Deck 9: Service Innovation and Design

Question 1

The first step in the new service-development process is:

A) Idea generation
B) New-services strategy development
C) Business analysis
D) Business strategy development or review
E) Concept development and evaluation

Answer 1

D

Question 2

The augmentation of an existing service line is a:

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Service franchise

Answer 2

C

Question 3

The ability to connect to the Internet through a modem using the same wires that transmit cable television was an example of a _____ when it was first introduced.

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

Answer 3

A

Question 4

Which of the following is NOT a risk incurred by describing services in words alone?

A) Oversimplification
B) Incompleteness
C) Subjectivity
D) Biased interpretation
E) Transformation

Question 5

McDonald's offers home and office delivery service in selected markets in the U.S. and Canada. McDonald's delivery service is a _____ growth strategy.

A) Share building
B) Divestment
C) Service development
D) Diversification
E) Market integration

Question 6

The supervisor of a hotel housekeeping staff instructed a new housekeeper in the 45 ways a room must be cleaned if its tenant is leaving and not staying on for another night while inferring that a less thorough method was used if the guest were staying additional nights. The next month the supervisor wonders why this housekeeper is using many more packets of toiletries than the other housekeepers are. Also, it seems that it is taking the cleaner the same amount of time to clean a recently vacated room as it does to clean a room that will be housing the same people for another night. The best explanation for the supervisor's concern is _____, a risk incurred when services are described in words alone.

A) Oversimplification
B) Incompleteness
C) Subjectivity
D) Biased interpretation
E) Transformation

Question 7

To better target its business travelers, Canadian Airline has set up gate-side business centers for last-minute faxes and phone calls and massage chairs to knead out knotted muscles after a long commute. These gate-side business centers are an example of a:

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

Question 8

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. This would be an example of a

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

Question 9

A retail store manager instructed two new sales associates to greet customers quickly when they enter the store. On the first day the sales associates are working on the selling floor, one sales associate greets customers immediately after they enter the store, while the other associate greets customers after they have looked around for a minute or two. Which of the following risks incurred by describing services in words alone has led to the sales associates greeting customers at different time intervals?

A) Overcautious
B) Ostentation
C) Objectivity
D) Biased interpretation
E) Transformation

Question 10

When a company offers new services to current customers, it is using a _____ growth strategy.

A) Share building
B) Market development
C) Service development
D) Diversification
E) Market integration

Question 11

______ are the most common types of new services.

A) Major innovations
B) Start-up businesses
C) Service line extensions
D) Service improvements
E) Style changes

Question 12

In light of mounting competitive and cost-cutting pressures in the U.S., the need for health care services in Mexico and the potential of the Mexican economy, many U.S. hospitals are expanding their services to Mexico. For example, University Medical Center in Tucson, Arizona, provides continuing education classes for Mexican physicians, a toll-free telephone consultation line into Mexico and air transport service into Mexico. By expanding its services into Mexico, University Medical Center is using a _____ grown strategy.

A) Share building
B) Market development
C) Service development
D) Diversification
E) Market integration

Question 13

In order to have a greater likelihood for ultimate success, who should be involved in the new service development process?

A) Contact employees and customers
B) Suppliers, distributors and all employees
C) All members of the internal and external environment except customers
D) All internal and external people that will have any responsibility in its development, including focus group members
E) Only internal members of the organization to prevent problems with competitive intelligence

Question 14

A company that was involved in wedding planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned wedding planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. The company is using a _____ growth strategy.

A) Share building
B) Market development
C) Service development
D) Diversification
E) Market integration

Question 15

An ad in a dental journal noted that if dentists would bulk buy a flowable composite used to build bridges and caps, the dentist purchasing the composite would receive Delta Air Lines Sky Miles to add to his or her existing Sky Miles. Both companies, the composite marketer and Delta, benefit from this offer. By allowing the composite marketer to offer free Sky Miles to customers, Delta Air Lines is further implementing its _____ growth strategy.

