Practice Exam 1

A mission statement a. expresses the long-range vision and goals of the organization b. is a description of the routine operational activities c. describes the tactics used to implement enterprise d. indicates the long-term direction for the organization e. a and d only

which of the following is not a characteristic of service operations? a. Intangible output b. High customer contact c. High labor content d. Easy measurement of productivity e. Low uniformity of output

Which of the following is an attribute of core services? a. Quality b. Flexibility c. Speed d. Service cost e. All of the above

The type of operation typically performed by a job shop is a. project implementation b. unit or batch production c. mass production d. continuous processing e. all of the above

Which of the following may be significantly different between manufacturing and service operations? a. uniformity of output b. labor content of jobs c. customer contact d. quality control e. all of the above

Service operations provide products: a. as their primary output to the customer b. to facilitate the transfer of the service to the customer c. as substitutes for service d. when considering globalization e. for none of the above reasons

Compared to manufacturing, services usually have a. lower customer contact. b. higher standardization of output. c. less interaction with the customer. d. better quality control. e. none of the above.

Services are characterized by a. objective measures of productivity. b. easily defined attributes of quality. c. low barriers to the entry of competing firms. d. high inventory of services. e. none of the above

Unlike manufacturing, most problems of quality in services a. can be corrected easily and quickly. b. cannot be corrected until the next service encounter. c. never occur in a well designed service delivery system. d. do not affect profits. e. are always the fault of the customer

Services are the dominant economic activities a. in pre-industrial societies. b. in industrial societies. c. in post-industrial societies. d. independent of the degree of industrialization. e. for none of the above.

Characteristics of the service sector in a post-industrial society are a. increases in affluence and standard of living. b. higher levels of education attained. c. increases in the number of independent service professionals. d. higher technical knowledge and skills of workers. e. all of the above.

Which of the following is not characteristic of services? a. Intangibility. b. Inseparability. c. Invariability. d. Inventory. e. Both c and d.

Software documentation is a(n) a. a tangible output of a service. b. an intangible output of a service. c. a tangible service of a product. d. an intangible service of a product. e. none of the above

The variability in service encounters results from a. the customer's perception of the interaction with the service provider. b. the customer's perception of the results of the service encounter. c. the variability in the actual service delivery. d. the variability from customer to customer. e. all of the above.

Results and outcomes of successful service encounters are a. satisfied and delighted customers. b. customer loyalty and retention. c. gains of market share. d. increases in the customer base by word-of-mouth advertising. e. all of the above.

An essential element of any service encounter is a. the customer. b. the service provider. c. the delivery system. d. the "servicescape." e. all of the above.

When producing and delivering a service to be consumed by a large group of customers at the same time and in the same place, management a. does not have the responsibility for establishing the rules, expectations, and limits of a customer's behavior. b. should accept some responsibility for the behavior of a customer as it impacts on other customers. c. need not bother selecting the appropriate customers to participate in the group. d. does all of the above. e. does none of the above.

The most important asset of any business is its a. customers. b. facilities. c. equipment. d. staff and labor. e. none of the above.

The mission of an enterprise is implemented by a. strategies. b. mission statement. c. tactics. d. all of these. e. a and b only.

Customers are generally more loyal to service providers than product manufacturers because a. choice may be limited to only a few service providers. b. the costs of switching providers outweigh the benefits. c. there may be no choice of providers. d. of all of the above. e. of none of the above.

Management issues to consider in when locating services abroad are a. where to locate the service delivery facility. b. where to acquire supplies. c. where to acquire staffing and labor. d. transportation options. e. all of the above

Distinctive competencies in organizations generally relate to: a. price (cost). b. quality. c. time. d. flexibility. e. all of the above.

For service operations, marketing, finance, and operations are separate and distinct functions that work independently of each other.

One method of classifying production operations is by the degree of flexibility of production to accommodate customization.

Manufacturing operations involve a much higher degree of customer contact than service operations

Service operations never provide products

The products offered by a service provider are its primary output

Services are second to manufacturing in contributing to the GDP of the U.S.

A productive system acts on inputs to produce outputs through a series of processes

Services may be provided by a manufacturer to accompany its products.

Services are produced and consumed at the same time or at nearly the same time

In professional and contracted services, the service provider may be thought of as working for the customer.

One result of the variability of the service encounter is the difficulty to measure the productivity of the service provider.

The back room of a service operation must always be separate and independent of the front room.

External factors like advertising generally do not contribute to a customer's purchase decision.

Reference groups may influence a consumer's purchase decision.

After a purchase is made, a customer usually re-thinks the purchase, which may impact his future purchase decisions.

Generally, there is greater risk perceived in purchasing manufactured products than services.

Nearly all goods are accompanied by facilitating services.

Time can be a "value adder" for a service because timeliness and responsiveness to the customer is to their benefit.