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MGMT 435- Service Organization > Exam 1 - Chapter 1, 2, &3 > Flashcards

Exam 1 - Chapter 1, 2, &3 Flashcards

1
Q

What is a service

A
  • a deed, process, or performance

- a time persihable, intangible experience performed for a customer acting in the role of a co producer

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2
Q

What are service firms

A

-organizations that facilitate the production and distribution of goods, support other firms in meeting their goals and add value to our personal lives

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3
Q

what can services be defined as

A

services can be defined as an economic ectivity that produces:

  • time
  • form
  • place
  • psychological utilities
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4
Q

What drives the labor force migration we have seen

A 
driven by:
 global communitations
-urbanitation 
-low labor cost 
-business and technology growth
-reginal variations in labor and infrastructure cost
-capabilities
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5
Q

describe the facilitationg role of services in an economy

A
  • ex. infrastructure, provide expamples
  • distribution services
  • personal services
  • government services
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6
Q

what are services to the society

A

services are not a peripheral part of a society but rather intergal part of the society

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7
Q

economic growth causes what in employment

A

as a nation becomes more industrialized, there is a shift in employment from one sector of the economy to another

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8
Q

what is the clark fisher hypothesis

A

as productivity increases in one sector, the labor force moves into another

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9
Q

what does the clark fisher hypothesis do

A

leads to a classification of economies by noting the activities of the majority of the wroksforce

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10
Q

what are the different stages of the economic activity?/ hierarchy of economic activity

A

primary- extraxting

  • secondary- good production
  • tertiaty- domestic services
  • quatrary- trade and commerce
  • quintary- extending human potential
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11
Q

what are the stages of economic development

A
  • preindustrial
  • industrial
  • post industrial
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12
Q

describe the preindustrial society

A
  • game against nature
  • life is conditioned by the elementas- raw man power
  • productivity is low
  • social life revolves around the extended household
  • high rates of underemployment
  • tradition routine and authority
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13
Q

describe the indutrial society

A
  • production of goods
  • making more with less
  • a game that is played against a fabricated nature
  • rythim of life is machined paced and dominated by rigid working hours
  • people treated and things
  • the individual is the unit of social life in a sociaty that is considered to be the sum of all the individual decisions being made
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14
Q

describe the post industrial society

A
  • it is conserned with the quality of life as measured by services such an education, healthcare .
  • the professional person is the central figure and information is the key resource
  • life is a game played against people
  • the community rather than the individual becomes the social unit
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15
Q

how is a society transformed from an industrial society to post-industrial society

A
  1. natural development of dervices to support industrial development ( more people engage in non manufaturing activities)
  2. growth of population and mass consumption increases along with realstate banking and insurance.
  3. as income increases the portion spent on necessities and food decreases and creates a demand for durables and then for services
    * education / care about the environment
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16
Q

what happens and income increases

A
  • percentage spent on food and durables decrease meanwhile the expenditure on services increases for an enriched life
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17
Q

explain the nature of the service sector

A
  • -service indirustires are a source of economic leadership
  • in times where there are recessions, service employment has increased while jobs in mfg. have been lost.
  • customers not willing to sacrifice services ex. firefiighters, education
  • demand is more stable because unlike goods, they cant be inventoried
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18
Q

what are two of the most prominent careers int he 21st century?

A
  • professional and business services

- healthcare and social services

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19
Q

what is compared in the consumer service experience?

A
  • the level of environmental interation (absportion, immersion)
  • the customer participation (passive and active)
  • conencting with customer in a personal and memorable way
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20
Q

describe the four realms of an experience/ what quadrant they fall in

A
  1. entertainment( watching a movie)
  2. education (learnign a new language )
  3. esthetic ( tourist)
  4. escapist (scuba diving)
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21
Q

what are the principles of an experience

A
  1. theme the experience
  2. harmonize impressions with positive cues
  3. eliminate negative cues
  4. mix in memorabilia
  5. engage all five senses
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22
Q

describe the business service experience

A

value is derived by colaborative nature of relationships

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23
Q

what is the service dominant logic

A

-servcie is the fundamental basis of velu creation.

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24
Q

what are the disntictinve characteristics of services

A
  1. customer participation
  2. simultaneity
  3. perishability
  4. intangibility
  5. heterogeneity
  6. nontransferrable ownership
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25
Q

-describe customer participation and how it has implications for mngrs.

A
  • attention to facility design
  • opportunity for co production ( customer taking own trash)
  • concern for employee and customer behavior
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26
Q

-describe simultanetiy and how it has implications for managers ?

