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Test Bank ― Chapter 5 Page 1
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
Chapter 5
Distributing Service through Physical and Electronic Channels
GENERAL CONTENT
Multiple Choice Questions
1. 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.
2. _______________ is a key driver of channel choice.
a. Risk reduction
b. Convenience
c. Colorful photos of the product
d. Internet access
e. Lower prices
3. 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
4. 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 laws.
d. Economic incentives to improve the use of assets.
e. Automated self-service facilities.
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
5. The interesting innovations for service delivery arising from the Internet are all of the
following EXCEPT _____________.
a. multi-channel banking without branches
b. DVDs that can store huge amounts of information
c. development of “smart” mobile phones linking users to the Internet wherever they
are
d. usage of voice recognition technology that allows customers to give information
and request service by speaking into a microphone
e. smart card containing a microchip acting as an electronic purse containing digital
money
6. All of the factors below are luring customers into virtual stores EXCEPT
____________.
a. potential for better prices
b. ease of search
c. broader selection
d. opportunities for networking
e. 24-hour service with prompt delivery
7. 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
8. ____________ 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
9. 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
10. When there is a high degree of customer interaction required, the most suitable way
to enter international markets is through __________.
a. exporting directly
b. licensing
c. foreign direct investment
d. franchising
e. joint venture
True/False
11. The convenience of service factory locations and operational schedules assumes
great importance when a customer has to physically present throughout the service
delivery or even just to initiate and terminate the transaction.
12. In general, service providers are more likely to visit corporate customers at their
premises than to visit individuals in their homes.
13. Service delivery is shifting to arm’s length transactions for many services due to
advances in telecommunications.
14. Physical logistics services now find themselves competing with telecommunications
services. This is a result of the instantaneous delivery capability of information-
based products.
15. All customers will eventually voluntarily shift from high-contact delivery
environments to new electronic channels.
16. The need for economies of scale often restricts choice of location for service
facilities.
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
17. A ministore is a single-site service business that involves creating an innovative
service factory.
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.
19. An ongoing problem of franchising is that when franchisees gain experience, they
may start to feel that they should not be paying the various fees to the franchisor.
20. Knowledge-based services should expand into overseas markets through mergers and
acquisitions.
Short Answer
21. List the six options for service delivery (three natures of interaction between the
customer and service organization; two availabilities of service outlets) and provide
an example of a service that falls into each category.
22. Describe arbitrage in the context of service provider pricing.
23. Give an example of a service with a locational constraint.
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
24. List the five factors that encourage extended operating hours.
Economic pressure from consumers, changes in laws, economic incentives to
25. List two of the three service delivery innovations facilitated by technology that are
described in the chapter.
Essay
26. Describe the three ways information-based services can be distributed internationally
and give an example of each.
27. Discuss the roles that intermediaries play for service organizations.
Often, supplementary services are outsourced to intermediaries. This intermediary
Test Bank ― Chapter 5 Page 6
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
APPLICATION CONTENT
Multiple Choice Questions
28. ______________ is an example of a service where the main mode of delivery is for
the service provider to go to their customers.
a. Banyan Tree Resorts
b. Barnes and Nobles
c. Royal Flying Doctor
d. Starbuck
e. Dunkin’ Donuts
29. Aggreko has experience in all the following kinds of situation except __________.
a. restoring power to cyclone devastated towns
b. providing temporary capacity for a power-generating plant
c. providing shore-based source of power when a ship is docked at a remote port
d. clearing out the debris after a fire in a resident’s home
e. drying out a hotel that has been damaged by water due to a hurricane
30. Which one of the following methods is NOT a banking service that can be delivered
remotely?
a. Face-to-face.
b. Internet.
c. Mobile phone.
d. Call centers.
e. All of the above are bank service delivery methods.
31. Firms like Dunkin’ Donuts and Subway sharing space with quick service restaurants
is an example of a(n) ____________.
a. single source market
b. economy of scale
c. ministore
d. economy of scope
e. multi-brand strategy
32. Which of the following is an example of a franchised service firm?
a. Subway
b. Royal Sporting House
c. Barnes & Noble
d. Tiffany
e. Pier One Imports
Test Bank ― Chapter 5 Page 7
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
True/False
33. Taco-Bell’s K-Minus strategy is an example of an innovation in locating in multi-
purpose facilities.
34. San Francisco’s BART service helps to overcome the locational constraint of having
35. First Direct is an example of a bank with too many branches.
36. First Direct describes itself as the largest virtual bank in the world.
37. Yellow pages has come up with a service that gives an SMS price alert when a price
level of a stock is reached.
Short Answer
38. Give an example of a firm where the service provider visits the customers.
39. What kind of service can UPS offer to its B2B and B2C clients?
40. Give two examples of firms that locate themselves in multi-purpose facilities.
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
41. What are the three options for entering international markets?
42. Give an example of a database service.
Essay
43. Describe Aggreko’s core business with specific reference to which of the six service
delivery options they employ.
44. Describe the key drivers of how consumers choose between personal, impersonal,
and self-service channels.
45. How does the control of IP and sources of value creation, as well as the degree of
customer interaction affect international market entry?
Test Bank ― Chapter 5 Page 9
Essentials of Services Marketing, 2nd Edition
Jochen Wirtz, Patrica Chew and Christopher Lovelock
