Operations and supply chain management 13th edition jacobs test bank

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Chapter 07 - Service Processes

Chapter 07 Service Processes True / False Questions

1. Most services consist of a bundle of goods and services known as the service package which is the major output of the development process.

True False

2. Effective management of services requires a clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel.

True False

3. Services often take the form of repeated encounters involving face-to-face interactions.

True False

4. The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.

True False

5. A service business is an organization whose primary business requires interaction with customers to produce the service.

True False

6. The customer is (or should be) the second most important focal point of all decisions in a service organization.

True False

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Chapter 07 - Service Processes

7. A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.

True False

8. When recovering from a defective service encounter a botched task calls for an apology.

True False

9. When recovering from a defective service encounter a botched task calls for material compensation.

True False

10. When recovering from a defective service encounter, poor treatment from a server calls for an apology.

True False

11. When recovering from a defective service encounter a poor treatment from a server calls for material compensation.

True False

12. Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.

True False

13. It is difficult to separate the operations management functions from marketing in services.

True False

14. Marketing is responsible for fulfilling the service guarantee.

True False

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Chapter 07 - Service Processes

15. The service-system design matrix identifies five alternative forms of service encounters.

True False

16. The service-system design matrix identifies six forms of service encounters.

True False

17. The "service blueprint" is a classification of services.

True False

18. Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect.

True False

19. Poka-Yoke is roughly translated from Japanese as "Quality Management."

True False

20. Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes."

True False

21. Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer.

True False

22. One characteristic of a well-designed service system is that it is cost-effective.

True False

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Chapter 07 - Service Processes

23. It is not necessary that a well-designed service system be robust.

True False

24. Choosing how to accommodate customer induced variability in a service business is the decision of the front-line service provider.

True False

25. An important aspect of service products is that they cannot be inventoried.

True False

26. Service strategy begins by integrating operations and strategy.

True False

27. The "back end" of the service encounter is more important than the "front end" because the "back end" is where most service providers are paid.

True False

28. "Combine the pain" is an application of behavioral science to service encounters. It means that, when something is going wrong for a group of customers it is better to totally enrage one or a very few customers rather than slightly annoying a large number of customers.

True False

29. A characteristic of a well designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided.

True False

30. Customer contact refers to creation of the service.

True False

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Chapter 07 - Service Processes

31. The work process involved in providing the service must involve the physical presence of the customer in the system.

True False

32. A supporting facility is the same thing as a facilitating good.

True False

33. A Facilitating good is something purchased or consumed by the buyer or items provided by the customer.

True False

34. An implicit service implies psychological benefits that the customer may sense only vaguely.

True False

35. An implicit service is readily observable by the senses.

True False

36. Implicit services are not part of the service package.

True False

37. In services the product is developed first and then the process to produce the service is developed.

True False

Multiple Choice Questions

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Chapter 07 - Service Processes

38. Which of the following is a characteristic that can be used to guide the design of service systems?

A. Services cannot be inventoried B. Services are all similar C. Quality work means quality service D. Services businesses are inherently entrepreneurial E. Even service businesses have internal services

39. Which of the following is not part of "the service triangle"?

A. Employees B. Support systems C. Customers D. Service strategy E. Service encounter

40. Which of the following refers to the physical presence of the customer in a service system?

A. Creation of the service B. Customer contact C. Intermittent production D. Continuous production E. None of the above

41. Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

A. The service process and service product can be developed independently B. The service package has the same legal protection available to manufactured goods C. The service package is the major output of the development process D. Manufacturing is far more capital intensive than services E. Capacity decisions are much more critical in manufacturing operations

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Chapter 07 - Service Processes

42. Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?

A. The process and product must be developed at the same time.

B. Many service organizations can change their service offerings virtually overnight.

C. Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization.