A) Share building
B) Market development
C) Service development
D) Diversification
E) Market integration

Question 16

The Cirque du Soleil fused elements of theater with traditional circus skills to create a whole new form of entertainment. Cirque du is an example of a:

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

Question 17

In order to have a greater likelihood of ultimate success, a new service development system should be:

A) Subjective
B) Precise
C) Autonomous
D) Opinion-driven
E) Philosophical

Question 18

Rama thought the light blue paint on the walls of the hospital waiting area was a vast improvement over the old brown paint. The repainting of the walls of the service provider is an example of a:

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

Question 19

When is a biased interpretation likely to occur during a discussion of a new restaurant?

A) At the beginning of the conversation
B) When one party uses nonverbal communications
C) When one party uses words like nice and different to describe the restaurant
D) Just prior to the conclusion of the conversation
E) Whenever the conversation is disrupted by noise

Question 20

When Madyson returned to her oncologist's office for a checkup. She was pleased to find the waiting room had been remodeled and it now contained a large aquarium. There was even a sign that said watching fish is an excellent stress reducer. Since Madyson did not feel nearly as anxious before going to the oncologist's examination room, she decided the addition of the swimming fish was a good:

A) Major innovation
B) New service for the currently served market
C) Service line extension
D) Service improvement
E) Style change

Question 21

The final stage of the new service development process is:

A) Commercialization
B) Market research
C) Post introduction evaluation
D) Fine tuning of the positioning strategy
E) Business strategy development

Question 22

_____ are those steps and activities that contact employees, like desk clerks and receptionists, perform that are visible to customers.

A) Customer actions
B) Onstage contact employee actions
C) Backstage contact employee actions
D) Support processes
E) Audience actions

Question 23

When a guest staying at the Marriott Marquis in New York calls room service to order dinner, which of the following is an example of a backstage contact employee action?

A) Marriott food service order clerk takes guest's order
B) Guest receives meal from Marriott food delivery person
C) Guest calls room service
D) Marriott chef prepares meal
E) Marriott food delivery person delivers meal to guest

Question 24

In a Federal Express overnight delivery service blueprint, which of the following is an example of an onstage contact employee action?

A) Package is flown to destination
B) Federal Express driver picks up package from customer
C) Federal Express driver drops off package at airport
D) Customer prepares package for Federal Express driver
E) Federal Express customer service representative receives order from customer

Question 25

During the commercialization stage, the service goes live and is introduced to the marketplace. This stage has two primary objectives. One is to build and maintain acceptance of the new service among large numbers of service delivery personnel who will be responsible for day to day service quality. The other is to:

A) Evaluate tangibles for the service that are designed to reduce problems associated with service heterogeneity
B) Monitor all aspects of the service during introduction and through the complete service cycle
C) Provide adequate resources to prevent service failures
D) Develop a positioning strategy around which the service provider can build a sustainable competitive advantage
E) Analyze the market and begin the next new service development process

Question 26

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the couple that decided to buy insurance to protect themselves if the guests at their reception got food poisoning is part of which section of the service blueprint?

A) Customer actions
B) Onstage contact employee actions
C) Backstage contact employee actions
D) Support processes
E) Audience actions

Question 27

Service blueprinting is grounded in all of the following disciplines EXCEPT:

A) Computer systems analysis
B) Decision theory
C) Economics
D) Industrial engineering
E) Logistics

Question 28

A service blueprint is developed during which stage of the new service-development process?

A) Commercialization
B) Business analysis
C) New services strategy development
D) Service development and evaluation
E) Idea generation

Question 29

A company that was involved in event planning noted how many couples had a wedding catastrophe of some kind. As a result, it abandoned event planning and began offering wedding insurance to protect couples from financial losses due to weather emergencies, stolen wedding rings, damaged wedding dresses, etc. In terms of the service blueprint, the insurance underwriting company that makes it possible for them to offer the insurance cheaply is part of which section of the service blueprint?

A) Customer actions
B) Onstage contact employee actions
C) Backstage contact employee actions
D) Support processes
E) Audience actions

Question 30

A service blueprint depicts:

A) The process of service delivery
B) All stakeholders that will be affected by the service process
C) The intangible elements of the service
D) The relation of the service to the services marketing mix
E) How the service dimensions will interact before, during and after the service process

Question 31

In which of the new-services development processes does a service firm produce a description of the service that represents its specific characteristics and features?

