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Chapter 05 - Service Delivery System Design
5-1
1. Which of the following is NOT a general characteristic of a service?
Difficulty: Moderate
2. Which of the following are characteristics of a low-contact service delivery system?
Difficulty: Moderate
3. The degree of customer contact measures:
Difficulty: Easy
4. A service recovery process:
Difficulty: Moderate
Chapter 05 - Service Delivery System Design
5-2
5. A service guarantee:
Difficulty: Moderate
6. A good service guarantee:
Difficulty: Easy
7. Which of the following is NOT a correct statement?
Difficulty: Easy
8. Which of the following is NOT a significant difference between manufacturing and service
operations?
Difficulty: Easy
Chapter 05 - Service Delivery System Design
9. Which of the following is NOT a characteristic of service operations?
Difficulty: Moderate
10. Which of the following is NOT an element of the service-product bundle?
Difficulty: Moderate
11. ____ contact services require employees with technical skills and efficient processing
routines.
Difficulty: Moderate
12. An example of a service business/organization that has a high degree of customer contact,
high customization, and a high degree of labor intensity is:
Chapter 05 - Service Delivery System Design
13. Estate planning would be an example of a:
Difficulty: Moderate
14. The service-profit chain shows that _____ is the key to profitability.
Difficulty: Moderate
15. Which of the following is NOT included in internal service quality in the service profit
chain?
Difficulty: Easy
16. Which of the following is NOT an example of a high contact service?
Chapter 05 - Service Delivery System Design
17. The customer is a part of the service delivery process and may introduce inefficiencies
into the service delivery system.
Difficulty: Moderate
18. Implicit service is also known as tangible service.
Difficulty: Easy
19. Service guarantees are only for consumers outside the firm, and do not apply to internal
customer relationships within a firm.
Difficulty: Moderate
20. High-contact services are more likely to be front office operations and low-contact
services are more likely to be back office operations.
Difficulty: Easy
21. A small improvement in customer loyalty can substantially improve the profitability of a
service firm.
Chapter 05 - Service Delivery System Design
22. McDonald's uses what Levitt refers to as "the job shop type approach to service."
Difficulty: Easy
23. Co-routed services offer a larger amount of choices to customers than do customer-routed
services.
Difficulty: Easy
24. According to the service profit chain, employees are more likely to be satisfied when
management works to improve internal service quality.
Difficulty: Easy
25. 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.
Difficulty: Easy
26. Outsourcing is the export of service activities to other countries.
Chapter 05 - Service Delivery System Design
5-7
27. 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.
Difficulty: Moderate
28. Design a service produce 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?
Difficulty: Moderate
Chapter 05 - Service Delivery System Design
29. What are the five types of customer-induced variability that impact service operations,
according to Frei?
Difficulty: Moderate
30. What are the five key findings of the report by Duke University and Booz & Hamilton on
global offshoring of services?
Difficulty: Moderate
31. Describe the difference in service delivery system design for customer-routed services
versus provider-routed services.
Chapter 05 - Service Delivery System Design
5-9
(Refer to Figure 5.2 to augment this answer)
Difficulty: Moderate
32. Describe differences in sales opportunities and production efficiency for varying levels of
customer contact.
Difficulty: Moderate