D. The service package, rather than a definable good, is the output of the development process.

E. Service operations can be protected by patents, manufacturing operations cannot.

43. Which of the following are alternative possible service encounters included in the ServiceSystem Design Matrix?

A. Mail contact B. Warranty C. Sales call D. Field service E. None of the above

44. Which of the following is an alternative possible service encounter included in the service-system design matrix?

A. Face-to-face distance B. Internet C. Questionnaire response D. Automated teller (ATM) E. Response card encounter

45. In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of the above

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Chapter 07 - Service Processes

46. In the service-system design matrix, a mail contact service encounter is expected to have which of the following?

A. High sales opportunity B. High degree of customer/server contact C. High production efficiency D. Low sales opportunity E. None of the above

47. In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?

A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of the above

48. In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following?

A. High sales opportunity B. High degree of customer/server contact C. Low production efficiency D. High production efficiency E. None of the above

49. Which of the following is not a strategic use of the service-system design matrix?

A. Enabling systematic integration of operations and marketing strategy B. Design of the service package C. Comparing how other firms deliver specific services D. Indicating evolutionary or life cycle changes that might be in order as the firm grows E. Clarifying exactly which combination of service delivery the firm is in fact providing

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Chapter 07 - Service Processes

50. There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

A. Task B. Time C. Teamwork D. Trust E. Talent

51. There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

A. Talent B. Teamwork C. Trust D. Treatment E. Time

52. Which of the following is one of the three contrasting approaches to delivering on-site service?

A. Airline approach B. Self-service approach C. Fast food approach D. Do-it-yourself approach E. Internet approach

53. Which of the following is one of the three contrasting approaches to delivering on-site service?

A. Quality approach B. Stock market approach C. Production line approach D. Retail approach E. Professional approach

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Chapter 07 - Service Processes

54. Which company is mentioned in the text as a pioneering of the production line approach to delivering on-site service?

A. Ritz-Carlton Hotel Company B. McDonald's Corporation C. Prudential Insurance Company D. Southwest Airlines E. Citibank

55. Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service?

A. Production line approach B. Personal attention approach C. Quality approach D. Do-it-yourself approach E. Self-service approach

56. Which of the following is not an element of a good service guarantee?

A. Unconditional (no small print) B. The customer controls the process C. Easy to understand D. Easy to communicate E. Meaningful to the customer

57. Which of the following is not a characteristic of a well-designed service system?

A. Robust B. Cost-effective C. Puts customers in charge D. User-friendly E. Effectively links "front office" with "back office"

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Chapter 07 - Service Processes

58. Which of the following is a characteristic of a well-designed service system?

A. Provides a unconditional service guarantee B. Each element of service system is consistent with the operating focus of the firm C. The front end of the service encounter is equal to the back end D. It segments the pleasure for the customer E. It lets the customer control the process

59. Which of the following is considered a high-contact service operation?

A. On-line brokerage house B. Internet sales for a department store C. Physician practice D. Telephone life insurance sales and service E. Automobile repair

Fill in the Blank Questions

60. In the service-system design matrix, what kind of production efficiency is expected from a service encounter designed to be "face-to-face loose specs?" ______________________________________ ________________________________________

61. What is the designation of the approach to service design characterized by having the customer take a greater role in the production of the service? _______________________________________ ________________________________________

62. What are the physical resources that must be in place before a service can be offered called? ______________________________ ________________________________________

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Chapter 07 - Service Processes

63. What are the psychological benefits that the customer may sense only vaguely called? ___________________________________ ________________________________________

64. In a service operation, what are the materials purchased or consumed by the buyer called? _____________________________________ ________________________________________

Essay Questions

65. Contrast the "Personal Attention Approach" to service to the "Assembly-Line Approach."

In your opinion, which is superior? Why?

66. Describe the role of service guarantees from the marketing and the operations perspective.

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Chapter 07 - Service Processes

67. How does the degree of customer contact relate to the kinds of skills needed by service workers and the degree of training they require?

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Chapter 07 - Service Processes

Chapter 07 Service Processes Answer Key

True / False Questions

1. (p. 219) Most services consist of a bundle of goods and services known as the service package which is the major output of the development process.

TRUE Every service has a service package, which is defined as a bundle of goods and services that is provided in some environment. (Page 221) The service package, rather than a definable good, constitutes the major output of the development process.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

2. (p. 221) Effective management of services requires a clear focus on understanding operations, so much so, that it may even require the exclusion of consideration of marketing or personnel.

