quiz 1

Question 1

are economic activities offered by one party to another, most commonly employing time-based performances to bring
about desired results in recipients themselves or in objects or other assets for which purchasers have responsibility

Answer 1

Services

Question 2

is a value-coproduction configuration of people,
technology, other internal and external service systems, and
shared information (such as language, processes, metrics, prices, policies, and laws).

Answer 2

service system

Question 3

Both infrastructure and distribution services function as intermediaries and as the channel of distribution to
the final consumer

Answer 3

complex economy

Question 4

Specialized firms can supply business services to manufacturing firms more cheaply and efficiently than manufacturing firms can supply these services for themselves

Answer 4

industrialized economy

Question 5

Infrastracture services like transportation and communication

Answer 5

foundation of economy

Question 6

In much of Africa and parts of Asia, more than__ percent of the labor force is engaged in extractive
activities

Answer 6

70

Question 7

hierarchy of economic activity:
Agriculture, mining, fishing, forestry

Answer 7

primary (extractive)

Question 8

hierarchy of economic activity:
manufacturing, processing

Answer 8

secondary (goods-producing)

Question 9

hierarchy of economic activity:
restaurants, hotels, laundry, maintenance

Answer 9

tertiary (domestic services)

Question 10

hierarchy of economic activity:
transpo, communications, retailing, finance, government

Answer 10

quaternary (trade and commerce)

Question 11

hierarchy of economic activity:
health, education, research, arts, recreation

Answer 11

quinary (extending human potential)

Question 12

Working with muscle power and tradition, the labor force is engaged in agriculture, mining, and fishing. Productivity is low and bears little evidence of technology

Answer 12

PREINDUSTRIAL SOCIETY

Question 13

The predominant activity in an _____ is the production of goods.

Energy and machines multiply the output per labor-hour and structure the nature of
work.Division of labor is the operational “law” that creates routine tasks and the notion of the semiskilled worker

Answer 13

Industrial Society

Question 14

Concerned with the quality of life, as measured by services such as health, education, and recreation.
The central figure is the professional person because rather than energy or physical strength, information is the key
resource.

Answer 14

POSTINDUSTRIAL SOCIETY

Question 15

During the past 30 years, more than ____ new jobs have been created in the service sector to absorb the influx of women into the workforce and to provide an alternative to the lack of job opportunities in manufacturing.

Answer 15

44 million

Question 16

experiences create added value by engaging and connecting with the customer in a
personal and memorable way.

Displays four types of consumer experiences characterized by the level of customer participation and level of
interaction with the environment.

Answer 16

Consumer Service Experience: Business-to-customer (B2C)

Question 17

is illustrated by the Forum Shops in Las Vegas that are decorated with Roman columns and where salespeople wear togas

Answer 17

Theme the experience

Question 18

with positive cues is found at the O’Hare Airport Parking Garage where each
floor is painted with a distinctive color and unique music is played to help returning travelers find their parked automobiles (e.g., hard rock on the first floor and classical on the second).

Answer 18

harmonize impressions

Question 19

is illustrated creatively by the use of talking trash containers (i.e., the container says “thank you” when an item is discarded) at a Cinemark Theater in Austin, Texas

Answer 19

Eliminate negative cues

Question 20

is providing group pictures of vacationers at Club Med.

Answer 20

mix in memorabilia

Question 21

is found at the Rainforest Café in Las Vegas (e.g., jungle sounds and mist in the air).

Answer 21

Engage all five senses

Question 22

value is derived from the
coproduction or collaborative nature of the relationship such as we see in a
consultancy engagement.

Answer 22

business-to-business (B2B) services

Question 23

3 dimension:

The customer is a coproducer of the value extracted from the
relationship.
The customer is an input to the service process.

Answer 23

Co-creation of value

Question 24

3 dimension:

The relationship with the customer is paramount because it is a source of
innovation and differentiation.
Long-term relationships facilitate the ability to tailor the service offerings to customers’ needs.

