Deck 5: Goods and Service Design

Question 1

In the context of service-encounter design,free trips and extra vacation days is not considered a form of recognition.

Answer 1

False

Question 2

In the context of service-delivery system design,which of the following establishments depends on good location decisions?

A) A health club
B) An ice-cream factory
C) An insurance claim processing center
D) A distribution center

Answer 2

A health club

Question 3

In the context of designing manufactured goods,socially responsible designs are the ones that follow the concept of:

A) Design for Environment
B) Design for Reliability
C) Design for Manufacturability
D) Design for Accuracy

Answer 3

Design for Environment

Question 4

Jones and Johnson,a law firm,is expanding to incorporate three conference rooms and two executive waiting lounges in its office.Which of the following dimensions of servicescape is the firm addressing?

A) Ambient conditions
B) Market deployment and evaluation
C) Spatial layout and functionality
D) Signs,symbols,and artifacts

Question 5

_____ is the process by which a model (real or simulated)is constructed to assess a product's performance under actual operating conditions,as well as consumer reactions to the model.

A) Quality function deployment
B) Value engineering
C) Detailed product design
D) Prototype testing

Question 6

Which of the following is true of Energy Star-certified products?

A) They cannot be salvaged for reuse.
B) They exert less demand on electrical power plants.
C) They have a higher carbon footprint in the environment.
D) They cannot be repaired easily since they use advanced technology.

Question 7

Service-delivery systems with high customer contact can be treated much like an assembly line.

Question 8

Which of the following is true of the House of Quality?

A) It contains supplier estimations.
B) It fails to incorporate customer requirements.
C) It contains key selling points and features.
D) It does not incorporate competitive evaluations.

Question 9

David runs a bed and breakfast in the outskirts of a big city.His employees are allowed to spend up to $200 to resolve any customer complaints,with no questions asked.This is an example of:

A) service guarantee.
B) assurance.
C) flexibility.
D) empowerment.

Question 10

Which of the following is one of the principal elements of service-encounter design?

A) Customer benefit package design
B) Market introduction
C) Recognition and reward
D) Quality function deployment

Question 11

In the context of quality function deployment,one of the first steps to build the House of Quality is to:

A) advertise,market,and offer the product to customers.
B) evaluate the marketplace.
C) identify the technical features of the design of the product.
D) conduct prototype testing.

Question 12

Ambient conditions are the explicit signals that communicate an image about a firm and include examples such as mission statements and diplomas on a wall.

Question 13

A critical part has a manufacturing specification (in cm)of 0.325 ± 0.010.Based on this information,if this measurement is larger than 0.335 or smaller than 0.315,the product fails at a cost of $120.Determine the Taguchi loss function in the given scenario.

A) L(x)= 1,200,000 (x - 0.335)²
B) L(x)= 1,200,000 (x - 0.325)²
C) L(x)= 1,200 (x - 0.315)²
D) L(x)= 1,200 (x - 0.010)²

Question 14

An Energy Star dishwasher results in increased release of carbon dioxide to the air.

Question 15

Location is an important competitive priority in a service business.

Question 16

_____ should begin immediately after a service upset occurs and when the customer is visibly upset.

A) Service guarantee
B) Servicescape design
C) Service recovery
D) Service process design

Question 17

In the context of the sevicescape,in the service-delivery system design,which of the following facilities is a part of the spatial layout and functionality?

A) Room temperature
B) Company logo on company vehicles
C) Building facade
D) Free soft drinks instead of vending machines

Question 18

The _____ provides the behavioral setting where service encounters take place.

A) facility location
B) service process and job design
C) servicescape
D) value chain model

Question 19

Mitch is the owner of GameOn,a popular sports bar.He personally trains his servers and then gives them autonomy to make on-the-spot decisions to resolve any customer complaints and issues.This is a form of _____.

A) service guarantee
B) assurance
C) flexibility
D) empowerment

Question 20

Customer contact is measured by the percentage of time the customer must be in the service-delivery system relative to the total time it takes to provide the service.

Question 21

The specifications for a refrigerator part (in cm)are 5.00 ± 0.10,and the Taguchi loss function is estimated to be L(x)= 5,500 (x - T)².Determine the estimated loss per part if the quality characteristic (i.e.,actual process performance)under study takes on a value of 4.91 cm.

