Exam

Question 1

What is service design?

Answer 1

Planning and organising people, infrastructure, communication, and materials to improve service quality and customer interaction.

Question 2

What is intangibility in service design?

Answer 2

Services are difficult to visualise before consumption.

Question 3

What does inconsistency refer to in service delivery?

Answer 3

Services vary based on who delivers them, when, and how.

Question 4

What is simultaneity in the context of services?

Answer 4

Services are produced and consumed at the same time.

Question 5

What does customer involvement entail in service design?

Answer 5

High co-production; customers participate in service creation.

Question 6

What are descriptive limitations in service design?

Answer 6

Describing services verbally can lead to ambiguity.

Question 7

What are front vs back office challenges?

Answer 7

Balancing customer-facing tasks (visible) and backend efficiency (invisible).

Question 8

What is a basic characteristic of the service development process?

Answer 8

Must be user-centered and co-created.

Question 9

What is required for effective service development?

Answer 9

Integration of internal and external stakeholders.

Question 10

What is meant by service design thinking?

Answer 10

Approach to meet customer needs in service development.

Question 11

What are major innovations in new services?

Answer 11

Brand new markets.

Question 12

What defines a start-up business in the service context?

Answer 12

New to the company, not the market.

Question 13

What are service line extensions?

Answer 13

Variations of current services.

Question 14

Fill in the blank: The stages in new service development include strategy development, idea generation, ______, business analysis, service design and development, testing, and commercialisation.

Answer 14

concept development.

Question 15

What is service blueprinting?

Answer 15

A diagram that visualises service delivery processes from the customer’s perspective.

Question 16

What are the key components of service blueprinting?

Answer 16

• Customer actions
• Frontstage (visible contact employee actions)
• Backstage (invisible contact employee actions)
• Support processes
• Physical evidence

Question 17

What is quality function deployment?

Answer 17

A method to ensure the voice of the customer is built into the service design.

Question 18

What are high-contact services?

Answer 18

Services where the customer is present throughout service delivery.

Question 19

Provide an example of a high-contact service.

Answer 19

Healthcare, education, restaurants.

Question 20

What is a low-contact service?

Answer 20

Services where customer involvement is minimal.

Question 21

Fill in the blank: The key influencing factors for customers’ channel choices include convenience, control, perceived risk, technology literacy, and ______.

Answer 21

time sensitivity.

Question 22

What is direct distribution?

Answer 22

Service delivered by the provider.

Question 23

What are the advantages of franchises in the service delivery process?

Answer 23

• Rapid expansion
• Shared investment risks

Question 24

What is internal marketing?

Answer 24

The process of treating employees as internal customers.

Question 25

What are boundary-spanning roles of frontline employees?

Answer 25

Employees who interact with both internal systems and external customers.

Question 26

What is empowerment in the context of service delivery?

Answer 26

Giving employees authority, skills, and confidence to make decisions and take initiative.

Question 27

What does enfranchisement mean?

Answer 27

Employees are emotionally and professionally committed to the organisation’s success.

Question 28

What are the roles of participant groups in service delivery?

Answer 28

* Productive Resources * Contributors to Quality and Satisfaction * Competitors (Substitute Role)

Question 29

What is inappropriate customer participation?

Answer 29

When customers disrupt or negatively impact the service delivery process.

Question 30

What are in-role behaviours?

Answer 30

Expected and necessary actions for service delivery.

Question 31

What are extra-role behaviours?

Answer 31

Voluntary, discretionary actions that enhance service.

Question 32

Fill in the blank: A service culture is a subset of corporate culture that prioritises ______.

Answer 32

customer satisfaction and service excellence.

Question 33

What is an ATM?

Answer 33

Automated Teller Machine

Question 34

What do self-check-in kiosks provide?

Answer 34

Effort and info for form filling and self-scanning

Question 35

What is a productive resource in service delivery?

Answer 35

Provides effort and information

Question 36

What is inappropriate participation?

Answer 36

Hinders service delivery

Question 37

What is in-role behaviour?

Answer 37

Basic expected behaviour such as providing documents and punctuality

Question 38

What is extra-role behaviour?

Answer 38

Voluntary, helpful actions like providing positive feedback

Question 39

What are technical skills?

Answer 39

Know-how to use service tools or technology

Question 40

What are interpersonal skills?

Answer 40

Communication and cooperation

Question 41

What does environmental psychology study?

Answer 41

The relationship between the physical environment and human thoughts, feelings, and behaviours

Question 42

How does the physical setting of a service environment influence customers?

Answer 42

It influences perceptions, emotions, satisfaction, and purchase decisions

Question 43

What are ambient conditions?

Answer 43

Factors like light, sound, and temperature that affect customer responses

Question 44

What is peripheral evidence?

Answer 44

Indirect cues such as brochures and website layout

Question 45

What is essential evidence?

Answer 45

Directly involved in service performance like equipment and décor

Question 46

What are the three types of responses in the environment-user framework?

Answer 46

*Cognitive Responses* *Emotional Responses* *Physiological Responses*

Question 47

What are approach behaviours?

Answer 47

Staying longer, exploring, and engaging

Question 48

What is the strategic role of servicescape?

Answer 48

Reinforces brand image and enhances customer experience

Question 49

What is a relationship in services?

Answer 49

A continuous, value-based interaction between a customer and a service provider

Question 50

What is trust in customer relationships?

Answer 50

Belief that a service provider is reliable and acts in the customer’s best interest

Question 51

What is commitment in customer relationships?

Answer 51

Emotional attachment a customer has to a service provider

Question 52

What are the four key stages of the relationship-building process?

Answer 52

*Bonding* *Empowerment* *Follow-through* *Service Recovery*

Question 53

Why does customer retention matter?

Answer 53

More profitable, generates word-of-mouth, and increases lifetime value

Question 54

What are key components of customer retention?

Answer 54

*Customer Satisfaction* *Perceived Value* *Switching Barriers*

Question 55

What is Customer Lifetime Value (CLV)?

Answer 55

Projected net profit from a customer over the entire relationship lifespan

Question 56

What is the purpose of loyalty programmes?

Answer 56

Reward repeat purchases and reinforce brand loyalty

Question 57

What is service failure?

Answer 57

Occurs when a service does not meet customer expectations

Question 58

What is the service recovery paradox?

Answer 58

Customers may become more loyal after a well-handled service recovery

Question 59

What are the types of complaint behaviour?

Answer 59

*Voice Response* *Private Response* *Third-Party Response*

Question 60

What is procedural justice?

Answer 60

Fairness of processes used to resolve complaints

Question 61

What is interactional justice?

Answer 61

Fairness in interpersonal treatment of the customer

Question 62

What is distributive justice?

Answer 62

Fairness of the outcome or compensation received

Question 63

What are proactive recovery management strategies?

Answer 63

*Anticipate common failures* *Have pre-planned responses*

Question 64

What are reactive recovery management strategies?

Answer 64

*Accept responsibility* *Empower frontline staff* *Offer compensation*