FALSE It is difficult to separate the operations management functions from marketing in services.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

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Chapter 07 - Service Processes

3. (p. 221) Services often take the form of repeated encounters involving face-to-face interactions.

TRUE The top of the matrix shows the degree of customer/server contact: the buffered core, which is physically separated from the customer; the permeable system, which is penetrable by the customer via phone or face-to-face contact; and the reactive system, which is both penetrable and reactive to the customer's requirements.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Structuring the Service Encounter: Service-System Design Matrix

4. (p. 221) The term "encounter" is defined by Webster's Dictionary as "meeting in conflict or battle" and is used to also designate meetings between consumers and service systems.

TRUE Service encounters can be configured in a number of different ways. The service-system design matrix in Exhibit 7.3 identifies six common alternatives.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Structuring the Service Encounter: Service-System Design Matrix

5. (p. 218) A service business is an organization whose primary business requires interaction with customers to produce the service.

TRUE The customer is (or should be) the focal point of all decisions and actions of the service organization.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

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Chapter 07 - Service Processes

6. (p. 218) The customer is (or should be) the second most important focal point of all decisions in a service organization.

FALSE The customer is (or should be) the focal point of all decisions and actions of the service organization.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

7. (p. 220) A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.

FALSE Service systems with a high degree of customer contact are more difficult to control than those with a low degree of customer contact.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Structuring the Service Encounter: Service-System Design Matrix

8. (p. 233) When recovering from a defective service encounter a botched task calls for an apology.

FALSE A botched task calls for material compensation, while poor treatment from a server calls for an apology.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Applying Behavioral Science to Service Encounters

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Chapter 07 - Service Processes

9. (p. 233) When recovering from a defective service encounter a botched task calls for material compensation.

TRUE A botched task calls for material compensation, while poor treatment from a server calls for an apology.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Applying Behavioral Science to Service Encounters

10. (p. 233) When recovering from a defective service encounter, poor treatment from a server calls for an apology.

TRUE A botched task calls for material compensation, while poor treatment from a server calls for an apology.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Applying Behavioral Science to Service Encounters

11. (p. 233) When recovering from a defective service encounter a poor treatment from a server calls for material compensation.

FALSE A botched task calls for material compensation, while poor treatment from a server calls for an apology.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Applying Behavioral Science to Service Encounters

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Chapter 07 - Service Processes

12. (p. 221) Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.

FALSE Too much capacity generates excessive costs. Insufficient capacity leads to lost customers. In these situations, of course, we seek the assistance of marketing. This is one reason we have discount airfares, hotel specials on weekends, and so on. This is also a good illustration of why it is difficult to separate the operations management functions from marketing in services.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

13. (p. 221) It is difficult to separate the operations management functions from marketing in services.

TRUE Too much capacity generates excessive costs. Insufficient capacity leads to lost customers. In these situations, of course, we seek the assistance of marketing. This is one reason we have discount airfares, hotel specials on weekends, and so on. This is also a good illustration of why it is difficult to separate the operations management functions from marketing in services.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

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Chapter 07 - Service Processes

14. (p. 233) Marketing is responsible for fulfilling the service guarantee.

FALSE Hiding behind marketing promises of service satisfaction is a set of actions that must be taken by the operations organization to fulfill these promises.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Service Guarantees as Design Drivers

15. (p. 222) The service-system design matrix identifies five alternative forms of service encounters.

FALSE See exhibit 7.3. There are six forms identified.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

16. (p. 222) The service-system design matrix identifies six forms of service encounters.

TRUE See exhibit 7.3. There are six forms identified.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

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Chapter 07 - Service Processes

17. (p. 224) The "service blueprint" is a classification of services.

FALSE Just as is the case with manufacturing process design, the standard tool for service process design is the flowchart. Recently, the service gurus have begun calling the flowchart a service blueprint to emphasize the importance of process design.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-02 Construct a service blueprint Topic Area: Service Blueprinting and Fail-Safing

18. (p. 225) Poka-Yokes are procedures that block the inevitable mistake from becoming a service defect.

TRUE Poka-yokes —procedures that block the inevitable mistake from becoming a service defect.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-02 Construct a service blueprint Topic Area: Service Blueprinting and Fail-Safing

19. (p. 225) Poka-Yoke is roughly translated from Japanese as "Quality Management."

