MQM 227 - Chapter 5
5. 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
D. All of the above
16. 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
D. Auto repair
14. The service-profit chain shows that _____ is the key to profitability. A. customer loyalty B. customer satisfaction C. customer contact D. employee productivity
A. customer loyalty
13. 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
B. Customer-routed service
6. 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
B. Is an honest assurance that the customer will be satisfied
11. ____ contact services require employees with technical skills and efficient processing routines. A. High B. Low C. Moderate D. More than one of the above
B. Low
3. 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
B. The amount of time the customer is in the service delivery system while the service is being produced
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
B. The service can be transported
4. 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
C. Is rapid compensation for a service failure
12. 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
C. Law practice
7. 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
C. The service delivery system should be designed primarily around the employees in the system
2. 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.
D. Both a and c.
8. 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
D. Cost per unit
9. 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
D. Ownership is transferred at time of purchase
15. 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
D. Product design
10. 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
D. Value of goods/service
18. T / F - Implicit service is also known as tangible service.
F
19. T / F - Service guarantees are only for consumers outside the firm, and do not apply to internal customer relationships within a firm.
F
22. T / F - McDonald's uses what Levitt refers to as "the job shop type approach to service."
F
23. T / F - Co-routed services offer a larger amount of choices to customers than do customer-routed services.
F
26. T / F - Outsourcing is the export of service activities to other countries.
F
17. T / F - The customer is a part of the service delivery process and may introduce inefficiencies into the service delivery system.
T
20. T / F - High-contact services are more likely to be front office operations and low-contact services are more likely to be back office operations.
T
21. T / F - A small improvement in customer loyalty can substantially improve the profitability of a service firm.
T
24. T / F - According to the service profit chain, employees are more likely to be satisfied when management works to improve internal service quality.
T
25. T / F - 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.
T