SOLVED

1) Which U.S. trend is significantly influencing marketing channel structures and strategies? A) shift towards bricks-and-mortar retailing B) demand for locally-made products C) decreased need for service outputs D) growth of the manufacturing sector E) drive for globalization 2) According to the text, consumer electronics manufacturers are increasingly offering service warranties for their products to ________. A) increase profit margins B) comply with regulations C) alter e-commerce strategies D) eliminate channel conflicts E) meet social responsibility demands 3) Which statement is most likely true about shifting from a product-based to a service-based business? A) Adding services tends to decrease overall sales because a firm needs to increase its promotional spending. B) Services require less integration and communication between supplier and customer, which increases profitability. C) Services tend to cause an erratic flow of revenue because they are less resistant to economic cycles than products. D) Services are typically onetime purchases, unlike products, which are purchased often. E) Services increase the level of differentiation with competitive offerings. 4) VCW Enterprises manufactures small electronics and plans to start selling warranty services in the near future. VCW’s financial performance will most likely increase dramatically once VCW earns at least ________ of its sales from services. A) 5% B) 20% C) 40% D) 55% E) 70% 5) Most firms have added services to their current product offerings for the purpose of ________. A) altering channel structures B) improving competitiveness C) meeting customer demands D) expanding into foreign markets E) improving value and supply chains 6) Emerson Electric most likely shifted to a service-based business model for the purpose of ________. A) communicating more efficiently with key customers B) adding new channel intermediaries to lower costs C) competing better with overseas manufacturers D) revising the vertical integration structure E) supporting lifetime product warranties 7) Madison Manufacturing makes small appliances and faces tough competition from overseas firms that make similar products less expensively. Madison managers have decided to offer more services to customers, such as maintenance agreements and warranty contracts. Madison now deals directly with end-users instead of relying on intermediate channel partners. What is the most likely result of Madison’s shift to services? A) horizontal integration B) channel free-riding C) upstream integration D) service acquisition E) disintermediation 8) Which term refers to the degree to which a firm’s sales come from services? A) capacity B) service ratio C) service output D) channel power E) return on investment 9) Which of the following is LEAST likely a characteristic of services? A) primarily intangible B) homogenous nature C) value through timeliness D) value through convenience E) consumable when produced 10) The fact that a service cannot be touched, seen, or patented refers to its ________. A) perishability B) tangibility C) homogeneity D) intangibility E