Deck 4: Developing Service Products: Core and Supplementary Elements

Question 1

Information processing services tend to be the most demanding in terms of supplementary elements.

Answer 1

False

Question 2

Style changes represent the simplest type of innovation, typically involving no changes in either process or performance.

Answer 2

True

Question 3

To obtain full value from any good or service, customers need relevant information.

Answer 3

True

Question 4

____________ supply the central, problem-solving benefit that customers seek.

A) Core products
B) Supplementary services
C) Delivery processes
D) Sustaining processes
E) Conditional services

Question 5

A company's ____________ helps to determine which supplementary services should be included.

A) location
B) delivery system
C) key service representative
D) service atmosphere
E) market positioning strategy

Question 6

____________ represent a special type of order taking that entitles customers to a specific unit of service.

A) Suggestions
B) Reservations
C) Trackers
D) Repossessions
E) Contracts

Question 7

____________ augment the core product, both facilitating its use and enhancing its value and appeal.

A) Core products
B) Supplementary services
C) Delivery processes
D) Sustaining processes
E) Conditional services

Question 8

Which of the following is NOT one of the eight basic steps to developing and delivering a branded customer experience?

A) Target profitable customers, employing behavior segmentation rather than demographics.
B) Achieve a superior understanding of what your targeted customers value.
C) Design facilities that delight your customers and reduce complaints.
D) Give employees the skills, tools, and supporting processes needed to deliver the defined customer experience.
E) Make everyone a brand manager.

Question 9

Hospitality represents a more subtle approach to consultation because it involves helping customers better understand their situations.

Question 10

At it's simplest, ____________ consists of immediate advice from a knowledgeable service person in response to the request: "What do you suggest?"

A) billing
B) payment
C) consultation
D) hospitality
E) selling

Question 11

All service elements must be delivered in a prescribed sequence.

Question 12

The search for competitive advantage rarely centers on supplementary services.

Question 13

Which of the following is NOT a category of new service innovation?

A) Supplementary service innovations
B) Product line extensions
C) Major product innovations
D) Process line extensions
E) Self-sustaining innovations

Question 14

Which of the following is NOT considered an example of a hospitality element?

A) Greeting
B) Toilets and washrooms
C) Advice
D) Food and beverages
E) Transport

Question 15

Consumption of the core product is sandwiched between use of supplementary services that are needed earlier or later in the delivery sequence.

Question 16

Service marketers need to create a coherent offering in which each element is compatible with the others and all are mutually reinforcing.

Question 17

The three factors that contribute the most to achieving success of new service development in order of importance are:

A) Market research factors, organizational factors, market synergy
B) Market synergy, organizational factors, market research factors
C) Organizational factors, market synergy, market research factors
D) Market synergy, market research factors, organizational factors
E) Market research factors, market synergy, organizational factors

Question 18

Core products are always surrounded by the same eight supplementary elements as they evolve.

Question 19

"Exceptions" involve supplementary services that fall outside the routine of normal service delivery.

Question 20

The order-taking process should be ____________, ____________, and ____________ so that customers do not waste time and endure unnecessary mental physical effort.

A) short; curt; abrupt
B) simple; slow; effortful
C) short; sweet; ineffective
D) powerful; simple; abrupt
E) polite; fast; accurate

Question 21

Give two examples of enhancing services.

Question 22

Give an example of a consultation element.

Question 23

Which of the following is an example of a special request in advance of service delivery?

A) Dietary requirements
B) Complaints
C) Warranties
D) Refunds
E) Suggestions

Question 24

What three components must the value proposition address and integrate?

Question 25

Providers of more intangible services offer a "menu" of products, representing carefully prescribed value-added supplementary service built around the core offering.

Question 26

Singapore Airlines Raffles Class is an example of a(n) ____________.

A) branded house
B) endorsed brand
C) house of brands
D) sub-brand
E) clear strategy

Question 27

Discuss the three factors that discriminate between successful and unsuccessful new financial services.

Question 28

The term "branded house" is used to describe firms like Virgin Group, that uses distinct individual brand names to cover a range of diverse service offerings in unrelated fields.

Question 29

Describe the four types of "exceptions" listed in the chapter.

Question 30

____________ came up with the novel idea of an arrivals lounge for its terminals to serve passengers arriving early in the morning after a long overnight flight from the Americas, Asia, Africa, and Australia.

A) Singapore Airlines
B) British Airways
C) Delta Airlines
D) Continental Airlines
E) Trans World Airlines

Question 31

Westin hotels are wholly owned subsidiaries of Marriott Group that are usually not identified as part of Marriott to protect Westin's exclusive image.

Question 32

Airlines make use of ____________ systems, based on telephone or Web site reservations. This provides enormous cost savings for airlines because it reduces ____________.

A) Ticketless; gross revenue charges
B) Partial; gross revenue charges
C) Ticketless; travel agent commissions
D) Partial; travel agent commissions
E) Ticketless; net revenue charges

Question 33

Singapore Airlines is well recognized for both their superior meals and attentive cabin crew.

Question 34

Firms actually benefit from late payments, because they reduce the amount of accounts payable.

Question 35

Give two examples of billing elements.

Question 36

Give two examples of facilitating services.

Question 37

Which of the following is NOT one of British Airways seven distinct air travel products?

A) Deluxe service (First Class)
B) Club World (Business Class)
C) Club Britain (Business Class)
D) Club Europe (Business Class)
E) Euro-Traveler (Economy Class)

Question 38

What four things must the design of the service offerings address?

Question 39

What are the two roles of supplementary services?

Question 40

List three examples of order-taking elements in order entry.

Question 41

Discuss how multi-brand strategies can succeed and what the strategies should be based on in the hotel industry.

Question 42

Explain how the core product, supplementary services, and delivery processes are integrated in the context of an overnight hotel stay.

Question 43

Why do firms benefit from prompt payments?

Question 44

Draw the flowchart that might be involved in eating in a fast-food restaurant.

Question 45

Explain where Sun Microsystems falls on the spectrum of branding alternatives and discuss what their strategy involves.