Test 5 MK 498

Flashcard maker : Lily Taylor
Why have services become more important?
-Changing patterns of govt. regulation
-Professionals have more freedom to market themselves
-Privatisation of public corporations and non-profit organisations
-The growth of franchising
Service industries have traditionally been?
highly regulated
In services who sets the price?
Prices have been set by the industry.
E.g., Banking Services, interest rates and banking fees.
Doctors, lawyers, architects are now allowed to advertise and list service prices. T/f?
True, previously they were not allowed to market themselves in anyway
Many countries have actively been selling what in service marketing?
public organisations to become private companies.
E.g., Qantas, Telstra
New technologies have dramatically changed the way who does business?
service firms do business
E.g., airline bookings, financial services
What is changing the way service firms provide services?
Global electronic networks
What has become a very popular method of financing the expansions or service chains.
What is the key to franchising?
The key is the delivery of a consistent product
What businesses bridge the gap between services and manufacturing?
Leasing and Rental businesses
Where technologies are rapidly changing leasing provides a hedge from ?
technological obsolescence
Many marketing scholars believe that in the future most firms will compete based on what parts of the product?
the intangible
What are examples of intangible parts of service products?
E.g., service, installation, delivery and credit.
Financial and competitive pressures facing public and non-profit orgs are forcing these orgs to determine what?
customers wants and needs and deliver products accordingly
Service industries now have extensive international networks that enables them to be?
more competitive in the services provided and to compete in many markets
What are services in globalization examples?
E.g., airlines, financial services, tourism
What is a good?
Berry describes a good as “an object, a device, a thing”
What is a service?
a service as “a deed, a performance, an effort.”
Services are what which means They cannot be held, carried or directly observed?
Like performances, services are what? Critical to understand.
time bound
Customers are usually actively involved in helping to create the product.

