Service Management Exam Review
Course Introduction
Service Management focuses on the design, delivery, and improvement of services across various sectors, including hospitality, healthcare, finance, and technology. The course explores key concepts such as service quality, customer satisfaction, service operations, and the management of service processes. Students will learn strategies for effective service design, the role of technology in service delivery, and approaches to managing both front-line staff and customer interactions. Emphasis is placed on understanding the unique challenges of managing intangible products, ensuring consistent service performance, and fostering innovation to maintain competitive advantage in service-oriented organizations.
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Bordoloi
Chapter 1: The Service Economy
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Q1) The realms of an experience include all but one of the following.
A) Entertainment.
B) Education.
C) Estheticism.
D) Elation.
Answer: D
Q2) A business service experience (B2B) has three dimensions: co-creation of value, relationships, and sustainability.
A)True
B)False
Answer: False
Q3) Which of the following is an example of a business service (B2B)?
A) Communications.
B) Auditing.
C) Retailing.
D) Leasing.
Answer: B
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Page 3
Chapter 2: Service Strategy
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Q1) A difficult economic environment exists for service industries for all but one of the following reasons.
A) Relatively high overall entry barriers.
B) Product substitution.
C) Minimal opportunities for economies of scale.
D) Exit barriers.
Answer: A
Q2) Of the nine dimensions of service competition, three are regarded as most likely to become service losers. Which of the following is not one of those three vulnerable dimensions?
A) Speed
B) Price
C) Dependability
D) Personalization
Answer: B
Q3) Wisdom is the last layer of the five layer data analytic model.
A)True
B)False
Answer: False
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Page 4
Chapter 3: New Service Development
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Q1) Intellectual property rights allow the owner to secure monopoly profits for a limited time.
A)True
B)False
Answer: True
Q2) The most interactive element in the service blueprint of a fitness facility is the ________.
A) choice of music played
B) amount and type of exercise equipment
C) attention given to prospective members on their initial visit
D) cleanliness of the locker rooms
Answer: C
Q3) The "line of visibility" found in a service blueprint separates the front office operations from the back office operations.
A)True
B)False
Answer: True
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Chapter 4: The Service Encounter
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Q1) A person who drives 100 miles to a factory outlet once a month to buy clothing for the family is ________.
A) an economizing customer
B) an ethical customer
C) a personalizing customer
D) a convenience customer
Q2) Jiffy Lube, a franchised oil change and lubrication service, is an example of a service encounter dominated by ________.
A) the organization
B) contact personnel
C) the customer
D) corporate culture
Q3) ________ is not an example of unethical customer-contact behavior.
A) Creating a need for service
B) Performing unnecessary services
C) Sharing customer information with third parties
D) Giving away a guaranteed reservation
Q4) Delegation is acting on another's behalf.
A)True
B)False
Page 6
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Chapter 5: Supporting Facility and Process Flows
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Q1) Mid-Columbia Medical Center has a special employee-only entrance to enhance security.
A)True
B)False
Q2) Which of the following is not a method service facilities use to provide orientation for customers?
A) Signs and color codes to indicate direction.
B) Use of walled cubicles to ensure privacy.
C) Use of artifacts.
D) Franchised services that use formula facilities.
Q3) The automobile driver's license office is an example of a product layout.
A)True
B)False
Q4) Cycle time is the average time to complete a service operation.
A)True
B)False
Q5) The servicescape can influence perceived quality.
A)True
B)False
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Chapter 6: Service Quality
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Q1) Which of the following is a poka-yoke method?
A) Adopting a checklist to help an employee avoid making a mistake.
B) Designing a service to reflect the customers' needs and requirements.
C) Designing a service in a robust manner that can withstand abuse by customers.
D) Comparing a firm's quality performance to the performance of others that are considered "best in class."
Q2) When a process appears to be functioning properly when, in fact, it is out of control, the type of error and injured party are identified as ________.
A) Type I error and producer's risk
B) Type II error and consumer's risk
C) Type I error and consumer's risk
D) Type II error and producer's risk
Q3) The walk-through audit (WtA) focuses on the effectiveness of each stage in the service delivery process.
A)True
B)False
Q4) The average business hears only from 10 percent of its dissatisfied customers.
A)True
B)False
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Chapter 7: Process Improvement
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Q1) Lean service is based upon the Toyota Production System.
A)True
B)False
Q2) Benchmarking measures a firm's quality performance by comparing it to the performance of other companies that are known for being "best in class."
A)True
B)False
Q3) 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.
Q4) Which one the following is not a guiding principle of lean philosophy?
A) Satisfy the needs of customers by doing only value-added activities.
B) Be flexible in response to customer demands.
C) Define the value stream by flowcharting the process.
