Chapter 4

New Perspectives on Marketing in the Service Economy

1. ____________ supply the central, problem-solving benefit that customers seek.

a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services

2. ____________ augment the core product, both facilitating its use and enhancing its value
and appeal.
a. Core products
b. Supplementary services
c. Delivery processes
d. Sustaining processes
e. Conditional services

3. The order-taking process should be ____________, ____________, and ____________ so

that customers do not waste time and endure unnecessary mental physical effort.
a. short; curt; abrupt
b. simple; slow; effortful
c. short; sweet; ineffective
d. powerful; simple; abrupt
e. polite; fast; accurate

4. Which of the following is NOT considered an example of a hospitality element?

a. Greeting
b. Toilets and washrooms
c. Advice
d. Food and beverages
e. Transport

5. Which of the following is NOT a category of new service innovation?

a. Supplementary service innovations
b. Product line extensions
c. Major product innovations
d. Process line extensions
e. Self-sustaining innovations

6. The three factors that contribute the most to achieving success of new service
development in order of importance are:
a. Market research factors, organizational factors, market synergy
b. Market synergy, organizational factors, market research factors
c. Organizational factors, market synergy, market research factors
d. Market synergy, market research factors, organizational factors
e. Market research factors, market synergy, organizational factors
7. Which of the following is an example of a special request in advance of service delivery?
a. Dietary requirements
b. Complaints
c. Warranties
d. Refunds
e. Suggestions

8. Draw the flowchart that might be involved in eating in a fast-food restaurant.

See Sign & Park/Enter  Review Menu  Pick up  Find Table  Clear Table
Drive into Restaurant Order Meal & Meal & Eat & Leave
Lot Pay

. Waiting for pick up & go.

9. Explain how the core product, supplementary services, and delivery processes are
integrated in the context of an overnight hotel stay.

The core product refers to the overnight rental of a bedroom.

Supplementary services include things like parking, room service, reservations, and a
breakfast buffet.

Its service concept is service level (e.g. luxury versus economy), scheduling (how long
the room is available), nature of the process (in this case people processing), and the
customer’s role in consumption of the room.

10. What are the facilitating elements and enhancing elements in the service of an e-
commerce business.

Facilitating services:
- Information:
o Prices
o Product information
o Seller information
o Rating, comments
o Reminders
o Warnings
o Conditions of sales/ service
o Notification of change
o Confirmation of orders
o Summaries of account transaction
- Order- taking
o Web-order
 - Billing
o Invoices
o Self- billing
- Payment
o Self-service: bank- transfer, insert credit card details, coupon apply
o Direct to other payee: e-wallet

Enhancing services
- Consultation
o Advice
o Technical support
- Hospitality
o Greeting
o Security: transaction
- Safe-keeping: caring for goods purchased: packaging, pickup, delievery, installation,
inspection…
- Exception
o Special request of delievery
o Handling complaints, compliments, suggestions
o Problem solving: warranties, guaranties, difficulties using service,
return, refund, compensation