OM Ch. 4 & 5

True/False: Customer contact is measured by the percentage of time the customer must be in the service-delivery system relative to the total time it takes to provide the service.

True

True/False: If the value ratio for a good or service is high, the good or service is perceived favorably by customers.

True

True/False: In the context of the value chain model, fewer resources are needed to achieve performance goals when "information replaces assets."

True

True/False: Location is an important competitive priority in a service business.

True

True/False: Scalability is a key issue in e-commerce.

True

In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of: a. Design for Environment b. Design for manufacturability c. Design for reliability d. Design for Accuracy

a. Design for environment

__________is the explicit consideration of ecological concerns during the design of goods, services, and processes, and includes such practices as designing for recycling and disassembly. a. Design for Environment b. Quality function deployment c. Environmental intervention d. Service-encounter design

a. Design for environment

_____ allows all parts of the value chain to immediately recognize and react to changes in demand and supply. a. Electronic transaction capability b. Descriptive analytics c. Super-precision manufacturing d. Rapid prototyping

a. Electronic transaction capability

__________refers to equipment and devices that perform a variety of tasks in the creation and delivery of goods and services. a. Hard technology b. A database system c. A neural network d. Soft technology

a. Hard technology

Which of the following is a benefit of using technology? a. It increases quality and productivity of firms. b. It increases the number of human service providers in firms. c. It increases opportunities for employee empowerment. d. It makes it easy for customers to change decisions and return goods.

a. It increases quality and productivity of firms

In the context of quality function deployment, building a House of Quality begins by identifying the: a. voice of the customer. b. competitive priorities. c. service provider requirements. d. marketplace dynamics.

a. voice of the customer

Which of the following requirements is an example of customer-contact requirements? a. Ambient conditions b. Cross-selling c. Prominently displayed company logo d. Convenient facility location

b. Cross-selling

Which of the following elements is included in the service-delivery system design? a. Service guarantees and recovery b. Facility location and layout c. Company mission d. Prototype testing

b. Facility location and layout

__________is the process by which a model (real or simulated) is constructed to assess a product's performance under actual operating conditions, as well as consumer reactions to the model. a. Quality function deployment b. Prototype testing c. Detailed product design d. Value engineering

b. Prototype testing

__________is a measure of the contribution margin required to deliver a good or service as the business grows and volumes increase. a. Sustainability b. Scalability c. Operability d. Process capability

b. Scalability

Identify a benefit of adopting technology. a. The use of technology does not require adherence to any laws or regulations. b. Technology helps restructure old and less productive industries. c. The use of technology increases opportunities for employee empowerment. d. Technology increases opportunities for employee creativity.

b. Technology helps restructure old and less productive industries.

In the context of the servicescape, in the service-delivery system design, building footprints are examples of: a. artifacts. b. signs and symbols. c. ambient conditions. d. spatial layout and functionality.

d. spatial layout and functionality

True/False: A process invariably resides within a department or traditional management function.

False

True/False: Actionable performance measures should be meaningful to a company's management and should provide the basis for decisions at the strategic level in an organization.

False

True/False: Ambient conditions are the explicit signals that communicate an image about a firm and include examples such as mission statements and diplomas on a wall.

False

True/False: An Energy Star dishwasher results in increased release of carbon dioxide to the air.

False

True/False: In the context of service-encounter design, free trips and extra vacation days is not considered a form of recognition.

False

True/False: In the context of the value chain model, when "information replaces assets," the costs increase.

False

True/False: Low scalability implies that serving additional customers requires low incremental variable costs.

False

True/False: Service-delivery systems with high customer contact can be treated much like an assembly line.

False

True/False: The use of technology has increased opportunities for employee creativity and empowerment.

False

True/False: Vehicles, furniture, and dishwashers are examples of nondurable goods.

False

__________machine tools enable the machinist's skills to be duplicated by a programmable device that controls the movements of a tool used to make complex shapes. a. Numerical control (NC) b. Revision control (RC) c. Movement control (MC) d. Virtual control (VC)

a. Numerical control (NC)

_____ can be attached to objects and used to track and manage inventory and assets. a. Radio-frequency identification tags b. Resistance-temperature detectors c. Proximity cards d. Nanofountain probes

a. Radio-frequency identification tags

Which of the following is a challenge of adopting technology? a. Technology leads to job shift and displacement. b. The use of technology reduces product quality. c. The use of technology disintegrates supply and value chain players. d. Technology deteriorates the standard of living of the world.

a. Technology leads to job shift and displacement

At which of the following stages are the perceptions of a firm and its goods and services created? a. The service-encounter design stage b. The market introduction and evaluation stage c. The customer benefit package configuration stage d. The process design stage

a. The service-encounter design stage

Which of the following is true of radio-frequency identification (RFID) tags? a. They can bring visibility and enhanced security to the handling and transportation of products. b. They are used to create customized goods and services and deliver them faster at lower prices. c. They can help small companies create counterfeit knock-offs of genuine products. d. They are used to segment markets based on demographic and behavioral characteristics.

a. They can bring visibility and enhanced security to the handling and transportation of products.

Which of the following is true of Energy Star-certified products? a. They exert less demand on electrical power plants. b. They cannot be repaired easily since they use advanced technology. c. They have a higher carbon footprint in the environment. d. They cannot be salvaged for reuse.

a. They exert less demand on electrical power plants

Valuetronics, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. In order to analyze the feasibility of the product, Valuetronics adopts an integrated system that allows it to manufacture the product before it physically exists, that is, the system allows Valuetronics to finalize the design of the stereo, analyze it, and do a test-run. In this context, Valuetronics is using a(n) _____. a. computer-aided engineering (CAE) system b. flexible manufacturing system (FMS) c. computer-aided manufacturing (CAM) system d. enterprise resource planning (ERP) system

a. computer-aided engineering (CAE) system

For manufactured goods, design blueprints specify a nominal value which is the: a. specified target dimension of the goods. b. dimension with the greatest variation from the target dimension. c. range of permissible variation in the target dimension of the goods. d. dimension with the least manufacturing cost.

a. specified target dimension of the goods

The critical differences between the designs of goods and services lie in the: a. market introduction and deployment phases. b. detailed product and process design phases. c. research and analysis phases. d. customer benefit package design and configuration phases.

b. detailed product and process design phases

In the context of quality function deployment, one of the first steps to build the House of Quality is to: a. evaluate the marketplace. b. identify the technical features of the design of the product. c. advertise, market, and offer the product to customers. d. conduct prototype testing.

b. identify the technical features of the design of the product

In the context of service-encounter design, giving discounts to employees is a form of _____. a. assurance b. recognition c. guarantee d. compensation

b. recognition

The__________provides the behavioral setting where service encounters take place. a. service process and job design b. servicescape c. facility location d. value chain model

b. servicescape

For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation called the__________. a. buffer b. tolerance c. nominal d. leeway

b. tolerance

In the context of service-delivery system design, which of the following establishments depends on good location decisions? a. A distribution center b. An ice-cream factory c. A health club d. An insurance claim processing center

c. A health club

Which of the following is true of customer relationship management (CRM)? a. A CRM system prohibits firms from bundling goods and services together. b. It helps firms gain competitive advantage by making counterfeit knock-offs of genuine products. c. A typical CRM system includes market segmentation and analysis. d. It encourages the production of standardized goods for all customers to reduce manufacturing costs.

c. A typical CRM system includes market segmentation and analysis.

Linda is the owner of Souvenirstop, a chain of souvenir shops. One of the shops is located at the City Centre Mall. Though the shop is popular, she does not get many tourists in the City Centre Mall branch. She is considering opening another store near a popular tourist attraction to attract more tourists to her shop. Which of the following elements of service-delivery system design is Linda addressing? a. Service process design b. The servicescape c. Facility location and layout d. The voice of the customer

c. Facility location and layout

Which of the following is a difference between firms that have high scalability and firms that have low scalability? a. Firms with high scalability incur extremely low fixed costs, whereas firms with low scalability incur extremely high fixed costs. b. Firms with high scalability have a low contribution margin, whereas firms with low scalability have a high contribution margin. c. Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs. d. Firms with high scalability have variable costs as 80 to 85 percent of

c. Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.

