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Chapter1:IntroductiontoServicesMarketingQUESTIONBANKMultipleChoiceQuestionsGENERALCONTENTThereareseveralreasonswhythemarketingservicessectorisincreasinginalmostallcountriesaroundtheworld.Whichofthefollowingisnotoneofthecontributingreasons?Theknowledge-basedindustriesaregrowing.Countriesarelessdependentonagriculture.Somemanufacturingfirmsarenowfocusingonmarketingservicesaswell.Theconstructionandmanufacturingindustriesarebooming.Sernmentpolicies.socialchanges.globaleconomicchange.businesstrends.Thefollowingareallbusinesstrendstransformingservicemarketsexceptapushtoincreaseshareholdervalue.growthoffranchising.newagreementsontradeinmarketservices.focusonqualityandcustomersatisfaction.Thethreebroadcategoriesofthingsprocessedinservicesare,and.people;physicalobjects;datapeople;organizations;documentsphysicalobjects;data;documentsphysicalobjects;organizations;dataThetwoconsiderationsusedtocategorizeserviceareandpromotionversusplace;priceversusproductplaceversustime;peopleversusideasplaceversuspeople;timeversusmoneypeopleversuspossession;tangibleversusintangiblecommercials,freecheckingoffers,andnotificationsofaccountchangesinthemail.Physicalenvironmentaspectsincludefacilitylayoutsandtellersdressedinbusinessattire.ProcesselementsincludeefficientandcorrecthandlingoftransactionsbybothemployeesandATMs.Finally,peopleaspectsincludefriendlinessoftellersandothercustomerservicerepresentativesaswellasothercustomers.Ausefulwaytodistinguishbetweengoodsandservicesistoplacethemonacontinuumfromto.practical;impracticaltangible-dominant;intangible-dominantlow;highprepared;unpreparedCustomersbeingturneddownorhavingtowaitisanimplicationofwhichaspectofservices?Peoplemaybeapartoftheserviceexperience.Intangibleelementsusuallydominatevaluecreation.Servicesareoftendifficulttovisualizeandunderstand.Mostservicescannotbeinventoried.Whichofthefollowingisanexampleofco-production?WithdrawingfromATM.Eatingfast-food.Buyingastereo.Sellingitemsone-Bay.ThethreeadditionalPsofservicesmarketingthatextendtheoriginalfourPsofmarketingare,,duct;price;place;promotionprospects;process;people;promotionphysicalenvironment;process;peopleprosperity;process;people;promotionTheserviceframeworkfordevelopingeffectiveservicestrategiesexcludesunderstandingserviceproducts,consumersandmarkets.managingthecompetitivelandscape.applyingthefourPsofmarketingtoservices.developingcustomerrelationships.APPLICATIONCONTENTWhichofthefollowingcomesunderdefinedspaceandfacilityrentals:a.Aseatinanaircraft.Usingtollroads.Rentingconstructionequipment.UsingtelecommunicationsnetworkCustomersbeingturneddownorhavingtowaitisanimplicationofwhichaspectofservices?Peoplemaybeapartoftheserviceexperience.Intangibleelementsusuallydominatevaluecreation.Customersmaybeinvolvedinco-production.Mostservicescannotbeinventoried.Amovietheaterseatisanexampleof.rentingdurablegoods.engagingcustomerscloselyintheserviceprocess.rentingportionsofalargerphysicalentity.thecentralityoftimetoservices.Educationisanexampleofa/anservice.people-processinginformation-processingmentalstimulus-processingpossession-processingphysical-processingServicefirmshavereservationssystembecauseIntangibleelementsusuallydominatevaluecreation.Mostserviceproductscannotbeinventoried.Distributionmaytakeplacethroughnon-physicalchannels.Customersmaybeinvolvedinco-production.Alloftheabove.Whichofthefollowingisthebestexampleofasupplementaryservice?Appliancemaintenance.Hotelroomrental.Fast-foodconsumption.Housecleaning.Landscaping.OnlineeducationalprogramsofferedbytheUniversityofPhoenixareanexampleofrevolutionaryproducts/services.collectiveproducts/services.additionalservices.supplementaryservices.coreproducts/services.True/FelseQuestionsGENERALCONTENTInmosthighlydevelopednations,servicesaccountforbetweenthree-fifthsandfour-fifthsoftheGDP.Typicallyservicejobsarenotwell-paidpositionsandrequirelittleeducation.Whenmigrantsfromdevelopingcountriesmovebacktotheirowncountriesafterlivingandworkingindevelopedcountriesabroad,therewillbeavacuumintheemploymentmarketofdevelopingeconomies.Systemsandnetworkaccess,andusageareanexampleoftheownershipofservices.Othercustomerstypicallydonotimpactthesatisfactionofotherconsumersinservicesettings.Timeisofgreatimportanceinservicessooperationsmanagershavetobeconcernedaboutminimizingcustomerwaitingtime.Marketersshouldnotattempttoshapecustomerrolesandbehaviors.Failuresareinevitableinserviceindustries.Theappearanceofbuildings,landscaping,vehicles,anduniformsprovidetangibleevidenceofafirm'sservicequality.Servicescapeisonlyaconsiderationifcustomershavetoenteraservicefactory.APPLICATIONCONTENTChinaisexperiencingrapideconomicgrowthandthisstimulatesdemandforproductionandbusinessservices.IBMisagoodexampleofafirmthathasshiftedfrommanufacturingintensiveoperationstoserviceintensiveoperations.TheInternetistransferringpowerfromsupplierstocustomers,especially,inconsumermarkets.Servicescanbeoutsourcedtodaytocheaperdestinationsanywhereintheworld.Thebestwaytohelpcustomersvisualizeyourserviceistohighlightcredentials/experienceandeducateconsumerstomakegoodchoices.C.ShortAnswerOuestionsGENERALCONTENTWhatarethefourbroadcategoriesofservices?Whatarethefivebroadcategorieswithinthenon-ownershipframework?Defineservices.Givethefourdistinctcharacteristicsofservices.Whataretheeightcommondifferencesbetweenproductsandservices?Provideanexampleofaservicethatliesateachendofthetangible-dominanttointangible-dominantspectrum.Whatarethethreevitalrolesofpromotionandeducation?APPLICATIONCONTENTGiveanexampleofagovernmentpolicythathasstimulatedthetransformationofaserviceindustry.GiveanexampleofanindustrywheretheInternethastransferredpowerfromsupplierstocustomers.Giveanexampleofaservicethatofferslaborandexpertiserental.Giveanexampleofaservicethatoffersaccesstophysicalenvironmentsasaformofrental.Giveanexampleofanindustrywhereproductionandconsumptionareseparableelements.D.EssayOuestionsGENERALCONTENTDiscusstheforcesthatarechangingtheservicemarkets.GiveanexampleofhowtheInternetischangingthefaceofserviceindustries.Howcanafirmdevelopeffectivemarketingstrategies?APPLICATIONCONTENTDescribethepossibledifferencesincustomerchoicecriteriabetweencarrentalsandoutrightpurchases.Provideanexampleofaserviceindustrywherecustomersareinvolvedincoproductionandexplaintheimplicationsandmarketing-relatedtasksthatwouldbeassociatedwiththatservice.Describethe7'P'sofservicethatwouldbeinvolvedinabankingservice.ANSWERKEYMULTIPLECHOICEQUESTIONSGENERALCONTENT:1-d,2-c,3-c,4-a,5-d,6-b,7-d,8-a,9-c,10-bAPPLICATIONCONTENT:11-a,12-d,13-c,14-c,15-b,16-a,17-eTRUE/FALSEGENERALCONCEPT:1-T,2-F,3-F,4-F,5-F,6-T,7-F,8-T,9-T,10-TAPPLICATIONCONTENT:11-F,12-T,13-T,14-T,15-TSHORTANSWERQUESTIONSGENERALCONTENT:People-processingPossession-processingMentalstimulus-processingInformation-processingRentedgoods,definedspaceandplacerentals,laborandexpertiserental,accesstosharedphysicalenvironments,andsystemsandnetworks:accessandusage.Servicesareeconomicactivitiesofferedbyonepartytoanother.Oftentime-basedperformancesareusedtobringaboutdesiredresultsinrecipientsthemselvesorinobjectsorotherassetsforwhichpurchasersareresponsible.Inexchangefortheirmoney,time,andeffort,customersexpecttoobtainvaluefromaccesstogood,labor,professionalskills,facilities,networks,andsystems.However,theydonotnormallytakeownershipofanyofthephysicalelementsinvolvedinservices._intangibility一heterogeneity(variabilityofquality)-inseparabilityofproductionandconsumptionand一perishability(1)Mostserviceproductscannotbeinventoried,(2)intangibleelementsusuallydominatevaluecreation,(3)servicesareoftendifficulttovisualizeandunderstand,(4)customersmaybeinvolvedinco-production,(5)peoplemaybepartoftheserviceexperience,(6)operationalinputsandoutputstendtovarywidely,(7)thetimefactorfrequentlyassumesgreatimportance,and(8)distributionmaytakeplacethroughnonphysicalchannels.Low一tailoredclothingHigh-InternetbankingProvidingneededinformationandadvice,persuadingtargetcustomerstoconcentrateonthemeritsofaspecificbrandorserviceproducts,andencouragingcustomerstotakeactionatspecifictimes.APPLICATIONCONTENT:De-regulationofthetelecommunicationsindustryhasstimulatedcompetitionandalteredfeestructures.Thetravelindustry.Carrepair,surgery,managementconsultancy,etc.Museums,themeparks,tradeshows,gyms,zoos,skiresorts,golfcourses,tollroads,etc.Drycleaning,lawnmowing,weatherforecasting,etc.D.ESSAYQUESTIONSGENERALCONTENT:Governmentpolicies,socialchanges,businesstrends,globalization,andadvancesininformationtechnologyandcommunicationsareamongthepowerfulforcestransfbnningtoday'sservicemarketsDevelopmentofITandcommunicationsInnovationsinbigdata,cloudcomputing,user-generatedcontent,mobilecommunications,networkingtechnologies,artificialintelligence,andapp-basedself-servicetechnologiesbringservicerevolutionTheInternetistransferringpowerfromsupplierstocustomers,particularly,inconsumermarkets.Forexample,travelagenciesarebeingreplacedbywebsiteslikeOrbitz,Travelocity,andPriceline.Thesesitesallowcustomerstoshoparoundforthebestpriceswithgreaterease.Theyhavechanged,ineffect,thedistributionsystemtofavortheconsumer.Firmsneedtofirststartunderstandingwhytheservicesectorisdevelopingsofast,andwhatforcesaredrivingit.Then,firmsmustunderstandconsumer'sneedandbehavior.Theycandothisusingthethree-stagemodelofserviceconsumptiontoexplorehowcustomersmakedecision,respondtoserviceencountersandevaluateserviceperformance.Afterthat,theyneedtopositiontheirofferingstoensurecommercialviability.Thepositionmustbesodistinctiveanddefensiblethatthefirmcanattractasufficientvolumeofbusinessfromthetargetcustomers.ThenextstepistoapplythefourPsoftraditionalmarketingintoserviceswiththeunderstandingthatservicesrequireattentiontodifferentelementsbecauseservicesaredifferentfromgoods.Atthesametime,firmshavetomanagetheinterfacebetweenthecustomersandtheservicefirms.Hence,therearethreeadditionalPstobemanaged-process,whichincludesbalancingdemandandcapacity,physicalenvironment,andpeople.Finally,inordertobeprofitable,firmsneedtobuildrelationshipswithcustomerstoretaintheirloyalty,handlecustomerfeedbackandhaveservicerecoverysystemsinplace,makesurethatfirmsareproductivebutmaintainstandardsofserviceexcellenceandhaveaculturethatfocusesthefirmonservice-profitchain,whileintegratingthethreekeyfunctionsofmarketing,operationsandhumanresources.APPLICATIONCONTENT:Renterstypicallyreserveaspecificvehicleclassorcategoryratherthanaspecificbrandormodel.Forexample,carrentalcompaniesoffersub-compact,compact,mid-size,andluxurymodels.Thebrandofasub-compactmaybeaVolkswagenBeetleoraGeoMetro.Physicalc
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