Information Systems for Service Organizations
Textbook Exam Questions
Course Introduction
This course explores the strategic role and application of information systems within service organizations, such as healthcare, government, hospitality, retail, and financial services. Students will examine how information systems support service delivery, enhance customer experiences, streamline operations, and facilitate decision-making. Key topics include service process design, customer relationship management (CRM) systems, enterprise resource planning (ERP), data security and privacy, emerging technologies, and IT-driven innovation in the service sector. Practical case studies and real-world examples will illustrate how information systems can enable service organizations to achieve competitive advantage and operational excellence.
Recommended Textbook
Service Management Operations Strategy Information Technology 9th Edition by Sanjeev Bordoloi
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16 Chapters
711 Verified Questions
711 Flashcards
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2
Chapter 1: The Service Economy
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Sample Questions
Q1) Which one of the following is not a dimension of a business service experience?
A) Co-creation of value.
B) Problem solving.
C) Relationships.
D) Service capability.
Answer: B
Q2) Which one of the following reasons best explains the recession-resistant nature of services?
A) Services cannot be inventoried.
B) Many services, such as healthcare, are essential.
C) Many service employees, such as those who work on commission, do not need to be laid off during recessions.
D) The number of jobs in maintenance and repair services increases during recessions. Answer: A
Q3) Marketing helps smooth demand to match capacity in service operations.
A)True
B)False
Answer: True
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Chapter 2: Service Strategy
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Sample Questions
Q1) Recycling paper and reducing energy usage often is the first step towards sustainability.
A)True
B)False
Answer: True
Q2) The idea of IoT is to create "swarm intelligence".
A)True
B)False
Answer: True
Q3) The Internet of Things (IoT) trajectory begins with ________.
A) surveillance
B) RFID tags
C) monitoring
D) location
Answer: B
Q4) Service encounter, quality, information, and capacity planning are all managerial elements of a strategic service concept.
A)True
B)False
Answer: False
Page 4
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Chapter 3: New Service Development
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Sample Questions
Q1) In service design, to promote sales opportunity, ________ is preferred to
A) phone contact; face-to-face customized
B) onsite technology; website
C) website; onsite technology
D) None of the above.
Answer: B
Q2) The service encounter is a structural service design element.
A)True
B)False
Answer: False
Q3) A service with a low degree of divergence allows a manager to consider all but one of the following options.
A) Hire workers who have little technical skills.
B) Substitute automation for repetitive tasks.
C) Empower workers with decision-making authority.
D) Incorporate a "production-line" approach to service.
Answer: C
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Chapter 4: The Service Encounter
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Sample Questions
Q1) Situational vignette, role playing, and direct questioning all have been used in evaluating potential front-line employees.
A)True
B)False
Q2) Southwest Airlines delivered high service value because of employee retention and productivity.
A)True
B)False
Q3) The corporate culture of a firm does not significantly influence the quality of the service it provides because the culture is internal and, therefore, not perceived by the customer.
A)True
B)False
Q4) Delegation is acting on another's behalf.
A)True
B)False
Q5) Empowerment begins with delegation.
A)True
B)False
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Chapter 5: Supporting Facility and Process Flows
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Sample Questions
Q1) The CRAFT program for facility layout uses an initial solution to ________.
A) be tested for improvement
B) arrive at a feasible solution
C) provide an analytical solution
D) define the layout problem
Q2) The automobile driver's license office is an example of a product layout.
A)True
B)False
Q3) Heuristic algorithms are not only appealing intuitively, but they also guarantee optimal solutions.
A)True
B)False
Q4) All but one of the following impacts the user friendliness of the facility and the ability to serve customers effectively.
A) Floorplan.
B) Layout of equipment.
C) Equipment design.
D) Time of day.
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Chapter 6: Service Quality
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Sample Questions
Q1) In the service quality gap model, GAP 1 arises because of the management's lack of understanding about how customers formulate their expectations.
A)True
B)False
Q2) The term "producer's risk" refers to the probability that a sample will indicate an acceptable quality incorrectly.
A)True
B)False
Q3) The systematic-response approach to service recovery uses a protocol to handle customer complaints.
A)True
B)False
Q4) Joseph M. Juran identified internal failure costs, external failure costs, detection costs, and prevention costs.
A)True
B)False
Q5) The first stage or rung of the service quality ladder is cost of quality.
A)True
B)False
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Chapter 7: Process Improvement
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Sample Questions
Q1) What are the two dimensions in the DEA strategic matrix?
A) Efficiency and profit.
B) Efficiency and quality.
C) Profit and quality.
D) Profit and location.
Q2) Planning, control, and ________ are the three-component cycles required for ISO 9001 implementation.
A) reporting
B) documentation
C) testing
D) budgeting
Q3) DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services.
A)True
B)False
Q4) ISO 9002 does not apply to organizations that perform design and service activities.
A)True
B)False
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Page 9
Chapter 8: Service Facility Location
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Sample Questions
Q1) The metropolitan metric method of measuring distance is described as travel "as the crow flies."
A)True
B)False
Q2) The optimization criteria governing the location of a service facility is determined mainly by the ________.
A) ownership of the service, i.e., public or private
B) kind of service, e.g. food, banking, or postal
C) number of facilities to be located
D) average size of the facilities to be located
Q3) The following are important in estimating spatial demand except ________.
