.

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.

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

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

When there is a high degree of customer interaction required,the most suitable way to enter international markets is through __________.

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