Deck 5: Service Delivery System Design

Question 1

Which of the following are characteristics of a low-contact service delivery system?

A)Lower costs and more standardization
B)Greater flexibility,need for people who are highly skilled in interpersonal relations,and a customer orientation
C)Need for people with a high level of technical skills oriented toward efficient processing,well-defined procedures,and smooth flow
D)Both a and c
E)All of the above

Answer 1

Both a and c

Question 2

Which of the following is NOT a characteristic of service operations?

A)Intangible output
B)The buyer can perform part of the production
C)Product cannot be stored
D)Ownership is transferred at time of purchase

Answer 2

Ownership is transferred at time of purchase

Question 3

Which of the following is NOT an example of a high contact service?

A)Retail trade
B)Personal services
C)Business services
D)Auto repair

Answer 3

Auto repair

Question 4

A good service guarantee:

A)Is often an advertising gimmick
B)Is an honest assurance that the customer will be satisfied
C)Has many stipulations and conditions
D)Costs a lot

Question 5

Which of the following is NOT a general characteristic of a service?

A)Production and consumption are simultaneous
B)The service can be transported
C)No resale is possible
D)The service cannot be stored

Question 6

An example of a service business/organization that has a high degree of customer contact,high customization,and a high degree of labor intensity is:

A)Retailing
B)Hotels
C)Law practice
D)Schools

Question 7

A service recovery process:

A)Follows every service transaction
B)Is an implicit service
C)Is rapid compensation for a service failure
D)None of the above

Question 8

Which of the following is NOT included in internal service quality in the service profit chain?

A)Workplace design
B)Job design
C)Employee selection
D)Product design

Question 9

Implicit service is also known as tangible service.

Question 10

Which of the following is NOT a correct statement?

A)A service is produced and consumed simultaneously
B)Services are provided in a bundle of services and goods
C)The service delivery system should be designed primarily around the employees in the system
D)Low-contact services can usually be made more efficient than high-contact services

Question 11

Which of the following is NOT a significant difference between manufacturing and service operations?

A)Transportation
B)Customer contact
C)Resale
D)Cost per unit

Question 12

The service-profit chain shows that _____ is the key to profitability.

A)customer loyalty
B)customer satisfaction
C)customer contact
D)employee productivity

Question 13

Which of the following is NOT an element of the service-product bundle?

A)Facilitating goods
B)Explicit service
C)Implicit service
D)Value of goods/service

Question 14

Estate planning would be an example of a:

A)Co-routed service
B)Customer-routed service
C)Provider-routed service
D)None of the above

Question 15

High-contact services are more likely to be front office operations and low-contact services are more likely to be back office operations.

Question 16

____ contact services require employees with technical skills and efficient processing routines.

A)High
B)Low
C)Moderate
D)More than one of the above

Question 17

Service guarantees are only for consumers outside the firm,and do not apply to internal customer relationships within a firm.

Question 18

The customer is a part of the service delivery process and may introduce inefficiencies into the service delivery system.

Question 19

The degree of customer contact measures:

A)The amount of time the customer is separated from the service delivery system
B)The amount of time the customer is in the service delivery system while the service is being produced
C)The customization abilities of the service system
D)None of the above

Question 20

A service guarantee:

A)Is like a product guarantee except that it is for a service
B)Specifies exactly what the service delivery system must provide
C)Builds loyalty
D)All of the above

Question 21

Outsourcing is the export of service activities to other countries.

Question 22

The major difference between the service delivery system matrix and the product-process matrix is that service process design generally does not vary with customer volume.

Question 23

Co-routed services offer a larger amount of choices to customers than do customer-routed services.

Question 24

What are the five key findings of the report by Duke University and Booz & Hamilton on global offshoring of services?

Question 25

What are the five types of customer-induced variability that impact service operations,according to Frei?

Question 26

Design a service produce bundle for a new airline company operating between Minneapolis-St.Paul International Airport (MSP)and Los Angeles International Airport (LAX).The route between MSP and LAX is extremely competitive with several major airlines providing daily service.How can your design help the new airline company dominate the existing competition?

Question 27

According to the service profit chain,employees are more likely to be satisfied when management works to improve internal service quality.

Question 28

A small improvement in customer loyalty can substantially improve the profitability of a service firm.

Question 29

Identify some of the prominent differences between service operations and manufacturing operations.Describe the challenges that are unique to service operations and describe some methods to overcome them.

Question 30

Describe the difference in service delivery system design for customer-routed services versus provider-routed services.

Question 31

McDonald's uses what Levitt refers to as "the job shop type approach to service."

Question 32

Describe differences in sales opportunities and production efficiency for varying levels of customer contact.