1. One of the reasons that servicing can be successful is that it can align seller’s and buyer’s goals. Which of the following should result in greater efficiency for that reason?
a. A museum paying Kimberly-Clark to check weekly that bathrooms are supplied and then the museum pays Kimberly-Clark by the supplies (i.e., the museum is charged by Kimberly-Clark for each case of paper products used)
b. A museum’s purchasing officer buying paper supplies from Kimberly-Clark as the most preferred supplier
c. A museum paying Kimberly-Clark to make sure that bathrooms are always supplied with paper products
Answer c
2. You have serviced household lighting. Which of the following would be part of the micro-level environmental performance?
a. the change in the homeowner’s electric bill
b. the reduction of stress on the electric grid
c. the effect of greater employment in the community
d. the overall demand for such services, given the value
Answer a
3. You are working on an investment club that is relatively low risk and moderate gains. However, if a customer keeps money in the account for 10 years, the money is guaranteed to double. You should target cultures which have:
a. Low uncertainty avoidance
b. High power distance
c. Strong individualism
d. Long-term orientation
Answer d
4. Which of these characteristics of services makes demand fluctuations such an important problem to solve?
a. Intangibility
b. Heterogeneity
c. Perishability
d. Simultaneity
Answer c
5. It is pretty safe to assume that services popular in the US, those that emphasize the “American Vision,” are also likely to be popular in other countries because the US is a major exporter of popular culture.
a. true
b. false
Answer b
6. Rank these from MOST effective =1 to least effective = 3 ways to deal with a service failure:
____1___ Assure problem will not happen again
___2____ Apologize
___3___ Explain what happened
7. You are sitting in a marketing strategy meeting planning the spring roll-out of a new line of running shoes--Hoka. You have a basic idea—“Spring for Spring” and a color strategy (pale blue and yellow) and you know that you need to have customers try on these to really appreciate them. Which of these ideas from your colleagues would you choose?
a. a TV, magazine and social media campaign using the blue and yellow color strategy and position of “Spring for Spring” designed to gain consumer attention
b. a promotion that allows athletes to wear the shoes at local 10K run held in the Spring. Your tent at the event is light blue and yellow with a banner “Spring for Spring”
c. A magazine campaign that uses dark blues and yellows with the slogan, “So light for your flight” so that you minimize wear-out among potential customers
d. Highly-trained personal selling in specialty stores accompanied by a TV campaign with a baseball them in which the salespeople are costumed in local baseball team’s uniforms
Answer b
8. Randal has been a customer at Dividend Bank for 15+ years. Recently, he has noticed that the tellers are not particularly helpful or friendly. Moreover, he made a deposit for $500, but the deposit was recorded as $50, so he bounced several checks and was charged extra fees. He called Dividend to complain, the bank employee told him that the bank was not responsible for any fees charged by retailers for insufficient funds. It is likely that Randal sees this as a breach of:
a. eliminating the root problem
b. service blueprint issues
c. procedural fairness
d. problem tracking
Answer d
9. Which of these actually occurred?
a. eBay has a major market share over the Chinese firm, Taobao, because eBay relies on expert opinions regarding products.
b. McDonald’s in China was successful showing Chinese consumers begging for financial discounts.
c. Home Depot found that Chinese consumers are not interesting in do-it-yourself projects.
Answer c
10. You provide advertising services to small business clients. One client contacts you about 2-3 times a week and to discuss his account for over an hour. This is costing the firm a great deal of productive time. What should you do?
a. use bundled pricing
b. consider the client a deadbeat
c. fire the client after a warning
Answer b
11. Each month, you must pay employees, rent, insurance and utilities. The monthly costs associated with these rather fixed costs are considered:
a. the burn rate
b. cash flow
c. a function of accrual accounting
d. a critical component of sales forecasting using the build-up method
Answer a
12. TWO of the following are TRUE. Which two?
a. You will generally have a better cash flow situation if you have a B2B as opposed to a B2C business.
b. If you grow fast, you are likely to run out of cash
c. Profits and the amount of cash you have is roughly the same thing.
d. There are a lot of assumptions and a lot of guessing involved when forecasting sales for a new venture.
