Service Design and Innovation Exam Solutions
Course Introduction
Service Design and Innovation explores the principles and practices involved in creating effective, user-centered services that deliver unique value to customers. The course examines the design thinking process, customer journey mapping, prototyping, and co-creation techniques while emphasizing the role of innovation in developing new services and improving existing ones. Students will learn how to identify unmet needs, leverage cross-disciplinary collaboration, and implement creative strategies to enhance service experiences across various industries. Through case studies and hands-on projects, participants gain practical skills in designing, testing, and launching innovative service solutions that respond to dynamic market environments and customer expectations.
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Service Management Operations Strategy Information Technology 9th Edition by
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Sanjeev Bordoloi
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 of the following is not a principle on which service experience design is based?
A) Theme the experience.
B) Eliminate negative cues.
C) Mix in memorabilia.
D) Encourage customer feedback.
Answer: D
Q3) 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.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Service Strategy
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Q1) American Airlines' SABRE reservation system fills the following strategic role of information ________.
A) revenue generation
B) productivity enhancement
C) creation of barriers to entry
D) data base asset
Answer: C
Q2) Customers seldom take note of firms that are leaders in the sustainability movement.
A)True
B)False
Answer: False
Q3) World-class service operations strive to replace workers with enhanced automation.
A)True
B)False
Answer: False
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Page 4
Chapter 3: New Service Development
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Sample Questions
Q1) An important variable in the design process is the amount of customer participation in the delivery of the service.
A)True
B)False
Answer: True
Q2) Which one of the following is not an example of a high customer contact service?
A) Dry cleaning.
B) Banking.
C) School.
D) Hotel.
Answer: A
Q3) The new service development process cycle contains all but one of the following activities.
A) Engineering.
B) Analysis.
C) Development.
D) Full launch.
Answer: A
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Page 5
Chapter 4: The Service Encounter
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Sample Questions
Q1) 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
Q2) Self-service falls into the technology-________ service encounter category. A) assisted B) generated C) facilitated D) mediated
Q3) Flexibility in meeting customer needs is the main reason that some service firms have empowered contact personnel.
A)True
B)False
Q4) Internet banking is a service that would appeal to the economizing customer, the personalizing customer, and the convenience customer.
A)True
B)False
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Page 6
Chapter 5: Supporting Facility and Process Flows
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Sample Questions
Q1) Mid-Columbia Medical Center has a special employee-only entrance to enhance security.
A)True
B)False
Q2) The line-balancing problem attempts to resolve the inconsistencies in the capacities at various stages in a product layout.
A)True
B)False
Q3) 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.
A) At the back of the gym near the aerobic equipment.
B) Near the entrance/exit of the gym.
C) In a small alcove set to one side of the gym.
D) Upstairs in a separate enclosed room marked by a sign.
Q4) The servicescape can influence perceived quality.
A)True
B)False
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Chapter 6: Service Quality
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Sample Questions
Q1) When customer expectations are confirmed by perceptions, service quality is considered satisfactory.
A)True
B)False
Q2) All of the following are examples of "detection costs" of quality except ________.
A) quality planning
B) periodic inspection
C) process control
D) collecting quality data
Q3) The most important function of SERVQUAL is to keep a record of service quality trends through periodic customer surveys.
A)True
B)False
Q4) Which of the following is not part of a good service guarantee?
A) It is unconditional.
B) It is easy for the customer to understand.
C) It is meaningful to the customer.
D) It is difficult for the customer to invoke.
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Chapter 7: Process Improvement
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Sample Questions
Q1) All but one of the following are quality tools for analysis and problem solving.
A) Run chart.
B) Control chart.
C) Flow chart.
D) Bar chart.
Q2) The fishbone chart offers a structured approach for a team to identify, explore, and display graphically all of the possible causes of a problem.
A)True
B)False
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) Data Envelopment Analysis (DEA), when used repeatedly, can facilitate the competitive strategy of cost leadership.
A)True
B)False
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Chapter 8: Service Facility Location
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Q1) The concept of focus in location decisions considers all but one of the following issues: ________.
A) cannibalization
B) multisite locations
C) formula facility
D) competitive changes
Q2) Locating a public service facility in an area that contains a large number of individuals for whom distance would be a strong barrier will maximize facility utilization.
A)True
B)False
Q3) The greedy algorithm is a solution procedure that is used for measuring the attraction of a customer to a facility.
