FCFN210 Midterm

Which of the following reduces price competition?

High switching costs for consumers.

Which of the following intensifies price competition?

Wider distribution of competitor and or substitution offers.

The difference between the price consumer's pay and the amount they would actually have been willing to pay to obtain the benefits is known as ____________.

Consumer Surplus

____________ is defined as the sum of all the perceived benefits minus the sum of all the perceived costs of service.

Net Value

____________ are services sold at less than full cost to attract customers, who will then be tempted to buy profitable service offerings from the same organization in the future.

Loss leaders

____________ recognizes that virtually all activities taking place within a firm directly or indirectly support the production, marketing, and delivery of goods and services.

Activity-based costing

The only function that brings operating revenues into the organization is ____________.

marketing

Which one of the followings is NOT a principle of a fair revenue management discussed in the text?

Communicate shareholder and owner benefits of revenue management only

What are the three foundations of the pricing "tripod"?

costs, competition and value to the customer.

What are two examples of situations that increase price competition?.

Increasing number of competitors;
Increasing number of substituting offers;
Wider distribution of competitor and/or substitution of offers;
Increasing surplus capacity in the industry

Which of following statement is incorrect?

It's usually a good idea for firms to try to appeal to all potential buyers in a market, because customer variety leads to full capacity.

Which of the following is NOT one of the four basic focus strategies?

Refocused

Which of following statement is correct?

A service-focused firm offers a narrow range of services to a fairly broad market.

What are four basic focus strategies?

Service focused
Unfocused
Fully focused
Market Focused

Market analysis addresses all of the following factors EXCEPT ____________.

government regulations

Positioning strategy is concerned with ___________, _____________, and _____________ distinctive differences.

creating, communicating, maintaining

Which of the following is the best example of a determinant characteristic for airline travel?

Availability of frequent flier miles

The same individuals may set different priorities for attributes according to all EXCEPT which of the following?

The cost of the service

A ____________ is composed of a group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns

Market Segment

A(n) ____________ is one that a firm has selected from among those in the broader market and may be defined on the basis of several variables.

Target Segment

____________ supply the central, problem-solving benefit that customers seek.

core products

____________ augment the core product, both facilitating its use and enhancing its value and appeal.

Supplementary Services

The order-taking process should be ____________, ____________, and ____________ so that customers do not waste time and endure unnecessary mental physical effort.

polite; fast; accurate.

Which of the following is NOT a category of new service innovation?

Self-sustaining innovations

What are categories of new service innovation?

Supplementary service innovations
Product line extensions
Process line extensions
Process line extensions

At it's simplest, ____________ consists of immediate advice from a knowledgeable service person in response to the request: "What do you suggest?

Consultation

Which of the following is NOT one of the eight basic steps to developing and delivering a branded customer experience?

Design facilities that delight your customers and reduce complaints

The three factors that contribute the most to achieving success of new service development in order of importance are:

Market synergy, organizational factors, market research factors

Distinguish between important and determinant attributes:

Important factors are factors that are necessary for buying/purchasing/using a specific product or service. A determinant factor is a characteristic that adds to the value of a product or service when choosing between products and services that all may have the same important factors.
Important attributes represent what customer's value in a service, whereas determinant attributes are those that actually determine buyers' choices between competing alternatives.

Explain what a fully-focused and a market-focused strategy are and discuss the opportunities and risks inherent in selecting each strategy

A fully-focused strategy provides a limited range of of services to a market segment, where a market-focused strategy provides a wide range of services to a market segment.
Opportunities for a fully-focused strategy are to establish specific services, while a market-focused allows opportunity to sell a variety of services to the same, one-single, customer.
Risks for a fully-focused strategy are that you may only be able to assist one customer a few times, whereas a risk for a market-focused strategy is that they need to make sure they are able to provide a variety of services and do all of those services well.

____________ refers to a group of technologies for distributing audio or video programs over the Internet using a publisher/subscriber method.

Podcasting

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

Information and promotion flow, negotiation flow, and product flow.

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

Building personal relationships.

Which of the following statement is correct?

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

Which of the following statements is incorrect?

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

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

Incremental costs of extended hours may be covered by increased revenue and decreased crowding;

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

scripts
procedures
service standards
physical presentations
*All answers are correct

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

Access; alert; update.

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

Availability of employees to work during "social" hours.

____________ 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

Franchising

Which of the following is NOT a communication task for which marketers use the Internet?

Reducing service demand through electronic tracking.

Which of the following is NOT a common educational and promotional objective in service settings?

Encourage trial of competing products.

What are communication task for which marketers use the Internet?

Enabling customers to place orders.
Facilitating two-way communications with customers through e-mail and chat rooms.
Providing information and consultation.
Promoting consumer awareness and interest.

What are common educational and promotional objective in service settings?

Build awareness and interest in an unfamiliar service or brand.
Familiarize customers with service processes in advance of use.
Recognize and reward valued customers.
Reposition a service relative to competing offerings.

____________ outside peak demand periods poses a serious problem for service industries with ____________, like hotels.

Low demand; high fixed costs

One approach to training customers, recommended by advertising experts is to ____________.

show service delivery in action

____________ and ____________ represent important ways to add value to a product

Information; consultation

An example of a form of personal communication is

Telemarketing

List any three of the five factors that encourage extended operating hours.

1. Economic pressure from consumers,
2. Changes in legislation,
3. Economic incentives to improve asset utilization,
4. Availability of employees to work during "unsocial" hours,
5. Automated self-service facilities.

Discuss some of the key planning considerations of marketing communications.

When planning marketing communications, you need to have a clear and defined target market. You need to know who your audiences are and how you are going to communicate with them by having specific communication objectives. You need to consider the channels in which you will communicate with your audience, as well as your marketing and advertising strategies.
Planning a marketing communications campaign should reflect a good understanding of the service product and how well prospective buyers can evaluate its characteristics in advance of purchase. It is therefore essential to understand target market segments and their exposure to different media, as well as consumers' awareness of the product and their attributes toward it.