Answer 24

Relationships

Question 25

Provide service capacity to meet fluctuations in demands while retaining quality of service. Quality of service is measured primarily from the perspective of the customer.

Answer 25

Service capability

Question 26

true or false THE CORE EXPERIENCE OF B2B SERVICE IS ONE OF CREATING, ENABLING, PROBLEM SOLVING, AND INNOVATIVE USE OF INFORMATION THAT IS NOT CONSUMED IN THE EXCHANGE, BUT IS ENHANCED AND REMAINS AVAILABLE FOR FURTHER USE BY OTHERS

Answer 26

true

Question 27

is a service - centered alternative to the traditional goods - centered paradigm for describing economic exchange and value creation.

Answer 27

service - dominant logic

Question 28

The application of scientific, management, and engineering disciplines to tasks that one organization beneficially performs for and with another organization or individual.

Answer 28

ssme

Question 29

true or false The objective is to make productivity, quality, performance, compliance, growth, and learning improvements more predictable in work-sharing and risk-sharing (co-production) relationships.

Answer 29

true

Question 30

The ____ is the transfer and sharing of resources within and among service systems.

Answer 30

heart of services science

Question 31

The ____ of service systems is to connect people, technology, and information through value propositions with the aim of co-creating value for the service systems participating in the exchange of resources within and across systems.

Answer 31

normative function

Question 32

The presence of the customer as a participant in the service process requires an attention to facility design that is not found in traditional manufacturing operations. An important consideration in providing a service is the realization that the customer can play an active part in the process

Answer 32

CUSTOMER PARTICIPATION

Question 33

The fact that services are created and consumed simultaneously and, thus, cannot be stored is a critical feature in the management of services. This inability to inventory services precludes using the traditional manufacturing strategy of relying on inventory as a buffer to absorb fluctuations in demand.

Answer 33

SIMULTANEITY

Question 34

A service is a perishable commodity. Consider an empty airline seat, an unoccupied hospital or hotel room, or an hour without a patient on the day of a dentist. In each case, a lost opportunity has occurred.

Answer 34

PERISHABILITY

Question 35

Services are ideas and concepts; products are things. It follows that service innovations are not patentable. To secure the benefits of a novel service concept, the firm must expand extremely rapidly and preempt any competitors.

Answer 35

INTANGIBILITY

Question 36

The combination of the intangible nature of services and the customer as a participant in the service delivery system results in a variation of service from customer to customer. The interaction between customer and employee in services, however, creates the possibility of a more satisfying human work experience. In services, work activity generally is oriented toward people rather than toward things Dramatic reduction in the level of labor intensiveness through the introduction of self-service technology.

Answer 36

HETEROGENEITY

Question 37

The ___ is defined as a bundle of goods and services with information that is provided in some environment.

Answer 37

service package

Question 38

The physical resources that must be in place before a service can be offered.

Answer 38

supporting facility

Question 39

The material purchased or consumed by the buyer, or the items provided by the customer. Examples are golf clubs, skis, food items, replacement auto parts, legal documents, and medical supplies.

Answer 39

Facilitating goods

Question 40

Data that is available from the customer or provider to enable efficient and customized service. Examples include electronic patient medical records, airline showing seats available on a flight

Answer 40

Information

Question 41

The benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service. Examples are the absence of pain when a tooth is repaired, a smooth-running automobile after a tuneup, and the response time of a fire department.

Answer 41

Explicit services.

Question 42

Psychological benefits that the customer may sense only vaguely, or the extrinsic features of the service. Examples are the status of a degree from an Ivy League school, the privacy of a loan office, and worry-free auto repair

Answer 42

Implicit services.

Question 43

t or f Little interaction between customer and service provider is needed when the service is standardized rather than customized

Answer 43

t

Question 44

provide a standardized service with high capital investment, much like a line-flow manufacturing plant.

Answer 44

Service factories

Question 45

permit more service customization, but they do so in a high capital environment.

