Service Management
Exam Questions
Course Introduction
Service Management explores the principles, strategies, and techniques involved in designing, delivering, and improving services across various industries. The course covers key topics such as service quality, customer satisfaction, service operations, capacity planning, demand management, and the role of technology in service delivery. Emphasis is placed on understanding the unique challenges and opportunities in managing service organizations, as well as the importance of service innovation and relationship management. By integrating theory with real-world examples, students develop skills to enhance service performance and achieve organizational effectiveness in a highly competitive, customer-centric environment.
Recommended Textbook Service Management Operations Strategy Information Technology 9th Edition by Sanjeev Bordoloi
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Chapter 1: The Service Economy
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Q1) The fact that services can be inventoried is an important characteristic, which distinguishes them from manufacturing.
A)True
B)False
Answer: False
Q2) The fall in employment in the agricultural sector is the primary reason for the increase in service sector employment.
A)True
B)False
Answer: False
Q3) 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.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Service Strategy
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Q1) The use of micromarketing has the potential to create customer concerns about invasion of privacy.
A)True
B)False
Answer: True
Q2) A cost-leadership strategy often involves customizing a standard service.
A)True
B)False
Answer: False
Q3) Which of the following is not identified as a strategy common to many successful service providers?
A) Close coordination between the marketing and operations.
B) The exploitation of information to generate new business.
C) A project-oriented organizational structure.
D) Redirection of the strategic service vision inward to focus on employees.
Answer: C
Q4) SWOT analysis is objective with easily agreed upon results.
A)True
B)False
Answer: False
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Chapter 3: New Service Development
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Q1) Basic research typically is limited to federal, university, and nonprofit organizations.
A)True
B)False
Answer: True
Q2) 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
Q3) ________ is not a source of technology-driven service innovation.
A) Power/energy
B) Material
C) Location
D) Facility design
Answer: C
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Page 5
Chapter 4: The Service Encounter
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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) Consider the following vignette. Aboard the cruise ship Royal Majesty, a breakfast diner complains to the waiter that the meal is cold. The waiter sends the meal back to the kitchen and returns shortly with a plate of steaming eggs and bacon. The customer refuses the meal. Rattled, the waiter expresses his confusion to the maitre d'. This breakdown in customer interaction can best be described as ________.
A) unacceptable service
B) slow performance
C) unacceptable treatment of employees
D) unreasonable demands
Q3) Southwest Airlines delivered high service value because of employee retention and productivity.
A)True
B)False
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6
Chapter 5: Supporting Facility and Process Flows
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Q1) At a roadside snake farm, both customer and employee perform within the servicescape.
A)True
B)False
Q2) The relative location problem deals with the problem of allocating n departments to n locations. Complete enumeration is time consuming because there are a total of n! possible arrangements.
A)True
B)False
Q3) The swim lane flowchart highlights the handoffs between functional activities.
A)True
B)False
Q4) Which one of the following is not a major factor that could influence facility design?
A) Objectives and nature of the service.
B) Flexibility in operations.
C) Availability of land.
D) Site location.
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Chapter 6: Service Quality
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Q1) The walk-through audit (WtA) focuses on the effectiveness of each stage in the service delivery process.
A)True
B)False
Q2) Which of the following is not possible using SERVQUAL?
A) Record customer expectations.
B) Track service quality trends.
C) Measure the quality of competitors.
D) Identify dimensions of service quality.
Q3) 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
Q4) A process is said to be in control when all the variation that is noticed can be assigned to specific causes.
A)True
B)False
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Page 8
Chapter 7: Process Improvement
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Q1) Which of the following statements is not part of Deming's 14-point philosophy?
A) Create constancy of purpose for improvements of product and service.
B) Promote numerical goals for the workforce.
C) Constantly and forever improve the system of production and service.
D) Cease dependence on mass inspection.
Q2) The Malcolm Baldrige Quality Award measures the quality of products manufactured or services delivered.
A)True
B)False
Q3) 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.
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 median has the property of minimizing the sum of absolute deviations from it.
A)True
B)False
Q2) Which of the following items does the Huff retail location model not consider?
A) The degree of accessibility.
B) Travel time from the customer's location to the facility.
C) Facility size.
D) A parameter reflecting the importance of travel time by customers.
Q3) 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
Q4) Site selection considerations include all but one of the following: ________.
A) access
B) environment
C) government
D) weather
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Chapter 9: Service Supply Relationships
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Q1) ________ is (are) the highest level of professional body of knowledge.
