Test Bank For Service Management Operations Strategy Information Technology 8th Edition By James A. Fitzsimmons, Mona J. Fitzsimmons, Sanjeev K. Bordoloi

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CHAPTER 1

THE SERVICE ECONOMY

True/False

1. Services are deeds, processes, and performances. (T)
2. The Clark-Fisher hypothesis notes the shift of employment from one sector of the economy to another. (T)
3. The fall in employment in the agricultural sector is the primary reason for the increase in service sector employment. (F)
4. The consumer participates in the service process, which is not the case in manufacturing. (T)
5. The classification of service systems using the “service process matrix” is based on two considerations: degree of labor intensity, and the degree of service customization. (T)
6. From an open-systems view, the output of a service system consists of satisfied customers. (T)
7. The service experience defined as escapism requires the most commitment from the customer. (T)
8. A study of service systems must begin with the fundamental idea that the basic inputs are supporting facility, facilitating goods, labor, and capital. The output is the service offered. (F)
9. In contrast to manufacturing, the aesthetics of the environment play a major role in the customer’s perception of the service. (T)
10. The fact that services can be inventoried is an important characteristic, which distinguishes them from manufacturing. (F)
11. Reduction of the role played by the consumer is an effective way of improving productivity and decreasing the cost of the service. (F)
12. Services are time-perishable. An opportunity to provide a service, if forgone, is lost forever. (T)
13. Both manufacturing and services can suffer from technological obsolescence. (T)
14. Health care services are projected to have the greatest percent change in S. employment in the period 2008-2018. (F)
15. From a marketing perspective, services, unlike goods, involve transfer of ownership. (F)
16. It is convenient and often necessary to combine the operations and marketing functions for service organizations. (T)
17. Sharing service resources among customers presents a challenge for mangers. (T)
18. Little or no interaction between customer and service provider is required when the service is customized (F)
19. Personnel training is a criterion for evaluating the explicit services feature of the service package. (T)
20. The decrease in the proportion of income spent on the basic necessities of life has encouraged the demand for more services and accelerated the transition to post-industrial society. (T)
21. Marketing helps smooth demand to match capacity in service operations. (T)
22. Service-dominant logic is the foundation of “service science.” (T)
23. Value for the “business service experience” is derived from co-creation. (T)

24. A standardized experience is a feature of the new experience economy. (F)
25. A business service experience (B2B) has three dimensions: co-creation of value, relationships, and sustainability. (F)

Multiple Choice

1. The service package consists of five features. Which one of the features listed below is not included in the package?
2. Explicit services
3. Supporting facility
4. Information
5. Cost of service*
6. The major input into a large public hospital from a service point of view would be:
7. physicians’ services.
8. *
9. nursing services.
10. federal reimbursement (Medicare/Medicaid).
11. Which of the following is not true of services?
12. The customer is the input.
13. The customer takes an active part in the service.
14. A service can be inventoried.*
15. Production and consumption occur simultaneously.
16. Which of the following is not a type of service in the non-ownership classification?
17. Goods rental
18. Information*
19. Labor and expertise
20. Network usage
21. The service process matrix classification consists of four categories of services. Which one of the four features listed below is not included in this classification?
22. Service factory
23. Service shop
24. Public service*
25. Professional service

6. Which service offering is best described by the following service mix: a high degree of customer interaction and a high degree of labor intensity?
7. Public university
8. Cruise ship
9. Plumbing repair
10. Chiropractor*
11. Division of labor is the central concept of:
12. Industrial societies*
13. Preindustrial societies
14. Agrarian societies
15. Postindustrial societies
16. An empty airline seat or hotel room not occupied best illustrates the characteristic of a service’s
17. time perishability.*
18. labor intensity.
20. simultaneous production and consumption.
21. Which type of service falls under the category of “high labor/low customization?”
22. Service factory
23. Service shop
24. Mass service*
25. Professional service
26. Which one of the following is not a value-added service provided by a manufacture to increase profits?
27. Financing or leasing
28. Customer-support call center*
29. After-sales maintenance
30. Network and communication services
31. Which of the following is not a feature of the new experience economy?
32. The experience is memorable.
33. The experience is customized.*
34. The customer is treated as a guest.

