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MGMT 435- Service Organization > Final Exam- Ch 5,8,11,10 > Flashcards

Final Exam- Ch 5,8,11,10 Flashcards

1
Q

Why is environmental phsycology used

A

to avoid the custome in being disoriented or frustrated upon entering an unfamiliar structure.

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2
Q

What is the concept of servicescape

A

Based on the idea that the physical environment influences the behavior and perception of the service to both customer and employee

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3
Q

what is the first behavioral need of a customer when entering a place

A

Orientation

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4
Q

what are the questions that place orientation asks

A
  • where am I

- and also function orientation such as how does this organization work and what do i do next

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5
Q

How does a customer gain control when they enter a physical settings

A

-by using spatial cues along with experience to identify where they are and where they should go

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6
Q

what happens when spatial cues and previous experience are not present

A

anxiety and a sense of helplessness alow with disorientation

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7
Q

how can disorientation in service settings be reduced

A

by having a facility design that incorporated, previous ecperience, design legibility and orientation aids

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8
Q

what is a formula facility

A

is it a facility that looks exactly the same as other facilities with the same name so customers are not confused

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9
Q

describe the service scape framework

A
  1. Environmental dimensions
  2. Holistic environment
  3. Psychological moderators
  4. Internal responces
  5. Behavior
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10
Q

what it included in the environmental dimentions

A
  1. Ambient conditions - sounds, odors
  2. Function/space- equipment, furnishing
  3. sign, artifacts- style of decor, signage
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11
Q

What it is called when you view the entire enviormental concept

A

Holistic environment

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12
Q

what is included in the psychological moderators

A
  1. cognitive- beliefs, symbolic meaning
  2. emotional- mood & attitute
  3. physiological - pain, comfort, movement
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13
Q

who are the internal responders

A
  1. Employee responces

2. Customer responces

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14
Q

what is the service scape designed to do

A

to invoke social interaction between and among customer and employees

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15
Q

what can be done to the enviromental dimensions of a servicescape

A

they can be controlled by the firm to enhance the employee and customer actions and perceptions of the service

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16
Q

describe in detail what is included in ambience

A
  • ambience affects our five sences

- it is the background of our environmetn ex. temp, lighting, music and scent

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17
Q

describe in detail spatial layout and functionality

A
  • the arrangement of furnishing and equipment and the relationship among them
  • ex. menusat mcdonalds
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18
Q

describe sign, symbols and artifacts in detail

A
  • many items in the physic env. serve as explicit or implicit signs ex. smoking and recyckke signs
  • overall quality of furnishing give an aesthetic impression for visitor
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19
Q

what does the environmental concepts create

A

it created a package that conveys an image suggesting relative quality,potential usage and targte market segment

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20
Q

what are orientation aids

A

they are signs such as you are here to help the customer know where they are

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21
Q

what are way-findings

A

techniques that people use to navigate from place to place

ex. different colors in subways
ex. a google map on a website
- audible assistance
- ex. reducing the # of keystrkes in a website

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22
Q

what does a service scape provide

A
  1. visual metaphor of a company’s offerings
  2. facilitate customer orientation
  3. encourage social interaction among customers
  4. focus of employee behavior ex. hospital doors
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23
Q

what is included in a service packaage

A

the design and layout represent the supporting facility component of the service package

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24
Q

what are some examples of how facility design impacts the implicit services?

A

-ex: privacy, security, atmosphere well being

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25
Q

what are the factors that influence the facility design? and describe each

A
  1. the nature and objective of the organization- ex. fire station -space for vehicles, personnel and equip
  2. land availability and space requirements- ex. accomodate constraints. ex only expand upward in an urban setting, ex. parking
  3. flexibility- adapt to changes, ex drive thrus, big water tanks
  4. Security - ex. granny cams, survailance cameras, neighborhood pool
  5. Aesthetic factors- ex. nordstorm and ross - affect service the employee provides
  6. community and environment- ex. will the church have enough parking or will they be parking on surrounding homes . ex jail - be safe yet treat immates fairly
    - dog boarding - noise with neighbors
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26
Q

what are the different types of manufacturing processes

A
  1. Project- one of a kind
  2. Job Shop- many specilized dept
  3. Batch- Group of customers treated at the same time
  4. Flow- fixed sequence of opp.
  5. Continuous- uninturrupted delivery
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27
Q

what is another word for flowchartin

A

swim lane flow chart

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28
Q

what is a gantt chart

A

an activity based schedule of the mortgage service process provides another visual represntation for understanding the process

