Quality Final - CHAPTER EIGHT

________ service packages are of the one-size-fits-all variety. A) Unique B) Selective C) Restricted D) Generic E) Constricted

D) Generic

Services that individuals do not choose to engage are referred to as ________ services. A) internal B) voluntary C) intangible D) involuntary E) external

D) involuntary

The fail points in the service blueprint are often referred to as ________. A) defining events B) turning points C) poka-yokes D) moments of truth E) tangibles

D) moments of truth

A ________ is a flowchart that isolates potential fail points in a process. A) services statement B) services draft C) services plan D) services blueprint E) services data table

D) services blueprint

SHORT ANSWER: Differentiate between voluntary and involuntary services with examples.

Voluntary services are services that we actively seek out and employ of our own accord. Generally, we research a voluntary service, such as a gas station, a restaurant, or a hotel, and have certain expectations when we engage its services. The quintessential example of an involuntary service is a prison. Other involuntary services include hospitals, the IRS, the police department, the fire department, and other services that you do not choose. If you have the chance to engage this type of service at some point, you likely will have vague expectations about the experience.

________ shows the difference between expected service and perceived service. A) Gap 1 B) Gap 2 C) Gap 3 D) Gap 4 E) Gap 5

E) Gap 5

________ service attributes cannot be inventoried or carried in stock over long periods of time. A) Continuous B) Objective C) Tangible D) Discrete E) Intangible

E) Intangible

The SERVQUAL tool for assessing services quality was developed by ________. A) Hammer and Champy B) Juran, Deming, and Shewhart C) Ishikawa and Taguchi D) Feigenbaum, Crosby, and Peters E) Parasuraman, Zeithamel, and Berry

E) Parasuraman, Zeithamel, and Berry

The package of tangibles and intangibles that make up a service is referred to as a(n) ________. A) quality output package B) internal services package C) service vision package D) fail-safe package E) customer benefits package

E) customer benefits package

In a customer benefits package, tangibles are known as ________. A) service-content B) process-content C) product-content D) quality-content E) goods-content

E) goods-content

The first stage of the service benefit package design process is ________. A) service concept investigation B) facilities requirement definition C) process definition and selection D) the definition of a services package E) idea/concept generation

E) idea/concept generation

Gap 2 shows the difference between ________. A) service delivery and external communications to customers B) management perceptions of customer expectations and expected service C) service delivery and service quality specifications D) expected service and perceived service E) service quality specifications and management perceptions of customer expectation

E) service quality specifications and management perceptions of customer expectation

TRUE OR FALSE: When a retailer incorrectly feels that the majority of his customers are men shopping for tools when in fact most customers are women shopping for linens, they are experiencing gap 2.

FALSE

TRUE OR FALSE: A services blueprint is a flowchart that isolates potential fail points in a process.

TRUE

TRUE OR FALSE: Capricious labor occurs because many services customers provide themselves as labor inputs into the production process.

TRUE

TRUE OR FALSE: Customers can exert control over the service provider and achieve customization.

TRUE

TRUE OR FALSE: For both manufacturing and service firms, the customer is the core of the business.

TRUE

TRUE OR FALSE: Gap 1 shows that there can be a difference between actual customer expectations and management's idea or perception of customer expectations.

TRUE

TRUE OR FALSE: Gap 3 is the difference between service delivery and service quality specifications.

TRUE

TRUE OR FALSE: Generic services packages are of the one-size-fits-all variety.

TRUE

TRUE OR FALSE: Intangible service attributes cannot be inventoried or carried in stock over long periods of time.

TRUE

TRUE OR FALSE: Internal and external services are similar in that competitive pressures can result in the possible loss of customers.

TRUE

TRUE OR FALSE: Leaders with service vision view service quality as the force underlying profitability and business success.

TRUE

TRUE OR FALSE: Measurable dimensions, such as height and weight, are often unavailable in services.

TRUE

TRUE OR FALSE: Service supply chains are bidirectional, which means that service customers actually provide inputs to the supply chain.

TRUE

TRUE OR FALSE: Services process blueprinting places the focus on front-office activities.

TRUE

TRUE OR FALSE: Simultaneous production and consumption of services means that you have to do it right the first time.

TRUE

TRUE OR FALSE: The SERQUAL instrument is useful for performing gap analysis.

TRUE

TRUE OR FALSE: The SERVQUAL instrument is accepted as a standard for assessing different dimensions of services quality.

