Test Bank ― Chapter 3 Page 1
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
Chapter 3
Positioning Services in Competitive Markets
GENERAL CONTENT
Multiple Choice Questions
1. A customer-driven services marketing strategy includes all of the following except
____________.
a. customer analysis
b. analyzing market segments
c. handling customer complaint
d. articulating desired position in the market
e. competitor analysis
2. Market analysis addresses all of the following factors EXCEPT ____________.
a. overall level of demand
b. trend of demand
c. government regulations
d. geographic location of demand
e. market analysis addresses all of the above factors
3. Competitive analysis addresses all of the following factors EXCEPT ____________.
a. examines competitors’ strengths
b. identifies competitors’ future positioning
c. examines competitors’ current positioning
d. examines competitors’ weaknesses
e. suggests opportunities for differentiation
4. A ____________ is composed of a group of buyers who share common
characteristics, needs, purchasing behavior, or consumption patterns.
a. target class
b. class
c. focal segment
d. market segment
e. financial segment
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
5. 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.
a. general segment
b. segmentation field
c. target segment
d. holistic segment
6. The same individuals may set different priorities for attributes according to all
EXCEPT which of the following?
a. The purpose of using the service.
b. Who makes the decision.
c. The timing of use.
d. Whether the individual is using the service alone or with a group.
e. The cost of the service.
7. ____________, refers to an explicit form of positioning strategy that is based upon
offering several price-based classes of service concept, each based on packaging a
distinct level of service performance across many attributes.
a. Service tiering
b. Service conscription
c. Broad-basing
d. Price-setting
e. Matching
8. Which of the following is the best example of a determinant characteristic for airline
travel?
a. Oxygen masks
b. Plane size
c. Quality of food and drinks
d. Having cocktail service
e. Floatation devices
9. Which of the following is NOT one of the four basic focus strategies?
a. Service focused
b. Unfocused
c. Fully focused
d. Refocused
e. Market focused
10. Which of the following is NOT one of the four principles of writing a good
positioning statement?
a. Competitive advantage.
b. Point of difference.
c. Target audience.
d. Reason to believe.
e. Frame of reference.
True/False
11. The objective of internal corporate analysis is to identify the organization’s
resources, any limitations or constraints, its goals, and how it values shape the way it
does business.
12. The best way to anticipate possible competitive responses is to identify all current or
potential competitors and to put oneself in their own management’s shoes by
conducting an internal corporate analysis for each of these competitors.
13. A target segment should only be selected on the basis of their sales and profit
potential.
14. No service attribute can be easily quantified because of the intangibility of services.
15. It is usually a good idea for firms to try to appeal to all potential buyers in a market,
because customer variety leads to full capacity.
16. Market niches that seem too narrow to offer sufficient sales in one country are
indicative of globally narrow market niches.
17. A fully-focused organization concentrates on a narrow market segment, but has a
wide range of services.
18. One of the reasons why firms with a narrow product line elect to serve multiple
segments is to create a portfolio of customers that hedge against low demand risks.
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
19. A service-focused firm offers a narrow range of services to a fairly broad market.
20. Positioning plays a pivotal role in marketing strategy, because it links market
analysis and competitive analysis to environmental analysis.
Short Answer
21. What are the three Cs to analyze when developing a market positioning strategy?
22. Why is it possible to segment customers according to price levels?
23. Distinguish between important and determinant attributes.
24. What are the two dimensions along which a company’s focus can be described?
25. What are the characteristics of an unfocused service category?
Essay
26. Explain what a fully-focused and a market-focused strategy are and discuss the
opportunities and risks inherent in selecting each strategy.
Test Bank ― Chapter 3 Page 5
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
27. What are the advantages of positioning charts?
APPLICATION CONTENT
Multiple Choice Questions
28. Bright Horizons strategy included which of the following?
a. Marketing services to employers instead of parents.
b. Hiring inexpensive labor.
c. Commoditized service offerings.
d. Heavy regulatory oversight.
e. All of the above are strategies employed by BH.
29. Segmentation variables at Contiki Holidays include all of the following EXCEPT
____________.
a. geographic
b. income
c. lifestyle
d. household size
e. age
30. Capsule hotels originated from _____________.
a. New York
b. London
c. Japan
d. India
e. Malaysia
31. Which of the following is most likely the determinant attribute for customers of
private air charter services?
a. Duration of usage.
b. Price.
c. Time of usage.
d. Exclusivity.
e. Availability of online booking.
32. Grant Thornton, the fifth largest firm in the accounting industry, has successfully
positioned itself as offering ____________ and having ____________.
a. high investment yield; “a passion for the business of accounting”
b. limited financial obligation; “a desire to exceed expectations”
c. easy access to partners; “a passion for the business of accounting”
d. low employee turnover; “a desire to exceed expectations”
e. high asset turnover; “a passion for the business of accounting”
True/False
33. Banco Azteca is serving a niche market of customers.
34. Yotel and Qbic are capsule hotel chains.
35. Rentokil started off as a firm that manufactured rat poison and a pesticide for killing
leeches.
36. Visa’s positioning is about having one card fits all.
37. Bright Horizons used low-cost strategies to achieve their competitive advantage.
Test Bank ― Chapter 3 Page 7
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
Short Answer
38. Give an example of a psychographic segmentation variable.
Confident risk takers, seeking constant adventure.
39. Give an example of service tiering in the airline industry.
40. Give an example of a key service attribute used in transportation services.
41. Give an example of an industry that utilizes service tiering.
42. What were the main benefits of capsule hotels when they first started up?
Essay
43. Discuss the analysis that took place to develop Bright Horizons and the ways in
which they overcame unappealing industry characteristics.
44. How did Rentokil Initial grow from a manufacturer of rat poison, to the world’s large
business support services company?
45. How did positioning maps help the managers of Palace?