Is this a good or service? whats an example

– either by serving themselves (salad bar) or by cooperating with the service personnel in a setting such as lawyers offices, medical practices or in hotels
the service business may be compared based on the quality of the employees as well as the customers themselves is an example of?
People as a part of product
What is a big problem with services that goods do not have?
Quality Control, manufacturing can make sure product is perfect services cannot
What do goods have that services do not?
What costs do service industries inquiry that goods do not?
In a service firm labour and plant are always being charged even when services are not being provided
What do service industries do to combat labor hours during low utlization?
Provide incentives for customers
Services are a “real time” product. Services must be delivered when the customers want them. What happens if there are alternatives.
If there are alternatives, customers will not wait extensive time periods for a table at a restaurant, for an airline booking or to see a doctor
Services use electronic channels (broadcasting or airline database) or service factory, retail outlet and point of consumption and combine into one.
What is an example?
E.g., a restaurant is a service factory (waiter), retail outlet (pizza) and a place to eat
Many service providers do not understand that marketing is much more than what?
It is only in the last few years that accounting firms have learned about wants and needs determination in order to better serve their clients
sales or advertising
Due to a lack of knowledge of the marketing concept many service managers downplay the value of?
marketing in the service context
Field general managers are the norm for goods or services?
Less centralisation of power and decision making is what org structure?
Some organisations have “starburst” organisational structures what is this based on?
based on the locations of the services firms relative to the central database.
What type of organizational structure do services have soemtimes?
Since services are heterogeneous (different in each situation) what does this do to price?
it is very hard to track the cost histories and product performance in the operation
In services what is often true for cost?
Costs are difficult to estimate and therefore pricing is difficult to standardise
In the public sector and in the non-profit area, firms do not have profit objectives, the firms objectives are often set by non-business personnel that make it difficult to effectively market the product.
What is an example of this?
Universities have restrictions on advertising
What is an elusive and indistinct constuct
Who defines “quality” as zero defects – doing it right the first time.
The Japanese
What are the three characteristics of services?
Inseparability, Heterogeneity, Intangibility
What is the Intangibility characteristic of services?
services are performances not objects
What is the Heterogeneity characteristic of services?
performances vary from producer to producer.
What is the Inseparability characteristic of services?
production and consumption are usually inseparable
When purchasing goods, the consumer employs many tangible cues to judge quality such as?
I.e., style, hardness, color, brand, feel, packaging and fit
When purchasing services fewer tangible cues exist so the buyer is limited to the tangible cues available such as?
(i.e. physical facilities, equipment and personnel)
What does the absence of tangible cues cause the buyer to use as an intangible indicator of quality.
Due to what, firms find it more difficult to understand how consumers perceive service quality
service intangibility
Who states that “When a service provider knows how [the service] will be evaluated by the consumer, we will be able to suggest how to influence these evaluations in the desired direction.
Gronroos (1982)
Researchers and managers of service firms agree that service quality involves a comparison of?
expectations and performance
Service quality is made up of what four dimensions?
an instrument designed to measure service quality
What was designed by Parasuraman, Berry and Zeithaml and is made up of 22 items in each of two sections
What are the two sectoins of SERVQUAL?
Expectations, Perceptions
Service quality is determined by?
subtracting the service user’s perceptions minus expectations.
When is SERVQUAL positive?
Service quality is good where perceptions exceed expectations
If Cody forgot to return a call to a potential buyer this would be a SERVQUAL weakness in which of the following?
If the interviewer asked Cody about how he would improve relationships with Alabama fans, he should respond with the following?
I would make the product more tangible
Service jobs are growing faster than production jobs?
What is the performance of business activities that direct the flow of a company’s good and services to consumers or users in more than one nation for a profit?
International Marketing
When there were many disagreements among researchers concerning globalisation’s impact on cultures
In the 1960-70s
Levitt’s ideas regarding Globalisation were in part borrowed from who?
Webber (1969).
“A powerful force drives the world toward a converging commonality, and that force is technology. It has proletarianized communication, transport and travel. It has made isolated places and impoverished people eager for modernity’s allurements. Almost everyone everywhere wants all things they have heard about, seen or experienced via the new technologies.” – Theodore Levitt
Some researchers argued that cultures are doing what due to international marketing and globalization?
Other researchers argued that the forces of modernisation are what? What causes it?
New technologies are slowly driving cultures apart
Webber (1969) states that three forces cause cultures to converge or diverge, what are they?
Emancipation of workers from poverty
Divergent forces emanate from What?
the stresses associated with technology that is introduced too early
What is an example of something causing a divergence in cultures?
The introduction of the Tomcat aircraft by the Shah of Iran to pilots who were totally unfamiliar to that level of technology. Iran is a case example of a nation that diverged to very traditional traditional norms due to technology influences.
What is the collective mental programming of the mind which distinguishes the members of one human group from another. Hofstede (1984), “Cultures Consequences,” Sage.?
Culture is to a human society, what personality is to an?
What is the interactive aggregate of personal characteristics that influence the individual’s response to the environment?
What is shared by some but not with all other people in a tribal group or society?
The collective (e.g., societies) level of mental programming
The individual level of human programming is that?.
no two people are programmed alike
What – is a “broad” tendency to prefer certain stages of affairs over others?
What has both intensity and direction. That is, they act as vectors.
And an example?
An example is the value of a democratic government vs. the value of autocratic government.
What is statistical, it indicates the values held by the majority.
E.g., Anarchy may be a value but it is not a norm in Australian culture.
What did Hofstede believe made norms change?
Three factors
through a shift of ecological conditions: technology, economic or hygienic.
E.g.,. The norm of eating fish on Fridays was developed based on a red meat shortage.
What is this: observers are not led by the same picture of the universe, unless their linguistic backgrounds are similar.
Whorfian Hypothesis
What is not a neutral vehicle. Our thinking is affected by the categories and words available in our language.
E.g., Eskimos have over 100 words describing snow.
What is this an example of?
What are Inkeles and Levinsons three dimensions?
1.Relation to authority;
2. Conception of Self, including the individual’s concepts of masculinity and femininity;
3.Primary dilemmas or conflicts and the ways societies deal with them.
What are Hofestedes four dimensions?
Power Distance
Uncertainty Avoidance
How the basic fact of dominance is worked out in the human social existence
What is this simply?
Power Distance
What is a measure of the interpersonal power or influence between the supervisor and subordinate perceived by the least powerful of the two?
Power Distance
Greater wealth presupposes what as related to Power Distance?
higher technology; higher technology calls for higher education but also better paid lower and middle strata
What will decrease with greater wealth and higher levels of education?
Power Distance- High
What and years of formal education are negatively correlated?
Power distance
Latitude, population size and wealth explain what percent of the variance of power distance.
All Latin countries in Europe show higher power distance, while all Germanic countries (including English speaking ones) show a lower power distance.
Why is this?
Division of land amongst latin countries which caused for less wealth.
Germans give it all to first born son
Extreme uncertainty creates intolerable anxiety and human society has developed ways to cope with inherent uncertainty is?
Uncertainty Avoidance
Strategic planning are normative approaches to the management of an uncertain environment.
What dimension is this? Hofstede
Uncertainty Avoidance
To reduce what, human societies use technology, law and religion, organisations use technology, rules and rituals?
Organisational rituals directed at uncertainty are?
accounting systems. Accounts have been called the priests of business. E.g., memos – stop time
Younger democracies tend to show higher uncertainty scores then the older (Austria, Finland) democracies.


