Chapter 05 Service Delivery System Design Chapter 05 Service Delivery System Design Answer Key Multiple Choice Questions 1 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 LO 5 1 Topic Defining Service Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Except for electricity and communications services cannot be transported though producers can be see Table 5 1 2 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 LO 5 4 Topic Customer Contact Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Flexibility strong interpersonal skills and customer orientation are not characteristics of a low contact system 3 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 C the customization abilities of the service system D none of the above LO 5 4 Topic Customer Contact Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback The degree of customer contact measures the amount of time for the service to be produced delivered and consumed by the customer in other words the amount of time the customer is in the service delivery system 5 1 Chapter 05 Service Delivery System Design 4 A service recovery process A follows every service transaction B is an implicit service C is rapid compensation for a service failure D is none of the above LO 5 5 Topic Service Recovery and Guarantees Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Swift service recovery is necessary for an effective recovery process 5 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 LO 5 5 Topic Service Recovery and Guarantees Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback All are true of service guarantees see Section 5 5 6 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 LO 5 5 Topic Service Recovery and Guarantees Difficulty 1 Easy AACSB Reflective thinking Bloom s Understand Feedback Effective guarantees should not be viewed as any form of gimmick or contain many stipulations or conditions 5 2 Chapter 05 Service Delivery System Design 7 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 LO 5 3 Topic Service Delivery System Matrix Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback The service delivery system is designed around the customer 8 Which of the following is NOT a differentiator between manufacturing and service operations A Transportation B Customer contact C Resale D Cost per unit LO 5 1 Topic Defining Service Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Cost per unit is not a differentiator though all of the others are see Table 5 1 9 Which of the following is NOT a characteristic of service operations A Intangible output B The buyer can perform part of the production C The product cannot be stored D Ownership is transferred at time of purchase LO 5 1 Topic Defining Service Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Because services are intangible ownership generally is not transferable 5 3 Chapter 05 Service Delivery System Design 10 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 LO 5 2 Topic Service Product Bundle Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback A B and C are the three elements of the service product bundle 11 contact services require employees with administrative technical skills and efficient processing routines A High B Low C Moderate D More than one of the above are true LO 5 4 Topic Customer Contact Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback In general low contact positions call for technical skills more than interpersonal skills Routine methods are key to low contact service efficiency 12 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 LO 5 4 Topic Customer Contact Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback Compared to the other choices a law practice has far more contact customization and labor intensity 5 4 Chapter 05 Service Delivery System Design 13 Estate planning would be an example of A a co routed service B a customer routed service C a provider routed service D none of the above LO 5 3 Topic Service Delivery System Matrix Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Estate planning is typically highly customized with many process pathways and customers having a great deal of decision power 14 The service profit chain shows that is the direct link to profitability A customer loyalty B customer satisfaction C customer contact D employee productivity LO 5 7 Topic Service Profitability and Employees Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback B C and D are elements but it is customer loyalty that ultimately drives profitability 15 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 LO 5 7 Topic Service Profitability and Employees Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Internal service