Problem Set 7

Question 1

Discuss the ways in which services are unique in comparison with manufactured goods.
How do these differences affect the management of service quality?

Answer 1

Services tend to be intangible. They cannot be picked up and carried out or stored
in inventory. Products have definite physical attributes

On page 188, the text calls services heterogeneous. Each occurrence of a service is
to some degree unique

Customers tend to be more involved in the production of a service as opposed to a
manufactured product

The production and consumption of a service frequently occur simultaneously

Question 2

Provide an example of customer coproduction other than the example provided in the
text. What are the advantages and disadvantages of customer coproduction for service
providers?

Answer 2

Driving School/ Lessons

Question 3

Customizing a service offering at delivery as part of a service strategy to improve
productivity is an example of:

Answer 3

postponement

Question 4

[Service blueprinting:]

Answer 4

focuses on the provider’s interaction with the customer.

Question 5

Which is not an example of an organization using an internal service?

Answer 5

A hospital grants a franchise to sell snacks to hospital workers and visitors.

Question 6

In supplier alliances, relationships with suppliers are developed for all of the following
reasons except to

Answer 6

become profitable subsidiaries of parent companies

Question 7

In SERVQUAL, both customer expectations and perceptions are assessed and analyzed
for gaps. Gap analysis is important because

Answer 7

the greater the gap between expectations and perceptions, the greater the potential
for increasing customer satisfaction.

Question 8

[Which is true of high-quality service?]

Answer 8

Quality service is an indicator of quality maturity.

A deep understanding of customer needs and desires is essential to providing high-
quality service.

Service is a major differentiator that allows firms to beat competitors in the
marketplace.