Chapter 12: Service Response Issues

cost leadership strategy

requires large capital investment and significant efforts to control and reduce costs

Service Operations

-services cannot be inventoried - services are unique -services have high customer service interaction -services are decentralized

Which of the following is NOT a technique for managing customers' perceived waiting times: a. Hiding the wait time b. Keeping customers occupied c. Grouping customers d. Starting the service quickly

a. Hiding the wait time

A basic strategy for managing capacity is: a. Level demand strategy b. Queue management strategy c. Focus strategy d. Differentiation strategy

a. Level demand strategy

All of the following are included in the five dimensions of service quality EXCEPT: a. Reasonability b. Responsiveness c. Assurance d. Reliability

a. Reasonability

A customer who enters the waiting line but leaves the system prior to receiving service is said to have: a. Reneged b. Balked c. Stalled d. Disposed

a. Reneged

Which of the following is a difference between goods and services? a. Services cannot be inventoried b. Goods have high customer-service interaction c. Goods are often unique d. All of these choices are correct.

a. Services cannot be inventoried

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Utilizing fewer facilitating products b. Using customers to provide services c. Cross-training and sharing employees d. Utilizing technological tools like computers and automated systems

a. Utilizing fewer facilitating products

All of the following are considerations used in designing service layouts EXCEPT: a. Impulse purchasing b. Ease of access to parking lot c. Reduction of time to restock d. Speed up customer throughput

b. Ease of access to parking lot

A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better. a. True b. False

b. False

The goal of an efficient queuing system is that customers never have to wait in a queue. a. True b. False

b. False

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________. a. Blips b. Gaps c. Bloops d. Breakeven point

b. Gaps

Service provided by multiple servers acting in parallel is referred to as: a. Multiple-phase queuing system b. Multi-platform servicescape c. Multiple-channel queuing system d. Multi-delivery service scape

c. Multiple-channel queuing system

David Maister's First Rule of Service is: a. Under-promise and over-deliver b. It always takes longer than you think to perform the service c. Satisfaction = perception − expectation d. You can't please all the customers all the time

c. Satisfaction = perception − expectation

The four primary activities of concern in service response logistics are the management of: a. Service capacity, visual workplace, waiting times and distribution channels b. Distribution channels, service quality, reputation and waiting times c. Service capacity, waiting times, distribution channels and service quality d. Labor standards, distribution channels, waiting times and service quality

c. Service capacity, waiting times, distribution channels and service quality

As capacity utilization approaches 1.0, which of the following tends to happen? a. Perceived quality of service improves b. Wait times decrease c. Services become more congested d. Service times decrease

c. Services become more congested

Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 3 customers per hour, determine the mean interarrival time. a. 3 minutes b. 60 minutes c. 12 minutes d. 20 minutes

d. 20 minutes

Which of the following is an example of a person that would be considered to provide a Pure Service? a. Management Consultant b. Musical Entertainer c. Attorney/Lawyer d. All of these choices are correct

d. All of these choices are correct

focus strategy

serve a narrow niche or target market

differentation strategy

unique service is created as companies listen to customers