Chapter 4 Flashcards

1
Q

What are some of the challenges of adopting new technology?

A

The Process is the Product

Back Office vs Front Office Changes

The Nature of the Technology

E.g. bar code scanners vs. word processors

Need for Standardization

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2
Q

What are some concepts concerning self service technology?

A

Do our customers follow a predictable pattern
of adoption?

How will we measure self-service quality (e.g.,
ease of use, enjoyment, and/or control)?

What is the optimal mix of SST and personal
service?

What do we lose when we lose the human
interaction?

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3
Q

How does Disruptive Technological Change affect the service industry?

A

Existing businesses are typically aware of technology but do not implement

New businesses start at edge of market

Old businesses rarely survive

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4
Q

How do Economics of Scalability affect changes in the service industry?

A

Information vs goods content of service package

Degree of customer contact

Standardization vs customization

Shipping and handling costs

Cost of after sales service

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5
Q

Facebook offers a service how does the network effect help them?

A

Each member adds incremental value to all of the other members.

Bigger networks become more valuable, attracting more members.

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