FALSE Poka-yokes (roughly translated from the Japanese as "avoid mistakes") are common in factories.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-02 Construct a service blueprint Topic Area: Service Blueprinting and Fail-Safing

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Chapter 07 - Service Processes

20. (p. 225) Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes."

TRUE Poka-yokes (roughly translated from the Japanese as "avoid mistakes") are common in factories.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-02 Construct a service blueprint Topic Area: Service Blueprinting and Fail-Safing

21. (p. 233) Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer.

TRUE From an operations perspective, a service guarantee can be used not only as an improvement tool but also at the design stage to focus the firm's delivery system squarely on the things it must do well to satisfy the customer.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Service Guarantees as Design Drivers

22. (p. 230) One characteristic of a well-designed service system is that it is cost-effective.

TRUE The seven characteristics of a well-designed service system include: 7. It is cost-effective.

There is minimum waste of time and resources in delivering the service. Even if the service outcome is satisfactory, customers are often put off by a service company that appears inefficient.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

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Chapter 07 - Service Processes

23. (p. 230) It is not necessary that a well-designed service system be robust.

FALSE The seven characteristics of a well-designed service system include: 3. It is robust. That is, it can cope effectively with variations in demand and resource availability. For example, if the computer goes down, effective backup systems are in place to permit service to continue.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

24. (p. 230) Choosing how to accommodate customer induced variability in a service business is the decision of the front-line service provider.

FALSE Among the decisions that service managers must make is how much they should accommodate the variation introduced by the customer into a process.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Managing Customer-Introduced Variability

25. (p. 221) An important aspect of service products is that they cannot be inventoried.

TRUE In designing service organizations we must remember one distinctive characteristic of services: We cannot inventory services.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services, Designing Service Organizations

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Chapter 07 - Service Processes

26. (p. 223) Service strategy begins by integrating operations and strategy.

FALSE The strategic uses (of the matrix) include: 1. Enabling systematic integration of operations and marketing strategy. Trade-offs become more clear-cut, and, more important, at least some of the major design variables are crystallized for analysis purposes.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Structuring the Service Encounter: Service-System Design Matrix

27. (p. 232) The "back end" of the service encounter is more important than the "front end" because the "back end" is where most service providers are paid.

FALSE The front end and the back end of the encounter are not created equal. It is widely believed that the start and finish of a service or the so-called service bookends are equally weighted in the eyes of the customer. A good deal of research indicates that this is not the case. While it is essential to achieve a base level of satisfactory performance at the beginning so that the customer remains throughout the service, a company is likely to be better off with a relatively weak start and a modest upswing on the end than having a great start and a so-so ending.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Applying Behavioral Science to Service Encounters

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Chapter 07 - Service Processes

28. (p. 232) "Combine the pain" is an application of behavioral science to service encounters. It means that, when something is going wrong for a group of customers it is better to totally enrage one or a very few customers rather than slightly annoying a large number of customers.

FALSE Events seem longer when they are segmented. This suggests that we want to break pleasant experiences into multiple stages and combine unpleasant ones into a single stage.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Applying Behavioral Science to Service Encounters

29. (p. 230) A characteristic of a well designed service system is that it manages the evidence of service quality in such a way that customers are aware of the value of the service provided.

TRUE The seven characteristics of a well-designed service system include: 6. It manages the evidence of service quality in such a way that customers see the value of the service provided.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Three Contrasting Service Designs

30. (p. 219) Customer contact refers to creation of the service.

FALSE Customer contact refers to the physical presence of the customer in the system, and creation of the service refers to the work process involved in providing the service itself.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: An Operational Classification of Services

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Chapter 07 - Service Processes

31. (p. 219) The work process involved in providing the service must involve the physical presence of the customer in the system.

FALSE Customer contact refers to the physical presence of the customer in the system, and creation of the service refers to the work process involved in providing the service itself.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: An Operational Classification of Services

32. (p. 219) A supporting facility is the same thing as a facilitating good.