Cultural inheritance of the Roman Empire coincides with High what?
uncertainty avoidance
What does high UA cause people to enact?
more laws
The human species may be classified with the gregarious animals, but different human societies show gregariousness to different what?
E.g., some people live in nuclear families, others live in extended families or clans. Other groups organise in tribal units.
In individualism vs collectivism the central concept in mental programming is?
our self concept
The Chinese (ren) is used to describe the person plus?
intimate societal and cultural environment
According to Hsu(1971) the western concept of what does not exist for the Chinese?
What three Chinese majority countries score high on collectivity and low on individualism?
Taiwan, Hong Kong and Singapore
Mao’s anti-individualistic, pro-collectivist is deeply rooted in the what tradition?
Chinese tradition.
the Australians rank very high on what?. This is deeply linked to concept of a “battler” and the rugged stockman tradition
What does not mean a negation of the individual’s well being or self interest. It is implicitly assumed that maintaining the group’s well-being is the best guarantee for the individual (Ho, 1978).
More collectivist societies call for greater emotional dependence of members on the organisations. It is also assumed that the org. will return broad responsibility to their members.
What is an example?
E.g., Japanese employment policy.
Do not quit a business with friend
What are Hofstedes lowest individulaism scores?
the lowest for Venezuela, Columbia and Pakistan.
Hofstede’s highest individualism scores are found in?
the US, Australia and the UK;
What is conceptually different about power distance and individalism as defined by Hofstede?
PD is emotional dependence on powerful people, Individualism is dependence on groups,
Countries with high Power Distance have what individualism score?
Chetwynd and Hartnett (1978) stated that the sex-role system is at the what of our cultural norms?
What is masculinity assocaited with, 4 things?
autonomy, aggression, exhibition and dominance.
What is femininity associated with, 4 things?
nurturance, affiliation, helpfulness and humility.
What is more important to men?
supervision, social aspects of the job, working conditions, and clearly defined responsibilities.
advancement, earnings and freedom.
advancement, earnings and freedom.
What is beliefs about what is right and wrong, good and bad?
What is behaviour that conforms to generally accepted social norms?
Ethical Behavior
What is behaviour that does not conform to generally accepted social norms?
Unethical Behavior
What are the three aspects of individual background?
Family life, religion, values
What are the three aspects of organization?
Type of company, industry, culture
What is An evaluation of the inherent rightness or wrongness of an action?
Deontological evaluation
What is an evaluation of the rightness or wrongness of the consequences of an action?
Teleological evaluation
What is society norms that influence your perception of what is right or wrong
Deontological norms
What is society norms that influence your perceptions of the potential penalties for unethical behaviour
Teleological Norms
what does deos mean?
What does Teleo mean?
To look up close
Questionable Commission is?
Commission from buyer not company

Get instant access to
all materials

Become a Member