TRUE

TRUE OR FALSE: The greater potential for increasing customer satisfaction lies in addressing tangibles first.

TRUE

TRUE OR FALSE: The idea behind fail-safing is to ensure that certain errors will never occur.

TRUE

TRUE OR FALSE: The objective of customer benefits package design is to evaluate each attribute in terms of process and service encounter capability.

TRUE

TRUE OR FALSE: The production and consumption of services often occur simultaneously.

TRUE

TRUE OR FALSE: Voluntary services are services that we actively seek out and employ of our own accord.

TRUE

TRUE OR FALSE: The two parts of a SERVQUAL survey are services liability and manufacturing liability.

FALSE

TRUE OR FALSE: W. Edwards Deming developed the SERVQUAL survey for assessing services quality.

FALSE

The idea behind fail-safing is to ensure that ________. A) certain errors will never occur B) customer expectations are met C) the highest risks are eliminated D) forward planning takes place E) the importance of quality is not neglected

A) certain errors will never occur

SHORT ANSWER: What are the four stages of the service benefit package design process?

A customer benefits package consists of both tangibles that define the service and intangibles that make up the service. The tangibles are known as goods-content. Intangibles are referred to as service-content. The four stages of the service benefit package design process are as follows: • Idea/concept generation • The definition of a services package • Process definition and selection • Facilities requirement definition

SHORT ANSWER: What is services blueprinting?

A services blueprint is a flowchart that isolates potential fail points in a process. There are four steps to developing a services blueprint: (1) identify processes, (2) isolate fail points, (3) establish a time frame, and (4) analyze profits. It is recommended that services blueprints be kept on every process in a service, and that a "keeper of the blueprint" makes the blueprints available for others in the firm.

________ services are those whose customers pay the bills. A) External B) Tangible C) Internal D) Discrete E) Intangible

A) External

________ shows the difference between actual customer expectations and management's idea or perception of customer expectations. A) Gap 1 B) Gap 2 C) Gap 3 D) Gap 4 E) Gap 5

A) Gap 1

________ refers to the professionalism of the service provider and whether reasonable measures were taken to ensure the customer's well-being. A) Malpractice B) Negligence C) Indifference D) Mismanagement E) Empathy

A) Malpractice

The two parts of the SERVQUAL survey are ________. A) customer expectations and customer perceptions B) service quality and product quality C) product integrity and customer service D) services liability and manufacturing liability E) service vision and high standards

A) customer expectations and customer perceptions

What is the first step in the development of a service blueprint? A) identify processes B) isolate fail points C) establish a time frame D) eliminate highest risks E) analyze profits

A) identify processes

The heterogeneous nature of services means that ________. A) no two services are exactly the same B) they cannot be inventoried C) customers cannot be involved in the production of the service D) production and consumption of services occur simultaneously E) cannot be carried in stock over long periods of time

A) no two services are exactly the same

Gap 4 shows the difference between ________. A) service delivery and external communications to customers B) management perceptions of customer expectations and expected service C) service delivery and service quality specifications D) expected service and perceived service E) service quality specifications and management perceptions of customer expectation

A) service delivery and external communications to customers

In a customer benefits package, intangibles are referred to as ________. A) service-content B) goods-content C) quality-content D) process-content E) product-content

A) service-content

Which of the following best defines the front office in a service blueprint? A) the portion of the firm's activities that the customer can see B) the area in the firm where the majority of the work is done C) the portion of the firm's activities that the customer cannot see but is necessary to perform D) the area in the firm where the majority of the profitability is generated E) the area in the firm where the employees plan quality initiatives

A) the portion of the firm's activities that the customer can see

Services that we actively seek out and employ of our own accord are referred to as ________ services. A) voluntary B) internal C) external D) intangible E) involuntary

A) voluntary

SHORT ANSWER: State the advantages of the SERVQUAL instrument.

Answer: An important tool developed by Parasuraman, Zeithamel, and Berry for assessing services quality is SERVQUAL. The SERVQUAL survey has been used by many firms and is an off-the-shelf approach that can be used in many services situations. The SERVQUAL instrument, a survey, has many advantages. Among these are the following: • It is accepted as a standard for assessing different dimensions of services quality. • It has been shown to be valid for a number of service situations. • It has been demonstrated to be reliable, meaning that different readers interpret the questions similarly. • Each instrument is parsimonious in that they have only 22 items. This means that it can be filled out quickly by customers and employees. • It has a standardized analysis procedure to aid both interpretation and results.

