11) Which service characteristic is substantial, difficult to control, and highly dependent on an employee’s delivery? A) perishability B) tangibility C) homogeneity D) intangibility E) heterogeneity 12) According to the text, Johnson Controls’ service division is large and fast growing because the firm________. A) outsources service calls B) customizes service solutions C) uses multiple channel intermediaries D) automates most production capabilities E) sells most services through distribution networks 13) What is the primary reason that many automobile manufacturers increased both dealership costs and service standards? A) reduce heterogeneity among local car dealerships B) encourage car buyers to purchase extended warranties C) improve quality control at domestic automotive factories D) discourage car dealers from selling multiple car brands E) minimize the perishability of automotive inventories 14) Which of the following best describes coproduction? A) Production levels are maintained by upstream partners. B) Customers need to be present at the point of production. C) Intermediaries and customers influence service outputs. D) Channel members monitor production quality and quantity. E) Customer experiences influence service and production standards. 15) What is the best way a channel manager can adjust to higher levels of coproduction and inventory perishability in service settings? A) shifting to a product-based business strategy B) using CRM to monitor upstream channels C) building hybrid channel structures D) increasing e-commerce sales E) outsourcing manufacturing 16) Which concept refers to the inability to inventory services until they are needed? A) sustainability B) tangibility C) homogeneity D) perishability E) heterogeneity 17) How has the Internet been an “enabling technology†in the music industry? A) increased demand for the services of local music retailers B) removed the product aspect from music offerings C) reduced the cost and ease of downloading music D) increased the need for more intermediaries E) consolidated the efforts of music retailers 18) What is the most likely reason that a firm’s channel strategy is affected when the firm no longer offers a physical product? A) Intermediaries perform fewer traditional channel functions. B) Upstream channel members alter production capabilities. C) Additional service offerings require new intermediaries. D) Effective supply chains rely on geographic proximity. E) Service transition strategies rely on upstream channels. 19) What is most likely a disadvantage of developing in-house service capabilities? A) Service output demands are difficult to measure and implement very quickly. B) An overlap of service and product divisions causes shareholder concerns. C) Channel conflicts increase because of the loss of proprietary information. D) Suppliers compete against channel partners for service delivery rights. E) Formal joint partnerships lead to organizational culture problems. 20) What is a likely advantage of acquiring service capabilities, infrastructure, and knowledge by collaborating with an existing service provider? A) reducing channel conflicts B) streamlining the value chain C) minimizing management complexities D) communicating more with end-users E