MG390 Module 7 Chapter 9

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.

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.

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.

In the service-system design matrix, a mail contact service encounter is expected to have which of the following? Multiple Choice Low sales opportunity None of these High sales opportunity High degree of customer/server contact High production efficiency

Low sales opportunity

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.

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.

Which of the following is a characteristic of a well-designed service system? Multiple Choice It segments the pleasure for the customer. It lets the customer control the process. Each element of service system is consistent with the operating focus of the firm. The front end of the service encounter is equal to the back end. Provides an unconditional service guarantee.

Each element of service system is consistent with the operating focus of the firm. 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.

In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following? Multiple Choice None of these Low degree of customer/server contact Low production efficiency High production efficiency Low sales opportunity

Low production efficiency

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

False There are six forms identified.

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.

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

True

In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following? Multiple Choice High production efficiency Low production efficiency Low sales opportunity Low degree of customer/server contact None of these

Low Production efficiency

In the service-system design matrix, a mail contact service encounter is expected to have which of the following? Multiple Choice High degree of customer/server contact None of these High sales opportunity Low sales opportunity High production efficiency

Low Sales opportunity

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

Puts customers in charge Correct Explanation The seven characteristics of a well-designed service system include: Each element of the service system is consistent with the operating focus of the firm. It is robust. It is user-friendly. It is structured so that consistent performance by its people and systems is easily maintained. It provides effective links between the back office and the front office so that nothing falls between the cracks. It manages the evidence of service quality in such a way that customers see the value of the service provided. It is cost-effective.

Which of the following approaches to service design involves the customer to the greatest extent in providing a service (in effect making them "a partial employee".? rev: 10_20_2017_QC_CS-106207 Multiple Choice Do-it-yourself approach Personal-attention approach only Self-service approach Production-line approach and self-service approach Quality approach

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.

Which of the following approaches to service design is characterized by having the customer take a greater role in the production of the service? Multiple Choice Do-it-yourself approach Incorrect Personal-attention approach Self-service approach Quality approach Production-line approach

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.

Which of the following is a characteristic that can be used to guide the design of service systems? Multiple Choice Services are all similar. Quality work means quality service. Even service businesses have internal services. Services businesses are inherently entrepreneurial. Services cannot be inventoried.

Services cannot be inventoried. Explanation In designing service organizations, we must remember one distinctive characteristic of services: We cannot inventory services.

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? Multiple Choice Talent Time Teamwork Task Trust

Task 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?).

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? Multiple Choice Task Trust Teamwork Time Talent

Task 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?).

Which of the following is not an element of a good service guarantee? Multiple Choice Meaningful to the customer Unconditional (no small print) The customer controls the process Easy to communicate Easy to understand

The customer controls the process

Which of the following is a major factor that distinguishes service design and development from manufacturing design and development? Multiple Choice The service package has the same legal protection available to manufactured goods. Manufacturing is far more capital intensive than services. The service process and service product can be developed independently. Capacity decisions are much more critical in manufacturing operations. The service package is the major output of the development process.

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

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. The service package, rather than a definable good, constitutes the major output of the development process.

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

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

Which of the following is not a characteristic of a well-designed service system? Multiple Choice User-friendly Robust Puts customers in charge Effectively links "front office" with "back office" Cost-effective

Puts customers in charge The seven characteristics of a well-designed service system include: Each element of the service system is consistent with the operating focus of the firm. It is robust. It is user-friendly. It is structured so that consistent performance by its people and systems is easily maintained. It provides effective links between the back office and the front office so that nothing falls between the cracks. It manages the evidence of service quality in such a way that customers see the value of the service provided. It is cost-effective.

Which of the following approaches to service design involves the customer to the greatest extent in providing a service (in effect making them "a partial employee".? rev: 10_20_2017_QC_CS-106207 Multiple Choice Personal-attention approach only Self-service approach Quality approach Production-line approach and self-service approach Do-it-yourself approach

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.

One of the three approaches to delivering on-site service is _____ Multiple Choice Fast food approach Do-it-yourself approach Internet approach Airline approach Self-service approach

Self-service approach Explanation Three contrasting approaches to delivering on-site service are the production-line approach, the self-service approach, and the personal-attention approach.

Which of the following is not part of "the service triangle"? Multiple Choice Customers Service encounter Service strategy Employees Support systems

Service encounter

Which of the following is not part of "the service triangle"? Multiple Choice Employees Service strategy Service encounter Support systems Customers

Service encounter

Which of the following is not an element of a good service guarantee? Multiple Choice Easy to understand Unconditional (no small print) The customer controls the process Easy to communicate Meaningful to the customer

The customer controls the process Recent research on service guarantees has provided the following conclusions about them: Any guarantee is better than no guarantee. Involve the customer as well as employees in the design. Avoid complexity or legalistic language. Use big print, not small print. Do not quibble or wriggle when a customer invokes the guarantee. Make it clear that you are happy for customers to invoke the guarantee.

Which of the following is not an element of a good service guarantee? Multiple Choice Unconditional (no small print) The customer controls the process Easy to understand Meaningful to the customer Easy to communicate

The customer controls the process Recent research on service guarantees has provided the following conclusions about them: Any guarantee is better than no guarantee. Involve the customer as well as employees in the design. Avoid complexity or legalistic language. Use big print, not small print. Do not quibble or wriggle when a customer invokes the guarantee. Make it clear that you are happy for customers to invoke the guarantee.

Which of the following is not an element of a good service guarantee? Multiple Choice Easy to communicate The customer controls the process Unconditional (no small print) Easy to understand Meaningful to the customer

The customer controls the process Recent research on service guarantees has provided the following conclusions about them: Any guarantee is better than no guarantee. Involve the customer as well as employees in the design. Avoid complexity or legalistic language. Use big print, not small print. Do not quibble or wriggle when a customer invokes the guarantee. Make it clear that you are happy for customers to invoke the guarantee.

An explicit service is readily observable by the senses.

True Explicit services are defined as the benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service.

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.

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

True Poka-yokes are defined as procedures that block the inevitable mistake from becoming a service defect.

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 9.3 identifies six common alternatives.

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.

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.

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.

Implicit services are not part of the service package.

False 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.

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.

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.

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.