1. The substitution of customer labor for service provider labor is a characteri
ID: 330128 • Letter: 1
Question
1.
The substitution of customer labor for service provider labor is a characteristic of which of the following approaches to service system design?
Production line approach
Customer contact approach
Customer as co-producer approach
Information empowerment approach
None of the above
2
Commission-based pay is common in which of the following types of service encounters?
Customer dominated
Back-office dominated
Contact personnel dominated
Service organization dominated
None of the above
3.
Services differ from manufacturing for all of the following reasons EXCEPT:
Heterogeneity
Time-perishable capacity
Simultaneous consumption and production
Ability to limit discretionary action of personnel
Customer provides significant inputs into the process
a.Production line approach
b.Customer contact approach
c.Customer as co-producer approach
d.Information empowerment approach
e.None of the above
Explanation / Answer
Answer 1: Option A - Production line approach
Explanation: By transferring the service provider labor to the customer, the firm is trying to get the customer involved in the production of service.
Answer 2: Option D - Service organization dominated
Explanation: In many service-oriented firms, employees are given monetary incentives (commission based pay) based on their service level and customer satisfaction.
Answer 3: Option E - Customer provides significant inputs into the process
Explanation: In both manufacturing and services industry, the customer provides significant inputs into the process.
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