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29
Q

what is cycle time

A

the average time to compete sussesive units

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30
Q

what is a bottle neck

A

an operation that limits production

-sower activity or largest CT

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31
Q

what is a capacity

A

a measure of output per unit of time when fully busy
Sytem capacity -min per hour ( 1/CT)
CT: Cycle time (Bottle neck )

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32
Q

what is capacity utilization

A

a measure of the actual unit of output compared to the process capacity when it is fully busy

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33
Q

what is throughout time

A

the time it takes to complete a process from time of arrival to the end
-it includes CP + waiting time

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34
Q

wat is a critial path

A

the ongest path from begining to end of a process flow diagram

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35
Q

what is rush order flow time

A

the time it takes to get through the system from beggining to end without any time in the que

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36
Q

what is total direct labor content

A

the sum of all operation times consumed in performing the service (aka. billabe hours)

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37
Q

what is direct abor utiization

A

a masure of the percentage of time the worker actually contintributes to the a fully busy service organization

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38
Q

how do you calculate direct labor utilization

A

Tota direct labor content/ ( process cyce time) * (# of workers)

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39
Q

some standard services that can be divided into inflexible sequence of steps or operations that all customers must experience in known as a

A

flow process

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40
Q

what is flexibility?

A

a measure of the degree to which the service can react to changing economic situations
-ex. ex. locating in a number of states to avaoid economic downturns

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41
Q

what is competitive positioning?

A

methods by which a firm can establish itsef relative to its competitors

  • ex. many locations= marquet awareness
  • buying islands
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42
Q

what is deamand management?

A

the ability control quantity, quality and timing of demand.

-ex. locating a hotel near disneyland

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43
Q

what is focus in the stralegic location considerations

A

a focus can be developed by ofering th same narrowly defined service at many locations.

ex. cookie cutter approach
- many multisite services with a formula facility
- downside: demand cannibalization- too many compnies take away sales from other of the same companies close to them.
- ex. h & r black

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44
Q

wat are some service facility location planning

A
  1. Competitice positioning
  2. demand manageent
  3. focus
  4. flexibility
45
Q

what are some strategic considerations

A
  1. competitive clustering
  2. saturation marketing
  3. marketing intermediaries
  4. sabstitute communication for travel
  5. separation of from and back office
  6. impact of the internet on service location
46
Q

what is competitive clustering

A

a reaction to observed consumer behavior when they are choosing among competitors
-ex. buying a car go to areas that has many car dealerships

47
Q

what is saturation marketing

A

grouping outlets of the same firm tightly in urban and other high traffic areas

  • downside: cannibalization of sales
    ex. attract customers with impulse buying
  • ex. ice cream vendors of same firm in every corner
  • ex. starbucks
48
Q

what are marketing intermediaries

A

link in the supply chain that links the producer or other intermediaries to the end consumer
-ex. bank of america and its visa card

49
Q

what is the substitution of communitcation for travel

A
  • it is an alternative to moving people from one place to another. Done by telecommunications
  • ex. direct payroll into account instead of having the person walk to the bank
50
Q

define the separation from front and back office

A

when the front and back office need not be co-located (aka. not need to share a facility)
-ex. macdonalds in texas have order takers working in Iowa

51
Q

what is the strategic role of the front office?

A

creating a barrier to entry

52
Q

what is the strategic goal of the back office

A

to achieve economies of ecale

53
Q

what is the impact of the internet on service location

A
  • before the place was constricted to the a certain area
  • no amazon ex. focuses of the shipping that is available
  • 24/7 access
54
Q

waht is e-distance

A

the barrier created between by interna and external navigation

  • ex- customers destination no more than two clicks
  • ex. theater with competitive custering
55
Q

what are the site considerations

A
  1. Access
  2. Visibility
  3. Traffic
  4. Parking
  5. Expansion
  6. Goverments
  7. Environment
  8. competition
  9. Labor
  10. Complementary services
56
Q

what are the two generic strategies fr demand and capacity

A

level capacity and chase demand

57
Q

wat can you use to achieve level capacity strategy

A

introduce marketing- oriented strategies such as price incentives that can smooth customer demand
-ex. utilities