Answer a & c
13. If UGGS were to use an Omni channel strategy, what would they do?
Promote their product on Twitter, Pintrest, SnapChat, with a website, and on national TV and local radio.
Offer men’s, women’s and children’s clothing as well as fashion-forward furnishings and auto accessories
Allow people to buy the product on their phone app, on their website, over the phone and in stores.
Answer c
14. You are in charge of the service research for a Zoo. You have asked every 20th visitor to wear a devise that tracks his/her movement at the zoo. This is an example of:
a. ServQual
b. complaint solicitation
c. critical incident technique
d. observation
Answer a
1) Explain the basics of the build-up method of forecasting
These expenses include prices, demand, expenses, fluctuations, people, facilities, and equipment. First there is the need to present all assumptions and research that will influence the choice of pricing and demand. A prediction of fluctuations must be explained and represented on graphs on a weekly, daily and monthly basis. An explanation on how facilities and equipment and people will be used to manage these fluctuations must be provided. Finally, an expense plan projecting into the expected burn rate, cost of sales, and profits should be provided.
2) Is anything original/creative? Explain your answer. (Think TED Talk; 5 points)
No single idea or invention is original. Despite the common belief that most great ideas come from a single inspirational moment, most inventions are slowly developed over long periods of time and are a combination of different ideas, from different sources. Ideas are a result of large networks that are merged together, in order to come up with a single great idea. Steve Johnson argues that the best ideas are those that are introduced and reused, to come up with even better ideas. This is against the common trend by most providers to acquire patents for their products, which prevent competition from producing and modifying their products. In the music industry, the most creative songs are those that are tried by different musicians in order to come up with the best possible version.
CHOOSE TWO (2) of the Three 15-point Essay questions
ESSAY Questions 1
Draw and explain the demand fluctuations you would expect for a tutoring service for high school students (6 points)
DRAW:
EXPLAIN the Drawing (s)
Now, discuss how each of the following could/should/or cannot be used to smooth demand:
Physical facility (3 points)
Personnel (3 points)
Equipment (3 points)
ESSAY Question 2 (ONLY answer two of the three) -- 15 points
Consider sports equipment (baseball bats and balls, soccer equipment, football pads) and the BAU model is to buy the equipment, then use it, store it and then dispose of it in the trash/landfill when the consumer is done with the equipment.
Complete the chart below:
ESSAY Question 3 (ONLY answer two of the three) -- 15 points
Identify what, in your opinion, are three of the most useful things you have learned in this class and why:
One of the most useful things I have learned. Why I think this.
The most useful thing I have learned is that different cultures require different business approaches. For example, I would expect successful business ideas in America, would be successful anywhere in the world. The study into the Chinese market proved this theory wrong. Home Depot was unsuccessful in selling their do it yourself idea in china, although it is has proved very efficient in United States, and they closed their new location 2 years after entry into the China market. At the end of the day, customer needs come before any organization’s policy. A successful business idea is one that achieves customer satisfaction.
Another one of the most useful things I have learned. Why I think this.
Another important lesson is the need to incorporate service in any business model. The commonly used Business As Usual (BAU) Business model is seller oriented and has little to offer in terms of customer service. In this business model, consumers, buy products use them, store them and eventually get rid of them. This model is non-beneficial to both consumer and provider, since consumers don’t return, hence less return sales, and customers are dissatisfied. In the Product Service System (PSS) business model, service is a must aspect, and both consumer and provider get more from this business model.
A final most useful thing I have learned. Why I think this.
Finally I have learnt the importance of sharing ideas in the world of business. No invention is developed by a single person or from a single idea. Ben franklin was known to disclose all his ideas to the world. By sharing ideas with the world, people allow for these ideas to be reused and modified, in order to come up with newer and better inventions. In the world of business patents is a common idea, with product manufacturing companies restricting competition from using their ideas. However, by so doing we limit our ability to come up with newer inventions, and we limit the potential of our existing inventions.
