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

question 75

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.A hospital that adds valet parking when you visit a family member who is being treated there would be an example of:

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

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Definitions:

Long-Run Supply Curve

A graphical representation showing the quantities of a good a supplier is willing to produce and sell at different prices over a long period, without fixed inputs.

Constant Returns

A situation where increasing the amount of inputs in the production process proportionally increases the output, implying a linear relationship between inputs and outputs.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good changes as production increases.

Profit Maximization

A process or strategy employed by businesses to increase their net profits to the highest possible level.