D) Eliminate waste.
Q5) The objective of Six Sigma is to eliminate variation in process performance.
A)True
B)False
Page 9
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Chapter 8: Service Facility Location
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Q1) Marketing intermediaries are business entities in the channel of distribution between the final customer and the service provider.
A)True
B)False
Q2) The Huff model for retail outlet location postulates an inverse relationship between the attractiveness of a location and the travel time to that location for a particular customer.
A)True
B)False
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) The greedy algorithm is a solution procedure that is used for measuring the attraction of a customer to a facility.
A)True
B)False
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Chapter 9: Service Supply Relationships
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Q1) All but one of the following is a managerial implication of bidirectional relationships:
A) vendor selection based on reputation
B) service supply relationships are hubs
C) service capacity analogous to inventory
D) quality variation of customer inputs
Q2) Travel booking is a service that falls in the ________ category of outsourcing business service.
A) facility support
B) employee development
C) facilitator
D) professional
Q3) Making knowledge available to customers at low cost is called ________.
A) embellishment
B) transfer
C) replacement
D) co-production
Q4) Information moves in both directions in the service chain for mobile workers.
A)True
B)False
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Chapter 10: Globalization of Services
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Q1) Network development is a consideration in the decision to plan a multinational service.
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) A franchise is a low risk investment, because the franchiser ensures success.
A)True
B)False
Q4) The famous Mayo clinic in Minneapolis is an example of a firm that employs a clustered service strategy.
A)True
B)False
Q5) One of the advantages of franchising is that a firm can grow without the cost of developing key managers.
A)True
B)False
Page 12
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Chapter 11: Managing Capacity and Demand
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Q1) The critical fractile is a cumulative probability of demand.
A)True
B)False
Q2) SABRE is the name for American Airlines' yield management system.
A)True
B)False
Q3) A restaurant that features special lunchtime combo meals is providing all of the following benefits, except: ________.
A) promotes off-peak demand
B) increases customer satisfaction
C) decreases service times
D) segment demand
Q4) Using part-time personnel at fast-food restaurants allows capacity to vary with demand.
A)True
B)False
Q5) Overbooking is a strategy that can be used to smooth demand.
A)True
B)False
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Chapter 12: Managing Waiting Lines
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Q1) The net result of waiting, apart from the boredom and frustration experienced by the consumer and the associated loss of goodwill, is the reduced utilization of capacity of the service.
A)True
B)False
Q2) Waiting is often seen as psychological punishment because the consumer is aware of the opportunity cost of waiting time and the resulting loss of earnings.
A)True
B)False
Q3) Balking is the term used to describe the phenomenon of customers leaving a queue that they have joined before service is rendered.
A)True
B)False
Q4) Which of the following is not an essential feature of a queuing system?
A) Calling population.
B) Queue configuration.
C) Service process.
D) Customer.
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Chapter 13: Capacity Planning and Queuing Models
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Q1) Excess capacity is required in a service system because variability in customer arrivals and service times creates idle capacity.
A)True
B)False
Q2) Pseudo-random numbers do not permit an exact replication of experimental conditions.
A)True B)False
Q3) Simulation allows time compression, doing in seconds what would otherwise require years of actual observation.
A)True
B)False
Q4) The average time a customer should expect to wait can be calculated using just the mean arrival rate and the mean service rate.
A)True B)False
Q5) In the M/M/1 model the calling population is finite.
A)True B)False
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Chapter 14: Forecasting Demand for Services
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Q1) 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
Q2) 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.
Q3) Both measures of forecast accuracy, MAD and MSE, give equal weight to all forecasting errors.
A)True
B)False
Q4) Both trend and seasonal adjustments can augment a single exponential-smoothing model.
A)True
B)False
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Chapter 15: Managing Service Inventory
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Q1) In the ABC inventory classification, C items can best be described as ________.
A) expensive
B) among the most numerous
C) having a high stockout cost
D) requiring close attention
Q2) Penalties for late delivery or nondelivery are part of shortage costs.
A)True
B)False
Q3) Patients waiting for heart transplants are an example of an inventory model that has a backorder cost of zero.
A)True
B)False
Q4) The central idea in the retail discounting model is that ________.
A) money can be made selling below cost
B) turnover of stock generates money for future investment
C) the percent mark-up over cost is discretionary
D) discount pricing generates sales
Q5) Radio Frequency Identification (RFID) is replacing bar coding.
A)True
B)False
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Chapter 16: Managing Service Projects
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Q1) Which of the following is not considered a source of unexpected project management problems?
A) Cost.
B) Time.
C) Economy.
D) Performance.
Q2) 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
Q3) Gantt charts fail to indicate the interdependence among project activities.
A)True
B)False
Q4) 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.
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