Chapter 5

Question 1

Which of the following is NOT a general characteristic of a service?

Answer 1

The service can be transported

Question 2

All of the following is a general characteristic of a service.

Answer 2

Production and consumption are simultaneous.
The service cannot be stored.
No resale is possible.

Question 3

A small improvement in customer loyalty can substantially improve the profitability of a service firm.

Answer 3

True

Question 4

High-contact and low-contact services can also be classified as front office and back office operations.

Answer 4

True

Question 5

Which of the following is NOT a correct statement?

Answer 5

The service delivery system should be designed primarily around the employees in the system

Question 6

All of the following is correct regarding services.

Answer 6

Low-contact services can usually be made more efficient than high-contact services.
Services are provided in a bundle of services and goods.
A service is produced and consumed simultaneously.

Question 7

It is often good to have many conditions in a service guarantee as these conditions minimize the chances of a service failure.

Answer 7

False