Question 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.
A) Access; alert; update
B) Complement; alert; conceal
C) Access; attract; conceal
D) Access; guide; conceal
E) Complement; guide; conceal

Accepted Answer

Integrating mobile devices can be used to access services, alert customers to opportunities or problems, and update information in real-time. Option A is the only choice that accurately describes all three purposes. Option B is incorrect as it suggests that mobile devices can be used to conceal information. Option C is partially correct as mobile devices can be used to attract customers, but it does not accurately describe the other purposes. Option D is incorrect as it suggests that mobile devices can be used to guide customers towards concealing information, which is not a valid purpose. Option E is partially correct as mobile devices can be used to guide customers, but it does not accurately describe the other purposes.

Question 2

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.

Accepted Answer

False

Question 3

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.

Accepted Answer

A

Question 4

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

Accepted Answer

The other factors listed (potential for better prices, ease of search, broader selection, and 24-hour service with prompt delivery) are all common factors that attract customers to virtual stores. However, opportunities for networking are not necessarily a significant factor in luring customers to virtual stores.

Question 5

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.

Accepted Answer

Convenience of the location and operational hours are key considerations in the design of a service site. The service should be easily accessible for customers and the operational hours should be convenient for their schedules. The cost of the service is important, but it is not necessarily a factor in the design of the service site.

Question 6

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

Accepted Answer

Service facilities, such as call centers or data centers, often require high fixed costs to establish and operate. To achieve economies of scale and spread these costs across a larger volume of output, these facilities must be located where they can serve a large and concentrated market. This may limit the choice of location for these facilities.

Question 7

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

Accepted Answer

Franchisors exercise control over all aspects of service performance including service standards, procedures, scripts, and physical presentations, in order to maintain consistency across all franchise locations.

Question 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.
A) The Internet
B) International trade
C) Franchising
D) Sole proprietorship
E) Limited partnership

Accepted Answer

Franchising allows for the expansion of a service concept to multiple sites without the need for large amounts of investment capital. The franchisor provides the franchisee with the necessary tools, training, and support to operate a business using the established service concept and brand. The franchisee pays an initial fee and ongoing royalties to the franchisor in exchange for the right to use the brand and receive ongoing support. This allows for rapid expansion while minimizing the risk and cost associated with company-owned and managed sites.

Question 9

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

Accepted Answer

While electronic channels offer more convenience, some customers may still prefer the personal touch and high-contact delivery environments. Furthermore, some products or services may not be feasible or effective through electronic channels alone. Therefore, not all customers will voluntarily shift to new electronic channels.

Question 10

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.

Accepted Answer

As franchisees gain experience and become successful in their businesses, they may start to question the value of the fees they are paying to the franchisor. This is a common problem in franchising.

Question 11

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

Accepted Answer

A truck stop is a multi-purpose facility that offers a variety of services and amenities to truck drivers, such as fuel, food, restrooms, showers, and parking. It serves as a one-stop-shop for truck drivers to meet their needs while on the road.

Question 12

The four interesting innovations for service delivery arising from the Internet are all of the following EXCEPT _____________.
A) creation of websites as a delivery channel for information-based services
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

Accepted Answer

DVDs are not directly related to service delivery on the Internet, as they are physical storage devices and not an online delivery channel.

Question 13

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

Accepted Answer

A ministore is typically a small retail store that specializes in a specific product category, while a service factory involves creating a system for efficient and effective service delivery. While a ministore may provide services as well as retail products, it is not necessarily considered a service factory.

Question 14

_______________ is a key driver of channel choice.
A) Risk reduction
B) Convenience
C) Colorful photos of the product
D) Internet access
E) Lower prices

Accepted Answer

Convenience is a key driver of channel choice as consumers prefer to shop from channels that are easy and convenient for them to access. This could include channels like online shopping or stores that are located in close proximity to their homes or workplaces. While factors like lower prices and colorful product photos can influence purchase decisions, convenience is a primary factor that affects which channel consumers choose to make their purchases from.

Question 15

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

Accepted Answer

With the rise of e-commerce and online shopping, customers expect faster delivery times which has forced physical logistics services to adapt and compete with the instantaneous delivery capability of telecommunications services that provide information-based products.

Question 16

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.

Accepted Answer

Building personal relationships is important when exporting information-based services, as it helps to establish trust and credibility with local partners and customers. This can lead to smoother business operations and increased success in the international market. Appeasing local citizens, conducting secondary research, bargaining for cheaper facilities, and restructuring out of date systems may not necessarily require a local presence when exporting information-based services.

Question 17

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.

Accepted Answer

This statement is not necessarily true for all service firms. While there may be some cases where franchisees may be less motivated or less concerned about quality, there are also many successful service firms that have used franchising as a growth strategy with highly motivated and quality-focused franchisees. Success largely depends on factors such as the franchisor's franchisee selection and training processes, ongoing support, and effective communication and collaboration between the franchisor and franchisees.

Question 18

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

Accepted Answer

This is because corporate customers often require specific services or solutions tailored to their business needs, which may involve examining or assessing their operations on site. In contrast, individuals typically seek general services that do not require a physical visit from the service provider.

Question 19

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

Accepted Answer

People, possession, and information-based services often have different requirements on an international distribution strategy due to their inherent characteristics. People-based services (like education or healthcare) often require the physical presence of the customer, possession-based services (like retail or repair services) involve tangible products, and information-based services (like consulting or software) can often be distributed digitally, leading to varying strategic needs.

Question 20

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

Accepted Answer

With advances in telecommunications, many services are shifting to arm's length transactions, where the service is provided remotely without the need for face-to-face interaction.

Quiz 5: Distributing Service Through Physical and Electronic Channels

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.

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.

Which of the following is NOT one of the factors that encourage extended operating hours?

All of the factors below are luring customers into virtual stores EXCEPT ____________.

When customers visit the service site, which factor/s) must be considered in the design of the service?

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

Franchisors usually seek to exercise control over all aspects of the service performance through tightly defined ____________.

____________ 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.

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

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.

A truck stop is a good example of a ____________.

The four interesting innovations for service delivery arising from the Internet are all of the following EXCEPT _____________.