Essentials of Services Marketing 2nd Edition by Jochen Wirtz – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Chapter 5

Distributing Service through Physical and Electronic Channels

 

 

GENERAL CONTENT

Multiple Choice Questions

 

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

(e; Moderate; p. 125)

 

2. _______________ is a key driver of channel choice.
3. Risk reduction
4. Convenience
5. Colorful photos of the product
6. Internet access
7. Lower prices

(b; Moderate; p. 128)

 

3. A truck stop is a good example of a ____________.
4. centralized control center
5. single-source facility
6. k-minus strategy
7. multi-purpose facility
8. cash cow

(d; Moderate; p. 130)

 

4. Which of the following is NOT one of the factors that encourage extended operating hours?
5. Availability of employees to work during “social” hours.
6. Economic pressure from consumers.
7. Changes in laws.
8. Economic incentives to improve the use of assets.
9. Automated self-service facilities.

(a; Moderate; p. 133)

 

 

 

 

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

(b; Moderate; p. 135)

 

6. All of the factors below are luring customers into virtual stores EXCEPT ____________.
7. potential for better prices
8. ease of search
9. broader selection
10. opportunities for networking
11. 24-hour service with prompt delivery

(d; Moderate; p. 137)

 

7. 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.
8. Access; alert; update
9. Complement; alert; conceal
10. Access; attract; conceal
11. Access; guide; conceal
12. Complement; guide; conceal

(a; Moderate; p. 137)

 

8. ____________ 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.
9. The Internet
10. International trade
11. Franchising
12. Sole proprietorship
13. Limited partnership

(c; Easy; p. 140)

 

 

 

9. Franchisors usually seek to exercise control over all aspects of the service performance through tightly defined ____________.
10. service standards
11. procedures
12. scripts
13. physical presentations
14. all of the above

(e; Easy; p. 140)

 

10. When there is a high degree of customer interaction required, the most suitable way to enter international markets is through __________.
11. exporting directly
12. licensing
13. foreign direct investment
14. franchising
15. joint venture

(c; Moderate; p. 142)

 

 

True/False

 

11. 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.

(False; Moderate; p. 125)

 

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

(True; Moderate; p. 125)

 

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

(True; Easy; p. 127)

 

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

(True; Moderate; p. 128)

 

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

(False; Moderate; p. 128)

 

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

(True; Moderate; p. 129)

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

(False; Moderate; p. 130)

 

18. 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.

(False; Easy; p. 140)

 

19. 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.

(True; Easy; p. 140)

 

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

(False; Moderate; p. 143)

 

 

Short Answer

 

21. List the six options for service delivery (three natures of interaction between the customer and service organization; two availabilities of service outlets) and provide an example of a service that falls into each category.

 

Single Site                   Multiple Sites

Customer goes to the service organization     theater                         bus service

Service organization comes to customer        house painter               mail delivery

Arm’s length                                                   credit card                   telephone

(Moderate; p. 125)

 

22. Describe arbitrage in the context of service provider pricing.

 

Arbitrage in service refers to customers taking information or benefits from an expensive service and then placing an order with another, less-expensive service.

(Challenging; p. 129)

 

23. Give an example of a service with a locational constraint.

 

Ski resorts need to be in the mountains (beach resorts need to be at the beach).

(Moderate; p. 131)

 

 

 

 

 

 

24. List the five factors that encourage extended operating hours.

 

Economic pressure from consumers, changes in laws, economic incentives to improve the use of assets, availability of employees to work during “unsocial” hours,

and automated self-service facilities.

(Challenging; p. 133)

 

25. List two of the three service delivery innovations facilitated by technology that are described in the chapter.

 

1) Development of “smart” mobile phones and PDAs, and Wi-Fi high-speed Internet, 2) usage of voice recognition technology, and 3) commercialization of smart cards containing microchips that store detailed customer information.

(Moderate; p. 121)

 

 

Essay

 

26. Describe the three ways information-based services can be distributed internationally and give an example of each.

 

Information-based services can be exported to a local service factory. Movies made in the United States are often shown in other countries. Customers can also be imported to receive information-based services, as in the case of universities. The other way information-based services can be distributed internationally is via telecommunications export and then local transformation. This is how major credit cards like Visa are able to offer customers financial services abroad.

(Moderate; p. 125)

 

27. Discuss the roles that intermediaries play for service organizations.

 

Often, supplementary services are outsourced to intermediaries. This intermediary has to complete the offering as experienced by the customer, and ensure that it is as similar to the entire experience offered by the original company. Each element offered by the intermediary needs to fit the overall service concept to create a consistent and seamless branded service experience.

