1. Preproduction services of a value chain include warranty and claim services.
a. True
b. False
ANSWER: False
2. If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
a. True
b. False
ANSWER: True
3. A pair of running shoes is an example of a durable good.
a. True
b. False
ANSWER: False
4. The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.
a. True
b. False
ANSWER: True
5. Vehicles, furniture, and dishwashers are examples of nondurable goods.
a. True
b. False
ANSWER: False
6. The higher the customer participation in service processes, the more certainty a firm has with respect to service time and capacity.
a. True
b. False
ANSWER: False
7. A process invariably resides within a department or traditional management function.
a. True
b. False
ANSWER: False
8. Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in the value of the product.
a. True
b. False
ANSWER: True
9. A gracious welcome by an employee at the hotel check-in counter is an example of:
a. social sustainability.
b. predictive analytics.
c. a service blueprint.
d. a moment of truth.
ANSWER: d
10. A _____ is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information.
a. process
b. matrix
c. variant
d. task
ANSWER: a
11. In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a. core services
b. tertiary services
c. peripheral services
d. central services
ANSWER: c
12. Which of the following statements is true of goods-producing processes?
a. They use employees as a substitute for physical inventory.
b. They require extensive customer participation in service creation and delivery.
c. They require more flexibility and adaptation to special circumstances than service processes.
d. They are mechanistic and controllable because of the lack of customer participation.
ANSWER: d
13. Building a high-performing organization with a capable leadership and workforce is an example of _____.
a. economic sustainability
b. technological sustainability
c. political sustainability
d. environmental sustainability
ANSWER: a
14. Which of the following statements is true of service employees?
a. They require good human interaction skills and strong cross-selling skills.
b. They perform mechanized and rigid processes.
c. They have little or no interaction with customers.
d. They rely more on hard technology than soft technology to perform work.
ANSWER: a
15. Identify a difference between goods and services.
a. Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.
b. Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard technology.
c. The demand for goods cannot be predicted, whereas the demand for services can be easily predicted.
d. Customers directly participate in goods-producing activities, whereas customers do not participate in service-providing activities.
ANSWER: a
16. A__________is one that does not quickly wear out and typically lasts at least three years.
a. durable good
b. soft good
c. consumer packaged good
d. fast-moving consumer good
ANSWER: a
17. __________refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand.
a. True
b. False
ANSWER: False
2. If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
a. True
b. False
ANSWER: True
3. A pair of running shoes is an example of a durable good.
a. True
b. False
ANSWER: False
4. The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter design.
a. True
b. False
ANSWER: True
5. Vehicles, furniture, and dishwashers are examples of nondurable goods.
a. True
b. False
ANSWER: False
6. The higher the customer participation in service processes, the more certainty a firm has with respect to service time and capacity.
a. True
b. False
ANSWER: False
7. A process invariably resides within a department or traditional management function.
a. True
b. False
ANSWER: False
8. Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in the value of the product.
a. True
b. False
ANSWER: True
9. A gracious welcome by an employee at the hotel check-in counter is an example of:
a. social sustainability.
b. predictive analytics.
c. a service blueprint.
d. a moment of truth.
ANSWER: d
10. A _____ is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information.
a. process
b. matrix
c. variant
d. task
ANSWER: a
11. In the context of customer benefit packages,__________are those that are not essential to the primary service, but enhance it.
a. core services
b. tertiary services
c. peripheral services
d. central services
ANSWER: c
12. Which of the following statements is true of goods-producing processes?
a. They use employees as a substitute for physical inventory.
b. They require extensive customer participation in service creation and delivery.
c. They require more flexibility and adaptation to special circumstances than service processes.
d. They are mechanistic and controllable because of the lack of customer participation.
ANSWER: d
13. Building a high-performing organization with a capable leadership and workforce is an example of _____.
a. economic sustainability
b. technological sustainability
c. political sustainability
d. environmental sustainability
ANSWER: a
14. Which of the following statements is true of service employees?
a. They require good human interaction skills and strong cross-selling skills.
b. They perform mechanized and rigid processes.
c. They have little or no interaction with customers.
d. They rely more on hard technology than soft technology to perform work.
ANSWER: a
15. Identify a difference between goods and services.
a. Goods can be stored as physical inventory, whereas services cannot be stored as physical inventory.
b. Goods-producing firms rely solely on soft technology, whereas service-providing firms rely solely on hard technology.
c. The demand for goods cannot be predicted, whereas the demand for services can be easily predicted.
d. Customers directly participate in goods-producing activities, whereas customers do not participate in service-providing activities.
ANSWER: a
16. A__________is one that does not quickly wear out and typically lasts at least three years.
a. durable good
b. soft good
c. consumer packaged good
d. fast-moving consumer good
ANSWER: a
17. __________refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand.