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Indicate whether the statement is true or false.
1. An Energy Star dishwasher results in increased release of carbon dioxide to the air.
a. True
b. False
2. Customer contact is measured by the percentage of time the customer must be in the service-delivery system relative to
the total time it takes to provide the service.
a. True
b. False
3. Location is an important competitive priority in a service business.
a. True
b. False
4. In the context of service-encounter design, free trips and extra vacation days is not considered a form of recognition.
a. True
b. False
5. Service-delivery systems with high customer contact can be treated much like an assembly line.
a. True
b. False
6. Ambient conditions are the explicit signals that communicate an image about a firm and include examples such as
mission statements and diplomas on a wall.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
7. Which of the following is one of the principal elements of service-encounter design?
a. Customer benefit package design
b. Market introduction
c. Recognition and reward
d. Quality function deployment
8. In the context of the sevicescape, in the service-delivery system design, which of the following facilities is a part of the
spatial layout and functionality?
a. Room temperature
b. Company logo on company vehicles
c. Building facade
d. Free soft drinks instead of vending machines
9. In the context of quality function deployment, one of the first steps to build the House of Quality is to:
a. advertise, market, and offer the product to customers.
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b. evaluate the marketplace.
c. identify the technical features of the design of the product.
d. conduct prototype testing.
10. Which of the following is true of Energy Star-certified products?
a. They cannot be salvaged for reuse.
b. They exert less demand on electrical power plants.
c. They have a higher carbon footprint in the environment.
d. They cannot be repaired easily since they use advanced technology.
11. _____ is the process by which a model (real or simulated) is constructed to assess a product’s performance under
actual operating conditions, as well as consumer reactions to the model.
a. Quality function deployment
b. Value engineering
c. Detailed product design
d. Prototype testing
12. Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges
in its office. Which of the following dimensions of servicescape is the firm addressing?
a. Ambient conditions
b. Market deployment and evaluation
c. Spatial layout and functionality
d. Signs, symbols, and artifacts
13. In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of:
a. Design for Environment
b. Design for Reliability
c. Design for Manufacturability
d. Design for Accuracy
14. David runs a bed and breakfast in the outskirts of a big city. His employees are allowed to spend up to $200 to resolve
any customer complaints, with no questions asked. This is an example of:
a. service guarantee.
b. assurance.
c. flexibility.
d. empowerment.
15. Which of the following is true of the House of Quality?
a. It contains supplier estimations.
b. It fails to incorporate customer requirements.
c. It contains key selling points and features.
d. It does not incorporate competitive evaluations.
16. In the context of service-delivery system design, which of the following establishments depends on good location
decisions?
a. A health club
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b. An ice-cream factory
c. An insurance claim processing center
d. A distribution center
17. Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to
make on-the-spot decisions to resolve any customer complaints and issues. This is a form of _____.
a. service guarantee
b. assurance
c. flexibility
d. empowerment
18. A critical part has a manufacturing specification (in cm) of 0.325 ± 0.010. Based on this information, if this
measurement is larger than 0.335 or smaller than 0.315, the product fails at a cost of $120. Determine the Taguchi loss
function in the given scenario.
a. L(x) = 1,200,000 (x – 0.335) 2
b. L(x) = 1,200,000 (x – 0.325) 2
c. L(x) = 1,200 (x – 0.315) 2
d. L(x) = 1,200 (x – 0.010) 2
19. _____ should begin immediately after a service upset occurs and when the customer is visibly upset.
a. Service guarantee
b. Servicescape design
c. Service recovery
d. Service process design
20. The _____ provides the behavioral setting where service encounters take place.
a. facility location
b. service process and job design
c. servicescape
d. value chain model
21. The _____ of the House of Quality shows the interrelationships between any pair of technical features.
a. bottom
b. left
c. center
d. roof
22. Prior to designing and configuring a customer benefit package, a firm should understand and develop its:
a. goods, services, and process design in detail.
b. processes and service encounter design.
c. strategic mission and competitive priorities.
d. marketplace deployment techniques.
