test 1 (chapters 1,2,5,6)

Question 1

Define the concept of a Service Business. Elaborate on

Answer 1

my response: a service business typically focuses on processes to improve their engagement that determines whether or not they increase profit. their business mainly relies on the intangible as service cant be held physically. what makes service businesses thrive is through variability as what differentiates a business from another is experience. Overtime the service business has increased as for example the U.S economy runs with 80% being services. These businesses make money through actions a customer can’t or don’t want to do their own.

improved response:
A service business is a organization that provides intangible products such as services rather than physical goods. businesses usually focus on providing the best service possible for their customers through expertise, labor and customization. its important for a business to satisfy customer needs in order to keep them as having loyal customers is cheaper than receiving new customers. the services the business provides are intangible which means nothing is physical, making what is being bought consumed while the customer has contact with the business. businesses find success through customer engagement and how efficient a business processes is. ensuring interactions and processes are efficient makes the experience much smoother with a higher profit. the quality of experience of a customer is usually what differentiates businesses from one another. variability is crucial to stand out and have consumer grow value towards them. overtime the service industry has grown, currently making the US economy 80% service based. these services are seen through the military, financial businesses, education, entertainment, etc. these businesses exist since customers sometimes dont want to do or can do the tasks these businesses offer . whether its making a simple coffee or doing complicated taxes.

Question 2

List and Describe the characteristics (5) of the service package.Elaborate

Answer 2

my response:
5 Characteristics: Facilitating Goods, Supporting Facilities, Information, Implicit Services, Explicit Services.
Facilitating goods are the goods the business offers to a customer. For example, a taco from the taco stand. Supporting facilities are the resources used to have a business take place. For example, a taco stands or a classroom. Without them it would be difficult to provide as good of a service. Information is what is being considered or discussed about in the service. Some examples include the food menu on a taco stand pr medical records used by doctors. Implicit services is what a business offers that isn’t as straight forward. For example, the insurance companies being confidential about their client’s information. Explicit services are the obvious from a service. For example, the barista handing out the coffee they prepared to a customer.

Question 3

Define a service economy and list three countries that have transitioned to a service economy

Answer 3

my response: A service economy is when a country’s economy only thrives on services and not other methods like manufacturing or agriculture. 3 places that have transitioned to a service economy are New Zealand, Europe, and Austrailia. The United States is close to being a service economy as most of the GDP comes from services (80%).

new response: new zealand and the UK, germany ,

Question 4

What was unique about Village Volvo? List three service packages that differentiate them from the local Local Volvo Dealer.

Answer 4

my response: Village Volvo was unique as a auto repair shop in the sense that they were very open with their services. For example, they had employees who communicated what the mechanic was doing to the car with the customer. They also had a lounge area to keep customers comfy while waiting and offered pictures/videos of the repairing process. Not only that but had given customers a currency to use Lyft if they didn’t have access to a vehicle. Like other services they had appointments but also walk-ins. I believe their market were those living in the suburbs. Village Volvo worked because they had the entire service package.

Question 5

What is popular tool for developing a strategy?define its components.elaborate.

Answer 5

my response: A popular tool to develop a strategy is the SWOT analysis. This includes the analysis of Strength, Weakness, Opportunities, and Threats.

Strengths: It is what the business is currently operating well on that may be why they’re progressing with not much issues.
Weakness: Are what business needs to improve on.
Opportunities: Is what businesses can do and have the option to do to improve. For example, being located in LA with a large population is an opportunity to take advantage.
Threats: Are what worrying a business. For example, the new competitor placing themselves across the street.

It’s important to consider these 4 components to maximize and innovate one’s variability that helps distinguish themselves from competitors.

Question 6

define service strategy.elaborate.

Answer 6

(got 1 point off)
my response: Service strategy is a plan with a goal. Usually has a set time to make sure everything is organized and not a mess. Service strategies are important to be up to date with the industry and not be left behind. Having a strategy helps identify the market and create a service around pleasing them. This explains how some attract a certain demographic or build loyalty.

his note: When??

Question 7

what is chapter 5 title

Answer 7

supporting facility and process flow

Question 8

what is process flow?

Answer 8

step by step procedures

Question 9

whats flow?

