Question 1

When two or more service companies want to offer a service and neither has the financial capability or expertise, they often undertake:

Accepted Answer

A)  Horizontal service systems 
B)  Service partnerships 
C)  Service integration 
D)  Service mentoring 
E)  Vertical service systems

Question 2

Which of the following is a challenge faced by service providers who use electronic distribution?

Accepted Answer

A)  High costs 
B)  Slow customer feedback 
C)  Inconsistent delivery for standardized services 
D)  Inability to customize 
E)  Competition from widening geography

Question 3

If you want to buy a vacation cruise to the Bahamas and you'd like to buy on the Internet, there are several ways to shop. One of the most efficient methods is to use a shopping bot, which is an electronic agent that will comb web sites for you and then present you with a list of sites where vacation cruises are available, descriptions of each cruise and how they are priced. Shopping bots encourage:

Accepted Answer

A)  Customization 
B)  Homogeneity in commodity products 
C)  Price competition 
D)  Electronic saturation 
E)  Overlapping merchandising

Question 4

Which of the following statements about service distribution is true?

Accepted Answer

A)  Intermediaries provide the same services for goods and services 
B)  In service distribution, rights and/or titles to the service are passed through the distribution channel 
C)  Channels for goods are more likely to be direct than channels for services 
D)  Many of the primary functions that distribution channels serve have no meaning in services 
E)  Warehousing is an important function in services marketing

Question 5

There are a number of Fantastic Sam's hair salons around the U.S. Assume Fantastic Sam's developed worker teams in its franchised salons to hire, discipline and handle financial tasks such as deposits and audits. The result has been improved revenues, profits and employee morale. Fantastic Sam's would be using a(n) _____ strategy.

Accepted Answer

A)  Partnering 
B)  Venture 
C)  Control 
D)  Empowerment 
E)  Proactive

Question 6

In control strategies, the service principal helps intermediaries develop customer-oriented service processes.

Accepted Answer

A) True 
 B)False

Question 7

A _____ of franchising to the _____ is that franchising leverages the business format to gain wider distribution.

Accepted Answer

A)  Benefit; franchiser 
B)  Challenge; franchiser 
C)  Benefit; franchisee 
D)  Challenge; franchisee

Question 8

Heffner Funeral Homes uses the Internet to sell some 300 different products including jewelry, urns, coffins and funeral memorabilia as well as a complete line of funeral services. Heffner Funeral Homes uses a(n):

Accepted Answer

A)  Agent 
B)  Broker 
C)  Electronic channel 
D)  Franchise 
E)  Retail cooperative

Question 9

Nancy Love represents several different mystery book authors to publishers and potential publishers. She operates as a sole proprietorship and is an example of a(n):

Accepted Answer

A)  Franchisee 
B)  Cooperative 
C)  Franchiser 
D)  Retailer 
E)  Agent

Question 10

Benetton is a clothing retailer. Imagine Iman's amazement when she saw two Benetton stores less than three blocks apart in New Orleans. What franchising challenge for the franchisee does this example illustrate?

Accepted Answer

The answer of Benetton is a clothing retailer. Imagine Iman's...

Question 11

The largest impediment for company-owned service chains is:

Accepted Answer

A)  The maintenance of perishable inventories 
B)  Customer empowerment 
C)  The creation of store autonomy 
D)  Controlling customer relationships 
E)  The company must bear all of the financial risks

Question 12

List the two types of agents.

Accepted Answer

The answer of List the two types of agents....

Question 13

A broker:

Accepted Answer

A)  Typically becomes involved in financing 
B)  Is a long-term representative of buyers and sellers 
C)  Does not engage in negotiations 
D)  Is paid by the party who hired them 
E)  Is accurately described by all of the above

Question 14

Which of the following is NOT a benefit of electronic channels?

Accepted Answer

A)  Low costs 
B)  Wide distribution 
C)  Customer convenience 
D)  Buyer confidence about security of information 
E)  Quick customer feedback

Question 15

Which of the following is an example of a partnering strategy?

Accepted Answer

A)  Ongoing measurement programs 
B)  Alignment of company and intermediary goals 
C)  Developing intermediaries to deliver service quality 
D)  Changing to a cooperative management structure 
E)  Providing needed support systems

Question 16

Which of the following intermediary-management strategies has the highest potential to be effective?

Accepted Answer

A)  Partnering strategy 
B)  Venture strategy 
C)  Control strategy 
D)  Empowerment strategy 
E)  Proactive strategy

Question 17

What is the major benefit derived from distributing through company-owned channels?

Accepted Answer

The answer of What is the major benefit derived from...

Question 18

Which of the following is NOT a franchising challenge to the franchisee?

Accepted Answer

A)  Disappointing profits and revenues 
B)  Lack of perceived control 
C)  High fees and rigid contracts 
D)  Encroachment and franchise saturation 
E)  Inability to build brand awareness

Question 19

With _____ strategies, the service principal allows greater flexibility to intermediaries based on the belief that their talents are best revealed in participation rather than acquiescence.

Accepted Answer

A)  Autonomous 
B)  Venture 
C)  Control 
D)  Empowerment 
E)  Proactive

Question 20

Partnering strategies that capitalize on the skills and strengths of both the service provider and the intermediary engender a sense of trust that improves the relationship.

Accepted Answer