Which of the following statements is true? A) It is easy to obtain hard data relating to services because services' attributes are intangible. B) Simultaneous production and consumption of services means that you have to do it right the first time. C) Customer contact leads to a decrease in variability in the process. D) Service liability issues center around safety concerns. E) Manufacturing liability issues often relate to malpractice.

B) Simultaneous production and consumption of services means that you have to do it right the first time.

The participation of a customer in the delivery of a service product is called ________. A) customer interaction B) customer coproduction C) customer conformity D) customer proactivity E) customer compliance

B) customer coproduction

Which of the following is not one of the four stages of the service benefit package design process? A) idea/concept generation B) service concept investigation C) the definition of a services package D) process definition and selection E) facilities requirement definition

B) service concept investigation

Which of the following best defines the back office in a service blueprint? A) the area in the firm where the majority of the work is done B) the portion of the firm's activities that the customer cannot see but is necessary to perform C) the portion of the firm's activities that the customer can see D) the area in the firm where the majority of the profitability is generated E) the area in the firm where the employees plan quality initiatives

B) the portion of the firm's activities that the customer cannot see but is necessary to perform

________ shows the difference between service delivery and service quality specifications. A) Gap 1 B) Gap 2 C) Gap 3 D) Gap 4 E) Gap 5

C) Gap 3

________ services include services such as data processing, printing, and mail. A) Tangible B) External C) Internal D) Intangible E) Discrete

C) Internal

Which of the following statements is true? A) Tangible service attributes cannot be inventoried or carried in stock over long periods of time. B) The homogeneous nature of services means that no two services are exactly the same. C) Production and consumption of services often occur simultaneously. D) Customers cannot exert control over the service provider to achieve customization. E) Customers tend to be more involved in the production of goods than in the production of services.

C) Production and consumption of services often occur simultaneously.

________ is a service improvement technique that allows managers to analyze their service processes at a very detailed level. A) Generic service analysis B) Selective service analysis C) Service transaction analysis D) Service data analysis E) Service quality analysis

C) Service transaction analysis

________ service packages are especially tailored for each customer. A) Selective B) Constricted C) Unique D) Restricted E) Generic

C) Unique

In many restaurants, it is common for customers to fill their own drinks. This activity is an example of ________. A) customer compliance B) customer interaction C) customer coproduction D) customer proactivity E) customer conformity

C) customer coproduction

Which of the following is not a quality dimension relating to services? A) empathy B) assurance C) durability D) tangibles E) responsiveness

C) durability

Which of the following is an example of a voluntary service? A) police department B) hospital C) gas station D) the IRS E) fire department

C) gas station

The phenomenon of customers providing themselves, their belongings, and information as process inputs is known as ________. A) the reinvention process B) services blueprinting C) the Unreliable Supplier Dilemma D) the capricious labor theory E) service transaction analysis

C) the Unreliable Supplier Dilemma

SHORT ANSWER: Define the term customer coproduction.

Customer coproduction refers to the participation of the customer in the delivery of a service product. For example, in many restaurants it is common for the customers to fill their own drinks.

TRUE OR FALSE: The outputs of service are homogeneous, which means that no two services are exactly the same.

FALSE

SHORT ANSWER: Explain the concept of poka-yoke.

Dr. Richard Chase and Dr. John Grout have been influential in promoting the use of poka-yokes (fail-safes) in services. The idea behind fail-safing is to ensure that certain errors will never occur. Just as many processes seem to be designed to fail, they also can be designed not to fail. Poka-yokes represent a good amount of creativity and are very often used by Japanese and American companies to help ensure quality service. In a nutshell, you should isolate fail points in a process and then fail-safe the process to make sure that errors don't occur.

SHORT ANSWER: Differentiate between internal services and external services and explain the role of outsourcing in the provision of internal services.

External services are those whose customers pay the bills. Internal services are in-house services such as data processing, printing, and mail. Typically, these services are separate from the external customer. However, customer service to internal customers is very important to internal service because their services often can be outsourced. There is a trend in companies to outsource internal services. In a sense, this presents a competitive pressure on internal services. Although internal and external services may be very different, they do have many similarities. In both cases, competitive pressures can result in the possible loss of customers.

TRUE OR FALSE: A gas station is an example of an involuntary service.

FALSE

TRUE OR FALSE: A hospital is an example of a voluntary service.