FALSE A supporting facility is the physical resources that must be in place before a service can be offered. A facilitating good is the material purchased or consumed by the buyer or the items provided by the customer.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

33. (p. 219) A Facilitating good is something purchased or consumed by the buyer or items provided by the customer.

TRUE Facilitating goods: The material purchased or consumed by the buyer or the items provided by the customer.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

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Chapter 07 - Service Processes

34. (p. 219) An implicit service implies psychological benefits that the customer may sense only vaguely.

TRUE Implicit services: Psychological benefits that the customer may sense only vaguely.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

35. (p. 219) An implicit service is readily observable by the senses.

TRUE Explicit services: The benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

36. (p. 219) Implicit services are not part of the service package.

TRUE Every service has a service package, which is defined as a bundle of goods and services that is provided in some environment. This bundle consists of five features: 1. supporting facility, 2. facilitating goods, 3. information, 4. explicit services, 5. implicit services.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

7-26

Chapter 07 - Service Processes

37. (p. 221) In services the product is developed first and then the process to produce the service is developed.

FALSE First, the process and the product must be developed simultaneously; indeed, in services, the process is the product.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

Multiple Choice Questions

38. (p. 221) Which of the following is a characteristic that can be used to guide the design of service systems?

A. Services cannot be inventoried B. Services are all similar C. Quality work means quality service D. Services businesses are inherently entrepreneurial E. Even service businesses have internal services In designing service organizations we must remember one distinctive characteristic of services: We cannot inventory services.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

7-27

Chapter 07 - Service Processes

39. (p. 218) Which of the following is not part of "the service triangle"?

A. Employees B. Support systems C. Customers D. Service strategy E. Service encounter See exhibit 7.1.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

40. (p. 219) Which of the following refers to the physical presence of the customer in a service system?

A. Creation of the service B. Customer contact C. Intermittent production D. Continuous production E. None of the above Customer contact refers to the physical presence of the customer in the system.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: An Operational Classification of Services

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Chapter 07 - Service Processes

41. (p. 221) Which of the following is a major factor that distinguishes service design and development from manufacturing design and development?

A. The service process and service product can be developed independently B. The service package has the same legal protection available to manufactured goods C. The service package is the major output of the development process D. Manufacturing is far more capital intensive than services E. Capacity decisions are much more critical in manufacturing operations The service package, rather than a definable good, constitutes the major output of the development process.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

42. (p. 221) Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?

A. The process and product must be developed at the same time.

B. Many service organizations can change their service offerings virtually overnight.

C. Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization.

D. The service package, rather than a definable good, is the output of the development process.

E. Service operations can be protected by patents, manufacturing operations cannot.

Although equipment and software that support a service can be protected by patents and copyrights, a service operation itself lacks the legal protection commonly available to goods production.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: Designing Service Organizations

7-29

Chapter 07 - Service Processes

43. (p. 222) Which of the following are alternative possible service encounters included in the Service-System Design Matrix?

A. Mail contact B. Warranty C. Sales call D. Field service E. None of the above See exhibit 7.3

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

44. (p. 222) Which of the following is an alternative possible service encounter included in the service-system design matrix?

A. Face-to-face distance B. Internet C. Questionnaire response D. Automated teller (ATM) E. Response card encounter See exhibit 7.3

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Structuring the Service Encounter: Service-System Design Matrix

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45. (p. 222) In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of the above See exhibit 7.3.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Structuring the Service Encounter: Service-System Design Matrix

46. (p. 222) In the service-system design matrix, a mail contact service encounter is expected to have which of the following?

A. High sales opportunity B. High degree of customer/server contact C. High production efficiency D. Low sales opportunity E. None of the above See exhibit 7.3.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

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47. (p. 222) In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?

A. Low sales opportunity B. Low production efficiency C. High production efficiency D. Low degree of customer/server contact E. None of the above See exhibit 7.3.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

48. (p. 222) In the service-system design matrix, an Internet and on-site technology service encounter is expected to have which of the following?

A. High sales opportunity B. High degree of customer/server contact C. Low production efficiency D. High production efficiency E. None of the above See exhibit 7.3.

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49. (p. 223) Which of the following is not a strategic use of the service-system design matrix?