A) Advanced skills
B) System understanding
C) Self-motivated creativity
D) Cognitive knowledge
Q2) When outsourcing facilitator services, which one of the following is not a consideration?
A) Knowledge of alternate vendors is important.
B) Involvement of end user in vendor identification.
C) Experience with particular industry is important.
D) Detailed specification written by user.
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) Need identification is the first step in the outsourcing process model.
A)True
B)False
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Chapter 10: Globalization of Services
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Q1) 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.
Q2) From the standpoint of the franchiser, decision-making autonomy is not a benefit of franchising.
A)True
B)False
Q3) A 5:00 p.m. pickup for FedEx was not workable in Spain owing to extended business hours. This is an example of cultural adoption under which of the following global service strategies?
A) Beating the clock.
B) Service offshoring.
C) Following your customers.
D) Multicountry expansion.
Q4) Concentric diversification is a means of ensuring rapid market growth.
A)True
B)False
Page 12
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Chapter 11: Managing Capacity and Demand
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Q1) Service capacity is defined in terms of an achievable level of output per unit time.
A)True
B)False
Q2) When peaks of activity are persistent and predictable such as meal times for restaurants, off-duty personnel can be placed on standby to supplement regular employees.
A)True B)False
Q3) Level demand and chase capacity are the two generic strategies for capacity management.
A)True
B)False
Q4) Workshift scheduling attempts to deal with the service utilization problem by controlling the demand for the service and partitioning it so that utilization is uniform.
A)True B)False
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Page 13
Chapter 12: Managing Waiting Lines
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Q1) According to Maister's Second Law of service, ________.
A) perceptions minus expectations equal the level of customer satisfaction
B) first impressions can influence the remainder of the service experience
C) quality in the service industry is essentially free
D) a waiting customer cannot be satisfied
Q2) 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
Q3) For a multiple channel queuing system with multiple queues, allowing customers to jockey will enhance service utilization.
A)True
B)False
Q4) 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
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Chapter 13: Capacity Planning and Queuing Models
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Q1) Which of the following is not an advantage of using one large computer system to serve an entire university community?
A) Short turnaround time.
B) Large memory.
C) Economics of scale in services.
D) Short wait in queue.
Q2) In analytical terms, the modern self-serve supermarket would be approximated best by the M /M /c model, where c is the number of servers.
A)True
B)False
Q3) Reducing the variability either in service time or arrival time can reduce most of the waiting involved for the consumers.
A)True
B)False
Q4) In the A/B/C classification of analytical queuing models, the term G refers to a general distribution with mean and variance.
A)True
B)False
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Chapter 14: Forecasting Demand for Services
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Q1) All of the following are characteristics of the moving-average model, except
A) very low relative cost
B) short-term forecast horizon
C) uses all past data in forecast
D) used for demand forecasting
Q2) The cost of formulating, developing, and testing regression models, plus the expertise required to interpret results, often dictates the use of this model only for medium-term or long-term forecasting.
A)True
B)False
Q3) Econometric models are basically regression models that involve a system of equations.
A)True
B)False
Q4) Costs for preparing time series forecasts generally are lower than for other models. A)True
B)False
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Chapter 15: Managing Service Inventory
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Q1) Which of the following features is not associated with the periodic review system?
A) Order consolidation.
B) Fixed order quantity.
C) C items.
D) Small safety stocks.
Q2) 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
Q3) Which item below would not be a good candidate for a planned shortage model?
A) Exotic sports car.
B) Donor transplant organ.
C) Sale item.
D) Staple.
Q4) Dependent demand is described by a probability distribution.
A)True
B)False
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Chapter 16: Managing Service Projects
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Q1) Which one of the following is not an objective of activity crashing?
A) Reduce the total cost of completing a project.
B) Complete a project in less time than normally expected.
C) Create multiple critical paths.
D) Prepare a contract bid.
Q2) Which of the following makes performance a source of unexpected project management problem?
A) Delays owing to technical difficulties.
B) Unexpected technical problems.
C) Unforeseen government regulations.
D) Increase in the scope of work.
Q3) Monte Carlo simulation of project networks is not recommended when ________. A) activity times are deterministic
B) more than one critical path exists
C) bias in project completion time is important
D) activity time distributions are Beta
Q4) Time variance is calculated by subtracting actual time used for work performed from scheduled time for work performed.
A)True
B)False
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