Deck 3: New Service Development

Question 1

The "line of visibility" for a self-service process blueprint would be near the top of the diagram.

Answer 1

False

Question 2

Ideas for new service innovations often originate with customers.

Answer 2

True

Question 3

A "line of interaction" also can be found on a service blueprint.

Answer 3

True

Question 4

Limited discretion of service workers is a feature of the production-line approach to service design.

Question 5

JIT is an example of information driven technology innovation.

Question 6

Dry cleaning is an example of a service where isolation of the technical core would be inappropriate.

Question 7

Financial consulting is a service with low complexity and high divergence.

Question 8

The service encounter is a structural service design element.

Question 9

Service complexity can be measured by analyzing the number and intricacy of the steps required performing it.

Question 10

Investment banking is a financial service that has high complexity and high divergence.

Question 11

A major incentive for innovation in services is the ability to patent an idea.

Question 12

The "line of visibility" found in a service blueprint separates the front office operations from the back office operations.

Question 13

An important variable in the design process is the amount of customer participation in the delivery of the service.

Question 14

In the new service development process cycle, development follows design.

Question 15

Fast-food restaurants have adopted the production-line approach to service design.

Question 16

A service blueprint will not facilitate creative problem solving because it will be too rigid a definition of the service delivery system.

Question 17

The "project authorization" in the NSD cycle is part of the development step.

Question 18

Basic research typically is limited to federal, university, and nonprofit organizations.

Question 19

An increase in divergence can maximize the revenue that is generated by each customer.

Question 20

A factor that simplifies the design of service systems is the presence of the customer in the process.

Question 21

Which of the following is not an increase in service complexity?

A) A supermarket adds a florist shop.
B) A supper club opens for Sunday brunch.
C) A restaurant switches from "house salad" to a salad bar with 40 items.
D) A health spa hires a massage therapist.

Question 22

For companies offering customized services, which one of the following is true?

A) A comprehensive employee hiring process is very important.
B) Employee tasks are low on divergence.
C) A production-line approach to service is desirable.
D) Information processing plays a minor role.

Question 23

The most interactive element in the service blueprint of a fitness facility is the ________.

A) choice of music played
B) amount and type of exercise equipment
C) attention given to prospective members on their initial visit
D) cleanliness of the locker rooms

Question 24

Which of the following is not an incremental service innovation?

A) Service line extension.
B) Service improvements.
C) Style changes.
D) Service quality initiative.

Question 25

One advantage of reduced divergence is ________.

A) quicker response to market demands
B) greater efficiency
C) maximization of revenue per customer
D) the ability to command higher prices

Question 26

Blockchain is a trusted immutable digital ledger that deletes all but recent transactions.

Question 27

The new service development process cycle contains all but one of the following activities.

A) Engineering.
B) Analysis.
C) Development.
D) Full launch.

Question 28

Blockchain technology is based upon the cyber currency Bitcoin.

Question 29

The term "customer contact" refers to the ________.

A) handling of the product by the customer
B) influence the customer has on service design
C) amount of time spent waiting in the system
D) physical presence of the customer in the system

Question 30

Which one of the following is not an example of a high customer contact service?

A) Dry cleaning.
B) Banking.
C) School.
D) Hotel.

Question 31

Intellectual property is a creation of the mind.

Question 32

Which of the following is not a characteristic of a production-line approach to provide a service?

A) Division of labor.
B) Substitution of technology for people.
C) Standardization of the process and service provided.
D) High employee autonomy in task execution.

Question 33

Radical service innovations are driven mostly by technological innovations.

Question 34

Service processes can be classified according to each of the following, except the ________.

A) degree of customer satisfaction
B) degree of customer contact
C) object of the service activity defined as goods, information or people
D) degree of divergence ranging from standard to customized service

Question 35

Which of the following is not an advantage of reducing the divergence of a service process?

A) Improved productivity.
B) Uniformity.
C) Greater flexibility.
D) Reduced costs.

Question 36

A service blueprint can be used for all but one of the following.

A) Educate customers.
B) Identify areas of service improvement.
C) Maintain the level of service complexity and divergence.
D) Identify points where moments of truth will occur.

Question 37

A service blueprint with a large number of intricate steps is considered to have a ________.

A) high degree of divergence
B) low degree of complexity
C) high degree of complexity
D) low degree of divergence

Question 38

Intellectual property rights allow the owner to secure monopoly profits for a limited time.

Question 39

Readiness to embrace new technology is a measure of how fast new technology is adopted in the marketplace.

Question 40

A service with a low degree of divergence allows a manager to consider all but one of the following options.

A) Hire workers who have little technical skills.
B) Substitute automation for repetitive tasks.
C) Empower workers with decision-making authority.
D) Incorporate a "production-line" approach to service.

Question 41

Which of the following is not a service design element?

A) Capacity planning.
B) Managing capacity and demand.
C) Market research.
D) Information.

Question 42

________ is not one of the categories of intellectual property.

A) A trademark
B) A trade secret
C) Industrial design
D) Process layout

Question 43

In service design, to promote sales opportunity, ________ is preferred to ________.

A) phone contact; face-to-face customized
B) onsite technology; website
C) website; onsite technology
D) None of the above.

Question 44

Which of the following features does not illustrate a contribution that the customer can make in the delivery of services?

A) Substitution of customer labor for provider labor.
B) Smoothing service demand.
C) Service standardization.
D) None of the above.

Question 45

________ is not a source of technology-driven service innovation.

A) Power/energy
B) Material
C) Location
D) Facility design

Question 46

Only ________ exceeded the United States in percent of nonmanufacturing share of total business R&D expenditure in 2001.

A) Japan
B) Norway
C) Sweden
D) United Kingdom

Question 47

Internet ________ shared the highest customer satisfaction score with Express Delivery.

A) search engines
B) auctions
C) brokerage
D) retail

Question 48

Check processing is an example of a process with ________.

A) indirect customer contact and low divergence
B) direct customer contact and low divergence
C) no customer contact and high divergence
D) no customer contact and low divergence