A
  • you can decouple the stages by queing
  • eliminated the oporunity for quality control
  • inseprable between servce delivery process and customer
  • cannot keep it in inventory to absorb fluctialtions in demand
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27
Q

describe the difference between a closed system and open system

A
  • mfg. ,has a closed system where inventory prevents it from the demand of customer to interupt it.
  • open system- full impact of demand variations are transmitted into te system
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28
Q

-describe perishability and how it has implications for managers?

A
  • cannot inventory it
  • opporunity loss of idle capacity
  • need to match supply and demand
  • surge demand during seasonal variation
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29
Q

what can a manager do when faced with time parishable capacity and vairable demand ?

A
  1. It can smooth demand byt using reservations, price incentives and demarketing at peak times
  2. adjust service capacity: part time help during peak hours, shcedule workshifts, increase customer self- service
  3. allow customer to wait
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30
Q

-describe intangibility and implications for a manager ?

A
  • no patenet protection available
  • importance of reputation as service is intangible because customer cannot touch it ( result of goverment to interfear to make sure services meet a acceptable service performances)
  • purchasing service doesnot result in owner ship
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31
Q

-describe heterogeneity and its implications for managers?

A

-customer involvement in the delivery process results in variability
-ex. employees holding a grudge
-

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32
Q

-describe non transferrable ownership and its implicationfor managers ?

A

five classes of non- ownership classification

  1. goods rental ( pick up and drop off essential, mant. )
  2. place and space rental ( housekeep, economies of sc)
  3. labor and expertice ( exp renewable source but time is not )
  4. physical facility usage (queing and crowd control)
  5. network usage ( availability and pricing decisions )
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33
Q

what are the components os a service package

A
  1. supporting facility
  2. facilitating goods
  3. information
  4. explicit services
  5. implicit services
    * service experience
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34
Q

what is a service package ?

A

a bundle of goods and services with infomration provided in some environment

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35
Q

describe a supporting facility

A
  • physical resources that ust be in place before a service can be offered. ex. golf course
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36
Q

describe facilitating goods?

A

the materials purchased or consumes by the buyer or the items provided by the customer ex. legal documents, food items

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37
Q

describe informationin the servcie package

A
  • data that is abaiable from the customer to enable efficient and customizedservice -ex. electronic medical records. google map link on hotel website
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38
Q

Describe explicit service in a service package?

A
  • nebefits that are redily observable the the sences

ex. smooth running automobile, responce time of fire department

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39
Q

describe the implicit services of a service package?

A

physcological benefits that the customer may sence only vaguely or extrinsic features of the servcie.
ex. status of IV league school, privacy of a loan office

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40
Q

what are the two dimesions used for the service prosess matrix?

A

degree oflabor intensity and degree of interaction and customization

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41
Q

what is the degree of labor intensity?

A

the ratio of labor cost to capitol cost . ex. hotels have a low labor intensity because they investment in the hotel isconsiderable onpared to labor cost.

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42
Q

what are hte names of the four quadrants in the service process matrix

A
  1. job shop ( high customization, low labor intesnity )
  2. service factory (low customization, low labor intensity)
  3. mass service ( low cusomization, high labor intensity)
  4. professional service (high customization, high intesity)
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43
Q

What are the different categories presented in a strategic service vision

A
  1. Target market segment
  2. Servie concept
  3. Operating strategy
  4. Service delivery system
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44
Q

what are some questions that should be asked in the target market segment of the strategic service vision

A
  • what dimensions can be used to segment the market, demographic, psychographic and geographic
  • what are common characteristics of important market segments
  • how important are various segments
  • what needs does each have
  • how well are these needs being services
45
Q

what are some questions that should be asked in the service concept of the strategic service vision

A

-what are important elements of the service to be provided, stated in terms of results produced for customers
-how will these elements be perceived by the market
-

46
Q

what are some questions that sould be asked in the operating strategy of a strategic service vision

A
  • what are importnatn elements of the strategy: marketing, financi, operations,
  • on which will the msot effort be concentrated
47
Q

what are some questions that should be asked in the service delivery system of the stategic service vision ?

A

what are the role of people, equipment, layout

-what capacity does it provide at normal times and at peaks times

48
Q

what are some categories that show why the service sector is competitive

A
  • low entry barriers (cant patent it , location can become a barrie
  • minimal opportunities for economies of scale( pplgo to nearby places)
  • high transportation cost
  • eratic sales fluctuations
  • no advanatages of size in dealing with buyer or suplier
  • product substitution for services ( ex. taxes done by turbo tax)
  • customer loyalty
  • exit barriers ( companies fo it for hobby)
49
Q

what are some competitive service strategies

A
  • over all cost leadership
  • differentiation
  • Focus
50
Q

how is overall cost leadship achieved

A
  • seek out low cost customers
  • standardize customer service (routine)
  • reduce the personal element in the service delivery (Atm)
  • reduce network cost (hub and spoke network)
  • take service operations offline
51
Q

how is differentiation achieved ( creating a service that isperceived as unique) . primaty goal is in creating customer loyalty

A
  • making the intangible intangible (ex. hotels and toiletries with name
  • customize the standars product (ex. address by name, offer drinks at barbershops)
  • reduce perceived risk: take extra time to explain process , clean facility
  • giving attention to personnel training: collegle like training cent
  • controlling quality: (in n out)
52
Q

how is focus achieved as a competitive strategy ?

