Service Operations

Last update by chaves on 03/01/2010
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Describe the service system design matrix:

Answer:
The key dimension is the level of customer/server contact.1. Buffered core: customer has no direct contact.
2. Permeable core: customer has some contact
3. Reactive system: server is reacting to gathered info from customer, total contact

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  • chaves
    Answered in Service Operations
    What are the two other dimensions of the service system design matrix?
    Sale opportunity&Production efficiency:Ex: Mail contact, sales opportunity is going to be relatively low but you can send our thousands of mailings in one day.
    More interaction increases the sales opportunity but the production becomes less efficient.

  • chaves
    Answered in Service Operations
    Describe the waiting line process of many service systems:
    Balking --> Customer Arrival --> Reneging --> Customers Served --> Customer Depart
    Balking: when customers see the whole waiting area is full, they may leave because it's to crowded.

    Reneging: customer enters the system only to leave prior to receiving service because of waiting times.
  • chaves
    Answered in Service Operations
    What is the central problem in many service settings?
    The management of waiting time.
    Reducing waiting time costs money.

    It is easy to measure employee waiting time because they are on the clock, but much more difficult to measure customer waiting time (lost sales for instance).
  • chaves
    Answered in Service Operations
    Ways we can control line waiting times?
    We can measure the number of arrivals over particular times:average- not always useful because different times have different numbers of arrivals
    variable

    We can control arrivals:
    short lines- have employees capable of being a cashier and then doing other things when lines are short
    specific hours- having store open earlier for senior citizens is an example
    specials- off peak hour pricing, lower prices during slower periods, matinee movies

    Using faster or flower servers
  • chaves
    Answered in Service Operations
    Suggestions for managing waiting times?
    1. Segment the customers: having an express line at a grocery store2. Train the servers to be friendly: the more friendly they are, the shorter the waiting time will feel
    3. Inform customers of what to expect and be accurate
    4. Try to divert customer's attention: occupied time feels shorts, place magazines or TVs in waiting area
    5. Encourage customers to come during slack periods
  • chaves
    Answered in Service Operations
    Describe the Service Profit Chain:
    Internal Quality --> Employee satisfaction --> Retention&productivity--> Service value --> Customer satisfaction --> Profitability & growth
    1. We want to end up with profit and growth.
    2. Internal quality- the way we want to do things and making sure all involved know about it.
    3. This makes employees happy if they feel the organization produces quality products.
    4. Employees that are happy, makes them more productive.
    5. Increase productivity will increase growth of the company as a whole.
  • chaves
    Answered in Service Operations
    What does employee satisfaction lead directly to?
    Customer satisfaction.
  • chaves
    Answered in Service Operations
    Which employees have the most impact on the customer's impression of your service?
    Front line employees.
  • chaves
    Answered in Service Operations
    What are some ways to have front line employees to have a greater positive impact on customers?
    1.Motivational aspect: Ways to motivate without paying a higher wage?
    -longer breaks, more flexible schedule, discounts on products sold, feedback

    2. Training: increase the amount of social training employees receive.

    3. Internal marketing: selling our own employees on our business approach. Impress the employees with how we do business. Make sure they buy in.
  • chaves
    Answered in Service Operations
    Perceived Service Quality: Where are the three reasons customers look for a service?
    Word of mouth

    Personal needs

    Past experiences
  • chaves
    Answered in Service Operations
    Perceived Service Quality: What are the three dimensions of the service quality assessment?
    1. Expectations exceeded. Meaning Perceived Service was greater than Expected Service. Quality surprise.

    2. Expectations met. Expected Service and Perceived Service are equal. Satisfactory quality.

    3. Expectations not met. Perceived service was less than Expected Service. Unacceptable quality.