A) defining the target population
B) selecting a unit of area
C) developing a visual representation or map
D) distance traveled
Q4) Marketing intermediaries are business entities in the channel of distribution between the final customer and the service provider.
A)True
B)False
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Chapter 9: Service Supply Relationships
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Sample Questions
Q1) Outsourcing a service incurs transaction costs such as loss of employee loyalty.
A)True
B)False
Q2) Service tangibility increases as the focus of the service moves from property to people to process.
A)True
B)False
Q3) Social media "netiquettes" includes all but one of the following: ________.
A) disclosure
B) discrimination
C) honesty
D) reciprocation
Q4) Conversion is a primary value component of service chain management.
A)True
B)False
Q5) Making knowledge available to customers at low cost is called ________.
A) embellishment
B) transfer
C) replacement
D) co-production
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Chapter 10: Globalization of Services
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Sample Questions
Q1) Concentric diversification is a means of ensuring rapid market growth.
A)True
B)False
Q2) Global service strategies include all but one of the following: ________.
A) exporting services
B) following your customers
C) beating-the-clock
D) service offshoring
Q3) Which of the following is not one of the major considerations in planning multinational operations?
A) Cultural transferability.
B) Technological compatibility.
C) Network development.
D) Host government policy.
Q4) Which of the following is not one of Kenichi Ohmae's five Cs of strategic planning in a borderless world economy?
A) Competitors.
B) Creativity.
C) Company.
D) Country.
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Chapter 11: Managing Capacity and Demand
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Sample Questions
Q1) The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy.
A)True
B)False
Q2) ________ is not a strategy for accommodating of customer-induced variability.
A) Provide generous staffing
B) Cross-train employees
C) Reward increased effort
D) Do work for customers
Q3) A good overbooking strategy should ________.
A) minimize the expected opportunity cost of idle service capacity
B) balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations
C) minimize the expected cost of turning away reservations
D) none of the above; services should try to avoid overbooking
Q4) SABRE is the name for American Airlines' yield management system.
A)True
B)False
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Page 13
Chapter 12: Managing Waiting Lines
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Sample Questions
Q1) Supermarkets can be described by which of the following facility arrangement?
A) Self-serve followed by service in parallel.
B) Many service centers in parallel and series.
C) Servers in parallel.
D) Self-service.
Q2) According to Maister, which of the following statements is not true for waits?
A) Unoccupied time feels longer than occupied time.
B) Anxiety makes waits feel longer.
C) In-process waits feel longer than preprocess waits.
D) Unfair waits feel longer than fair waits.
Q3) One advantage of the multiple queue compared to a single queue is that multiple queues ________.
A) minimize wait times
B) reduce the average service time
C) lead to a perceived shorter service time
D) lead to a perceived shorter wait time
Q4) For a single channel queuing system with finite queue, the value of may exceed because some potential customers are forced to balk.
A)True
B)False
Page 14
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Chapter 13: Capacity Planning and Queuing Models
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Sample Questions
Q1) Which of the following is not true of pseudo-random numbers?
A) They exhibit the characteristics of true random numbers.
B) They are generated using a mathematical function.
C) They are stored in a computer file.
D) An identical sequence can be replicated with the same seed value.
Q2) A system is said to be in statistical equilibrium when the number in queue assumes a distribution that is independent of the starting condition.
A)True
B)False
Q3) Planning for service capacity involves prediction of consumer waiting associated with different levels of capacity.
A)True
B)False
Q4) The main advantage of analytical models is that they can be used almost anywhere regardless of the underlying assumptions. They still will provide good results.
A)True
B)False
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Page 15
Chapter 14: Forecasting Demand for Services
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Q1) The trade-off to be made with respect to accuracy is between the costs of inaccurate forecasts and the costs of increasing the accuracy of forecasts.
A)True
B)False
Q2) Survey results are used in ________.
A) regression
B) cross-impact analysis
C) econometric models
D) Delphi method
Q3) Fast-food restaurants use a causal model to forecast daily demand for menu items.
A)True
B)False
Q4) Which of the following forecasting models is required for the forecast of the demand for hotel services?
A) Subjective and causal.
B) Subjective and time series.
C) Time series and causal.
D) Only time series.
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Page 16
Chapter 15: Managing Service Inventory
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Sample Questions
Q1) A continuous review system is generally used for Class C items in the ABC system of classification.
A)True
B)False
Q2) Which of the following concepts is not associated with the 'news vendor problem'?
A) Breakeven analysis.
B) Incremental analysis.
C) Expected value analysis.
D) Trade-off analysis.
Q3) In the annual cost curve for the EOQ model, the ordering cost ________ with the order quantity.
A) increases linearly
B) decreases linearly
C) increases negative exponentially
D) decreases negative exponentially
Q4) Dependent demand is described by a probability distribution.
A)True
B)False
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Page 17
Chapter 16: Managing Service Projects
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Q1) The critical path refers to the sequence of activities that represent the longest time path through a project network.
A)True
B)False
Q2) Which of the following is not true about a critical path in a project network with certain activity times?
A) Activities on the critical path have the least slack.
B) The longest activity in the project must lie on the critical path.
C) There can be several critical paths in a project network.
D) The first activity in the network is always on the critical path.
Q3) Implementing critical path analysis is faced with all of the following problems, except ________.
A) availability of project management software
B) agreement on the project network
C) eliciting time estimates for activities
D) introduction of bias in activity time estimates
Q4) The single important attribute of a project manager is leadership ability.
A)True
B)False
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