A. Enabling systematic integration of operations and marketing strategy B. Design of the service package C. Comparing how other firms deliver specific services D. Indicating evolutionary or life cycle changes that might be in order as the firm grows E. Clarifying exactly which combination of service delivery the firm is in fact providing The matrix in Exhibit 7.3 has both operational and strategic uses.

The strategic uses include: 1. Enabling systematic integration of operations and marketing strategy.

2. Clarifying exactly which combination of service delivery the firm is in fact providing.

3. Permitting comparison with how other firms deliver specific services.

4. Indicating evolutionary or life cycle changes that might be in order as the firm grows.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

50. (p. 225-226) There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

A. Task B. Time C. Teamwork D. Trust E. Talent These can be classified into warning methods, physical or visual contact methods, and by what we call the Three T's —the Task to be done (Was the car fixed right?), the Treatment accorded to the customer (Was the service manager courteous?), and the Tangible or environmental features of the service facility (Was the waiting area clean and comfortable?).

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-02 Construct a service blueprint Topic Area: Service Blueprinting and Fail-Safing

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Chapter 07 - Service Processes

51. (p. 225-226) There are many applications of poka-yokes in service organizations. Which of the following is one of the three-T's used to classify poka-yokes?

A. Talent B. Teamwork C. Trust D. Treatment E. Time These can be classified into warning methods, physical or visual contact methods, and by what we call the Three T's —the Task to be done (Was the car fixed right?), the Treatment accorded to the customer (Was the service manager courteous?), and the Tangible or environmental features of the service facility (Was the waiting area clean and comfortable?).

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-02 Construct a service blueprint Topic Area: Service Blueprinting and Fail-Safing

52. (p. 226) Which of the following is one of the three contrasting approaches to delivering onsite service?

A. Airline approach B. Self-service approach C. Fast food approach D. Do-it-yourself approach E. Internet approach Three contrasting approaches to delivering on-site service are the production-line approach, the self-service approach, and the personal-attention approach.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Three Contrasting Service Designs

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53. (p. 226) Which of the following is one of the three contrasting approaches to delivering onsite service?

A. Quality approach B. Stock market approach C. Production line approach D. Retail approach E. Professional approach Three contrasting approaches to delivering on-site service are the production-line approach, the self-service approach, and the personal-attention approach.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Three Contrasting Service Designs

54. (p. 226) Which company is mentioned in the text as a pioneering of the production line approach to delivering on-site service?

A. Ritz-Carlton Hotel Company B. McDonald's Corporation C. Prudential Insurance Company D. Southwest Airlines E. Citibank The production-line approach pioneered by McDonald's refers to more than just the steps required to assemble a Big Mac. Rather, as Theodore Levitt notes, it treats the delivery of fast food as a manufacturing process rather than a service process.

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55. (p. 227) Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service?

A. Production line approach B. Personal attention approach C. Quality approach D. Do-it-yourself approach E. Self-service approach C. H. Lovelock and R. F. Young propose that the service process can be enhanced by having the customer take a greater role in the production of the service.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Three Contrasting Service Designs

56. (p. 233) Which of the following is not an element of a good service guarantee?

A. Unconditional (no small print) B. The customer controls the process C. Easy to understand D. Easy to communicate E. Meaningful to the customer Recent research on service guarantees has provided the following conclusions about them: 1. Any guarantee is better than no guarantee.

2. Involve the customer as well as employees in the design.

3. Avoid complexity or legalistic language. Use big print, not small print.

4. Do not quibble or wriggle when a customer invokes the guarantee.

5. Make it clear that you are happy for customers to invoke the guarantee.

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57. (p. 230) Which of the following is not a characteristic of a well-designed service system?

A. Robust B. Cost-effective C. Puts customers in charge D. User-friendly E. Effectively links "front office" with "back office" The seven characteristics of a well-designed service system include: 1. Each element of the service system is consistent with the operating focus of the firm.

2. It is user-friendly.

3. It is robust.

4. It is structured so that consistent performance by its people and systems is easily maintained.

5. It provides effective links between the back office and the front office so that nothing falls between the cracks.

6. It manages the evidence of service quality in such a way that customers see the value of the service provided.

7. It is cost-effective.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Designing Service Organizations

58. (p. 230) Which of the following is a characteristic of a well-designed service system?

