Innovation in Service Industries
Exam Materials
Course Introduction
This course explores the dynamics of innovation within the service sector, examining how new ideas, technologies, and business models transform industries such as healthcare, finance, hospitality, and retail. Students will analyze drivers and barriers to service innovation, study real-world cases of successful and unsuccessful innovation, and explore frameworks for designing, implementing, and managing innovative service experiences. Emphasis is placed on customer-centric approaches, the role of digital transformation, and the integration of emerging technologies to enhance service delivery and achieve competitive advantage. Through practical projects and critical discussion, students will develop the skills to identify opportunities, implement change, and measure the impact of innovation in service-based organizations.
Recommended Textbook
Service Management Operations Strategy Information Technology 9th Edition by
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16 Chapters
711 Verified Questions
711 Flashcards
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Page 2
Sanjeev Bordoloi
Chapter 1: The Service Economy
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) The consumer participates in the service process, which is not the case in manufacturing.
A)True
B)False
Answer: True
Q2) Service-dominant logic is the foundation of "service science."
A)True
B)False
Answer: True
Q3) The concept of economies of scale is best described as ________.
A) the replacement of fixed costs with variable costs
B) selling a wider range of products
C) a synonym for economies of scope
D) the replacement of variable costs with fixed costs
Answer: D
Q4) From a marketing perspective, services, unlike goods, involve transfer of ownership.
A)True
B)False
Answer: False
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Chapter 2: Service Strategy
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70 Flashcards
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Sample Questions
Q1) Infinite scalability can occur only when the variable cost is zero.
A)True
B)False Answer: True
Q2) The idea of IoT is to create "swarm intelligence".
A)True
B)False Answer: True
Q3) Recycling paper and reducing energy usage often is the first step towards sustainability.
A)True
B)False Answer: True
Q4) Information technology can be used to promote customer loyalty.
A)True
B)False Answer: True
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Page 4
Chapter 3: New Service Development
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Sample Questions
Q1) A "line of interaction" also can be found on a service blueprint.
A)True
B)False Answer: True
Q2) ________ is not one of the categories of intellectual property.
A) A trademark
B) A trade secret
C) Industrial design
D) Process layout
Answer: D
Q3) An increase in divergence can maximize the revenue that is generated by each customer.
A)True
B)False Answer: True
Q4) Financial consulting is a service with low complexity and high divergence.
A)True
B)False Answer: True
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Chapter 4: The Service Encounter
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Sample Questions
Q1) A visit to a psychiatrist represents a technology-free service encounter.
A)True
B)False
Q2) Employee empowered service companies have committed to all but one of the following.
A) Investment in people.
B) Use of information technology.
C) Linking compensation to performance.
D) Development of training programs for employees.
Q3) Situational vignette, role playing, and direct questioning all have been used in evaluating potential front-line employees.
A)True
B)False
Q4) A customer who is interested in the self-service option would find which of the following dimensions of service most important?
A) Risk involvement.
B) Customer's control of the situation.
C) Amount of time involved.
D) Efficiency of the service process.
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Chapter 5: Supporting Facility and Process Flows
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Sample Questions
Q1) A process layout, done correctly, promotes standardized service.
A)True
B)False
Q2) Signage is not an environmental dimension of the servicescape.
A)True
B)False
Q3) The physical complexity of the servicescape for L.L. Bean is categorized as lean.
A)True
B)False
Q4) A fixed sequence of steps that all customers must experience is characteristic of process layouts.
A)True
B)False
Q5) Facility layout is discussed with attention to traffic flow, space planning, and which one of the following?
A) Need to avoid unnecessary travel.
B) Eliminating bottlenecks.
C) Aesthetic factors.
D) Cost of providing service.
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Chapter 6: Service Quality
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Sample Questions
Q1) Which one of the following is not an example of detection costs?
A) Rework.
B) Collecting quality data.
C) Process control.
D) Periodic inspection.
Q2) The systematic-response approach to service recovery uses a protocol to handle customer complaints.
A)True
B)False
Q3) A service guarantee becomes a service winner when it covers all aspects of the service.
A)True
B)False
Q4) Which of the following dimensions of service quality is most important to customers?
A) Empathy.
B) Assurance.
C) Reliability.
D) Tangibles.
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Chapter 7: Process Improvement
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Sample Questions
Q1) Which of the following categories carries the highest point value on the examination paper for the Malcolm Baldrige National Quality Award?
A) Leadership.
B) Strategic quality planning.
C) Management of process quality.
D) Customer focus and satisfaction.
Q2) A process capability index of two centered on the mean just meets Six Sigma standards.
A)True
B)False
Q3) Data Envelopment Analysis (DEA) is a method for ________.
A) measuring a firm's quality performance by comparing it with other companies that are recognized as "best in class"
B) determining the feasibility of technological innovations in service operations
C) analyzing the gap between the service customer's expectations and perceptions
D) comparing the efficiency of multiple service units that provide similar services
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Chapter 8: Service Facility Location
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Sample Questions
Q1) For a multisite location problem, the services to provide at each site might vary.