1. The experience is staged.
2. The key technology of a postindustrial society is ________.
3. machines
4. energy
5. information*
6. intellectual capital of the workers
7. Capital decisions, technological advances, and managing demand are some managerial challenges for a
8. service factory. *
9. service shop.
10. mass service.
11. professional service.
12. Which among the following strategies is used by fast-food restaurants to reduce costs?
13. Increase advertising via the Internet.
14. Allowing the customer to play an active part in the service process. *
15. Increase prices.
16. Increasing menu items to cater to varying tastes.
17. Which one of the following reasons best explains the recession-resistant nature of services?
18. Services cannot be inventoried.*
19. Many services, such as healthcare, are essential.
20. Many service employees, such as those who work on commission, do not need to be laid off during recessions.
21. The number of jobs in maintenance and repair services increases during recessions.
22. The concept of economies of scale is best described as
23. the replacement of fixed costs with variable costs.
24. selling a wider range of products.
25. a synonym for economies of scope.
26. the replacement of variable costs with fixed costs.*

17. The presence of a friendly desk clerk in a budget hotel is an example of which of the four features of a service package?
18. supporting facility
19. facilitating goods
20. explicit services
21. implicit services *
22. The concept of economies of scope is best described as
23. a synonym for economics of scale.
24. the use of brand extensions.
25. using existing channels of distribution to introduce a new product.*
26. extending existing distribution channels to reach new customers.
27. Which of the following is not a principle on which service experience design is based?
28. Theme the experience.
29. Eliminate negative cues.
30. Mix in memorabilia.
31. Encourage customer feedback.*
32. _____________ is a foundation premise of Service-Dominant Logic
33. The customer is always right
34. Only post-industrial economies are service economies
35. Goods are distribution mechanisms for service provision*
36. Money is the fundamental basis of exchange
37. Which of the following does not describe a business service experience?
38. stage*
39. co-create
40. collaborator
41. sustained over time
42. The realms of an experience include all but one of the following:
43. Entertainment
44. Education
45. Estheticism
46. Elation*

23. Which one of the following is not a dimension of a business service experience?
24. Co-creation of value
25. Problem solving*
26. Relationships
27. Service capability

24  Which of the following is an example of a business service (B2B)?

1. Communications
2. Auditing*
3. Retailing
4. Leasing

25  Service innovation is driven by which factor listed below?

1. New product technology
2. Customer needs
3. Observant contact employee
4. All of the above*

26  In an experience economy the method of supply is

1. revealed over time.*
2. stored in bulk.
3. delivered on demand.

CHAPTER 5

SUPPORTING FACILITY AND PROCESS FLOWS

True/False

1. The servicescape can influence perceived quality. (T)
2. The design of facilities is dependent entirely on the construction and operating costs of the facilities. (F)
3. A well-conceived servicescape can communicate desired customer behavior. (T)
4. Heuristic algorithms not only are appealing intuitively, but they also guarantee optimal solutions. (F)
5. Servicescapes are most important in their affect on customers. (F)
6. In a product layout, the bottleneck operation defines the capacity of the service. (T)
7. The product layout often requires special equipment and special skills to deal with high volume of demand for service that is anticipated. These factors create a very inflexible layout. (T)
8. The line-balancing problem attempts to resolve the inconsistencies in the capacities at various stages in a product layout. (T)
9. A process layout, done correctly, promotes standardized service. (F)
10. The relative location problem deals with the problem of allocating n departments to n Complete enumeration is time consuming because there are a total of n! possible arrangements. (T)
11. A well-balanced line would have all jobs of nearly equal duration to avoid unnecessary idleness in work assignments. (T)
12. The physical complexity of the servicescape for L.L. Bean is categorized as lean. (F)
13. A fixed sequence of steps that all customers must experience is characteristic of process layouts. (F)
14. The procedure to improve flow distance in a process layout by arranging the relative location of departments is known as operations sequence analysis. (T)
15. A product layout affords some degree of customization. (F)
16. Mid-Columbia Medical Center has a special employee-only entrance to enhance security. (F)
17. The automobile driver’s license office is an example of a product layout. (T)
18. At a roadside snake farm, both customer and employee perform within the servicescape. (T)
19. Signage is not an environmental dimension of the servicescape. (F)