Answer 9

how things move

Question 10

what are some environmental orientation considerations? (4)

Answer 10

• theres a need for spatial cues to orient (situate) visitors (ex: el acapulco restaurant ,he couldnt identify restroom, customer should identify where everything is)
• facilities draw a formula based on previous experience (must be familiar and not complex , should be warm)
• an entrance atrium (hall/central hall) to let visitors to view the orientation or space to observe everyone and their behavioral cues
• provide orientation aids and signage such as “you are here maps” to reduce anxiety (ex:make it simple for customers to visit ( ikea,ppl are comfortable where theyre going))

Question 11

slide 4
1.Servicecape/ why is it used in businesses? it affects ____.
2.Ambient Conditions:
3.Spatial Layout and functionality
4.Signs, Symbols, and Artifacts
______
employee intro / interaction with customer

Answer 11

Servicecape:the “physical environment” and ambiance in which a service is provided. Designing Physical Surroundings to Affect Employee and Customer Behavior

2.Ambient Conditions: background characteristics such as noise level, music, lighting, temperature, and scent.

3.Spatial Layout and Functionality: reception area, circulation paths of employees and customers, and focal points.

We now introduce employees, they must be happier to serve a better service, the interaction between employee and customer it will either make or break service. Employee is teh representative that will h=keep ppl coming back

Question 12

slide 5 Describe the Typology of services capes

1.Whats self-service, Interpersonal, and Remote service?
2.whats elaborate for self-service, Interpersonal, and Remote service?
2.whats lean for self-service, Interpersonal, and Remote service?

Answer 12

1. self-service: customer only; Interpersonal: both, and Remote service: employee only
2. elaborate for self-service: golf course, waterslide park elaborate for interpersonal: luxury hotel, airline terminal
   elaborate for remote service: research lab, L.L. Bean

3.lean for self-service: Post office kiosk, e-commerce
lean for interpersonal: Budget hotel, Bus station
elaborate for remote service: Telemarketing, Online tech support

Question 13

what is the servicescape framework (basic definition)

Answer 13

It all is about how customer perceives service, behavioral situation

Question 14

slide 7; what are some facility design consideration? (6)
How u do sign a facility? What do u consider?

Answer 14

(ex: student’s job was going to help her dad with auto body shop, raising rent to get out competition, start looking for new facility, they should work to keep contacts)
1.Nature and objectives of service organization
-design can contribute much more to defining a service
-a design can give immediate recognition (mcdonalds arch)
-ex:fire station must have a structure thats large enough to house their vehicles/accomidate 24hr shifts. physician offices must at least offer privacy with its design.

2.Land availability and space requirements: how much space do u need but usually business facility (stereoscope is in a corner but always packed, eventually theyll hav eto move to new facility to fulfill needs). space for off street parking is a requirement. space for future expansion should always be considered.

3.flexibility: successful services are dynamic orgs that can adapt to changes in the quantity and nature of demand.ex: airports are facing facility problems cuz designed failed to anticipat tremendous growth of ppl flying. designing for the future might require additional

4.security (Is there need for security); theres all kinds of security such as; xray scanners, tech to profile potential terrorists(although problematic), cameras(banks,nursing homes,convenience stores), high fences, tags for clothing.

5.aesthetic factors: salespersons are stationed at cash register counters available to help, complimentary lighting, well groomed sales person,fitting rooms located seperate from display area to appreciate ur appearance

6.The community and environment (Is it a good community for the type of business? Its got to fit). design of service facility may be the greatest important where it affects the community and its environment. ex: will the church have enough parking for the community, how can a detention facility design is able to ensure inmates health and welfare, has local dry cleaner designed the facility to keep hazardous chem out of local environment.

Question 15

slide 9-11 whats a gantt chart

Answer 15

Gantt chart is a description of whats going to be given , a calendar for a mortgage service.

it was a property service,credit report,title search,final approval. while it shows its time of minutes in schedule

(project mgmt toon that helps planning scheduling and monitoring a project)

Question 16

slide 12 what are these process analysis terms?
cycle time;ex
bottleneck
capacity
capacity utilization;ex
throughput time; ex

Answer 16

1.Cycle time: avg time between completions of successive units(ex: McDonalds fried is 8 mins)

2.Bottle neck: contraction, usually the slowest operation, weakest link, if u can identify it u can improve ur process. the factor that limits prod usually the slowest operation

3.Capacity: when u work at full capacity. the measure of output per unit time when fully busy

4.Capacity utilization: measure of how much output is actually achieved. what percentage are u using(if 2 employees are idle, job has 80% of capacity utilizing

5.Throughout time: time to complete a process from time of arrival to time of exit. how many hamburgers can u process at given time

Question 17

slide 13 what are these process analysis terms?
direct labor
indirect labor
rush order flow time:
direct labor content
total direct labor content
direct labor utilization

Answer 17

Direct labor: employee who dipping basket
Indirect labor: supervisor watching/ex: management is indirect

Rush Order Flow Time is the time to go through the system
without any queue time.