A)True
B)False
Q2) If you are going to open four facilities and have identified six candidate locations, how many different combinations of site selections are there?
A) 4
B) 6
C) 15
D) 24
Q3) Finding a unique set of sites in a multi-location problem is a simple extension of the methods used for single facility location.
A)True
B)False
Q4) The metropolitan metric method of measuring distance is described as travel "as the crow flies."
A)True
B)False
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Chapter 9: Service Supply Relationships
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Sample Questions
Q1) ________ is not part of the service chain concept.
A) Conversion
B) Distribution
C) Inventory management
D) Knowledge management
Q2) Transfer enhances productive capacity by enabling customer self-service.
A)True
B)False
Q3) The impact of the production element on physical goods supply chain management was ________ before and ________ after.
A) push; pull
B) inflexible; flexible
C) vertical; virtual
D) multinational; global
Q4) The Walmart and Procter & Gamble experience illustrates the unintended consequences of independent decision making in a goods supply chain.
A)True
B)False
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Chapter 10: Globalization of Services
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Sample Questions
Q1) A diversified network is not feasible with complex services.
A)True
B)False
Q2) 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.
Q3) When a firm offers multiple services at a single location, it is using a clustered service strategy.
A)True
B)False
Q4) A family restaurant is an example of a focused service.
A)True
B)False
Q5) Rapid growth with investment capital from franchisers is the main objective of franchising.
A)True
B)False
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Chapter 11: Managing Capacity and Demand
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Sample Questions
Q1) In using the critical fractile criterion P(d < x) = C /(C + C ) for overbooking, the 'd' refers to the ________.
A) cost of overestimating demand
B) cost of underestimating demand
C) number of rooms overbooked
D) number of no-shows based on past experience
Q2) Overbooking is a strategy that can be used to smooth demand.
A)True
B)False
Q3) Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner.
A)True
B)False
Q4) Which of the following is not a characteristic of yield management?
A) Capacity is relatively fixed.
B) There is one homogeneous customer class.
C) The service is considered a perishable inventory.
D) Demand fluctuates yet is somewhat predictable.
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Chapter 12: Managing Waiting Lines
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Sample Questions
Q1) Multiple queue configuration may deter balking behavior.
A)True
B)False
Q2) An arrangement of servers in parallel is an insurance against breakdowns of the service in case of absenteeism or equipment failure. It, thus, adds to flexibility at the expense of capacity utilization.
A)True
B)False
Q3) The time a consumer will spend waiting is directly related to the amount of money he is paying for the service. The less the service costs him, the longer he is willing to wait.
A)True
B)False
Q4) Which of the following is not an effective way to manage the psychology of waiting?
A) Prominently display time with a large analog clock.
B) Inform customers when long waits are anticipated.
C) Use diversions to occupy customer waiting times.
D) Employ a take-a-number system to ensure fairness.
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14
Chapter 13: Capacity Planning and Queuing Models
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Sample Questions
Q1) In the M/M/1 model the calling population is finite.
A)True
B)False
Q2) Capacity usually is measured in terms of outputs (e.g., guest nights) rather than inputs (e.g., number of hotel rooms) in service firms.
A)True
B)False
Q3) The graph depicting the economic trade-off in capacity planning has cost on the x-axis and the capacity to serve on the y-axis.
A)True
B)False
Q4) Pooling of services is an approach toward achieving economies of scale in services through better utilization of services.
A)True
B)False
Q5) A shortcoming of simulation is the use of pseudo-random numbers.
A)True
B)False
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Page 15
Chapter 14: Forecasting Demand for Services
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Sample Questions
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) The forecast horizon for regression methods is ________.
A) short term
B) medium term
C) long term
D) medium to long term
Q3) In the Delphi method, the opinions of experts are collected, then the analyst resolves differences of opinion to arrive at a consensus.
A)True
B)False
Q4) In regression models, the variable of interest (being forecast) is called ________.
A) a defining variable
B) an independent variable
C) a basic variable
D) a dependent variable
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Page 16
Chapter 15: Managing Service Inventory
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Sample Questions
Q1) Penalties for late delivery or nondelivery are part of shortage costs.
A)True
B)False
Q2) Equating the annual holding and ordering costs can be used to derive the EOQ formula.
A)True
B)False
Q3) 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.
Q4) In the design of an inventory system all of the following is considered except ________.
A) type of customer demand
B) relevant inventory costs
C) constraints
D) safety stocks
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Chapter 16: Managing Service Projects
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Sample Questions
Q1) The single important attribute of a project manager is leadership ability.
A)True
B)False
Q2) The amount of time an activity can be delayed without delaying the completion of the project is referred to as ________.
A) total slack
B) late finish
C) late start
D) free slack
Q3) A resource-leveled schedule would have all of the following characteristics except
A) the project duration could be longer than normal
B) slack time is used to begin some activities later than their early start time
C) the critical path may be changed
D) a more balanced use of labor resources would be exhibited
Q4) Total slack for an activity can be shared with following activities.
A)True
B)False
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