20. Bottlenecks usually are associated with process layouts. (F)
21. Rush order flow time and throughput time are identical when the system is empty. (T)
22. Capacity utilization of individual operations is a dangerous performance metric. (T)
23. The entire system capacity is measured by the inverse of the bottleneck CT. (T)
24. Cycle time is the average time to complete a service operation. (F)
25. The swim lane flowchart highlights the handoffs between functional activities. (T)
26. The bottleneck activity of a process is shown as an unbroken bar in a Gantt chart. (T)

Multiple Choice

1. Which one of the following is not a major factor that could influence facility design?
2. Objectives and nature of the service
3. Flexibility in operations
4. Availability of land
5. Site location*
6. A product layout would facilitate the concept of:
7. service in series.*
8. service in parallel.
9. a first come, first served policy.
10. balanced flow.
11. Which of the following is not a method service facilities use to provide orientation for customers?
12. Signs and color codes to indicate direction
13. Use of walled cubicles to ensure privacy*
14. Use of artifacts
15. Franchised services that use formula facilities

4. The line balancing problem arises because of:
5. mismatched capacities of the various operations.*
6. mismatched labor inputs required at various operations.
7. large waiting lines.
8. inflexibility of the line.
9. The CRAFT program for facility layout uses an initial solution to:
10. be tested for improvement.*
11. arrive at a feasible solution.
12. provide an analytical solution.
13. define the layout problem.
14. One of the advantages of a product layout approach to service design is:
15. the elimination of bottlenecks.
16. achieving equal division of labor.*
17. the ease of customization.
18. increased flexibility.
19. Identify the bottleneck operation in the following exclusive hairdressing salon.

Activity                            Average time, min.

1. Pre-counseling 15
2. Shampoo 10
3. Haircut* 30
4. Manicure 20
5. The inability of a jewelry store to expand its current operations to include, for example, an in-store repair and manufacturing facility in response to customer demands, is neglecting which factor of service facility design?
6. Land availability and space requirements*
7. Flexibility
8. The nature and objectives of the service organization
9. Community and environment

9. A batch type of service process has the characteristic of
10. many specialized departments.
11. a group of customers treated simultaneously.*
12. uninterrupted delivery.
13. a one-of-a-kind engagement.
14. The customer is a(n) ________ in the service process and his/her impression of the service quality is influenced by many __________.
15. observer/perceptions
16. observer/observations
17. participant/perceptions*
18. participant/observations
19. What defines the capacity of a service product layout?
20. The activity requiring the most time per customer.*
21. The size of the queue.
22. How tasks are allocated among servers.
23. Ability of workers to change the process speed.
24. In the design of a fitness center, where would be the most advantageous location of a juice bar? Consider such factors as traffic flow, impulse buying, and orientation/visibility.
25. At the back of the gym near the aerobic equipment.
26. Near the entrance/exit of the gym.*
27. In a small alcove set to one side of the gym.
28. Upstairs in a separate enclosed room marked by a sign.
29. Which of the following retail servicescapes would support an upscale store image best?
30. stark tile floors.
31. exposed, bright lighting.
32. store personnel waiting at cash registers.
33. well-spaced, lightly stocked shelving.*

14. In order to reduce disorientation, Richard Wener argues that the following features should be incorporated into a facility design: previous experience, design legibility, and one of the following:
15. a formula design.
16. orientation aids.*
17. adequate lighting.
18. an entry atrium.
19. Facility layout is discussed with attention to traffic flow, space planning, and one of the following:
20. need to avoid unnecessary travel*
21. eliminating bottlenecks
22. aesthetic factors
23. cost of providing service
24. Which one of the following is an example of a process layout?
25. fast-food restaurant
26. cafeteria
27. hospital*
28. none of the above
29. The advent of the “hub and spoke” airline network following deregulation is an example of:
30. nature and objectives of service organizations.
31. *
32. aesthetic factors.
33. land availability and space requirements.
34. All but one of the following impacts the user friendliness of the facility and the ability to serve customers effectively:
35. floorplan
36. layout of equipment
37. equipment design
38. time of day *

19. Which among the following choices might not be representative of security measures taken by retail stores?
20. reducing the number of extremely valuable items sold *
21. a row of bollards outside the entrance
22. doing away with big windows
23. none of the above
24. ___________ is the time it takes to complete a process from time of arrival to time of departure.
25. Rush order flow time
26. Cycle time
27. Throughput time*
28. Direct labor time