Chapter 05 – Service Delivery System Design
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31. Which of the following is NOT a finding of research on global offshoring of services?
32. Which of the following is NOT true regarding service recovery and guarantees?
33. Which of the following is NOT given as a source of customer-introduced variability to a
service delivery system?
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34. Which of the following statements is FALSE?
35. Which of the following is considered a back-office process?
36. Concerning grocery shopping experiences, which of the following best represents the
concept of the implicit service?
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40. The customer is a part of the service delivery process and may introduce inefficiencies
into the service delivery system.
41. Implicit service is also known as tangible service.
42. Service guarantees are only for consumers outside the firm, and do not apply to internal
customer relationships within a firm.
43. High-contact services are more likely to be front-office operations, and low-contact
services are more likely to be back-office operations.
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44. A small improvement in customer loyalty can substantially improve the profitability of a
service firm.
45. McDonald’s uses what Levitt refers to as “the job shop type approach to service.”
46. Co-routed services offer a larger amount of choices to customers than do customer-routed
services.
47. According to the service profit chain, employees are more likely to be satisfied when
management works to improve internal service quality.
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48. The major difference between the service delivery system matrix and the product-process
matrix is that service process design generally does not vary with customer volume.
49. Outsourcing is the export of service activities to other countries.
Essay Questions
Chapter 05 – Service Delivery System Design
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50. Identify some of the prominent differences between service operations and manufacturing
operations. Describe the challenges that are unique to service operations, and describe some
methods to overcome them.
LO: 5.1
Topic: Defining Service
Difficulty: 2 Moderate
AACSB: Reflective thinking, written communication
Bloom’s: Understand
Feedback: See below.
51. 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?
Chapter 05 – Service Delivery System Design
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LO: 5.2
Topic: Service Product Bundle
Difficulty: 2 Moderate
AACSB: Reflective thinking, written communication
Bloom’s: Synthesize
Feedback: See below.
The service product bundle could consist of these elements:
The tangible service or the explicit service: The flight entertainment system, comfortable
52. What are the five types of customer-induced variability that affect service operations,
according to Frei?
LO: 5.4
Topic: Customer Contact
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: See below.
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53. What are the key findings of the report by Duke University and Booz & Hamilton on
global offshoring of services?
LO: 5.6
Topic: Technology and Globalization of Services
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: See below.
54. Describe the difference in service delivery system design for customer-routed services
versus provider-routed services.
LO: 5.3
Topic: Service Delivery System Design
Difficulty: 2 Moderate
AACSB: Reflective thinking, written communication
Bloom’s: Understand
Feedback: See below.
In customer-routed services, the service delivery system consists of many process pathways.
Chapter 05 – Service Delivery System Design
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55. Describe differences in sales opportunities and production efficiency for varying levels of
customer contact.
LO: 5.4
Topic: Customer Contact
Difficulty: 2 Moderate
AACSB: Reflective thinking, written communication
Bloom’s: Understand
Feedback: See below.