A)True
B)False
Q4) In the Huff retail location model, the value of estimates______.
A) amount of travel time to reach a service facility
B) the importance of convenience in attracting customers
C) the importance of travel time in attracting customers
D) the cost of transportation for a customer
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Chapter 9: Service Supply Relationships
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Sample Questions
Q1) Information moves in both directions in the service chain for mobile workers.
A)True
B)False
Q2) Customer demand variability is the most difficult factor to determine in a goods supply chain.
A)True
B)False
Q3) The cell category titled "employee development" in the taxonomy for outsourcing business services includes all but one of the following services: ________.
A) food service
B) training
C) education
D) medical care
Q4) All but one of the following is a reason for outsourcing services: ________.
A) avoids coordination expenses and delays
B) allows the firm to focus on its core competence
C) provides access to latest technology
D) leverages benefits from supplier economies of scale
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Chapter 10: Globalization of Services
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Sample Questions
Q1) Network development is a consideration in the decision to plan a multinational service.
A)True
B)False
Q2) American Express, which offers financial and travel services on a global basis, is an example of a ________
A) focused service
B) focused network
C) clustered service
D) diversified network
Q3) A relatively recent concept that refers to the movement of new products through existing distribution channels is called ________.
A) economies of scale
B) economies of scope
C) diversification
D) micromarketing
Q4) Communication is included in the five Cs of strategic planning.
A)True
B)False
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Chapter 11: Managing Capacity and Demand
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Q1) An example of segmenting demand is seen when movie theaters offer matinee prices before 6:00 p.m.
A)True
B)False
Q2) For a chase demand strategy, which of the following does not have a high trade-off?
A) Employee utilization.
B) Labor-skill level.
C) Labor turnover.
D) Supervision required.
Q3) Which of the following strategies is inappropriate for managing capacity and demand?
A) Smooth customer demand by offering price incentives.
B) Scheduling staff to meet variations in forecasted customer demand.
C) Decrease customer participation in the service process.
D) Promoting off-peak use of facilities.
Q4) Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner.
A)True
B)False
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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) If the number of arrivals in an interval of time follows an exponential distribution, the interarrival time is known to follow a Poisson distribution.
A)True
B)False
Q3) After selecting a line in a multiple queue system, a customer is ________ when she or he switches to a different line that is perceived to be moving faster.
A) jockeying
B) balking
C) reneging
D) weaving
Q4) Demand smoothing is accomplished by the differential pricing policy of telephone companies.
A)True
B)False
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Chapter 13: Capacity Planning and Queuing Models
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Sample Questions
Q1) Which of the following is not part of the queuing system features?
A) Calling population.
B) Queue configuration.
C) Queue discipline.
D) Departure process.
Q2) Capacity planning decisions deal implicitly with decisions on the cost of making consumers wait and the extent to which these costs can be borne.
A)True
B)False
Q3) 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.
Q4) Simulation allows time compression, doing in seconds what would otherwise require years of actual observation.
A)True
B)False
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Chapter 14: Forecasting Demand for Services
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Q1) The key feature of the historical analogy method is that it assumes some future event is related to the occurrence of an earlier event.
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) ________ is the best for forecasting demand.
A) Exponential smoothing
B) Historical analogy
C) Delphi method
D) Econometrics
Q4) Most forecasting models assume that the underlying pattern of behavior of their data will remain the same. The only component of error is attributable to random fluctuations that are not under the control of anyone.
A)True
B)False
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Chapter 15: Managing Service Inventory
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Sample Questions
Q1) Taxes and insurance would fall under ________ costs.
A) ordering
B) receiving and inspection
C) holding or carrying
D) shortage
Q2) Inventory management costs include all of the following, except ________.
A) ordering
B) purchase
C) receiving D) shortage
Q3) Forward buying is used to avoid expensive interruptions of service, as a stock out at any stage of the physical goods distribution system would have far-reaching consequences for the other stages.
A)True
B)False
Q4) In the critical fractile ratio, the numerator refers to the cost of overestimating demand.
A)True
B)False
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Chapter 16: Managing Service Projects
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Q1) A project history report should include all of the following items, except ________.
A) project performance
B) organization structure
C) project success and failures
D) project and administrative team
Q2) Gantt project charts are useful for all of the following reasons, except ________.
A) visual presentation is appealing
B) they show interdependence of activities
C) they are easy to understand
D) they assist in planning construction forces
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
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