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Design a service product bundle for a new airline company operating between Minneapolis-St.Paul International Airport (MSP)and Los Angeles International Airport (LAX).The route between MSP and LAX is extremely competitive with several major airlines providing daily service.How can your design help the new airline company dominate the existing competition?

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The service product bundle could consis...

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Researchers Schlesinger and Heskett propose that service organizations


A) value investment in employees as much or more than investment in technology.
B) link compensation and performance for employees at all levels.
C) use technology to support front-line employees, not to monitor or replace them.
D) do all of the above.

E) B) and C)
F) All of the above

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Service recovery refers to


A) the ability to quickly restore service following a service failure and provide compensation.
B) the reliance on cryptography to protect commercial activities.
C) security privacy and the protection of intellectual property.
D) the level of confidence users hold that service systems will operate as intended without unanticipated failures or problems.

E) B) and D)
F) A) and D)

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Which of the following is NOT a general characteristic of a service?


A) Production and consumption are simultaneous.
B) The service can be transported.
C) No resale is possible.
D) The service cannot be stored.

E) A) and D)
F) C) and D)

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A visit to Disney World would be classified as which type of service?


A) A provider-routed service
B) A co-routed service
C) A customer-routed service
D) None of the above

E) B) and C)
F) None of the above

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Outsourcing is the export of service activities to other countries.

A) True
B) False

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An example of an implicit service is


A) the safe trip provided by Southwest Airlines to its passengers.
B) courteous service provided by a National Rental Car agent.
C) the state-of-the-art aircraft utilized by Delta Airlines.
D) all of the above.

E) None of the above
F) B) and C)

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Concerning grocery shopping experiences,which of the following best represents the concept of the implicit service?


A) The superior selection available from a large grocery store.
B) Reduced levels of antibiotics used in the production of organic beef.
C) Grocery carts designed to look like race cars to appeal to children.
D) A sense of community when buying from a local co-op.

E) None of the above
F) C) and D)

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Which of the following is correct concerning high-contact services?


A) To increase the efficiency of high-contact services, the organization should look to reduce the amount of customer-introduced uncertainty by limiting customization.
B) It is easier to smooth the peaks and valleys of demand for high-contact services than for low-contact services.
C) High-contact services are generally less variable and easier to price competitively.
D) All of the above.

E) C) and D)
F) B) and D)

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There are key differences between a service and a product.Which of the following is true regarding these differences?


A) Low-contact services as well as manufacturing require employees who are flexible, personable, and willing to work with the customer.
B) The degree of customer contact is usually higher for manufacturing organizations than for service organizations.
C) There is a greater degree of customer participation in the manufacture and sale of goods than there is in the sale of services.
D) Service firms commonly require employees that are more flexible, personable, and willing to work with the customer than is true at manufacturing firms.

E) A) and B)
F) A) and C)

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Which of the following best completes this sentence? A service guarantee


A) is useful as an advertising ploy to attract additional customers.
B) is an honest assurance that the customer will be satisfied.
C) needs to contain a variety of stipulations and conditions to be cost effective.
D) is all of the above.

E) A) and D)
F) None of the above

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Which of the following is NOT a characteristic of service operations?


A) Intangible output.
B) The buyer can perform part of the production.
C) The product cannot be stored.
D) Ownership is transferred at time of purchase.

E) None of the above
F) A) and B)

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According to the service matrix proposed by Collier and Meyer,ATM services are categorized as


A) customer-routed services.
B) co-routed services.
C) provider-routed services.
D) none of the above.

E) B) and D)
F) All of the above

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