Deck 5: Distributing Service Through Physical and Electronic Channels

Question 1

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

Answer 1

False

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

Answer 2

D

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.

Answer 3

True

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

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

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

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.

Question 8

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

Question 9

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

Question 10

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

Question 12

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

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.

Question 14

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

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

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

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.

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

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

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.

Question 21

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

Question 22

List the five factors that encourage extended operating hours.

Question 23

Describe arbitrage in the context of service provider pricing.

Question 24

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

Question 25

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

Question 26

Aggreko has experience in all the following kinds of situation except __________.

A)restoring power to cyclone devastated towns
B)providing temporary capacity for a power-generating plant
C)providing shore-based source of power when a ship is docked at a remote port
D)clearing out the debris after a fire in a resident's home
E)drying out a hotel that has been damaged by water due to a hurricane

Question 27

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

Question 28

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

Question 29

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

A)Subway
B)Royal Sporting House
C)Barnes & Noble
D)Tiffany
E)Pier One Imports

Question 30

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

Question 31

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

Question 32

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 33

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

Question 34

______________ is an example of a service where the main mode of delivery is for the service provider to go to their customers.

A)Banyan Tree Resorts
B)Barnes and Nobles
C)Royal Flying Doctor
D)Starbuck
E)Dunkin' Donuts

Question 35

Discuss the roles that intermediaries play for service organizations.

Question 36

Which one of the following methods is NOT a banking service that can be delivered remotely?

A)Face-to-face.
B)Internet.
C)Mobile phone.
D)Call centers.
E)All of the above are bank service delivery methods.

Question 37

Give an example of a service with a locational constraint.

Question 38

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

Question 39

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

Question 40

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 41

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

Question 42

Give an example of a database service.

Question 43

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

Question 44

What are the three options for entering international markets?

Question 45

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