OMIS WOOSLEY 320 CH.12

The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.)

3.000 Customers

All of the following are included in the five dimensions of service quality except:

Reasonability

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?

Utilizing fewer facilitating products

David Maister's First Rule of Service is:

Satisfaction = perception − expectation

If the average service rate is 15 minutes per customer, and assuming the negative exponential distribution is used to describe the randomness of the service time distribution, then determine the probability that the service time will be less than or equal to 10 minutes.

0.49

The dimension of service quality concerned with using knowledgeable, competent, courteous employees who convey trust and confidence to customers is referred to as:

Assurance

Which is an example of a person that would be considered to provide a Pure Service?

Attorney/Lawyer Management Consultant Musical Entertainer

Service provided by multiple servers acting in parallel is referred to as:

Multiple-channel queuing system

You are determining the productivity of your company's service. In your calculation, the inputs used consist of the sum of your company's labor, materials, energy, and capital costs. This can also be referred to as:

Multiple-factor productivity

What is the difference between a level demand strategy and a chase demand strategy?

The key difference between the two strategies is how the firm manages its own capacity to meet demand.

Which of the following items would be considered a facilitating product?

The tools used to fix your car at an auto shop

Which of the following would result in an INCREASE in productivity?

The value/amount of the inputs used stays the same and the value/amount of outputs increases

The three generic competitive strategies are:

cost leadership, differentiation, and focus

A retailer with two checkout stands is an example of a single-channel, multiple-phase queuing system.

false

According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

false

Balking occurs when customers decide to leave the queue after some length of waiting time in the queue.

false

The five dimensions of service quality include: Reliability, durability, performance, aesthetics, and availability.

false

The optimal capacity utilization for an organization would be 100%.

false

Themed restaurants such as the ESPN zone (sports theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertailment facilities.

false

A basic strategy for managing capacity when the firm utilizes a constant amount of capacity regardless of demand variation is:

level demand strategy

According to the text, the primary elements of all queuing systems include all of the following EXCEPT:

output process

First-come-first-served is an example of a(n):

queue discipline

When studying queuing models, a customer who enters the waiting line but leaves the system prior to receiving service is said to have:

reneged

A service bundle includes the explicit service, the supporting facility, the facilitating goods, as well as the implicit services.

true

When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers.

true

When companies sell products both online and in traditional retail stores this is called a mixed internet distribution strategy.

true

A very popular fast food restaurant is presently staffed with three cash register attendants that are taking orders. Upon entering the restaurant, customers must choose from three separate lines, each of which leads to one of the three registers. Immediately upon placing their order with the register attendant, customers are given their food and drinks by the register attendant. To analyze this situation you would use the queuing model for an infinite source, multiple servers, and multiple channels.

true

Cross-training workers is a typical capacity management technique for times when demand exceeds capacity.

true

In a franchise, the franchisee invests some of their own money, while paying a percentage of sales to the franchiser.

true

In order to maximize customer satisfaction/visits, service organizations must be able to identify customer needs, create systems that can quickly satisfy these needs in a cost-effective manner, hire, train, and schedule service representatives effectively, utilize technology effectively, and conveniently locate service facilities.

true

Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.

true

Long-term customer satisfaction, especially in the face of service failures, requires organizations to empower front-line service personnel to identify problems and then provide solutions quickly and an empathetic way.

true

Service facilities are normally decentralized.

true

Since the 1950s, the percentage of service related jobs has increased much more rapidly than the percentage of manufacturing and agriculture related jobs in United States due to the use of technology and mass production techniques developed during that time.

true

When a customer takes their automobile to a carwash, the carwash provides state utility to the vehicle.

true

Assuming the number of arrivals per time period is Poisson distributed with a mean arrival rate of 6 customers per hour, determine the mean interarrival time.

10 minutes

Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline over time. This phenomenon is called:

Baumol's Disease

Which of the following strategies is being followed by a company that is based on creating a service that is considered to offer unique service elements for which customers may consider paying higher prices?

Differentiation Strategy

Which organizations would be considered an example of a global service?

FedEx Deutsche Bank Wal-Mart International

According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market?

Focus strategy

The Wal-Mart effect is best described by which of the following?

Information technologies have allowed large retailers to maintain good productivity growth rates

The number of customers per day an organization's service delivery systems are designed to serve within a certain time frame is referred to as:

Service Capacity

What are four key differences between goods and services industries/organizations?

Services cannot be inventoried 2. Services are often unique − the ability to customize services to satisfy each individual customer is often considered the primary competitive advantage that separates service organizations in the same industry. 3. Services have high customer/server interaction 4. Services are decentralized − In other words, location is important.

Baumol's disease refers to the fact that multiple factor productivity measures tend to be bad, because firms often concentrate on improving one, while neglecting others.

false

Service organizations need to consider the fact that the services they provide are not consumed by the immediate customer, rather, services are typically passed on to customers farther down a distribution channel.

false

When a chase demand strategy is used for managing capacity, effective plans must be in place to utilize, transfer or reduce service capacity when there is excess available and to develop or borrow capacity quickly when demand exceeds capacity.

true

in most services, customers are either directly or indirectly involved in the production of the service itself.

true