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CHAPTER 1: There are several reasons why the services sector is increasing in almost all countries around the world Which is not one of the contributing reasons? a The knowledge-based industries are growing b Countries are less dependent on agriculture c Some manufacturing firms are now focusing on marketing services as well d The construction and manufacturing industries are booming e More companies are outsourcing some of their service components Service markets are shaped by all of the following except a government policies b social changes c global economic change d business trends e advances in information technology The following are all business trends transforming service markets except a push to increase shareholder value b growth of franchising c new agreements on trade in services d marketing emphasis by non-profit organizations e focus on quality and customer satisfaction The three broad categories of things processed in services are , , and a people; physical objects; data b people; organizations; documents c people; data; projects d physical objects; data; documents e physical objects; organizations The two considerations used to categorize service are and a promotion versus place; price versus product b place versus time; people versus ideas c place versus people; time versus money d people versus possession; tangible versus intangible e people versus intangible; tangible versus possession Useful way to distinguish between goods and services is to place them on a continuum from to a practical; impractical b tangible-dominant; intangible-dominant c low; high d reliable; unreliable e prepared; unprepared Which of the following is an example of co-production? a Withdrawing from an ATM b Eating fast food c Touring an aquarium d Buying a stereo e Selling items on eBay Customers being turned away or having to wait is an implication of which aspect of services? a People may be a part of the service experience b Intangible elements usually dominate value creation c Services are often difficult to visualize and understand d Customers may be involved in co-production e Most services cannot be inventoried The three additional Ps of services marketing that extend the original four Ps of marketing are _, _, and _ a product; price; place; promotion b prospects; process; people; promotion c physical environment; process; people d prosperity; process; people; promotion e physical environment; prosperity; planning; process 10 The service framework for developing effective service strategies excludes _ a understanding service products, consumers and markets b managing the competitive landscape c applying the Ps to services d managing the customer interface e implementing profitable service strategies CHAPTER 2: CUSTOMER BEHAVIOUR IN A SERVICES CONTEXT The prepurchase stage begins with perceived risk formation of expectations moments of truth evoked set need arousal Tangible characteristics that customers can evaluate prior to purchase are termed search attributes experience attributes credence attributes satisfaction attributes capital attributes Reliability, ease of use, and customer support are considered search attributes experience attributes credence attributes satisfaction attributes capital attributes Characteristics that customers find hard to evaluate even after consumption are termed search attributes experience attributes credence attributes satisfaction attributes capital attributes CHAPTER 4: DEVELOPING SERVICE PRODUCTS: CORE AND SUPPLEMENTARY ELEMENTS _ facilitate use of the core product and add value and differentiation to the customer's overall experience a Fixed services b Value-added provisions c Marketing theories d Supplementary services e Service providers supply the central, problem-solving benefit that customers seek a Core products b Supplementary services c Delivery processes d Sustaining processes e Conditional services _ 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 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 The order-taking process should be , , and so that customers 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 _ 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 At its simplest, consists of immediate advice from a knowledgeable service person in response to the request: "What you suggest?" a billing b payment c consultation d hospitality e selling 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 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 10 Which of the following is NOT one of the seven categories of new services? 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 29 Customers who visit Giordano outlets are greeted with a cheerful "Hello" and "Thank you" when they enter and leave the store That is an example of a consultation b hospitality c exceptions d courtesy e safekeeping 30 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 31 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 32 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) CHAPTER 5: DISTRIBUTING SERVICE THROUGH PHYSICAL AND ELECTRONIC CHANNELS 38 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 39 is a key driver of channel choice a Risk reduction b Convenience c Colorful photos of the product d Internet access e Lower prices 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 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 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 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 wordof-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 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 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 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 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 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 10 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 