Deck 5: Service Process Design

Question 1

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

Answer 1

B

Question 2

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

A)High
B)Low
C)Moderate
D)Both b and c
E)Both a and b

Answer 2

B

Question 3

It is often good to have many conditions in a service guarantee as these conditions minimize the chances of a service failure.

Answer 3

False

Question 4

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

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

Question 5

A service recovery process:

A)Always follows a service transaction
B)Is a part of the service delivery system
C)Is the ability to compensate a service failure slowly
D)None of the above

Question 6

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

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

Question 7

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 8

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
E)Tangible service provided

Question 9

High-contact and low-contact services can also be classified as front room and back room operations.

Question 10

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
E)Hospitals

Question 11

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 12

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 13

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 14

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

A)Intangible output
B)No resale is possible
C)The buyer can perform part of the production
D)Product cannot be stored
E)Ownership is transferred at time of purchase

Question 15

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 16

Which of the following is not included in internal service quality?

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

Question 17

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

Question 18

Implicit Service is also known as Tangible Service.

Question 19

Which of the following is not an example of a high labor-intensive service?

A)Retail trade
B)Personal services
C)Business services
D)Auto repair
E)Insurance agents and service

Question 20

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

Question 21

Outsourcing is the export of service activities to other countries.

Question 22

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

Question 23

Design a service delivery system 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 airliners providing daily service.How can your design help the new airline company dominate the existing competition?

Question 24

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

Question 25

What are the five types of customer-induced variability according to Frei?

Question 26

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

Question 27

The key to service profitability is focusing on customers and front-line employees as paramount in importance.

Question 28

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

Question 29

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

Question 30

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