Direct Labor Content is the actual amount of work time
consumed.

Total Direct Labor Content is the sum of all the operations
times.

Direct Labor Utilization is a measure of the percentage of
time that workers are actually contributing value to the
service.

Question 18

slide 15
what are some process flow characteristics(4) what should be kept in mind for a business

Answer 18

Process flows: are critical, can have alot of direct and indirect labor, can be time consuming, take alot of real estate and room, (ex: he showed a layout drawing of 4 steps, (45 secs, 30 secs, 55 secs, 60 secs), 55 secs is bottleneck in this case)(to fix it create a u shaped cell,less labor and less real estate)(after that u would have to upgrade with robot)every process can be improved, how can time be shorten

Question 19

chapter 5 review part 1
Process flow:
Environmental orientation:
Service capes:
Servicescape framework:
Facility design considerations:

Answer 19

Process flow: step by step procedure on canned tuna,
You visualize the process flow it to see bottle necks and make improvements

Environmental orientation: dont lose ur visitors, give their service quickly. Many lobbies used to have a receptionist but not anymore. Anxiety is hot so dont make them feel anxious

Service capes: how the environment affects employees (ex: class is light, noise) make signs effective, dont clutter, ur objective is to not cause anxiety.

Servicescape framework: its all about the behavior

Facility design considerations: mcdonalds can do well anywhere in US, ex:security for jewelry shop,

Question 20

chapter 5 review part 2
Process flow diagram of mortgage service:
Cycle Time:
bottleneck:
Capacity utilization:
Throughput time:
Direct labor:
Direct labor utilization:

Answer 20

Process flow diagram of mortgage service: must know how to illustrate a flow chart

Process analysis terminology:
cycle time-time it takes for completion(french fries 8 mins),
bottleneck-step of process that is taking longer than previous steps,
capacity-humans have capacity,

capacity utilization-employees during non/peak hours of restaurant (using 4/8 employees is 50% capacity)

throughput time-collection of cycle time for the whole process

direct labor: employee who dipping basket
direct labor utilization:a measure of the percentage of
time that workers are actually contributing value to the
service.

Question 21

whats the chapter 6 title

Answer 21

service quality

Question 22

what is quality?

Answer 22

quality is what the customer deems to be good or bad.

Question 23

How do u differentiate yourself?

Answer 23

through value

Question 24

define service quality, what does it have to do?

Answer 24

for services, it’s quality is determined during the service delivery process. each customer contact is referred to as moment of truth, the opportunity to satisfy or dissatisfy a customer . customer satisfaction is defined by what’s expected to what’s perceived. if exceeded , quality is exceptional.
———-
service quality has dimensions (RATER)

Question 25

slide 3 whats the moments of truth? (2) whats a service recovery?

Answer 25

-each customer contact is called a moment of truth 1st interaction your employee has with a customer. -employees represent as you to a customer - you have the ablility to either satisfy or dissatisfy them when u contact them -Service recovery is satisfying a previously dissatisfued cystomer and making them a loyal customer.you will lose customers, but its cheaper to keep customer than gain customer, if u do lose recover that customer(email,rewards)

Question 26

slide 4 define the dimensions of quality (quality in Goods and Services) AND what’s the dimensions for services whats RATER?

Answer 26

Quality in goods, depends on person and what they prefer,(he says sony is best tv in market) Quality in Goods * Performance. * Features. * Reliability. * Durability. * Conformance. * Serviceability. * Aesthetics. * Perceived quality. Quality in services: rater (reliability,tangibles,responsiveness,assurance,empathy) Quality in Services * Reliability. * Tangibles. * Responsiveness. * Assurance. * Empathy.

Question 27

slide 5 what is RATER?

Answer 27

dimensions of service quality Reliability:Perform promised service dependably and accurately. Example: receive mail at same time each Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer. Tangibles: Physical facilities and facilitating goods.condition of physical surroundings Example: cleanliness. cleanliness, his rule of thumb, he goes to look at restrooms to see if they're well maintained Empathy:Ability to be approachable. Example: being a good listener. bill clinton”i feel your pain” - he would always say that to try to be empathetic. As a employee show empathy Responsiveness: Willingness to help customers promptly.Example: avoid keeping customers waiting for no apparent reason.

Question 28

slide 7 how is figure 6.1 percieved service quality abt (3 things),

Answer 28

1. word of mouth, personal needs, or past experience service quality dimensions (RATER) , expected or percieved service, service quality assessment (expectations exceeded,met or not met)

Question 29

slide 8 service quality gap mode(compares 2 things) l, what does the mode go over(5)?