58
Q

what can you do to achieve chase demand strategy

A
  • consider operations-oriented such as workships and shceduling to vary capacity to meet demands
  • ex. cal center
59
Q

what is a hybrid strategy

A

when both leveled strategy and chase stratefy as used to achieve yield management
ex. level strategy i smaintained but implement chase strategy when demand is persued

60
Q

what are the strategiesfor managing demand

A
  1. develop complementary services
  2. segment the demand
  3. develop reservation systems
  4. establish price incentives
  5. Promoting off-peak demand
  6. customer induced variability
61
Q

what goes along with managing demand

A

level capacity

62
Q

what goes along with managing capacity

A

chase demand

63
Q

what are the strategies for managin capacity

A
  1. sharing capacity
  2. cross training employees
  3. using part time employees
  4. increase customer participation
  5. scheduling work shifts
  6. creating adjustable capacity
64
Q

what are the different types of customer induced variability

A
  1. time variability - either idle service or waiting cust.
  2. capability variability- being able to do something
  3. Request variability - ex. CD in bank
  4. Effort variability- cust put back shoping cart
  5. subjective oreference vairbaility - treat special
65
Q

what are the two categories for managin customer induced variability

A
  1. accomodation

2. Reduction

66
Q

what does the accomodation strategy favor

A

favors cusotomer ecperience over opperational efficiency

67
Q

what does the reduction strategy favor

A

favor operational simplicity over service experience

68
Q

what is an advantage to a hybrid strategy when looking at the customer expericne

A

you can operate as operational simplicity without compromising service experience.
ex. aairlines offering sef kiosk or desk

69
Q

what is segmenting the market

A

grouping different customrs and try to level out the demand

  • ex. trying to schedule more appointments
  • walk ins vs reagulars
70
Q

what two groupsis demand usually grouped into?

A
  1. Random arrivals

2. planned arrivals

71
Q

What is an example of offering price incentives

A
  • charging customers different rates to encourage better use of the facility
    ex. park ranger offering differenctial pricing for the difference experience types
72
Q

describe promoting off peak demand

A
  • creative use of off- peak capacity results from seeking different sources of demand
    ex. use of a resot hotel during off-season as a retreat location for a business
    ex. ski resot duringsummer used as backpack area
73
Q

what is developing complementary services

A
  • offering a service that benefits both the company and the customer
  • ex. adding a bar and divering customr while they wait. also benefits the company
    ex. movie theater- adding video games in lobbys
    ex. heating does AC as well
74
Q

decrive the reservation system and overbooking

A
  • taking reservatin presells the potential service
75
Q

what is overbooking

A
  • accepting more reservation than they are than there are availabe seats
  • cons: the US Federal aviation administration instituted regulations requiring airlines to reimburse overbooked passangers and to find them space on the next available flight
76
Q

what is service capacity

A

-a measure of ourtput per unit of time when used at full capacity.

77
Q

what is daily workshift scheduling

A

scheduling workshiftscarefully during the day to determine staffing needed

78
Q

what are the steps in daily workshift shceduling

A
  1. Determine the forcasted demand in .5 hour intervals
  2. Convert the forecasted demand into operator requirement
  3. Schedule shifts
  4. Assign operational shifts
79
Q

what is scheduling weeks with days off constraints

A
  • ex. used for hospital and firestating that need to work 24/7
  • ex. work five days and get two consecutive days off
  • problem: determining the lowest number of workers needed
80
Q

what are some drawbacks of increasing customer participation

A

quality of labor is not under managements control

81
Q

how can you create adjustable capacity

A

a portion of the capacity can be made varibale through design
-es. slack times - supportive task during slower periods and concentra on essential task during rush periods

82
Q

how can a company share capacity

A
  • aservice delivery ofter require large invenstments in equipment in facilities so when underutilization you can find other uses for ut ,
83
Q

what is yied management

A

variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource

84
Q

what yield management characteristics are more appropriate for service firms

A
  1. Relative fixed capacity- # of seat is the same
  2. ability to segment the markets- ex. first cass, strandard, budget
  3. perishable inventory- an unsold seat may be lost forever
  4. Products sold in advanced - ex. reservations - game
  5. Fluctuating demand- allow mgr to inc utilization during periods of slow demand
  6. Low marginal sales cost and high capacity change cost - ex. high cost to add more rooms to hotel
85
Q

what is the goal of holiday inns HIRO

A

to mazimize occupancy and recenue mean renting as many room as possible for the best price the market will bear

