Assignment 3 Management

Customer contact refers to creation of the service.

False

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

False

Are service operations with a high degree of customer contact more or less difficult to control than those with a low degree of customer contact?

More difficult

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

True

The customer is a part of the service delivery process and may introduce inefficiencies into the service delivery system.

True

You are in a line at the bank drive-through and 10 cars are in front of you. You estimate that the clerk is taking about five minutes per car to serve. How long do you expect to wait in line?

10 cars x 5 minus= 50

An example of an implicit service is

All of these choices are correct.

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

Services cannot be inventoried.

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

Customer contact

An important difference between service and manufacturing operations is that customers introduce far more variability into the operations in a service system. Which of the following is not one of the basic types of variation that customers bring to a service system?

Environmental variation

A ride at an amusement park is an example of a service operation where there is direct contact between the customer and server, but little variation in the service process—neither the customer nor server has much discretion in how the service will be provided. As shown on the Service System Design Matrix, which type of service is being delivered?

Face-to-face, tight specs

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

As the degree of customer contact increases in a service operation, what generally happens to the efficiency of the operation?

It decreases

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

Services cannot be inventoried

A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. a) How many books must be sold to break even? b) If the fixed cost increased, would the new break-even point be higher or lower? c) If the variable cost per unit decreased, would the new break-even point be higher or lower?

a) 20,000 b) Higher c) lower

Service recovery refers to

the ability to quickly restore service following a service failure and provide compensation.