Answer 29

What u expected to receive vs what you got (perception and expectation You want to diminish a quality gap - mode goes over : service delivery, customer perceptions,customer expectations, mgmt perception of customer expectations, service standards

Question 30

slide 9 whats a walkthrough audit ; what’s recommended to use no matter the size in service? what does a auditor look at and why? how should a service delivery system conform to? why are auditors useful? and from who’s pov should a detailed audit be created for?

Answer 30

Depending on size of service, always use a 3rd party to manage it. Auditor should look at it in the eyes of customer (which is why its better to have a 3rd eye) Important for quality standards * Service delivery system should conform to customer expectations. * Customer impression of service influenced by use of all senses. * Service managers lose sensitivity due to familiarity. * Need detailed service audit from a customer’s perspective.

Question 31

slide10 when should a widget be designed? who should have input on the design?what’s the use of a widget?design it so it doesn’t have ____ , (whats a example of quality in the service package,pokayoka,quality function deployment)

Answer 31

At the start Widget would be designed Everyone should have input on design You want to ensure fail proof steps are built into the widget and built the same way in the future (poka yoke is fail safe) Humans have fatigue Design it to u dont have fatigue gasoline sta stop a cool diesel green to be fail safe , same thing with height thing on rollercoaster build quality from the beginning to avoid headaches Quality in the Service Package * Budget Hotel example. Poka-yoke (fail-safing)/mistake proofing * Height bar at amusement park. Quality Function Deployment * House of Quality

Question 32

slide 11 classification of service failures ideally design quality is built to ____ which leads to ____. what are 2 types of errors under each error what 3 things does it go thru

Answer 32

ideally the design quality is built to not have service failures which is what leads to customer satisfaction. server errors ask: Doing work incorrectly Treatment: Failure to listen to customer Tangible: Failure to wear clean uniform customer errors Preparation: Failure to bring necessary materials Encounter: Failure to follow system flow Resolution: Failure to signal service failure

Question 33

slide 13 achieving service quality variation exists ____ what did dr deming create , what does it identify ? what’s spc (his example and definition) what does a business offer?

Answer 33

1.quality costs variation exists everywhere 2.Dr deming created a simple method for variation, u have to identify how it varies whatever is critical in ur service Define SPC, ( graph white board chart of his weight/weight v week days) statistical process control spc: the use of a control chart to monitor process performance measure that signals when intervention is needed. 3.Unconditional service guarantee - warranty to guarantee its performance is expected can’t be done with services but it’s made by businesses to say their service is superior/ marketing appeal/sets quality standards

Question 34

slide 14 table 6.4 what are the 3 costs of quality for service (fdp)/ examples

Answer 34

Failure cost- external failure/avoid these (his time airline tickets and ppl he hired and got negative word of mouth) Detection cost- the supervisor or operator finds something Prevention cost- poka yoke

Question 35

slide 16unconditional service guarantee;customer view and management view (what does it build, what are some examples like for dominos,fedex)

Answer 35

* Unconditional (L.L. Bean). * Easy to understand and communicate (Bennigan’s). * Meaningful (Domino’s Pizza). * Easy to invoke (Cititravel). * Easy to collect (Manpower). ------------------- * Focuses on customers (British Airways). * Sets clear standards (FedEx). * Guarantees feedback (Manpower). * Promotes an understanding of the service delivery system (Bug Killer). * Builds customer loyalty by making expectations explicit.

Question 36

slide 18 customer satisfaction Why is value critical in customer service? What is a "moment of truth" in customer service? all customers want to be _____. What is the main reason for customer loyalty? How can a business ensure customers return? How does exceeding customer expectations impact their satisfaction? Why is providing extra value important for customer retention?

Answer 36

Value is critical Moment of truth - all customers want to be satisfied -customer loyalty is only due to the lack of better alternative -giving customer extra value will make them even more happy as it exceeds expectations and insure them returning

Question 37

slide 19 customer feedback and word of mouth the avg business only hears of _% of those who are dissatisfied. __% of customers who complain have serious problems from the 96 who don’t complain the_% complained are more likely to stay with ____ than the __% non complainers. __% of who complain would stay as customers if problem resolved 95% would stay if ___. a dissatisfied customer will __. a customer who had a problem resolved by company will ___.

Answer 37

The avg business only hears of 4% of those who are dissatisfied with their products and services. 25% have serious problems from the 96 who dont complain * The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers. * About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly. * A dissatisfied customer will tell between 10 and 20 other people about their problem. * A customer who has had a problem resolved by a company willtell about 5 people about their situation.