A) Idea generation
B) New services strategy development
C) Service development and evaluation
D) Market testing
E) Service concept development and evaluation

Question 32

The openings of new fast-food franchises are typically highly promoted events-especially when the franchise is new to a geographic area. Special food promotions are offered on the day of the grand opening and sometimes guest appearances. Often if a grand opening event is scheduled for the first of the month, the business will actually start serving customers who happen to notice that it is open during the week prior to the first. In this way, employees can familiarize themselves with their jobs and minor problems can be handled before they become major. This pre-opening practice is most closely related to which stage of the new service-development process?

A) Commercialization
B) Business analysis
C) Market testing
D) Service development and evaluation
E) Post introduction evaluation

Question 33

When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to HYPERLINK "http://www.here2listen.com/" www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The people who maintain the web site and who make it possible for Jessie to engage in an online chat with a therapist are examples of:
A. Customer actions
B. Onstage contact employee actions
C. Backstage contact employee actions
D. Support processes
E. Audience actions

Question 34

Pret a Manger, a London-based sandwich shop, introduced restaurant-quality sandwiches with fast-food velocity. Pret a Manger's faster service is a _____ growth strategy.

A) Share building
B) Divestment
C) Service development
D) Diversification
E) Marketing integration

Question 35

At the _____ stage of the new service development process, the new service is made available to a limited number of its potential customers.

A) Commercialization
B) Business analysis
C) Market testing
D) Service development and evaluation
E) Post introduction evaluation

Question 36

After an airplane arrives at its gate and passengers disembark, it is cleaned, restocked with food and beverages and refueled by maintenance workers before the next set of passengers board and the airplane departs on its next flight. The activities performed by maintenance workers to prepare the airplane for its next flight is part of which section of the service blueprint?

A) Customer actions
B) Onstage contact employee actions
C) Backstage contact employee actions
D) Support processes
E) Audience actions

Question 37

Simone called the Puppy Heaven Kennel to reserve a kennel for her German shepherd while she went on vacation. In terms of the service blueprint, Simone's telephone call is an example of a(n):

A) Customer action
B) Onstage contact employee action
C) Backstage contact employee action
D) Support process
E) Audience action

Question 38

During which stage of the new-service development process are demand analysis, revenue projections, cost analyses and operational feasibility assessed?

A) Commercialization
B) Business analysis
C) Market testing
D) Service development and evaluation
E) Post introduction evaluation

Question 39

When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of a(n):

A) Customer action
B) Onstage contact employee action
C) Backstage contact employee action
D) Support process
E) Audience action

Question 40

When Jessie wanted to talk to a therapist to learn how she could improve her relationship with her mother, she went to HYPERLINK "http://www.here2listen.com/" www.here2listen.com, an online counseling service that charges $1 per minute of counseling. The therapist she communicated with online is an example of a(n) _____ in the service blueprints for the web site.
A. Customer action
B. Onstage contact employee action
C. Backstage contact employee action
D. Support process
E. Audience action

Question 41

The fact services are intangible makes it imperative for any new service-development process to be precise, subjective, opinion-driven and methodological.

Question 42

In a service blueprint, the line of internal interaction separates:

A) Customer actions from onstage contact employee actions
B) Backstage contact employee actions from support processes
C) Onstage contact employee actions from backstage contact employee actions
D) Onstage contact employee actions from support processes
E) Customer actions from backstage contact employee actions

Question 43

The line of internal interaction on the service blueprint clarifies interfaces across departmental lines.

Question 44

New-service success depends on:

A) The linear nature of the new service development process
B) The integration of the service within existing processes
C) How few people were actually involved in the development process and how tight their security system was
D) The novelty of the service
E) The number of people involved

Question 45

The loading of passengers' baggage onto an airplane by baggage handlers is a backstage contact employee action.

Question 46

The last step in building a service blueprint is to:

A) Draw the line of interaction and visibility
B) Identify the physical evidence needed to support service quality
C) Map the service process from the customer contact person's point of view
D) Link customer and contact person activity to needed support function
E) Add evidence of service at each customer step

Question 47

Service providers need some formal mechanism to ensure ongoing idea generation.

Question 48

The Pet Palace washes, clips and grooms dogs. The owner and employees of the Pet Palace developed a mobile grooming vehicle. The new service allows them to go to the dog's home to wash, clip and groom it. How can Pet Palace NOT measure the success of its new service?