A
  • built around the idea of servicing a target market very well by addressing customers specific needs.
    ex. hernia
    1. buyer group
    2. service offered
    3. geographic region
53
Q

What is a strategic analysis

A

-should you enter the industry with a new service offering
2 popular planning tools
1. Porters 5 forces analysis (target industry structure)
2. SWOT Analysis ( analyze strenght, weeknesses, opportunities and threats)

54
Q

what are porters five forces analysis

A

-used at an industry level to determine the competitive intensity and attractiveness of the market

55
Q

what are the five forces of porters five forces analysis

A
  1. competitive rivalry within industry
  2. potential new entrants
  3. threat of substitutes
  4. barganing power of suppliers
  5. bargain power of consumer
56
Q

what follows after porters five forces model

A

SWOT Analysis which is conducted in the individual firm level

57
Q

what is a SWOT analysis

A

-conducted at the individual firm level
identifies an organizations internal strenghts, weeknesses, opportunities and stenghts.
-the aim is to reveal competitive advantages, analyze prospects, prepare for problems

58
Q

how do you win customers in the marketplace

A
  1. availability
  2. convenience (gas stations)
  3. dependability
  4. personalization
  5. price
  6. quality
  7. reputation
  8. safety
  9. speed
59
Q

what is the process of the service purchase decision

A
  1. Qualifiers
  2. service winners
  3. service loosers
60
Q

what are qualifiers

A
  • before a service firm can be taker seriously as a competitors, it must attain a certain level of service- competitive dimension as defined by other market palyers
  • ex. safety, quality of food
61
Q

what are service winners

A

are dimensions such as convenience, price and reputation used by a customer to make a choice among competitors.
-a service winnder can become a service qualifies ( ex. drive thrus)

62
Q

what are service loosers

A

-failure to deliver at or above the expected level for competitive dimensions and the customer is lost forever

63
Q

why should there be sustainability in services

A
  1. regulations and legislation
  2. perception/ image building
  3. economic - it can actually lower cost
64
Q

what is the triple bottom line

A

used to evaluate a firm on social, economic and environmental criteria in relation to sustainability

65
Q

what are social issues

A

labor practices, workforce diversity, human rights, community outreach

66
Q

what are economic issues

A

growth enhancement, cost reduction, risk managent

67
Q

what are environmental issues

A

clean water, air, emission control, wate management

68
Q

what are the competitive roles of information in services

A
  1. creation of barrier to entry
  2. revenue generation
  3. database assets
  4. productivity enhansement
69
Q

how does information create barriers to entry

A
  1. reservation systems ex. hotels
  2. frequent user club ex. airlines and miles
  3. switching cost . ex. mckesson
70
Q

information tech and revenue generation

A
  1. yield management ( revenu e maximizing to use full capacity/)
  2. point of sale ( do everything fron an ipad )
  3. expert system ( elevators )
71
Q

information tech and database assets

A
  1. selling information ( purchasing habits )
  2. developing services ( ex. from singles resort to family resort )
  3. micromarketing ( ex. knowing whenyou get married (
72
Q

Information tech and productivity enhansement

A
  1. inventory status ( ex. stle chips at lay and how much needed inv)
  2. data envelopment analysis: comparing efficiency among areas
73
Q

what are the stages of the virtual value chain

A
  1. new processes- going paperless
  2. new knowledge- virtual alter. substitute for physical activities
  3. new products - for evoving needs as they got older
  4. new relationships- seminars
74
Q

what is scalability

A

the ability of a firm to improve its contribution margins ( revenue- variable coast) as sales volume increase

75
Q

what are the three sources of scalability

A
  1. conduct only information or data transfer services
  2. allow the customer to serve themselves
  3. et customers serve other customers
76
Q

what are the limits in the use of information tech ?