Question 38

slide 20 phases in service economy; how do u recover a customer ?(3) what usually happens when a service failure occurs? (3 things after), what are the 3 phases,

Answer 38

How do u recover a customer? Apologize, compensate, loyalty card service failure> provider aware of failure>fair restitution>customer retained prerecovery phase>immediate phase>followup phase ----------- prerecovery phase -service recovery expectations customer loyalty,service gyarantee,percieved quality,severity of failure immediate phase -speed of recovery,frontline discretion,empathy/apology,valueadded fix followup phase -show concern,apology,return visit coupon

Question 39

whats Case 5.4 Central Market about ? How do the environmental dimensions of the services cape explain the success of Central Market? Comment on how the services cape shapes the behaviors of both customers and employees. would central market be in A,B,C?

Answer 39

A:gelsons,whole foods,pavillon B:ralphs,vons, albrt C:northgate,superior,food 4 less How do the environmental dimensions of the services cape explain the success of Central Market? The layout causes customers to be more exposed to products they may have interest with Being able t bait impulse purchases with layout and the 5 sense helped Being unfamiliar Reminds me of costco and ikea The farmers market made it more of a maze Class answer: they have signs and smell Comment on how the services cape shapes the behaviors of both customers and employees. Creates more curiosity Seasonal displays Employees would probably be prone with being asked questions for direction Class answer: they took the risk, ikea is very determined to show their product, example of a process flow to make customer spend more time Define the concept of central market: Central market would be in A

Question 40

which interaction is the most important between the customer and employee?why does it matter in terms of business?

Answer 40

We now introduce employees, they must be happier to serve a better service, the interaction between employee and customer it will either make or break service. Employee is the representative that will keep ppl coming back

Question 41

whats does the servicescape framework look like? (5 parts)

Answer 41

1. environmental dimensions - ambiant conditions -space/function -signs symbols 2. holistic environment -perceived servicescape 3.psychological moderators -cognitive -emotional -physiological 4.internal responses -employee responses or -customer response 5.behavior -employee responses approach: affiliation, exploration, stay longer, commitment avoid:(opposites of approach) -customer response approach: attraction, stay/explore, spend money, return avoid:(opposites of each other -both response social interactions between and among customers and employees

Question 42

approaches to service recovery * Case-by-case * Systematic response * Early intervention * Substitute service

Answer 42

* Case-by-case addresses each customer’s complaint individually but could lead to perception of unfairness. * Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating. * Early intervention attempts to fix problem before the customer is affected. * Substitute service allows rival firm to provide service but could lead to loss of customer.

Question 43

chapter 5 key terms: bottleneck capacity capacity utilization cycle time direct labor utilization rush order flow time flow process layout servicecape throughput time total direct labor content

Answer 43

Bottleneck The activity in a product layout that takes the most time to perform and thus defines the maximum flow rate for the entire process. Capacity A measure of output per unit of time when fully busy. Capacity utilization A measure of how much output is actually achieved relative to the process capacity when fully busy. Cycle time The average time between completions of successive units. Direct labor utilization A measure of the percentage of time that workers are actually contributing value to the service. Flow process layout A standardized service performed in a fixed sequence of steps (e.g., cafeteria). Rush order flow time The time it takes to go through the system from beginning to end without any wait time in queue. Servicescape The physical environment of a service facility that influences the behavior and perceptions of the service for both the customers and the workers. Throughput time The time it takes to get completely through a process from time of arrival to time of exit. Total direct labor content The sum of all the operations times.

Question 44

control chart likert scale poke yoke quality function deployment service recovery SERVQUAL statistical process control unconditional service guarantee walk-through audit

Answer 44

Control chart A chart with an upper control limit and a lower control limit on which sample means are plotted periodically to show visually when a process is out of control. Likert scale A survey instrument consisting of statements that solicit opinions ranging from “strongly agree” to “strongly disagree.” Poka-yoke A “foolproof” device or checklist to assist employees in avoiding a mistake. Quality function deployment A process in which a “house of quality” is constructed to incorporate customer needs into the design of a service process. Service recovery Converting a previously dissatisfied customer into a loyal customer. SERVQUAL A customer survey instrument used to measure service quality gaps. Statistical process control The use of a control chart to monitor a process performance measure that signals when intervention is needed. Unconditional service guarantee A service warranty that provides a customer focus for the firm. Walk-through audit A process-oriented survey given to customers, employees, and managers to evaluate the perception of the customer service experience.

Question 45

what are 3 things customers can use to have a expectation of said service ?

Answer 45

word of mouth , personal needs, past experience