A) By looking at its market development
B) By looking at the service's return on investment
C) By looking at the service's profitability and revenue growth
D) By looking at how the service has enhanced Pet Palace's relationship with its customers
E) By looking at the commercials

Question 49

On the service blueprint, the line of visibility separates all contact employee actions that are visible to the customer from those that are not.

Question 50

When a hospital with formerly monochromatic walls added murals honoring fire fighters and police officers, it would be an example of a service improvement.

Question 51

New service development is typically a linear process.

Question 52

In the post introduction evaluation stage of the new-service development process information gathered during commercialization of the service can be reviewed and changes made based on actual market response to the offering.

Question 53

Market testing is used to pilot run a new service to be sure the operational details are functioning smoothly.

Question 54

_____ is very useful in helping companies choose the right new service innovations in the first place.

A) Portfolio management for new products
B) Benchmarking
C) Service blueprinting
D) A QFD audit
E) A PERT chart

Question 55

When Wendy's extended its hours of operation on Friday and Saturday nights to provide 24-hour fast-food service, it was an example of a service development growth strategy.

Question 56

If the purpose of the service blueprint is to understand the integration of the various elements of the service process, the blueprint should be examined:

A) As a whole picture of the service process
B) Vertically
C) From left to right only
D) Horizontally
E) From right to left only

Question 57

New-service success depends on:

A) Market-driven, customer-focused new-product processes
B) The integration of the service within existing processes
C) The emphasis on planning for and executing the new service process
D) Strong external and internal marketing communications
E) All of the above

Question 58

After a service firm maps the service process from the customer's point of view, the next step in building a service blueprint is to:

A) Draw the lines of interaction and visibility
B) Link customer and contact person activity to needed support function
C) Map the service process from the customer contact person's point of view
D) Identify the physical evidence needed to support service quality
E) Add evidence of service at each customer step

Question 59

In a service blueprint, the line of visibility separates:

A) Customer actions from onstage contact employee actions
B) Backstage contact employee actions from support processes
C) Onstage contact employee actions from backstage contact employee actions
D) Onstage contact employee actions from support processes
E) Customer actions from backstage contact employee actions

Question 60

When a day care center added an after-school program for first through third graders, it was an example of a service line extension.

Question 61

The last stage of building a service blueprint is to add the physical evidence of the service.

Question 62

What does a typical service blueprint depict?

Question 63

While at Six Flags over Georgia, Mitch had his picture taken with Tweetie Bird, one of the many Warner Brothers characters that tour the park. Which component of the service blueprint does the picture exemplify?

Question 64

While finding someone who will count and wrap your coins has been an available service for years, the recent invention of machines that, for a small fee, will perform the same service is an example of what kind of innovation?

Question 65

When creating a service blueprint, what step follows mapping the service process from the customer's point of view?

Question 66

What is the first step in the new-service development process?

Question 67

What kind of growth strategy is occurring when a hospital adds a pediatric ward?

Question 68

What kind of an innovation occurs when a beauty salon adds a tanning booth to its service offerings?

Question 69

Success with new services is going to be determined by choosing the right projects and doing the projects right.

Question 70

Because a service in intangible, it is imperative for a new-service development system to have four basic characteristics. List them.

Question 71

What kind of growth strategy is being used when a convenience store in a small rural town adds a deli sandwich section?

Question 72

What is the last stage of the new-service development process?

Question 73

The service blueprint can be analyzed horizontally if the purpose is to understand the integration of the service process or to identify for particular employees where they fit into the bigger picture.

Question 74

Comment on the following statement: "New-service development is typically a linear process".

Question 75

During what stage of the new-service development process is empathetic design used?

Question 76

A janitorial service has developed a revolutionary new process for cleaning buildings after flooding. What should be the two primary objectives of the service provider as it enters the commercialization stage of the new-service development process?

Question 77

What are the four risks incurred when services are described in words alone?

Question 78

Service blueprints are most useful when developed for a particular customer or customer segment, assuming that the service varies across segments.

Question 79

Before a trade show ever opens, personnel spend hours assembling the booths, making sure they are all wired for electricity and ensuring the safety of the people who attend the show. This is an example of which component of the service blueprint?