11 Service delivery is shifting to arm’s length transactions for many services due to advances in telecommunications.TRUE 12 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 FALSE 13 In general, service providers are more likely to visit corporate customers at their premises than to visit individuals in their homes TRUE 14 Physical logistics services now find themselves competing with telecommunications services This is a result of the instantaneous delivery capability of informationbased products TRUE 15 All customers will eventually voluntarily shift from high-contact delivery environments to new electronic channels FALSE 16 A ministore is a single-site service business that involves creating an innovative service factory FALSE 17 The need for economies of scale often restricts choice of location for service facilities TRUE 18 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 FALSE 19 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 TRUE 20 People, possession, and information-based services have strikingly similar requirements on an international distribution strategy FALSE CHAPTER 6: Setting Prices and Implementing Revenue Management The only function that brings operating revenues into the organization is a marketing b management c finance d accounting e information technology recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services a Break-even analysis b Variable cost c Fixed cost CHAPTER 7: Promoting Services and Educating Customers and represent important ways to add value to a product a Reciprocation; classification b Information; classification c Information; consultation d Reciprocation; consultation e Reciprocation; mediation One approach to training customers, recommended by advertising experts is to a train employees like customers b use radio advertising c show service delivery in action d design palpable service environments e explain service procedures in advance Which of the following is NOT one of the four problems for marketers seeking to promote a service’s benefits described by Banwari Mittal? a Distribution b Abstractness c Generality d Non-searchability e Mental impalpability Which of the following would be classified under generality in intangibility? a Safety b A hamburger c An airline seat d Facility appearance e Expert advice outside peak demand periods poses a serious problem for service industries with , like hotels a Low demand; high fixed costs b Low demand; low fixed costs c High demand; high fixed costs d High demand; low fixed costs e High demand; low variable costs Ads based on strategies are often perceived as more informative than ads a visualization; text-only b expert; power c visualization; affective d utilitarian; text-only e visualization; expert Which of the following represents a broad target audience category? a Donors b Competitors c Employees d Contractors e Franchisers Which of the following is NOT a common educational and promotional objective in service settings? a Build awareness and interest in an unfamiliar service or brand b Reposition a service relative to competing offerings c Familiarize customers with service processes in advance of use d Encourage trial of competing products e Recognize and reward valued customers An example of a form of personal communication is a The internet b Signage c Press conferences d Telemarketing e Gifts 10 Which of the following is NOT a communication task for which marketers use the Internet? a Promoting consumer awareness and interest b Providing information and consultation c Facilitatzing two-way communications with customers through e-mail and chat rooms d Enabling customers to place orders e Reducing service demand through electronic tracking CHAPTER 8: Designing and Managing Service Processes Blueprinting is a more sophisticated version of a linear graphing b flowcharting c Cox & Snell analysis d non-linear graphing e cluster analysis The first step in developing a service blueprint is a to reach a consensus on which activities are more important than others b to identify all the key activities involved in creating and delivering the service c to identify the links between a set of alternative service possibilities d to identify the key employees who will be enacting the service blueprint e to identify the key customers who will be participating in the service The line of divides front-stage activities from backstage activities a service standards and scripts b physical evidence c internal physical interaction d internal IT interaction e visibility Service blueprints , and how these are supported by backstage activities and systems a enhance servicescape features such as furniture and lighting b complicate employee handling of special requests c clarify the interactions between customers and employees d enhance customer technical know-how e diminish customer complaining capacity Which of the following is NOT a key component of a service blueprint? a Line of transference b Line of interaction c Line of visibility d Backstage actions by customer contact personnel e Front-stage actions by customer contact personnel The or includes both the and of a service facility a roll; retrieval; implicit aspects; explicit aspects b stage; servicescape; exterior; interior c stage; service area; customers; employees d roll; canopy; employees; equipment e roll; service area; front-stage; backstage Server ensure that service staffs things correctly, as requested, in the right order, and at the right speed a kanbans b poka-yokes c jidokas d banzais e sodokus Service process redesign efforts typically focus on achieving all EXCEPT which of the following key performance measures? a Reduced number of service failures b Reduced cycle time c Enhanced productivity d Increased profitability e Increased customer satisfaction Service process redesign can be categorized into all EXCEPT which