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Chapter 3 1) A characteristic of the overall cost leadership strategy is the incurring of start up losses to build market share

Management

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Chapter 3

1) A characteristic of the overall cost leadership strategy is the incurring of start up losses to build market share.

 

2. Online networks between suppliers and their customers create a barrier to entry for competitors.

 

3. When pursuing a differentiation strategy, a service firm should work to ensure that the service being offered is standardized.

 

4. Service winners are the competitive dimensions used by customers to decide among qualified service providers.

 

5. Quality is considered to be a structural element of the strategic service concept.

 

6. Service industries have low entry barriers because economy-of-scale opportunities are limited.

7. The use of micromarketing has the potential to create customer concerns about invasion of privacy.

 

8. Implementing a low-cost strategy can sometimes revolutionize an industry.

 

9. A cost leadership strategy often involves customizing a standard service.

 

10. The competitive dimension of dependability is a likely candidate for becoming a service loser.

 

11. Selling information and developing new services are examples of the role that information technology plays in generating revenue.

 

12. Information technology can be used to promote customer loyalty.

 

13. The IRS has identified frequent user programs as anticompetitive.

 

14. American Airlines' early development of the SABRE reservation system became the foundation for its yield management innovation.

 

15. Information databases are considered an asset, because they represent a source of revenue.

 

16. Information is a substitute for inventory.

 

17. Data Envelopment Analysis (DEA), when used repeatedly, can facilitate the competitive strategy of cost leadership.

 

18. Focus is a competitive strategy that creates a service perceived as being unique.

 

19. Service encounter, quality, information, and capacity planning are all managerial elements of a strategic service concept.

 

20. Ordering from L.L. Bean by telephone is an example of a service firm maximizing opportunities for economies of scale.

 

21. The qualifier for an airline offering short commuter flights is:

 

 

22. Which of the following is not an element of the service concept?

 

 

23. Place the McDonald's fast food chain within the following matrix:
     

 

 

24. A difficult economic environment exists for service industries for all but one of the following reasons.

 

 

25. A fitness facility (i.e., gym or aerobics center) that is located in the exclusive Beverly Hills area and that currently has only one other competitor should adopt a service strategy that emphasizes which of the following?

 

26. Of the nine dimensions of service competition, three are regarded as most likely to become service losers. Which of the following is not one of those three vulnerable dimensions?

 

 

27. Which of the following is not identified as a strategy common to many successful service providers?

 

 

28. Which of the following is usually not a good thing to do with respect to an overall cost leadership strategy?

 

 

29. The nature of the service act depends on to whom or to what the service is directed and the degree of "tangibility" of the service provided. An example of a tangible service directed to the possessions of a customer would be

 

 

30. Which one of the following is not a key characteristic that leads to a difficult competitive environment for service industries?

 

 

31. In which of the following cases does the use of information raise ethical issues?

 

32. American Airlines' SABRE reservation system fills the following strategic role of information:

 

 

33. Services can create barriers to entry by:

 

 

34. Which of the following is an example of the competitive use of information in generating revenue?

 

 

35. Which of the following is not a role of information technology?

 

36. Using the dimensions of strategic focus and competitive use of information, we can identify four strategic roles of information. Which of the following is not a strategic role of information?

 

37. Real-time information technologies that have a focus on internal operations can play a competitive role in increasing revenue opportunities. Which one of the following uses of information does not play a role in generating revenue?

 

 

38. Bar coding and checkout scanner technology have created a wealth of consumer-buying information that can be used to target customers with precision. This process is an example of:

 

 

39. Kraft targeted its cream cheese flavors to match the tastes of a store's customers by using offline analysis of POS (point-of-sale) data. This is an example of:

 

 

40. Service firms use information technology to create barriers to entry, generate revenue, enhance productivity, and serve as database assets. Where does productivity enhancement fit in the diagram below?