Answer 45

Service shops

Question 46

will receive an undifferentiated service in a labor intensive environment

Answer 46

mass service

Question 47

will be given individual attention by highly trained specialists.

Answer 47

professional service

Question 48

also allows one to view the customer as a coproducer. Permitting the customer to participate actively in the service process (e.g., pro viding a salad bar at a restaurant) can increase productivity, which in turn can create a competitive edge.

Answer 48

open-system concept of services

Question 49

Service innovations are not patentable, and in most cases, services are not capital-intensive. Thus, innovations can easily be copied by competitors

Answer 49

Relatively low overall entry barriers.

Question 50

The necessity of physical travel for many services limits the market area and results in small-scale outlets.

Answer 50

Minimal opportunities for economies of scale.

Question 51

Service demand varies as a function of the time of day and the day of the week (and sometimes seasonally), with random arrivals.

Answer 51

Erratic sales fluctuations.

Question 52

The small size of many service firms places them at a disadvantage in bargaining with powerful buyers or suppliers

Answer 52

No advantage of size in dealing with buyers or suppliers.

Question 53

Product innovations can be a substitute for services (e.g., DIY covid rapid test). Thus, service firms must not only watch other service competitors but also anticipate potential product innovations that might make their services obsolete

Answer 53

Product substitution.

Question 54

Established firms can use personalized service to create a loyal customer base, which becomes a barrier to entry by new services.

Answer 54

customer loyalty

Question 55

Marginal service firms may continue to operate despite low, or even nonexistent, profits. For example, a privately held firm may have employment of family members rather than maximizing profit as its goal

Answer 55

exit barriers

Question 56

strategy requires efficient-scale facilities, tight cost and overhead control, and often innovative technology as well. Having a low-cost position provides a defense against competition, because less efficient competitors will suffer first from competitive pressures

Answer 56

overall cost leadership strategy

Question 57

lies in creating a service that is perceived as being unique. Approaches to differentiation can take many forms: brand image (e.g., McDonald’s golden arches)

Answer 57

differentiation strategy

Question 58

is built around the idea of servicing a particular target market very well by addressing customers’ specific needs. The market segment could be a particular buyer group (e.g., USAA and the military community), service (e.g., Shouldice Hospital and patients with inguinal hernias), Motel 6 (budget travelers),

Answer 58

focus strategy

Question 59

How accessible is the service? The use of ATMs by banks has created 24- hour availability of some banking services

Answer 59

Availability

Question 60

The location of the service defines convenience for customers who must travel to that service. Gasoline stations, fast-food restaurants, and dry cleaners are examples of services that must select locations on busy streets

Answer 60

Convenience

Question 61

How reliable is the service? For example, once the exterminator is gone, how soon do the bugs return? A major complaint regarding automobile repair services is the failure to fix the problem on the first visit.

Answer 61

Dependability

Question 62

Are you treated as an individual? For example, hotels have discovered that repeat customers respond to being greeted by their name. The degree of customization allowed in providing the service, no matter how slight, can be viewed as more personalized service.

Answer 62

Personalization

Question 63

Competing on price is not as effective in services as it is with products, because it often is difficult to compare the costs of services objectively.

Answer 63

price

Question 64

Service quality is a function of the relationship between a customer’s prior expectations of the service and his or her perception of the service experience both during and after the fact.

Answer 64

QUALITY

Question 65

The uncertainty that is associated with the selection of a service provider often is resolved by talking with others about their experiences before a decision is made.

Answer 65

Reputation

Question 66

Well-being and security are important considerations because in many services, such as air travel and medicine, the customers are putting their lives in the hands of the service provider.

Answer 66

Safety

Question 67

How long must I wait for service? For emergency services such as fire and police protection, response time is the major criterion of performance. In other services, wait ing sometimes might be considered a trade-off for receiving more personalized services, or in reduced rates

Answer 67

speed

Question 68

Failure to deliver at or above the expected level for a competitive dimension can result in a dissatisfied customer who is lost forever

Answer 68

service losers

Question 69

are dimensions such as price, convenience, or reputation that are used by a customer to make a choice among competitors. Depending on the needs of the customer at the time of the purchase, the service winner may vary.

