ISSA CASE STUDY FINAL EXAM 1 2026
ASSESSMENT CASE QUESTIONS AND
CORRECT ANSWERS FULL REVIEW
◉ What does 'Intangibility' mean in the context of services? Answer:
Services cannot be seen, touched, tasted, or stored before purchase.
◉ How does Intangibility affect marketing for services? Answer: It
creates challenges for demonstrating quality, requiring reliance on
trust and reputation.
◉ What is Heterogeneity in services? Answer: Services vary in
quality from one provider to another and even from one interaction
to the next.
◉ Why is standardization difficult for services? Answer: Because
service quality can differ significantly across providers and
interactions.
◉ What does Perishability mean in the context of services? Answer:
Services cannot be inventoried; unsold services represent lost
revenue.
,◉ Give an example of a service that is perishable. Answer: An unsold
airline seat or an empty hotel room.
◉ What is Inseparability in services? Answer: Production and
consumption occur simultaneously and often in the same location.
◉ What is the significance of Inseparability for internationalization?
Answer: It often requires physical proximity between service
provider and consumer.
◉ What are the four modes of services internationalization
according to GATS? Answer: Mode 1: Cross-Border Supply, Mode 2:
Consumption Abroad, Mode 3: Commercial Presence, Mode 4:
Movement of Natural Persons.
◉ What is Mode 1 of services internationalization? Answer: Cross-
Border Supply: The service flows from one country to another
without the provider leaving their home country.
◉ Provide an example of Mode 1 services. Answer: Spotify (music
streaming) or Dropbox (cloud storage).
◉ What is Mode 2 of services internationalization? Answer:
Consumption Abroad: The consumer travels to another country to
receive the service.
, ◉ Give an example of Mode 2 services. Answer: Tourism or
international students enrolling at a U.S. university.
◉ What is Mode 3 of services internationalization? Answer:
Commercial Presence: A service supplier establishes a physical
presence in another country.
◉ Provide an example of Mode 3 services. Answer: Disneyland Paris
or international banks opening branches abroad.
◉ What is Mode 4 of services internationalization? Answer:
Movement of Natural Persons: An individual service provider
temporarily moves to deliver a service.
◉ Give an example of Mode 4 services. Answer: Pop artists on world
tours or management consultants traveling to client sites.
◉ What are the two dimensions traditional theories of
internationalization focused on? Answer: Level of resource
commitment and level of control.
◉ What is the concept of Embeddedness in the context of
internationalization? Answer: The extent to which a firm is
integrated into local economic and social networks.
ASSESSMENT CASE QUESTIONS AND
CORRECT ANSWERS FULL REVIEW
◉ What does 'Intangibility' mean in the context of services? Answer:
Services cannot be seen, touched, tasted, or stored before purchase.
◉ How does Intangibility affect marketing for services? Answer: It
creates challenges for demonstrating quality, requiring reliance on
trust and reputation.
◉ What is Heterogeneity in services? Answer: Services vary in
quality from one provider to another and even from one interaction
to the next.
◉ Why is standardization difficult for services? Answer: Because
service quality can differ significantly across providers and
interactions.
◉ What does Perishability mean in the context of services? Answer:
Services cannot be inventoried; unsold services represent lost
revenue.
,◉ Give an example of a service that is perishable. Answer: An unsold
airline seat or an empty hotel room.
◉ What is Inseparability in services? Answer: Production and
consumption occur simultaneously and often in the same location.
◉ What is the significance of Inseparability for internationalization?
Answer: It often requires physical proximity between service
provider and consumer.
◉ What are the four modes of services internationalization
according to GATS? Answer: Mode 1: Cross-Border Supply, Mode 2:
Consumption Abroad, Mode 3: Commercial Presence, Mode 4:
Movement of Natural Persons.
◉ What is Mode 1 of services internationalization? Answer: Cross-
Border Supply: The service flows from one country to another
without the provider leaving their home country.
◉ Provide an example of Mode 1 services. Answer: Spotify (music
streaming) or Dropbox (cloud storage).
◉ What is Mode 2 of services internationalization? Answer:
Consumption Abroad: The consumer travels to another country to
receive the service.
, ◉ Give an example of Mode 2 services. Answer: Tourism or
international students enrolling at a U.S. university.
◉ What is Mode 3 of services internationalization? Answer:
Commercial Presence: A service supplier establishes a physical
presence in another country.
◉ Provide an example of Mode 3 services. Answer: Disneyland Paris
or international banks opening branches abroad.
◉ What is Mode 4 of services internationalization? Answer:
Movement of Natural Persons: An individual service provider
temporarily moves to deliver a service.
◉ Give an example of Mode 4 services. Answer: Pop artists on world
tours or management consultants traveling to client sites.
◉ What are the two dimensions traditional theories of
internationalization focused on? Answer: Level of resource
commitment and level of control.
◉ What is the concept of Embeddedness in the context of
internationalization? Answer: The extent to which a firm is
integrated into local economic and social networks.
