Deck 5: Distributing Services Through Physical and Electronic Channels

Question 1

Which of the following is an example of an economic incentive to improve asset utilization?

A) Fixed costs are relatively easy to cover because not much capital is tied up in service facilities
B) Incremental costs of extended hours may be covered by increased revenue and decreased crowding
C) Advertising expenditures can be reduced because of the substantial increases in positive word-of-mouth
D) Workers are relatively less expensive when they work more hours
E) The cost to keep lights on and equipment running is not easily recouped by a few extra patrons.

Answer 1

B

Question 2

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

Answer 2

False

Question 3

What three interrelated elements does distribution embrace in a typical sales cycle?

A) Information and process flow, promotion flow, and place flow.
B) Information and promotion flow, negotiation flow, and product flow.
C) Product flow, price flow, and place flow.
D) Product flow, promotion flow, and place flow.
E) Process flow, promotion flow, and place flow.

Answer 3

B

Question 4

Banks seeking to move into investment services will often act as the distributor for mutual fund products created by an investment firm that lacks extensive distribution channels of its own.

Question 5

A local presence may be necessary when exporting information-based services for which of the following reasons?

A) Appeasing local citizens.
B) Conducting secondary research.
C) Building personal relationships.
D) Bargaining for cheaper facilities.
E) Restructuring out of date systems.

Question 6

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

Question 7

____________ 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

Question 8

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

Question 9

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

Question 10

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

Question 11

Which of the following is NOT listed as a factor in favoring adoption of transnational strategies?

A) Market
B) Language
C) Competition
D) Technology
E) Cost

Question 12

People, possession, and information-based services have strikingly similar requirements on an international distribution strategy.

Question 13

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 legislation.
D) Economic incentives to improve asset utilization.
E) Automated self-service facilities.

Question 14

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.

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

The Internet is superior to traditional channels because ____________.

A) costs are much lower when there is no physical location.
B) the Internet is always open for business, whereas traditional channels may have limited hours.
C) more customers will eventually access the Internet than will use traditional channels.
D) it's better able to help researchers collect data on consumer information and search behaviors.
E) it can distribute both products and services much faster.

Question 21

DHL is known for using a single transport mode to create its logistics solutions for its global customer base.

Question 22

Being open on Sunday is part of Chick-fil-A's value strategy.

Question 23

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

Question 24

Firms like Dunkin' Donuts and Subway sharing space with quick service restaurants is an example of a(n) ____________.

A) single source market
B) economy of scale
C) ministore
D) economy of scope
E) multi-brand strategy

Question 25

Which one of the following methods is NOT a banking service that can be delivered
a. Visit a wealthy customer's home
b. Internet.
c. Mobile phone.
d. Call centers.
e. ATM

Question 26

Give an example of a service with a locational constraint.

Question 27

A key driver of Swissôtels & Resorts online booking success is the hotel's "Best Rate Guarantee."

Question 28

Discuss the impacts of the cost globalization driver on people processing, possession processing, and information-based processing service categories.

Question 29

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

Question 30

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

Question 31

Give an example of a firm whose core service location is severely limited.

Question 32

An example of a core service, whose physical distribution is severely restricted is ____________.

A) McDonald's
B) Gold's Gym
C) Club Med
D) Accenture
E) Sun Microsystems

Question 33

Describe arbitrage in the context of service provider pricing.

Question 34

List three ways that Starwood Hotels & Resorts Worldwide manages customer relationships and reservations.

Question 35

List the five factors that encourage extended operating hours.

Question 36

Elaborate statistical analysis, in the form of ____________, is sometimes used to aid decisions on where to locate supermarkets and similar large stores relative to prospective customers' homes and workplaces.

A) binary regression
B) cluster analysis
C) structural equation models
D) gravity models
E) predictive models

Question 37

What three factors make investments in airport retailing appealing?

Question 38

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

Question 39

Which of the following is an example of a franchised service firm?

A) Dunkin' Donuts
B) Wal-Mart
C) Barnes & Noble
D) Starbucks
E) Pier One Imports

Question 40

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.

Question 41

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

Question 42

Discuss the impacts of the competition globalization driver on people processing, possession processing, and information-based service categories. Give at least one example of a firm that falls into each category.

Question 43

What are the two main options for exporting people processing services?

Question 44

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

Question 45

Give an example of a firm that imports customers to its service facility.