Essentials of Services Marketing 3rd Edition By Jochen Wirtz – Test Bank

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Sample Questions Posted Below

 

 

 

 

 

Chapter 5

Distributing Service through Physical and Electronic Channels

 

 

GENERAL CONTENT

Multiple Choice Questions

 

  1. Three flows that address what is being distributed are:
    1. information and promotion flow, negotiation flow, product flow
    2. electronic channel flow, negotiation flow, price flow
    3. product flow, place flow, price flow
    4. information flow, negotiation flow, distribution flow

(a, Easy)

 

  1. One of the following is NOT an example of distribution when service comes to the customer.
  1. a credit card company
  2. house painting
  3. mobile car wash
  4. mail delivery

(a, Moderate)

 

  1. Important factors that attract customers to online services are:
  2. convenience
  3. ease of search
  4. broader selection
  5. 24/7 prompt service
  6. All of the above

(e, Moderate)

 

  1. In order to develop a location strategy for a distribution channel, firms must consider _____________.
  2. customer needs
  3. customer expectations
  4. competitive activity
  5. All of the above
  6. None of the above

(d, Challenging)

 

 

  1. _____________ is a key component of the value proposition of both mini-stores and multi-purpose facilities.
  2. Accessibility
  3. Convenience
  4. Competitor activity
  5. Price consideration

 

(a; Moderate)

 

  1. Key factors determining the opening hours of a service facility are ____________.
  1. Customer needs
  2. Economics of opening hours
  3. Competitor opening hours
  4. Only a & b
  5. Only b & c

(d, Easy)

 

  1. 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.
  2. Access; alert; update
  3. Complement; alert; conceal
  4. Access; attract; conceal
  5. Access; guide; conceal
  6. Complement; guide; conceal

(a; Moderate)

 

  1. ____________ 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.
  2. The Internet
  3. International trade
  4. Franchising
  5. Sole proprietorship
  6. Limited partnership

(c; Easy)

 

  1. Industry drivers for transnational strategies include ____________.
  2. market, technological and logistical drivers
  3. cost, government and technology drivers
  4. competition, market, and online drivers
  1. competition, government, and logistical drivers

(b, Moderate)

 

  1. The following is an example of a highly regulated service market where it is difficult for international players to enter.
  2. Healthcare
  3. Logistics
  4. Advertising
  5. Fast food

(a, Moderate)

 

 

True/False

 

  1. 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)

 

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

(True; Moderate)

 

  1. Many core services require a physical location, and this severely restricts distribution.

(True; Easy)

 

  1. Customers who look for functional aspects of a transaction prefer more convenience .

(True; Easy)

 

  1. For services that are complex and have a high perceived risk, people tend to rely on personal channels.

(True; Moderate)

 

  1. Channel convenience is essential for successful delivery of a service through multiple channels.

(False; Easy)

 

  1. While selecting a tactical distribution site, convenience is more important than competitors in that area.

(False; Moderate)

 

  1. Intermediaries are most often used in core service and not in supplementary services.

(False; Moderate)

 

  1. A firm can export a service if its intellectual property and value-creation sources can be protected.

(True; Easy)

 

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

(True; Moderate)

 

 

Short Answer

 

  1. 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)

 

  1. What is channel integration?

 

Channel integration is when companies use smart devices as well as traditional channels to successfully deliver service through multiple channels.

(Challenging)

 

  1. Which supplementary services from the Flower of Service can be conducted remotely?

 

Information, consultation, order-taking, billing, and payment can all be transmitted using online channels.

(Moderate)

 

 

  1. 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)

 

  1. 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)

 

 

Essay

 

  1. 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)

 

  1. 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)

 

 

 

 

 

APPLICATION CONTENT

Multiple Choice Questions

 

  1. ______________ is an example of a service that has become global within a few years .
  2. FedEx
  3. Starbucks
  4. DHL
  5. Airbnb
  6. Dunkin’ Donuts

(d; Easy)

 

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

(d; Moderate)

 

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

remotely?

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

(a; Moderate)

 

  1. Firms like Dunkin’ Donuts and Subway sharing space with quick service restaurants is an example of a(n) ____________.
  2. single source market
  3. economy of scale
  4. ministore
  5. economy of scope
  6. multi-brand strategy

(c; Moderate)

 

  1. Which of the following is an example of a franchised service firm?
  2. Subway
  3. Royal Sporting House
  4. Barnes & Noble
  5. Tiffany
  6. Pier One Imports

(a; Moderate)

True/False

 

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

(False; Moderate)

 

  1. Starwood Hotels & Resorts has global sales offices around the world to manage relationships with key global accounts.

(True; Easy)

 

  1. Frequent flyers are often willing to use special counters to avoid queues.

(False; Easy)

 

  1. Customers respond well to services that allow them to make reservations with ease and convenience.

(True; Easy)

 

  1. Starbucks uses GIS software as a part of its site selection.

(True; Easy)

 

Short Answer

 

  1. Provide examples of services, which require customer visiting the site, and services where the provider goes to customer.

 

Customer visiting the service site: dental clinic, beach resort

Service provider goes to customer: tree pruning service, Domino’s Pizza delivery

(Moderate)

 

  1. How does Emirates Airline use different channels for varying customer groups?

 

Emirates Airline uses self-check-in for clients who are more confident and knowledgeable about travel with them.

(Challenging)

 

  1. 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)

 

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

 

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

(Moderate)

 

  1. What problems can a company like Uber most likely face in entering international markets?

 

The biggest challenge for them is regulatory roadblocks. Incumbents of the industry are used to these challenges and fight back by lobbying regulators in many markets.

(Easy)

 

Essay

 

  1. 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)

 

  1. 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)

 

  1. 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)

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