MQM 227 EXAM 2- Chapter 5

McDonald's uses what Levitt refers to as "the job shop type approach to service."

False

Which of the following are characteristics of a low-contact service delivery system? A. Lower costs and more standardization. B. Greater flexibility, need for people who are highly skilled in interpersonal relations, and a customer orientation. C. Need for people with a high level of technical skills oriented toward efficient processing, well-defined procedures, and smooth flow. D. Both a and c. E. All of the above.

-lower costs and more standardization -need for people with high technical skills oriented toward.. -both a & c

The service-profit chain shows that _____ is the key to profitability.

A. Customer loyalty

Which of the following is NOT a correct statement? A. A service is produced and consumed simultaneously B. Services are provided in a bundle of services and goods C. The service delivery system should be designed primarily around the employees in the system D. Low-contact services can usually be made more efficient than high-contact services

B. The service delivery system should be designed primarily around the employees in the system

Estate planning would be an example of a: A. Co-routed service B. Customer-routed service C. Provider-routed service D. None of the above

B. customer-routed service

A good service guarantee: A. Is often an advertising gimmick B. Is an honest assurance that the customer will be satisfied C. Has many stipulations and conditions D. Costs a lot

B. honest assurance that the customer will be satisfied

_______ contact services require employees with technical skills and efficient processing routines. A. High B. Low C. Moderate D. More than one of the above

B. low

The degree of customer contact measures: A. The amount of time the customer is separated from the service delivery system B. The amount of time the customer is in the service delivery system while the service is being produced C. The customization abilities of the service system D. None of the above

B. the amount of time the customer is in the service delivery system while service is being produced

Which of the following is NOT a general characteristic of a service? A. Production and consumption are simultaneous B. The service can be transported C. No resale is possible D. The service cannot be stored

B. the service can be transported

An example of a service business/organization that has a high degree of customer contact, high customization, and a high degree of labor intensity is: A. Retailing B. Hotels C. Law practice D. Schools

C. law practice

A service recovery process: A. Follows every service transaction B. Is an implicit service C. Is rapid compensation for a service failure D. None of the above

C. rapid compensation for a service failure

Which of the following is NOT a significant difference between manufacturing and service operations? A. Transportation B. Customer contact C. Resale D. Cost per unit

D. Cost per unit

A service guarantee: A. Is like a product guarantee except that it is for a service B. Specifies exactly what the service delivery system must provide C. Builds loyalty D. All of the above

D. all of the above -like product guarantee -builds loyalty -specifies exactly what the service delivery system must provide

Which of the following is NOT an example of a high contact service? A. Retail trade B. Personal services C. Business services D. Auto repair

D. auto repair

Which of the following is NOT a characteristic of service operations? A. Intangible output B. The buyer can perform part of the production C. Product cannot be stored D. Ownership is transferred at time of purchase

D. ownership is transferred at time of purchase

Which of the following is NOT included in internal service quality in the service profit chain? A. Workplace design B. Job design C. Employee selection D. Product design

D. product design

Which of the following is NOT an element of the service-product bundle? A. Facilitating goods B. Explicit service C. Implicit service D. Value of goods/service

D. value of goods/service

Co-routed services offer a larger amount of choices to customers than do customer-routed services

FALSE

Service guarantees are only for consumers outside the firm, and do not apply to internal customer relationships within a firm

FALSE

implicit service is also known as tangible service

FALSE

A small improvement in customer loyalty can substantially improve the profitability of a service firm

TRUE

According to the service profit chain, employees are more likely to be satisfied when management works to improve internal service quality

TRUE

High-contact services are more likely to be front office operations and low-contact services are more likely to be back office operations

TRUE

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

TRUE