A) More than $30 but less than or equal to $50
B) More than $50 but less than or equal to $70
C) More than $70 but less than or equal to $90
D) More than $90

Question 22

_____ design focuses on the interaction,directly or indirectly,between the service provider(s)and the customer.

A) Service process
B) Service-encounter
C) Lean servicescape
D) Customer benefit package

Question 23

In the context of service-encounter design,high-contact systems would most commonly be found in:

A) distribution systems.
B) process designs.
C) front office operations.
D) construction services.

Question 24

The critical differences between the designs of goods and services lie in the:

A) detailed product and process design phases.
B) research and analysis phases.
C) customer benefit package design and configuration phases.
D) market introduction and deployment phases.

Question 25

In the context of service-encounter design,giving discounts to employees is a form of _____.

A) recognition
B) guarantee
C) assurance
D) compensation

Question 26

The bottom of a House of Quality identifies the technical features that:

A) are interrelated to each other.
B) have the highest competitive performance.
C) are the weakest selling points.
D) have the strongest relationships to customer requirements.

Question 27

_____ is the explicit consideration of ecological concerns during the design of goods,services,and processes,and includes such practices as designing for recycling and disassembly.

A) Quality function deployment
B) Service-encounter design
C) Environmental intervention
D) Design for Environment

Question 28

The _____ of the House of Quality shows the interrelationships between any pair of technical features.

A) bottom
B) left
C) center
D) roof

Question 29

In the context of quality function deployment,building a House of Quality begins by identifying the:

A) competitive priorities.
B) voice of the customer.
C) marketplace dynamics.
D) service provider requirements.

Question 30

At which of the following stages are the perceptions of a firm and its goods and services created?

A) The process design stage
B) The service-encounter design stage
C) The customer benefit package configuration stage
D) The market introduction and evaluation stage

Question 31

The specifications for an automobile part (in inches)are 10.00 ± 0.15,and the Taguchi loss function is estimated to be L(x)= 9,300 (x - T)².Determine the estimated loss per part if the concerned quality feature has an actual value of 10.20 inches.

A) $37200
B) $93000
C) $372
D) $93

Question 32

For manufactured goods,design blueprints specify a nominal dimension which is the:

A) dimension with the least manufacturing cost.
B) dimension with the greatest variation from the target dimension.
C) range of permissible variation in the target dimension of the goods.
D) specified target dimension of the goods.

Question 33

Prior to designing and configuring a customer benefit package,a firm should understand and develop its:

A) goods,services,and process design in detail.
B) processes and service encounter design.
C) strategic mission and competitive priorities.
D) marketplace deployment techniques.

Question 34

Which of the following elements is included in the service-delivery system design?

A) Prototype testing
B) Service guarantees and recovery
C) Company mission
D) Facility location and layout

Question 35

Which of the following requirements is an example of customer-contact requirements?

A) Convenient facility location
B) Ambient conditions
C) Cross-selling
D) Prominently displayed company logo

Question 36

A quality characteristic has a specification (in cm)of 0.40 ± 0.03.If the value of the quality characteristic exceeds 0.40 by the tolerance of 0.030 on either side,the product will require a $180.00 repair.In the given scenario,the Taguchi loss function is correctly represented by which of the following equations?

A) L(x)= 200 (x − 0.03)²
B) L(x)= 2,000 (x − 0.43)²
C) L(x)= 200,00 (x − 0.37)²
D) L(x)= 200,000 (x − 0.40)²

Question 37

Linda is the owner of Souvenirstop,a chain of souvenir shops.One of the shops is located at the City Centre Mall.Though the shop is popular,she does not get many tourists in the City Centre Mall branch.She is considering opening another store near a popular tourist attraction to attract more tourists to her shop.Which of the following elements of service-delivery system design is Linda addressing?

A) The servicescape
B) Service process design
C) Facility location and layout
D) The voice of the customer

Question 38

For manufactured goods,design blueprints specify a target dimension,along with a range of permissible variation called the _____.

A) nominal
B) buffer
C) tolerance
D) leeway

Question 39

In the context of the servicescape,in the service-delivery system design,building footprints are examples of:

A) ambient conditions.
B) artifacts.
C) spatial layout and functionality.
D) signs and symbols.

Question 40

Unlike the customer benefit package design and configuration stage of designing goods and services,the detailed goods,services,and process design:

A) is more conceptual in nature.
B) is more strategic in nature.
C) focuses on implementation.
D) focuses on the evaluation of quality.