Exam 12: Service Response Logistics

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When customer expectations are met or exceeded, the service is deemed to possess low quality.

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Define service response logistics and describe the important elements.

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Service response logistics is defined as the management and coordination of the organization's activities that occur while the service is being performed.The four primary activities of concern in service response logistics are the management of service capacity, waiting times, distribution channels, and service quality.
-Mgt.of service capacity:Service capacity is defined as the number of customers per day the firm's service delivery systems are designed to serve.Most services desire to operate with some excess capacity, to reduce the likelihood of having queues and long waiting times develop.
-Mgt.of waiting times:Queue times are frequently encountered every day by consumers including waiting at checkout counters, waiting for a table at a restaurant, and waiting on hold on the cellphone.Managers use information they have about their customers as well as their service employees to design adequate queuing systems and then couple this with management of customers' perceived waiting times to minimize the negative impact of waiting in line.
-Mgt.of distribution channels:Distribution channels determine how a service can deliver their services and products to customers.Many of the distribution alternatives are the traditional ones everyone is used to seeing; however, services today are experimenting with other, nontraditional distribution channels as customer preferences and habits, demographics, technology, and competition change.Some distribution channels have revolutionized the way services do business.For instance, ATMs, debit cards, and the Internet have completely changed the financial services industry; many customers almost never set foot inside a bank or stockbroker's office.Today, many people have come to expect these things, and services have responded.
-Mgt.of service quality:For services, quality occurs during the service delivery process and typically involves interactions between a customer and service company personnel.In other words, service quality is closely tied to customer satisfaction.Customer satisfaction with the service depends not only on the ability of the firm to deliver what customers want, but also on the customers' perceptions of the quality of service received.When customer expectations are met or exceeded, the service is deemed to possess high quality, and when expectations are not met, the perception of quality is poor (recall Maister's first law of service).Thus, service quality is highly dependent upon the ability of the firm's employees and service systems to meet or exceed customers' varying expectations.

A service had 1320 customers in one week, with 200 labor hours.The next week, the service had 1380 customers with 220 labor hours.What was the productivity growth from period 1 to period 2?

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a.Productivity1 = 1320/200 = 6.60 customers/labor hour
Productivity2 = 1380/220 = 6.27 customers/labor hour
b.Productivity growth = (6.27-6.6)/6.6 = -0.05 or -5%

Amazon.com is an example of a firm which uses the Pure Internet Distribution Strategy.

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Layout strategies help firms maximize all of the following EXCEPT:

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Which of the following is an example of a person that would be considered to provide a Pure Service?

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At a service facility it has been calculated that they can handle the demand per hour approximately 76 percent of the time at a rate of 4 per hour.This means that approximately 24 percent of the time, demand per hour will be greater than four customers, causing queues to develop.

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A basic strategy for managing capacity is:

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All of the following are included in the five dimensions of service quality EXCEPT:

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The five dimensions of service quality include: reliability, durability, performance, aesthetics, and availability.

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Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E.Cheese (kids theme) are all examples of Entertailment facilities.

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Departmental layouts that reduce distances traveled are designed to reduce the travel times of customers and servers when moving from one area to another.

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Managers use a balking technique to manage customers' perceived waiting times.

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A bank provides service through a call center to customers internationally.Explain the importance of each of the following in terms of designing the call center and managing the daily operations: a.Queuing management b.Global service considerations c.Facilitating products d.Service quality expectations

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Discuss four important issues involved in managing a global service.

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As capacity utilization approaches 1.0, which of the following tends to happen?

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Pure services, offer few, if any tangible products to customers.

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A firm is comparing two potential service layouts using the Closeness Desirability Rating.Option 1's closeness desirability score is 18.Option 2's closeness desirability score is 22.It can be concluded that Option 1 layout is better.

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Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?

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Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time.This phenomenon is called:

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