{LATEST 2026 -2027 update} QUESTIONS
AND ANSWERS 100% CORRECT
What are the three elements of service purchase decision? - correct answer Service
Qualifier: To be taken seriously certain level must be attained on the competitive
dimension, as defined by other market players.
- Examples are cleanliness for a fast food restaurant or safe aircraft for an airline.
• Service Winner: The competitive dimension used to make the final choice among
competitors.
- Example is price.Service Purchase Decision (cont.)
• Service Loser: Failure to deliver at or above the expected level for a competitive
dimension.
,- Examples are failure to repair auto(dependability), rude treatment(personalization)
or late delivery of package(speed).
What is service sector growth? - correct answer Information Technology (e.g.
Internet)
- Trend: Information chain rather than supply chain
Innovation
- Push theory(e.g. Post-it, medical discoveries)
- Services derived from new products (e.g. Netflix)
- Pull theory (e.g. Cash Management)
- Exploiting information (e.g. Auto part sales)
- Difficulty of testing service prototypes
•Changing Demographics
, - Aging of the population
- Two-income families- Growth in the number of single people
Challenges for Service Innovation - correct answer Service innovation is an output of
applied research and development
Unique challenges in service innovation are
- Ability to protect intellectual and property
Technologies
- Incremental nature of innovation
- Degree of integration required
- Ability to build prototypes or conduct tests in a controlled environment
What is the competitive role of information in systems? - correct answer Competitive
Use of Information:: Strategic Focus