Services-Marketing Experts Generally Agree That There Is a Hierarchy of New-Service

question 90

Multiple Choice

Services-marketing experts generally agree that there is a hierarchy of new-service categories that is somewhat similar to the continuous, dynamically continuous, and discontinuous innovation continuum for physical products. Many Canadian banks now offer their customers insurance offerings would be example of:

• A)process-line extensions
• B)service-line extensions
• C)major service innovations
• D)style changes

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Definitions:

Operating Capacity

The maximum output a company can produce under normal working conditions.

Earnings Retention Ratio

The proportion of net income that a company retains to reinvest in its business rather than distributing it to shareholders as dividends.

Marble

A metamorphic rock composed mainly of recrystallized carbonate minerals, commonly used in sculpture and as a building material.

External Financing Need

The requirement for funds that a company must fulfill through external sources, like equity or debt, to finance its operations beyond what it can fund through its internal cash flow.