Chapter 12: Global Marketing of Services
TRUE/FALSE
1. Services are typically distributed through various intermediaries.
2. Services differ from goods as services are tangible.
3. Services are highly perishable.
4. The human element in the offering of goods takes on a much greater role than in the service offering.
5. Production lines cannot be established to deliver an identical service each time.
6. Telecommunication is a part of infrastructure services.
7. A trade surplus occurs if imports are greater than exports.
8. Deregulation results in decreased competitive activity.
9. Nondiscriminatory regulations refer to regulations that impose larger operating costs on foreign
service providers than on the local competitors.
10. Nondiscriminatory regulations do not hamper business operations.
11. Nondiscriminatory regulations offer less opportunity for international criticism.
12. Barriers to services destined for the U.S. market result mainly from regulatory practices.
13. The United States places less severe restrictions on foreign countries than do other countries.
14. The penetration of the Internet has occurred at different rates in different countries.
15. A unilingual website helps in accessing more new customers as compared to a multilingual website.
16. English is the most common website language.
17. The most popular destination point for U.S. students is Europe.
18. Economies of scale do not work for areas such as personnel management.
19. Service providers whose activities are independent from goods must search for market situations
abroad that are different from the domestic market.
20. Health care is a tangible action.
MULTIPLE CHOICE
1. Unlike goods, services _____.
a.
cannot be transferred through intermediaries
b.
are tangible
c.
can be easily stored
d.
are possessed rather than consumed
2. Which of the following is a feature of services?
a.
There is no customer involvement in production.
b.
Time of production is different from time of consumption.
c.
They can be stored for peak demand.
d.
They are highly perishable.
3. Services cannot be stored because of their _____.
a.
tangibility
b.
perishability
c.
consistency
d.
market transparency
4. Services are consumed rather than possessed because of their _____.
a.
customer involvement
b.
market transparency
c.
perishability
d.
intangibility
5. Once a plane has taken off, selling an empty seat is virtually impossible because of the _____ of
services.
a.
market transparency
b.
service consistency
c.
perishability
d.
intangibility
6. _____ contradicts a firm’s desire to standardize its offering.
a.
Customer interaction
b.
Service consistency
c.
Imperishability
d.
Market transparency
7. The time of production of a service is very close to the time of consumption. This requires _____.
a.
tangibility
b.
constant maintenance of service capacity
c.
close customer involvement
d.
more market transparency
8. Services are often custom made because of _____.
a.
market transparency
b.
close interaction with customers
c.
tangibility
d.
high imperishability
9. To offer a service in real time, the firm requires _____.
a.
market transparency
b.
regulatory practices
c.
positive quality perception
d.
service consistency
10. If the details of the service are clear, comparable, and available to all interested parties, the seller of the
service is said to have provided _____.
a.
service consistency
b.
market transparency
c.
service capacity
d.
imperishability
11. The effect of a teacher’s lecture varies from one student to another. This illustrates the _____ of
services.
a.
intangibility
b.
consistency
c.
heterogeneity
d.
perishability
12. Which of the following characteristics of a service does not allow sellers to choose multitiered and
long traditional channels of distributions to sell their services?
a.
Perishability
b.
Intangibility
c.
Heterogeneity
d.
Market transparency
13. A weather news service either reaches its audience quickly or rapidly loses its value. Which of the
following characteristics of a service does this illustrate?
a.
Market transparency
b.
Intangibility
c.
Perishability
d.
Heterogeneity
14. _____ services are comprised of telecommunications, insurance, banking, and logistics.
a.
Media
b.
Accounting
c.
Agricultural
d.
Infrastructure
15. Which of the following is an example of infrastructural services?
a.
Teaching
b.
House cleaning
c.
Radio
d.
Logistics
16. A(n) _____ occurs if imports are greater than exports.
a.
trade surplus
b.
trade deficit
c.
currency crisis
d.
export surplus
17. A(n) _____ is a positive difference between exports and imports.
a.
trade surplus
b.
trade deficit
c.
currency crisis
d.
import surplus
18. Reduction of governmental control of services is known as _____.
a.
deregulation
b.
globalization
c.
dematerialization
d.
monopolization
19. _____ is one of the primary deregulated industries in the United States.
a.
Law
b.
Health care
c.
Transportation
d.
Media
20. Deregulation _____.
a.
increases monopolistic tendencies
b.
results in lower prices
c.
disrupts competitive activities
d.
leads to increase in government interference
21. Which of the following steps is taken by the government to enhance competitive activities?
a.
Disinvestment
b.
Deregulation
c.
Monopolization
d.
Dematerialization
22. _____ of services makes it difficult to gather information.
a.
Comparability
b.
Homogeneity
c.
Intangibility
d.
Market transparency
23. Which of the following is true of nondiscriminatory regulations?
a.
They provide subsidies to local firms only.
b.
They offer more opportunity for international criticism.
c.
They are more convenient for local business than for foreign service providers.
d.
They hamper business operations.
24. Barriers to services destined for the U.S. market result mainly from _____.
a.
sustainable practices
b.
regulatory practices
c.
globalization
d.
monopolization
25. Which of the following is true of regulatory practices in the United States?
a.
These practices do not regulate banking and insurance industries.
b.
These practices impose nondiscriminatory regulations.
c.
The United States does not pose formidable barriers to potential entrants from abroad.
d.
The United States imposes more restrictions on foreign service providers than do other
countries.
26. Which of the following is true of discriminatory regulations?
a.
They impose larger operating costs on foreign service providers than on the local
competitors.
b.
They provide subsidies to foreign service providers.
c.
They encourage competitive opportunities to foreign suppliers.
d.
They offer less opportunity for international criticism.
27. Which of the following is an advantage of E-commerce?
a.
It does not require customization of websites.
b.
It saves travel costs.
c.
It does not require a multilingual website.
d.
It is equally accessible to people in all parts of the world.
28. Which of the following is true about E-commerce?
a.
It is expensive.
b.
It is not a feasible option for small firms.
c.
It is not useful in gaining credibility in international markets.
d.
It requires customized and multilingual websites.
29. _____ has/have led to the emergence of financial giants in Europe, Japan, and the United States.
a.
Increased mergers and acquisitions
b.
Increased monopolization
c.
Decreased globalization
d.
Decreased disinvestment and electronic commerce
30. Which of the following involves a tangible action?
a.
Accounting
b.
Fitness center
c.
Advertising
d.
Legal services
31. Which of the following is an example of people processing?
a.
Restaurant
b.
Disposal
c.
Refueling
d.
Banking
32. Which of the following is an example of possessions processing?
a.
Gardening
b.
Lodging
c.
Physical therapy
d.
Music concerts
33. Which of the following involves an intangible action?
a.
Retail
b.
Recycling
c.
Warehousing
d.
Broadcasting
34. Which of the following is an example of mental stimulus processing?
a.
Insurance
b.
Storage
c.
Education
d.
Banking
35. Which of the following is an example of information processing?
a.
Education
b.
Religion
c.
Lodging
d.
Programming
ESSAY
1. Explain any three characteristics of a service.
2. Write a brief note on deregulation.
3. What are the advantages of multilingual websites?