of the following types? a Eliminating non-value adding steps b Shifting to self-service c Delivering direct service d Separating services 10 Which of the following is NOT one of the steps in managing customers as partial employees? a Maintain a list of prospective customer “resumes.” b Conduct a “job analysis” of customers’ present roles in the business c Proper education and training to ensure that customers are aware of how they are expected to perform d Motivate customers by ensuring that they will be rewarded for performing well e Regularly appraise customer performance CHAPTER 10: Service environments, also called relate to the style and appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites a service planes b servicescapes c service boxes d servicetomies e service vaults The field of studies how people respond to specific environments a organizational behavior b marketing c environmental psychology d strategic management e financial management In environmental psychology the typical outcome variable is or of an environment a service; repurchase b control; reproach c control; avoidance d control; sensibility e approach; avoidance The two dimensions of Russell’s model of affect are and a centrality; dominance b pleasure; arousal c centrality; permanence d pleasure; regret e fullness; looseness The complex a(n) process becomes, the more powerful is its potential impact on a more; affective; cognition b more; cognitive; affect c less; cognitive; services d less; affective; cognition e less; cognitive; affect If a service environment is inherently , one should avoid increasing levels, as this would move customers into the “distressed” region of Russell’s model a pleasant; arousal b pleasant; excitement c pleasant; relaxation d unpleasant; arousal e unpleasant; excitement Which of the following is an ambient condition? a Facility layout b Displays c Music d Location e Price Of the following, which is NOT an ambient condition that irritates shoppers according to Alain d’Astous? a Store is too small b Store is not clean c Too hot inside the store or the shopping center d Music inside the store is too loud e Bad smell in the store Which of the following is NOT one of the dimensions of the service environment? a Exterior facilities b General interior c Store layout d Interior displays e Location 10 Of the following, which is NOT an environmental design condition that irritates shoppers according to Alain d’Astous? a Arrangement of store items is always the same b No mirror in the dressing room c Unable to find what one needs d Directions within the store are inadequate e Store is too small CHAPTER 11: Organizations that display a commitment to effective human resources management are characterized by a a lack of verifiable industry distinction and market separation b a distinctive culture of service leadership and role modeling by top management c a system of intensive rules and regulations d an increase in market share and lower acq From the customer’s perspective which of the following is the most important aspect of service? a Management’s responsiveness to occurrences of failure b Timely delivery of service c Efficient handling of special requests d The encounter with service staff e A fair price Service employees are important to customers and competitive positioning, because the front line a is the most visible part of the firm b contains more employees than management c is often the first to deal with customer complaints d is better trained at Outcomes of the “Cycle of Failure” for firms include and a low service quality; low employee turnover b low service quality; high employee turnover c high service quality; low employee turnover d high service quality; high employee turnover e mediocre service quality; unpredictable employee turnover The “Cycle of Failure” includes all of the following EXCEPT a emphasis on rules b emphasis on attracting new customers c adequate pay and job security d low skill levels e use of technology to control quality Companies that engage in a “Cycle of Success” are more likely to have which of the following? a Happier employees b More loyal customers c Higher profit margins d Better wages e All of the above Training is most effective at reducing a person/role stress b organization/client conflict c interclient conflict d interorganizational conflict e intraorganizational conflict A strategy of empowerment is most likely to be appropriate when which of the following factors are present within the organization and its environment? a The business strategy is not too customized b The organization uses routine technology c The business environment is stable d Customer interactions are relational as opposed to transactional e All of the above The four things that must be systematically redistributed throughout an organization to empower employees are , , , and a rewards; power; experience; knowledge b information; knowledge; experience; rewards c power; information; rewards; knowledge d knowledge; experience; information; power e experience; power; information, technology 10 When firms are organized by functional structures a employees fall between the cracks b customers fall between the cracks c internal service teams view customers as their own d service is faster e fewer errors occur Contents ... co-production e Most services cannot be inventoried The three additional Ps of services marketing that extend the original four Ps of marketing are _, _, and _ a product; price;... service planes b servicescapes c service boxes d servicetomies e service vaults The field of studies how people respond to specific environments a organizational behavior b marketing c environmental... low service quality; low employee turnover b low service quality; high employee turnover c high service quality; low employee turnover d high service quality; high employee turnover e mediocre service