Ch 9: Service Processes

Question 1

service triangle

Answer 1

customer is center
service strategy, the systems, and employees all focus on customer

Question 2

Operationally, what distinguishes one service system from another?

Answer 2

Extent of customer contact

Question 3

the platform business does not own the

Answer 3

inventory

Question 4

In regards to the service package, the benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service.

Answer 4

Explicit services

Question 5

4 basic accommodation strategies

Answer 5

classic accommodation
low cost accommodation
classic reduction
un-compromised reduction

Question 6

classic accommodation

Answer 6

using extra resources/skills to compensate for variations among customers

Question 7

low cost accommodation

Answer 7

low-cost labor/outsourcing/self-service to cut cost of accommodation

Question 8

classic reduction

Answer 8

requiring customers to engage in self-service, use reservation systems, or adjust their expectations

Question 9

uncompromised reduction

Answer 9

uses knowledge of customer to develop procedures enabling good service, minimizing impact on service delivering system

Question 10

web platform business

Answer 10

creates value by enabling exchange of info + processing transactions for services/products

Question 11

poka-yokes

Answer 11

procedures blocking mistakes from becoming service defects

Question 12

5 basic types of customer variability

Answer 12

arrival variability
request
capability
effort
subjective preference

Question 13

arrival variability

Answer 13

arrival time of customers at a business may be inconsistent w/ demand, leading to servicers being overloaded or underutilized

Question 14

request variability

Answer 14

ex. travelers requesting a room w/ a view in a crowded hotel

Question 15

capability variability

Answer 15

ex. a patient being unable to explain symptoms to a doctor

Question 16

effort variability

Answer 16

ex. shoppers not putting away their carts

Question 17

subject preference variability

Answer 17

ex. bank customers liking vs. not liking being called by their first name

Question 18

What skills does a worker require when the degree of customer contact is high?

Answer 18

Diagnostic

Question 19

What companies is/are best known for the personal attention approach?

Answer 19

Nordstrom
Ritz-Carlton

Question 20

three T’s

Answer 20

Task (was the car fixed right?)
Treatment (was service good?)
Tangible (was environment clean/comfortable?)

Question 21

2 ways to convince customers that the self-service approach to service design is good for all?

Answer 21

promoting benefits of cost + convenience
promoting incentives e.g. quicker speed

Question 22

Which approach to service design empowers employees to be decision makers with regards to pleasing the customer?

Answer 22

personal-attention

Question 23

7 characteristics of a well-designed service system

Answer 23

1. each element of service is consistent w/ operating focus of firm
2. user-friendly
3. robust
4. structured so it is consistent w/ performance by its people
5. provides effective links b/w front and back offices
6. manages evidence of service quality so customer see value of the service provided
7. cost-effective

Question 24

________ is focal point of all decisions and actions (from a service perspective)

Answer 24

customer

Question 25

_________ is responsible for service systems and responsible for managing service force

Answer 25

operations

Question 26

services are __________, meaning ______________….

Answer 26

idosyncratic
every service exp is individual to the person experiencing it; diff expectations of individuals make it difficult to render services

Question 27

quality of _____ =/= quality of _______

Answer 27

work
service

Question 28

focus and advantage performance priorities (6)

Answer 28

1. treatment of customer
2. speed/convenience of delivery
3. price
4. variety
5. quality of tangible goods
6. unique skills apart of the offering

Question 29

designing service orgs challenges: cannot inventory services

Answer 29

must meet demand as it arises

Question 30

designing service orgs challenges: service capacity is a dominant issue

Answer 30

what capacity should I aim for?

Question 31

designing service orgs challenges: marketing can ……

Answer 31

adjust demand

Question 32

designing service orgs challenges: cannot separation op mg function from marketing

Answer 32

operations don’t have ability to tell marketing we do not have capacity to serve X customers if there were to be an influx

Question 33

service guarantees as design drivers (5)

Answer 33

1. any guarantee is better than none
2. involve customer and employees in design
3. avoid complexity or legal lang.
4. do not quibble or wriggle when customer invokes a guarantee
5. make it clear that you are happy to invoke guarantee

Question 34

service guarantees work because…

Answer 34

it is a promise to the customer that they will get their money back, some or all