FALSE

TRUE OR FALSE: Customer contact leads to a decrease in variability in the process.

FALSE

TRUE OR FALSE: Customers tend to be more involved in the production of goods than in the production of services.

FALSE

TRUE OR FALSE: Data processing, printing, and mail are examples of external services.

FALSE

TRUE OR FALSE: Gap 4 is the difference between expected and perceived services.

FALSE

TRUE OR FALSE: In a customer benefits package, the tangibles that define the service are known as service-content.

FALSE

TRUE OR FALSE: In a services blueprint, the area above the line of visibility is referred to as the back office.

FALSE

TRUE OR FALSE: In services liability issues center around safety concerns, whereas in manufacturing liability issues relate to malpractice.

FALSE

TRUE OR FALSE: Internal services are those whose customers pay the bills.

FALSE

TRUE OR FALSE: Selective services packages are especially tailored for each customer.

FALSE

TRUE OR FALSE: The Unreliable Supplier Dilemma occurs because service companies receive most of their supplies from other service companies.

FALSE

TRUE OR FALSE: The fail points in the services blueprints are referred to as turning points.

FALSE

TRUE OR FALSE: The first stage of the service benefit package design process is the definition of a services package.

FALSE

TRUE OR FALSE: The first step in the development of a services blueprint is to isolate fail points.

FALSE

SHORT ANSWER: State the factors that have contributed to the improvement in the quality in health care.

Health care is an area of services that is receiving much attention. Several factors have contributed to this phenomenon: • Health care is facing the same "cost squeeze" that government is facing. • A move toward health maintenance organizations (HMOs) is causing hospitals to streamline operations. • There is increasing diversity in health care. In some cases, insurers such as Blue Cross are encouraging the use of quality management approaches. Health care workers are becoming increasingly knowledgeable about quality management practices and concepts.

SHORT ANSWER: How are the product liability issues in services different from those in manufacturing?

Product liability issues in services are very different from manufacturing. Whereas in manufacturing liability issues center around safety concerns, in services liability issues often relate to malpractice, which refers to the professionalism of the service provider and whether reasonable measures were taken to ensure the customer's well-being.

SHORT ANSWER: Explain service transaction analysis (STA).

STA is a service improvement technique that allows managers to analyze their service processes at a very detailed level. Crosby views service encounters as a series of transactions or moments of truth. STA is a method for identifying these transactions and evaluating them from the customer's perspective to determine if there is a gap between service design and what the customer perceives as the service.

SHORT ANSWER: Explain the different gaps in communication that arise due to intangible services.

The SERVQUAL instrument is useful for performing gap analysis. Because services are often intangible, gaps in communication and understanding between employees and customers have a serious negative effect on the perceptions of services quality. Gap 1 shows that there can be a difference between actual customer expectations and management's idea or perception of customer expectations. Managers' expectations of service quality may not match service quality specifications. This mismatch is demonstrated in gap 2. Once services specifications have been established, the delivery of perfect services quality is still not guaranteed. Inadequate training, communication, and preparation of employees who interact with the customer, referred to as contact personnel, can lower the quality of service delivered. This mismatch is gap 3. Gap 4 shows the differences between services delivery and external communications with the customer. Gap 5 is the difference between perceived and expected services.

SHORT ANSWER: According to Parasuraman, Zeithamel, and Berry, what are the key attributes of services leaders?

The key attributes of a leader in services are given below: First, a leader has a service vision. Such leaders really view service quality as the force underlying profitability and business success. When selecting strategies for improvement, leaders see quality as the winning strategy. Such a vision can be translated into action and excitement for others in the company. Services leaders have high standards. In services, you will notice that some firms are better equipped and maintained than others. Outstanding services leaders have an in-the-field style of leadership. Because there is so much contact with the customer in a service system, the field is where the action is.

SHORT ANSWER: What are the three major realities in service that affect the approaches in quality adopted by service providers?

The three major realities in services that affect the approaches to quality adopted by service providers are intangibility, simultaneous production and consumption, and customer contact. Because services' attributes can be intangible, it is sometimes difficult to obtain hard data relating to services. In manufacturing, dimensions such as height, weight, and width are available for measurement. Simultaneous production and consumption of services means that you have to do it right the first time. Customer contact leads to an increase in variability in the process. This leads to a high degree of customization in services as well as great variability in the time required to perform services. In manufacturing, repetitive tasks are easily measured, and cycle times are generally consistent.