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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.