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Which of the following is not true of services?


A) The customer is the input.
B) The customer takes an active part in the service.
C) A service can be inventoried.
D) Production and consumption occur simultaneously.

E) None of the above
F) A) and D)

Correct Answer

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From an open-systems view, the output of a service system consists of satisfied customers.

A) True
B) False

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The major input into a large public hospital from a service point of view would be ________.


A) physicians' services
B) patients
C) nursing services
D) federal reimbursement (Medicare/Medicaid)

E) B) and C)
F) C) and D)

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The service experience defined as escapism requires the most commitment from the customer.

A) True
B) False

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Which one of the following is not a dimension of a business service experience?


A) Co-creation of value.
B) Problem solving.
C) Relationships.
D) Service capability.

E) A) and C)
F) None of the above

Correct Answer

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Which service offering is best described by the following service mix: a high degree of customer interaction and a high degree of labor intensity?


A) Public university.
B) Cruise ship.
C) Plumbing repair.
D) Chiropractor.

E) All of the above
F) A) and D)

Correct Answer

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An empty airline seat or hotel room not occupied best illustrates the characteristic of a service's ________.


A) time perishability
B) labor intensity
C) intangibility
D) simultaneous production and consumption

E) All of the above
F) B) and D)

Correct Answer

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A study of service systems must begin with the fundamental idea that the basic inputs are supporting facility, facilitating goods, labor, and capital. The output is the service offered.

A) True
B) False

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Capital decisions, technological advances, and managing demand are some managerial challenges for a ________.


A) service factory
B) service shop
C) mass service
D) professional service

E) All of the above
F) B) and D)

Correct Answer

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The concept of economies of scale is best described as ________.


A) the replacement of fixed costs with variable costs
B) selling a wider range of products
C) a synonym for economies of scope
D) the replacement of variable costs with fixed costs

E) B) and C)
F) A) and D)

Correct Answer

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