A. Provides a unconditional service guarantee B. Each element of service system is consistent with the operating focus of the firm C. The front end of the service encounter is equal to the back end D. It segments the pleasure for the customer E. It lets the customer control the process The seven characteristics of a well-designed service system include: 1. Each element of the service system is consistent with the operating focus of the firm.

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59. (p. 223) Which of the following is considered a high-contact service operation?

A. On-line brokerage house B. Internet sales for a department store C. Physician practice D. Telephone life insurance sales and service E. Automobile repair Face-to-face total customization refers to service encounters whose specifications must be developed through some interaction between the customer and server. Legal and medical services are of this type. See also exhibit 7.3, page 222.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

Fill in the Blank Questions

60. (p. 222) In the service-system design matrix, what kind of production efficiency is expected from a service encounter designed to be "face-to-face loose specs?" ______________________________________ Low production efficiency See exhibit 7.3. Also, page 222, as one would guess, production efficiency decreases as the customer has more contact (and therefore more influence) on the system. To offset this, the face-to-face contact provides high sales opportunity to sell additional products.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-03 Demonstrate how services are classified Topic Area: Structuring the Service Encounter: Service-System Design Matrix

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61. (p. 227) What is the designation of the approach to service design characterized by having the customer take a greater role in the production of the service? _______________________________________ The self-service approach C. H. Lovelock and R. F. Young propose that the service process can be enhanced by having the customer take a greater role in the production of the service.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Three Contrasting Service Designs

62. (p. 219) What are the physical resources that must be in place before a service can be offered called? ______________________________ The supporting facility Supporting facility: The physical resources that must be in place before a service can be offered.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

63. (p. 219) What are the psychological benefits that the customer may sense only vaguely called? ___________________________________ Implicit services Implicit services: Psychological benefits that the customer may sense only vaguely, or the extrinsic features of the service.

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64. (p. 219) In a service operation, what are the materials purchased or consumed by the buyer called? _____________________________________ Facilitating goods Facilitating goods: The material purchased or consumed by the buyer.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Easy Learning Objective: 07-01 Understand the characteristics of service processes and know how they differ from manufacturing processes Topic Area: The Nature of Services

Essay Questions

65. (p. 226-229) Contrast the "Personal Attention Approach" to service to the "Assembly-Line Approach." In your opinion, which is superior? Why? The text (p.226-229) describes these approaches using McDonald's and Nordstrom's as examples. A successful response, in addition to giving reasonable discussion regarding the contrasts between the characteristics of each approach, will indicate that either approach can be successfully implemented but they must be implemented in the correct marketing milieu. It is necessary that the operations part of the business model be consistent with all other elements of the service design.

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66. (p. 233-234) Describe the role of service guarantees from the marketing and the operations perspective.

Service guarantees are discussed on pages 233-234 of the text. Briefly, the marketing perspective is that a service guarantee is an aid to get customers to try the service. To the extent that the guarantee is something that competitors do not offer it can be a differentiating factor, however, the differentiation may be ethereal as a service guarantee may also be fairly easily copied by a competitor. From an operational perspective, the service guarantee can be an improvement tool and a key point of emphasis at the design stage that focuses on those things that must be done exceptionally well to deliver on the guarantee and satisfy the customer.

AACSB: Analytic Bloom's Taxonomy: Remember Difficulty: Medium Learning Objective: 07-04 Explain the involvement of the customer in services Topic Area: Service Guarantees as Design Drivers

67. (p. 221-224) How does the degree of customer contact relate to the kinds of skills needed by service workers and the degree of training they require?

The question relates to the service-system design matrix discussed on pages 221-224 and particularly to exhibit 7.3 on page 222. In general, the kinds of skills required progress from technical (clerical) types of skills to relationship types of skills as the degree of customer contact increases. The higher the degree of customer contact, the more autonomous is the service worker and therefore training must include not only the technical aspects of the job but also the entire array of strategic choices the company has made regarding the way the customer is to be handled in a wide range of transactional situations.

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