CHAPTERS 15
MULTIPLE CHOICE QUESTIONS
1. Service firms often find themselves in a three-cornered fight between:
a. engineering, production, and accounting
b. marketing, finance, and human resources
c. operations, accounting, and marketing
d. human resources, marketing and operations
e. production, finance, and accounting
2. Services that occur without interruption, confusion, or hassle to the customer is
called:
a. seamless service
b. service audit
c. functional service
d. departmental service
e. services marketing
3. __________ is a firm’s view toward planning its operations according to market
needs.
a. marketing orientation
b. marketing functions
c. marketing department
d. marketing forecast
e. marketing tasks
4. __________ the belief that the function of something rather than the experience
it creates should determine its design.
a. marketing orientation
b. marketing functions
c. departmentalization
d. functionalism
e. operation orientation
5. The department within the firm that traditionally acts as an advocate for the
consumer is:
a. finance
b. marketing
c. accounting
d. information systems
e. management
6. The act of dividing an organization into departments that focus on their own set
of activities is called:
a. marketing orientation
b. marketing functions
c. departmentalization
d. functionalism
e. operation orientation
7. The departmental and functional seams together in order to help provide flawless
service are:
a. marketing logic
b. finance logic
c. service logic
d. operations logic
e. human resources logic
8. Within the industrial management model, firms focus on __________.
a. operations and management
b. customers satisfaction and sustainable profits
c. customer expectations
d. revenues and operating costs
e. marketing and production
9. The new organizational model that focus on the components of the firm that
facilitate the firm’s service delivery system is referred to as:
a. customer perceptions model
b. market-focused management model
c. industrial management model
d. market competencies model
e. attributes-focused management model
10. The Services Triangle framework visually depicts how many key relationships
that comprise the market-focused management approach?
a. 2
b. 3
c. 4
d. 5
e. 6
11. Which of the following is NOT a key relationship that comprise the market-
focused management approach?
a. inconsistency of the service strategy with the systems
b. firm’s service strategy must be communicated to its customers
c. firm’s service strategy needs to be communicated to the firm’s employees
d. the customer/service provider interaction
e. the impact of organizational systems upon the customer’s service experience
12. Which informal approach helps firms assess their current culture?
a. direct questioning
b. attitude check
c. observational and indirect questioning
d. service audit
e. none of the above
13. Which of the following is NOT an informal approach to provide keen insights into
the values and beliefs of the organization?
a. conduct culture interviews
b. observe what is missing
c. observe objects and artifacts
d. observe current culture as an impartial observer
e. conduct direct question surveys
14. __________ stresses cost containment and cost reduction through mass
production
a. marketing logic
b. finance logic
c. accounting logic
d. operations logic
e. human resources logic
15. Each department within an organization is driven by its own internal logic.
Which of the following statements most accurately reflects operations logic?
a. cost reduction can be obtained through mass production
b. “families” of personnel should reinforce one another on the job
c. personnel should be able to break organization rules in the context of serving
the customer
d. customers should be provided with options that enable them to meet their
individual needs
e. recruiting and training are essential in developing existing personnel
16. __________ stresses providing customers with options that better enable the
service offering to meet individual customer needs.
a. marketing logic
b. finance logic
c. accounting logic
d. operations logic
e. human resources logic
17. Each department within an organization is driven by its own internal logic.
Which of the following statements most accurately reflects a marketing logic?
a. cost reduction can be obtained through mass production
b. “families” of personnel should reinforce one another on the job
c. personnel should be able to break organization rules in the context of serving
the customer
d. customers should be provided with options that enable them to meet their
individual needs
e. recruiting and training are essential in developing existing personnel
18. __________ stresses recruiting quality personnel and developing training
programs that enhance the performance of existing personnel.
a. marketing logic
b. finance logic
c. accounting logic
d. operations logic
e. human resources logic
19. Each department within an organization is driven by it’ own internal logic.
Which of the following statements most accurately reflects human resources
logic?