(Moderate; p. 139)

 

 

 

 

 

APPLICATION CONTENT

Multiple Choice Questions

 

28. ______________ is an example of a service where the main mode of delivery is for the service provider to go to their customers.
29. Banyan Tree Resorts
30. Barnes and Nobles
31. Royal Flying Doctor
32. Starbuck
33. Dunkin’ Donuts

(c; Moderate; p. 125)

 

29. Aggreko has experience in all the following kinds of situation except __________.
30. restoring power to cyclone devastated towns
31. providing temporary capacity for a power-generating plant
32. providing shore-based source of power when a ship is docked at a remote port
33. clearing out the debris after a fire in a resident’s home
34. drying out a hotel that has been damaged by water due to a hurricane

(d; Moderate; p. 126)

 

30. Which one of the following methods is NOT a banking service that can be delivered

remotely?

1. Face-to-face.
3. Mobile phone.
4. Call centers.
5. All of the above are bank service delivery methods.

(a; Moderate; p. 128)

 

31. Firms like Dunkin’ Donuts and Subway sharing space with quick service restaurants is an example of a(n) ____________.
32. single source market
33. economy of scale
34. ministore
35. economy of scope
36. multi-brand strategy

(c; Moderate; p. 130)

 

32. Which of the following is an example of a franchised service firm?
33. Subway
34. Royal Sporting House
35. Barnes & Noble
36. Tiffany
37. Pier One Imports

(a; Moderate; p. 140)

True/False

 

33. Taco-Bell’s K-Minus strategy is an example of an innovation in locating in multi-purpose facilities.

(False; Moderate; p. 130)

 

34. San Francisco’s BART service helps to overcome the locational constraint of having the airport sited in a far away place.

(True; Moderate; p. 131)

 

35. First Direct is an example of a bank with too many branches.

(False; Moderate; p. 136)

 

36. First Direct describes itself as the largest virtual bank in the world.

(True; Moderate; p. 136)

 

37. Yellow pages has come up with a service that gives an SMS price alert when a price level of a stock is reached.

(False; Moderate; p. 138)

 

Short Answer

 

38. Give an example of a firm where the service provider visits the customers.

 

Compass Group, the largest food service organization in the United Kingdom and Ireland.

(Moderate; p. 125)

 

39. What kind of service can UPS offer to its B2B and B2C clients?

 

It can store and arrange for express delivery of spare parts for aircraft (B2B delivery). They can pick up defective cell phones from customers’ homes and return the repaired phone to the customer (B2C pick up and delivery).

(Challenging; p. 127)

 

40. Give two examples of firms that locate themselves in multi-purpose facilities.

 

1) Laundromats, toilets, ATMs internet access, restaurants and inexpensive hotels in at truck stops 2) Oil companies with small retail stores that sell car supplies, food, and household products.

(Moderate, p. 130)

 

 

 

 

41. What are the three options for entering international markets?

 

Export the service concept, using asset light strategies, having foreign direct investment.

(Moderate; p. 142)

 

42. Give an example of a database service.

 

Thomson Reuter’s Social Science Citation Index-related services.

(Easy; p. 143)

 

Essay

 

43. Describe Aggreko’s core business with specific reference to which of the six service delivery options they employ.

 

Aggreko describes itself as “The world leader in temporary utility rental solutions.” They provide mobile generators, oil-free air compressors, and temperature control devices to businesses and governments around the globe. They would be categorized as “Service organization comes to customer” and “Multiple Sites” because they maintain 100 depots in 28 countries, while serving customers in 60 countries.

(Moderate; p. 126)

 

44. Describe the key drivers of how consumers choose between personal, impersonal, and self-service channels.

 

Complex and high-perceived risk services, people tend to rely on personal channels.  Higher confidence and knowledge about a service and/or the channel are more likely to lead to use of impersonal and self-service channels. Customers who look for the instrumental aspects of a transaction prefer convenience that also leads to impersonal and service channels. Customers with social motives tend to use personal channels. The most convenient channel is also the most likely to be selected.

(Challenging; p. 128)

 

45. How does the control of IP and sources of value creation, as well as the degree of customer interaction affect international market entry?

 

Where a firm’s IP and value creation sources can be protected and low customer contact interaction is required, the company can just export the service. However, if both are at moderate levels, entrance to international markets can be via licensing, franchising and joint venture. Success is determined by branding, having a global customer base, and global resources, capabilities and networks. For services where added value comes mainly from skills and knowledge of the service provider, and a high degree of customer interaction is needed to deliver value, the most effective way to enter a new market is through foreign direct investment by setting up a branch office, a subsidiary or through mergers and acquisitions.

(Challenging; p. 143)