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    Question

    Each of the following statements illustrates a reason why creating and delivering new services is much more difficult than creating new tangible products EXCEPT:

    A The new-service development process is also difficult to map out for the service company and often difficult for the service customer to observe. Correct Answer Incorrect Answer
    B Most service companies focus on creating incremental improvements. Correct Answer Incorrect Answer
    C New services usually do not have a tangible product to carry a brand name Correct Answer Incorrect Answer
    D Many services require the physical presence of the customer, which demands local decentralized production of the service. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Most services companies, like their counterpart product-based companies, focus on creating only incremental improvements (continuous innovation) to their current core offerings.

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