a. cost reduction can be obtained through mass production
b. families of customers should reinforce one another throughout the service
encounter
c. personnel should be able to break organization rules in the context of serving
the customer
d. customers should be provided with options that enable them to meet their
individual needs
e. recruiting and training are essential in developing existing personnel
20. The use of interfunctional task forces and interfunctional transfers are an attempt
to change the organization’s culture through:
a. systems
b. structure
c. people
d. rewards
e. culture-change initiatives
21. Typical approaches to changing the organizational culture by changing the
structure of the organization include:
a. “putting the customer first”
b. changing the orientation
c. interfunctional task forces and transfers
d. bring in outsiders to change the culture
e. revamping the firm’s reward systems
22. In the effort to create a more customer-focused organization, one of the
approaches to changing the culture through structure is:
a. utilizing marketing department as a change agent
b. changing the orientation
c. restructuring the firm around the customer experience
d. bring in outsiders to change the culture
e. revamping the firm’s reward systems
23. Revamping the firm’s evaluation and promotion procedures are attempts
to change the organization’s culture through:
a. systems
b. structure
c. people
d. rewards
e. culture-change initiatives
24. If XYZ company hires a new manager from outside the firm as opposed to
promoting someone from within, the company may be attempting to change
the culture of the organization through:
a. systems
b. structure
c. people
d. rewards
e. culture-change initiatives
25. Programs such as “putting the customer first” and “change the way you
work” are attempts to change the organization’s culture through:
a. systems
b. structure
c. people
d. culture change initiatives
e. mergers
26. The culture change program that teaches personnel that essentially “the
customer is king” is called:
a. “change the way we work”
b. “orientation change”
c. ‘change the way you work”
d. “customers are your customers”
e. “putting the customer first”
27. The culture change program that teaches “families” of personnel to reinforce
one another on the job is called:
a. “change the way we work”
b. “orientation change”
c. ‘change the way you work”
d. “customers are your customers”
e. “putting the customer first”
28. The culture change program that allows personnel to break the rules in the
context of serving their customers is called:
a. “change the way we work”
b. “orientation change”
c. ‘change the way you work”
d. “customers are your customers”
e. “putting the customer first”
29. The culture change program that teaches personnel to flowchart their activities
and to re-engineer the process to better serve their customers is called:
a. “change the way we work”
b. “orientation change”
c. ‘change the way you work”
d. “customers are your customers”
e. “putting the customer first”
30. The cultural change initiative, “change the way we work” is most directly related
to:
a. empowerment
b. enfranchisement
c. re-engineering
d. recruitment
e. training
31. The series of questions that force the firm to think about what drives its profits
is called:
a. blueprinting
b. flowcharting
c. process flows
d. service audit
e. service-profit chain
32. Which one of the following service audit questions does not belong within the
profit and growth component?
a. How does the firm define customer loyalty?
b. Does the firm set employee retention goals?
c. Does the firm measure profits from referrals?
d. What proportion of funds are spent on customer retention as opposed to
attracting new customers?
e. When customers do not return, do we know why?
33. Which of the following is not a major component of the service audit?
a. profit and growth audit
b. employee productivity audit
c. customer satisfaction audit
d. Servuction system audit
e. leadership audit
34. Which of the following service audit question does belong within the employee
productivity component?
a. How does the firm define customer loyalty?
b. Does the firm set employee retention goals?
c. Does the firm measure profits from referrals?
d. How does the firm measure employee productivity?
e. When customers do not return, do we know why?
35. Which of the following service audit question does not belong within the external
service value component?
a. How does the firm measure value?
b. How is information on customer perceptions of the firm’s value shared within the
company?
c. Does the firm actively measure the gap between customer expectations and
perceptions of service delivered?
d. Is service recovery an active strategy discussed among management and
employees?
e. Are employee aware of internal and external customers?
SHORT-ANSWER ESSAYS
36. Discuss the concept of seamlessness.
37. Briefly discuss the six key relationships depicted in the “service triangle.”
38. Discuss the importance of internal logics.
39. Discuss the importance of organizational culture
40. Explain the relevance of interfunctional task forces and interfunctional
transfers as they relate to corporate culture.
41. Discuss the major objectives of a service audit.