86
Q

what are the different domestic growths and expansion strategies

A
  1. Focused Service
  2. Focused network
  3. Clustered Service
  4. Diversified Network
87
Q

Describe what a focused service is

A
  • A single service offered at a single location

- ex. limited to single site because of talented personmneex. chef

88
Q

describe what a focused network is

A
  • a multisite facilities offering a single service
  • allows management to maintain contro while ensuring consistency
  • must have a well focused service concept
  • sophisticated communication and control
  • e. operation manuals
89
Q

describe a clustered service

A
  • multiservice in a single location
  • grow by diversifying their service
  • ex. USAA ( for veterans- offers- banking, mutual funds, auto and homeowners insurance
  • these create economies of scope because the additional services require only marginal increases in variabe cost
90
Q

what is a diversified network

A
  • when a firm combines both multisite and multiservice strategies.
    ex. unite d airlines tried aquiring car-rental agencies and hotels.
91
Q

what is franchising

A

an alternative to expznding through useof internally generated profits or by seeking funds in the capital markets

92
Q

what is franchasing defined as

A

a system by which a firm grants to others the right and license to sell a product or service and possibly use the sytem developed by the firm

93
Q

what are some benefits to the franchisee

A
  1. Management training
  2. Brand Name
  3. National advertising
  4. Aquisition of proven business
  5. economies of scale
94
Q

what are some of the issues for the franchisor

A
  1. Franchisee autonomy
  2. Franchise contract
  3. Conflict resolution
95
Q

what is franchise autonomy

A

the amount of freedom that is permitted in the operation of the unit

96
Q

what is a franchise contract

A
  • its goal is to avoid future litigationsthat might prevent a cooperative relationiship from developing
97
Q

what are some of the issues where conflict resolution arrises

A
  1. how should fees be established and profits distributes
  2. when should faciities be upgraded and how are cost shades
  3. how far should the franchiser go in saturating a singe market with outlets
98
Q

what are some of the generic international strategies

A
  1. globa strategy
  2. multidomestic strategy
  3. Transnationa lstrategy
99
Q

tHE APPROPRIATENESS OF THE GENERIC INTERNATIONAL STRATEGY DEPENDS ON ?

A
  1. global integration- economies of scale

2. local responsivess- adaptto local needs or cutures

100
Q

describe global strategy

A
  • high global integration ,low local responsiveness
  • world isseen as one large market that can be approached in one way
  • ex. ikea
101
Q

describe multidomestic strategy

A
  • low global integration, high local responsiveness
  • serve the needs of local countries ex. mcgraw hill
  • staffed by ocat nationala s
102
Q

what is transnational strategy

A

high global integration, high local responsivess

  • certain corporate assets but also adapted to local responsivess
  • ex. mcdolds corporate- adapts menus to locals
103
Q

what are the five things that a borderless company must balance

A
  1. Customers- quality, price, design . known brand
  2. competition- operating with partners, copy cats?
  3. Company- the structure of the company will detr. how well they do oversees
  4. Currency- fluctuating currency , global expansion to avoid currency risk in other locations
  5. Country- downtrns in one region can be offset by another , selling in competitors markets makes them use their profits
104
Q

what does the word global localization mean

A
  • be accepted as a local company while maintaining the benefits of worldwide operations
105
Q

what are the three questions in planning transnational oprtations

A
  1. Cultural Transferability
  2. Worker Norms / labor market norms
  3. Host governement policy
106
Q

what is cultural tranferrability

A
  • balancing global standardization with local customization

- ex. banks and interest int he middle east

107
Q

what are the five differences in labor market norms/ hofstedes cultural dimensions

A
  1. power distant index - degree of equality - ex. high power vs low power
  2. individualism- degree society reinforces individualism
  3. masculinity- gender differentiation
  4. uncertainty avoidence index - level of tolerance for uncertainty
  5. long term orientation - degree society embraces or does not embrace long term to tradition or dvotion, ex. long term commitment
108
Q

what is host ogverment policy

A
  • restrict groth of service globalization, descrimination

ex. giving preferential treatment to local shipers

109
Q

what are the five basic globalization strategies

A
  1. multicountry expansion
  2. importing customers ex.disney
  3. following your customers ex. important customer
  4. service offshoring ex. call center
  5. beating the clock ex. bypass constraints og domestic time zones

MGMT 435- Service Organization (3 decks)

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