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While finding someone who will count and wrap your coins has been an available service for years, the recent invention of machines that, for a small fee, will perform the same service is an example of what kind of innovation?

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Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy.


A) Share building
B) Divestment
C) Service development
D) Diversification
E) Marketing integration

F) B) and C)
G) A) and E)

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_____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers.


A) Customer actions
B) Onstage contact employee actions
C) Backstage contact employee actions
D) Support processes
E) Audience actions

F) D) and E)
G) All of the above

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The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45 ways a room must be cleaned if its tenant is leaving and not staying on for another night while inferring that a less thorough method was used if the guest were staying additional nights. The next month the supervisor wonders why this housekeeper is using many more packets of toiletries than the other housekeepers are. Also, it seems that it is taking the cleaner the same amount of time to clean a recently vacated room as it does to clean a room that will be housing the same people for another night. The best explanation for the supervisor's concern is _____, a risk incurred when services are described in words alone.


A) Oversimplification
B) Incompleteness
C) Subjectivity
D) Biased interpretation
E) Transformation

F) A) and B)
G) A) and C)

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B

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the insurance underwriting company that makes it possible for them to offer the insurance cheaply is part of which section of the service blueprint?


A) Customer actions
B) Onstage contact employee actions
C) Backstage contact employee actions
D) Support processes
E) Audience actions

F) B) and D)
G) A) and E)

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New-service success depends on:


A) The linear nature of the new service development process
B) The integration of the service within existing processes
C) How few people were actually involved in the development process and how tight their security system was
D) The novelty of the service
E) The number of people involved

F) A) and C)
G) None of the above

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The final stage of the new service development process is:


A) Commercialization
B) Market research
C) Post introduction evaluation
D) Fine tuning of the positioning strategy
E) Business strategy development

F) B) and C)
G) B) and D)

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In order to have a greater likelihood of ultimate success, a new service development system should be:


A) Subjective
B) Precise
C) Autonomous
D) Opinion-driven
E) Philosophical

F) B) and D)
G) None of the above

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The last stage of building a service blueprint is to add the physical evidence of the service.

A) True
B) False

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On the service blueprint, the line of visibility separates all contact employee actions that are visible to the customer from those that are not.

A) True
B) False

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If the purpose of the service blueprint is to understand the integration of the various elements of the service process, the blueprint should be examined:


A) As a whole picture of the service process
B) Vertically
C) From left to right only
D) Horizontally
E) From right to left only

F) A) and B)
G) A) and C)

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New service development is typically a linear process.

A) True
B) False

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What kind of growth strategy is occurring when a hospital adds a pediatric ward?

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Market development.

Simone called the Puppy Heaven Kennel to reserve a kennel for her German shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone call is an example of a(n) :


A) Customer action
B) Onstage contact employee action
C) Backstage contact employee action
D) Support process
E) Audience action

F) A) and B)
G) A) and C)

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A

Which of the following is NOT a risk incurred by describing services in words alone?


A) Oversimplification
B) Incompleteness
C) Subjectivity
D) Biased interpretation
E) Transformation

F) A) and B)
G) None of the above

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Rama thought the light blue paint on the walls of the hospital waiting area was a vast improvement over the old brown paint. The repainting of the walls of the service provider is an example of a:


A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

F) B) and D)
G) D) and E)

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To better target its business travelers, Canadian Airline has set up gate-side business centers for last-minute faxes and phone calls and massage chairs to knead out knotted muscles after a long commute. These gate-side business centers are an example of a:


A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

F) C) and D)
G) A) and B)

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The augmentation of an existing service line is a:


A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Service franchise

F) B) and C)
G) C) and E)

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A service blueprint is developed during which stage of the new service-development process?


A) Commercialization
B) Business analysis
C) New services strategy development
D) Service development and evaluation
E) Idea generation

F) A) and E)
G) B) and C)

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What is the last stage of the new-service development process?

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