A
  1. anticompetitive
  2. fairness
  3. invasion of privacy
    4data security
    5.reliability
77
Q

what are the stages in service firms competitiveness

A
  1. available for service
  2. journeyman
  3. distinctive competene achieves
  4. world class delivery service
78
Q

descrbe available for service category

A

view operations as a necessary evil to be performed at a minimum cost

  • little motivation to seek improvements in quality
  • limited training
  • new technology avoided until absolutey necessary
79
Q

describe the journeyman category

A

the firms are indiferenct if they are the same as everyone else
-care about cost savings but not to go beyond the day to day activities

80
Q

describe distinctivenss competence achieved

A

continuous improvement .

ex. six sigma
- workers are crossed trained and are encouraged to take initiative

81
Q

describe the word class deivery servuces

A
  • expand on expectations that competitors find difficult to met.
  • ex. disneyand, marriot,
  • encourgaed to stimulate ideas and opportunities
82
Q

what are some of the sources of service sector growht

A
  1. information technology
  2. the internet as an enabler
  3. changing demographics
  4. innovation
83
Q

what is service innovation

A

an output of applied research and development

84
Q

what are the three categories of research and expain

A
  1. basic research (increasing knowledge)
  2. applied research ( gaining knowledge to meet specific need)
  3. development ( knowledge directed towards production of product or service)
85
Q

what are some of the challenges for service innovation

A
  • ability to protect intellectual property
  • incremental nature of innovation (not radical )
  • degree of integration required ( requires system integ)
  • ability to buid prototypes or conduct test in controlled environment
86
Q

what are radical innovations

A

offering not offered to custoer previously or new delivery systems for existing services

87
Q

what are incremental innovations

A

changes to existing servicesthat as valued as improvements

88
Q

what are the different service categories in radical innovations

A
  • major innnovation ( new services that customer did not know they needed )
  • startup business ( new service for undeserved market)
  • new service for markets presently served ( ex. wells fargo kiosk in starbucks)
89
Q

what are the different service categories in incremental innovations

A
  • service line extensions ( new menu items, chek in specias)
  • service improvements ( changes in service delivery process ex. self- serving kiosk)
  • style changes- ex. changes in apperance.
90
Q

what are the diffrent stages in the new service development?

A
  • development ( new ideas screened, and winning concept tested for feasibility )
  • analysis ( potential as a profitable business venture )
  • design ( field tested )
  • full launch ( available nationwide)
91
Q

what are the enables in the new service development

A
  • teams ( cross functional teams )
  • tools ( spreadsheets)
  • organization contex ( culture of accepting innovation )
92
Q

what are the service products in the new service development

A
  • people ( both employees and customers)
  • technoogy
  • systems ( what system will be neede / front or back office )
93
Q

technology in service innovation

A
  • there are some challenges such as: education your customer and employees on the new technoogy
  • readiness to embrase new technology: first asses customers readiness and then implement appropriate tech.
94
Q

what is servide design elements broken into ?

A
  1. structural ( delivery system, facility design, capacity and demand management
  2. managerial ( information, quality, service encounter , capacity and demand management )
95
Q

what does the service design do

A

communicates to employees and customers what services they should expect to give and receive

96
Q

what is the customer vaue equation

A

resuts produced for cus + process quality
divided by
price to cus. + cost of acquiring the service

97
Q

what is degree of compexity

A

the number of steps

98
Q

what is the degree of divergence

A

the amount of discretion or freedom that the server has to customize the experience

99
Q

how is the positioning through process structure achieved

A

by the degree of complexity and divergence

100
Q

what is a service bueprint

A

a vidual representation of a service delivery system

101
Q

what does a service blueprint do

A
  • facilitates problem solving
  • creative thinking
  • identify potential point of fail lure(poka-yoke)
  • highlight opporunities
  • build quality into design
  • perform value analysis
102
Q

what is taxonomy brekn into

A

.1 degree of divergece ( high and low )

  1. ocject of the service process ( goods, information, ppl)
  2. type of customer ontact ( direct, indirect, no contact)
103
Q

what are some generic approaches to service system design

A
  1. production line approach
  2. customer as a co producer
  3. customer contact approach
  4. information empowerment
104
Q

what are some of the features of the production line approach

A
  1. limited discretionary action of personnel
  2. divdion of labor
  3. substitution of technology for poepl
  4. service standardization
105
Q

what are some features of the customer as co producer

A
  1. self service
  2. smoothing service demand
  3. customer generated content
106
Q

whatare some features of customer contact approach

A
  • degree oc customer contact
  • separation of high and ow contact operations
  • sales opportunity and service delivery options
107
Q

wht are som features of information empowerment

A
  • employee e,powerment

- customer empowerment

108
Q

what categories is intelectual property divided into

A
  1. industrial properties ( inventions protected by patens )
  2. trademark ( distinctive sign )
  3. industrial design rights ( pretect apperance from infrigement )
  4. trade secret

MGMT 435- Service Organization (3 decks)

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