Which of the following is true of the House of Quality? a. It fails to incorporate customer requirements. b. It contains supplier estimations. c. It contains key selling points and features. d. It does not incorporate competitive evaluations.

c. It contains key selling points and features

_____ are the modern successor to bar codes. a. Electro-optical sensors b. Optical switches c. Radio-frequency identification tags d. Artificial intelligence programs

c. Radio-frequency identification tags

__________focuses on the interaction, directly or indirectly, between the service provider(s) and the customer. a. Lean servicescape design b. Service process design c. Service-encounter design d. Customer benefit package design

c. Service-encounter design

Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office. Which of the following dimensions of servicescape is the firm addressing? a. Ambient conditions b. Signs, symbols, and artifacts c. Spatial layout and functionality d. Market deployment and evaluation

c. Spatial layout and functionality

Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to make on-the-spot decisions to resolve any customer complaints and issues. This is a form of _____. a. flexibility b. assurance c. empowerment d. service guarantee

c. empowerment

In the context of technology in value chains, customer relationship management (CRM): a. enables small firms to make counterfeit knock-offs of genuine products. b. encourages firms to produce standardized goods for all consumers to reduce manufacturing costs. c. exploits the vast amount of data that can be collected from consumers. d. prohibits firms from bundling goods and services together.

c. exploits the vast amount of data that can be collected from consumers.

Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods, services, and process design: a. is more strategic in nature. b. focuses on the evaluation of quality. c. focuses on implementation. d. is more conceptual in nature.

c. focuses on implementation

The bottom of a House of Quality identifies the technical features that: a. are the weakest selling points. b. are interrelated to each other. c. have the strongest relationships to customer requirements. d. have the highest competitive performance.

c. have the strongest relationships to customer requirements

The _____ of the House of Quality shows the interrelationships between any pair of technical features. a. bottom b. center c. roof d. left

c. roof

In the context of the sevicescape, in the service-delivery system design, which of the following facilities is a part of the spatial layout and functionality? a. Room temperature b. Company logo on company vehicles c. Free soft drinks instead of vending machines d. Building facade

d. Building facade

__________consist of two or more computer-controlled machines or robots linked by automated handling devices such as transfer machines, conveyors, and transport systems. a. Computer-aided design (CAD) systems b. Enterprise planning systems (EPSs) c. Computer-aided engineering (CAE) systems d. Flexible manufacturing systems (FMSs)

d. Flexible manufacturing systems (FMSs)

_____ are tiny computer chips that can be placed on shipping containers, individual products, credit cards, prescription medicines, passports, livestock, and even people. a. Bar codes b. Thermocouples c. Voice-recognition modules d. Radio-frequency identification tags

d. Radio-frequency identifications tags

Which of the following is one of the principal elements of service-encounter design? a. Customer benefit package design b. Market introduction c. Quality function deployment d. Recognition and reward

d. Recognition and reward

__________should begin immediately after a service upset occurs and when the customer is visibly upset. a. Service guarantee b. Servicescape design c. Service process design d. Service recovery

d. Service recovery

__________refers to the application of the Internet, computer programs, and information systems to provide data, information, and analysis to facilitate the creation and delivery of goods and services. a. Assistive technology b. Adaptive technology c. Hard technology d. Soft technology

d. Soft technology

A(n)__________is an example of soft technology. a. radio-frequency identification tag b. bar-code scanner c. image sensor d. database system

d. database sytem

David runs a bed and breakfast in the outskirts of a big city. His employees are allowed to spend up to $200 to resolve any customer complaints, with no questions asked. a. assurance. b. flexibility. c. service guarantee. d. empowerment.

d. empowerment

In the context of service-encounter design, high-contact systems would most commonly be found in: a. distribution systems. b. process designs. c. construction services. d. front office operations.

d. front office operations

The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the company. However, since its primary means of communication is web advertising, WeBuy&Sell.com has variable costs as low as 10 percent of its total costs. This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has _____. a. zero scalability b. infinite scalability c. low scalability d. high scalability

d. high scalability

Prior to designing and configuring a customer benefit package, a firm should understand and develop its: a. marketplace deployment techniques. b. processes and service encounter design. c. goods, services, and process design in detail. d. strategic mission and competitive priorities.

d. strategic mission and competitive priorities

Customer relationship management (CRM) helps firms gain and maintain competitive advantage by: a. encouraging them to produce standardized goods. b. merging all demographic-based and behavior-based segments of markets. c. prohibiting them from bundling goods and services together. d. studying which goods and services are purchased together.

d. studying which goods and services are purchased together