Answer 69

Service Winners

Question 70

Before a service firm can be taken seriously as a competitor in the market, it must attain a certain level for each service-competitive dimension, as defined by the other market players.

Answer 70

Qualifiers

Question 71

is the internet working of physical devices, vehicles, buildings, and many other items that are embedded with electronics, software, sensors, actuators, and network connectivity. These embedded capabilities enable objects to collect and exchange data via the Internet, which allows them to be remotely sensed and controlled.

Answer 71

Internet of Things

Question 72

refers to the discovery, interpretation, and processing of meaningful patterns in data for improved decision making. This process involves simultaneous application of statistics, computer programming, and operations research to quantify an organization’s performance

Answer 72

Data analytics

Question 73

The process of creating value is called

Answer 73

value chain

Question 74

physical world of people and things called a

Answer 74

marketplace

Question 75

virtual world of information called a

Answer 75

marketspace

Question 76

traditionally has been treated as information supporting physical value-adding elements, but not as a source of value itself.

Answer 76

virtual value chain

Question 77

involves seeing the physical operations more effectively with information. USAA became a “paperless operation, ” as it moved from a manual paperbased filing system to one based on a central computerized database with access via desktop terminals.

Answer 77

First Stage (New Processes)

Question 78

virtual alternatives substitute for physical activities. At USAA, information systems were installed to automate the core business of insurance sales and underwriting.

Answer 78

Second Stage (New Knowledge)

Question 79

member information is analyzed to discover new product needs and meth ods to deliver value. As the database accumulated, USAA prepared member risk profiles and customized policies

Answer 79

Third Stage (New Products)

Question 80

opportunities for customer collaboration in the co-creation of value are explored. Retired and active duty members of USAA need financial planning. In response, USAA created web-based investment planning tools and frequent online interactive seminars dealing with current financial issues

Answer 80

Fourth Stage (New Relationships)

Question 81

can deliver data directly to handsets, which are, in essence, always connected

Answer 81

gprs system

Question 82

The product development model that is driven by technology and engineering could be called a ______

Answer 82

push theory of innovation

Question 83

A new service concept often originates with an observant contact employee who identifies an unmet customer need.

Answer 83

pull theory of innovation

Question 84

new service, new ideas are screened, and winning concepts are developed and tested for feasibility.

Answer 84

development stage

Question 85

to determine their potential as part of a profitable business venture.

Answer 85

analysis stage

Question 86

considerable time and money are expended in ___ to create a new service product and process that can be field tested with appropriate personnel training and a marketing campaign in a given city or region

Answer 86

design stage

Question 87

A proven new service is given a “full launch” that could be available nationwide or worldwide.

Answer 87

full launch stage

Question 88

delivery, facility, location, capacity

Answer 88

structural

Question 89

information, quality, service encounter, managing capacity and demand

Answer 89

managerial

Question 90

the number and intricacy of the steps represent measured by the number of steps in the service blueprint

Answer 90

degree of complexity

Question 91

The amount of discretion or freedom that the server has to customize the service that is allowed at each service process step

Answer 91

degree of divergence

Question 92

is designed for high volume with a narrowly defined and focused service. The tasks are routine and require a workforce with relatively low levels of technical skills.

Answer 92

standardized service

Question 93

manufacturing-in-the-field approach to service

Answer 93

production line approach

Question 94

Degree of customer contact - Customer contact refers to the physical presence of the customer in the system

Answer 94

customer contact approach

Question 95

No service today could survive without use of IT, andsuccessful managers see that IT offers much more than simply a convenient way to maintain records. Indeed, one of its most important functions is to empower both employees and customers

Answer 95

information empowerment

Question 96

involving the customer in the service process can support a competitive strategy of cost leadership with some customization if it is focused on customers who are interested in serving themselves

Answer 96

customer as coproducer