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True/False
1. Just as the lessons and techniques from agriculture were applied to
manufacturing the same is true with the application of factory techniques to
service organization. (F)
2. The fact that the role of the service manager is viewed from an
open-system perspective implies that the environment can be ignored safely
in dealing with service systems. (F)
3. The consumer participates in the service process, which is not the
case in manufacturing. (T)
4. The classification of service systems using the "service process
matrix" is based on two considerations: degree of labor intensity, and the
degree of service customization. (T)
5. From an open-systems view, the output of a service system consists of
satisfied customers. (T)
6. The main difficulty with services is that the product is intangible,
and in many cases it is not even identifiable as any one particular aspect
of the service package. (T)
7. A study of service systems must begin with the fundamental idea that
the basic inputs are supporting facility, facilitating goods, labor, and
capital. The output is the service offered. (F)
8. In contrast to manufacturing, the aesthetics of the environment play a
major role in the customer's perception of the service. (T)
9. The fact that services can be inventoried is an important
characteristic, which distinguishes them from manufacturing. (F)
10. Reduction of the role played by the consumer is an effective
way of improving productivity and decreasing the cost of the service. (F)
11. Services are time-perishable. An opportunity to provide a
service, if forgone, is lost forever. (T)
12. In one respect, manufacturing and services are alike, i.e.,
both can suffer from technological obsolescence. (T)
13. The fact that services are labor intensive ensures that the
service is fair and equal for all customers. (F)
14. In the open systems concept of services, viewing the consumer
as part of the resources used by the service is superfluous. (F)
15. It is convenient and often necessary to combine the operations
and marketing functions for service organizations. (T)
16. Service managers must usually be concerned with improving
process efficiency. (F)
17. Little or no interaction between customer and service provider
is required when the service is customized (F)
18. Training of service personnel is a criterion for evaluating
the explicit services feature of the service package. (T)
19. In services, opportunities for quality control intervention
are increased due to simultaneous production and consumption. (F)
20. Marketing helps smooth demand to match capacity in service
operations. (T)
Multiple Choice
1. The service package consists of four features. Which one of the four
features listed below is not included in the package?
a. Explicit services
b. Supporting facility
c. Implicit services
d. Cost of service*
2. The major input into a large public hospital from a service point of
view would be:
a. physicians' services.
b. patients.*
c. nursing services.
d. federal reimbursement (Medicare/Medicaid).
3. Which of the following is not true of services?
a. The customer is the input.
b. The customer takes an active part in the service.
c. A service can be inventoried.*
d. Production and consumption occur simultaneously.
4. Which of the following is not a defining element of the service package?
a. Supporting facility
b. Competitive strength*
c. Explicit services
d. Facilitating goods
5. The service process matrix classification consists of four categories of
services. Which one of the four features listed below is not included in
this classification?
a. Service factory
b. Service shop
c. Public service*
d. Professional service
6. Which service offering is best described by the following service mix: a
high degree of customer interaction and a high degree of labor intensity?
a. Public university
b. Cruise ship
c. Plumbing repair
d. Chiropractor*
7. Transactional analysis refers to:
a. accounting entries.
b. counting customers served.
c. measuring change in customers from input to output.*
d. measuring the activity of contact personnel.
8. An empty airline seat or hotel room not occupied best illustrates the
characteristic of a service's
a. time perishability.*
b. labor intensity.
c. intangibility.
d. simultaneous production and consumption.
9. Which type of service falls under the category of "high labor/low
customization?"
a. Service factory
b. Service shop
c. Mass service*
d. Professional service
10. Which one of the following is not a classification scheme for
strategic service insight?
a. Nature of the service act
b. Relationship with customers
c. Method of service delivery
d. Degree of interaction and customization*
11. Which of the following is not a challenge for a manager of a high
labor-intensive service?
a. Scheduling service delivery.*
b. Controlling services in far-flung locations.
c. Methods development and control.
d. Managing growth.
12. A hospital is an example of a service processes that has
a. high degree of labor intensity and low degree of customization.
b. low degree of labor intensity and low degree of customization.
c. high degree of labor intensity and high degree of customization.
d. low degree of labor intensity and high degree of customization.*
13. Capital decisions, technological advances, and managing demand are some
managerial challenges for a
a. service factory. *
b. service shop.
c. mass service.
d. professional service.
14. Which among the following strategies is used by fast-food restaurants
to reduce costs?
a. Increase advertising via the Internet.
b. Allowing the customer to play an active part in the service process. *
c. Iincrease prices.
d. Increasing menu items to cater to varying tastes.
15. __________ and __________ are among many of the unique characteristics
of services that are interrelated
a. Inventory stockout, time
b. Supply, demand
c. Customer participation, perishability *
d. Capacity, time
16. Gaining employee loyalty is a managerial challenge that would most
likely be associated with which type of industry?
a. retailing
b. hospitals
c. airlines
d. consulting *
17. The presence of a friendly desk clerk in a budget hotel is an example
of which of the four features of a service package?
a. supporting facility
b. facilitating goods
c. explicit services
d. implicit services *
18. Which of the following is not included in the criteria for evaluating
facilitating goods?
a. facility layout *
b. selection
c. consistency
d. quantity
19. Distinctive characteristics of service operations include which of the
following?
a. customer participation and perishability
b. intangibility and heterogeneity
c. (a) and (b)*
d. none of the above
20. What type of service industry is high in judgment exercised by customer
contact personnel and low in customization?
a. college food service *
b. professional services
c. telephone services
d. fast-food restaurant
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