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23. The specifications for a refrigerator part (in cm) are 5.00 ± 0.10, and the Taguchi loss function is estimated to be L(x)
= 5,500 (x – T) 2. Determine the estimated loss per part if the quality characteristic (i.e., actual process performance)
under study takes on a value of 4.91 cm.
a. More than $30 but less than or equal to $50
b. More than $50 but less than or equal to $70
c. More than $70 but less than or equal to $90
d. More than $90
24. For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation
called the _____.
a. nominal
b. buffer
c. tolerance
d. leeway
25. In the context of quality function deployment, building a House of Quality begins by identifying the:
a. competitive priorities.
b. voice of the customer.
c. marketplace dynamics.
d. service provider requirements.
26. _____ design focuses on the interaction, directly or indirectly, between the service provider(s) and the customer.
a. Service process
b. Service-encounter
c. Lean servicescape
d. Customer benefit package
27. The bottom of a House of Quality identifies the technical features that:
a. are interrelated to each other.
b. have the highest competitive performance.
c. are the weakest selling points.
d. have the strongest relationships to customer requirements.
28. Which of the following requirements is an example of customer-contact requirements?
a. Convenient facility location
b. Ambient conditions
c. Cross-selling
d. Prominently displayed company logo
29. Which of the following elements is included in the service-delivery system design?
a. Prototype testing
b. Service guarantees and recovery
c. Company mission
d. Facility location and layout
30. In the context of service-encounter design, high-contact systems would most commonly be found in:
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a. distribution systems.
b. process designs.
c. front office operations.
d. construction services.
31. For manufactured goods, design blueprints specify a nominal dimension which is the:
a. dimension with the least manufacturing cost.
b. dimension with the greatest variation from the target dimension.
c. range of permissible variation in the target dimension of the goods.
d. specified target dimension of the goods.
32. Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed
goods, services, and process design:
a. is more conceptual in nature.
b. is more strategic in nature.
c. focuses on implementation.
d. focuses on the evaluation of quality.
33. In the context of the servicescape, in the service-delivery system design, building footprints are examples of:
a. ambient conditions.
b. artifacts.
c. spatial layout and functionality.
d. signs and symbols.
34. _____ is the explicit consideration of ecological concerns during the design of goods, services, and processes, and
includes such practices as designing for recycling and disassembly.
a. Quality function deployment
b. Service-encounter design
c. Environmental intervention
d. Design for Environment
35. A quality characteristic has a specification (in cm) of 0.40 ± 0.03. If the value of the quality characteristic exceeds
0.40 by the tolerance of 0.030 on either side, the product will require a $180.00 repair. In the given scenario, the Taguchi
loss function is correctly represented by which of the following equations?
a. L(x) = 200 (x − 0.03) 2
b. L(x) = 2,000 (x − 0.43) 2
c. L(x) = 200,00 (x − 0.37) 2
d. L(x) = 200,000 (x − 0.40) 2
36. In the context of service-encounter design, giving discounts to employees is a form of _____.
a. recognition
b. guarantee
c. assurance
d. compensation
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37. Linda is the owner of Souvenirstop, a chain of souvenir shops. One of the shops is located at the City Centre Mall.
Though the shop is popular, she does not get many tourists in the City Centre Mall branch. She is considering opening
another store near a popular tourist attraction to attract more tourists to her shop. Which of the following elements of
service-delivery system design is Linda addressing?
a. The servicescape
b. Service process design
c. Facility location and layout
d. The voice of the customer
38. The critical differences between the designs of goods and services lie in the:
a. detailed product and process design phases.
b. research and analysis phases.
c. customer benefit package design and configuration phases.
d. market introduction and deployment phases.
39. At which of the following stages are the perceptions of a firm and its goods and services created?
a. The process design stage
b. The service-encounter design stage
c. The customer benefit package configuration stage
d. The market introduction and evaluation stage
40. The specifications for an automobile part (in inches) are 10.00 ± 0.15, and the Taguchi loss function is estimated to be
L(x) = 9,300 (x – T)2. Determine the estimated loss per part if the concerned quality feature has an actual value of 10.20
inches.
a. $37200
b. $93000
c. $372
d. $93
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Answer Key
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