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Chapter15:BuildingaWorld-ClassServiceOrganization
QUESTIONBANKA.MultipleChoiceOuestionsGENERALCONTENTUndertheoperationsfunction,weconsidertheroleofoperations,servicedelivery(frontstage),backstageoperations,productivity,and.servicepersonnelintroductionofnewtechnologiesconduciveservicescapecross-functionalteamsThisfirmisatthebottomofthebarrelfromcustomerperspective.Loser.Nonentity.Professional.Leader.Whichofthefollowingisacomponentofserviceperformancediscussedunderthemarketingfunctions?Servicedelivery.Servicequality.Productivity.Workforce.Whichofthefollowingisacomponentofserviceperformancediscussedundertheoperationsfunction?Roleofmarketing.Competitiveappeal.Productivity.Customerprofile.Themarketingstrategiesofthisfirmareunsophisticated.Loser.Nonentity.Professional.Leader.Customerswithinthetargetsegmentsseekoutthesetypeoffirmsbasedontheirsustainedreputationforconsistentlymeetingexpectations.Loser.Nonentity.Professional.Leader.MarketingeffortsbyserviceleadersmakeextensiveuseofPositioning.CRM.Advertising.SalesPromotion.worksonbuildingandmaintainingaservice-orientedcultureandcreatinganoutstandingworkingenvironmentthatsimplifiesthetaskofattractingandretainingthebestpeople.HRMCRMMarketingOperationsResearchersfromtheUniversityofMichiganfoundthat,onanaverage,every%increaseincustomersatisfactionisassociatedwitha%increaseinafirm'sreturnoninvestment.1and2.42and53and41and5Bycreatingmorevalueforthecustomer,asmeasuredbyincreasedsatisfaction,thefirmcreatesmorevalueforitsemployeescompetitorsownersgeneralpublicAPPLICATIONCONTENT"Marketingissobasicthatitcannotbeconsideredaseparatefunction...^wastoldbya.SteveJobs.MichaelPorter.PeterDrucker.BillGates.OperationsspecialistsworkwithtechnologyleadersaroundtheworldtodevelopnewapplicationsthatwillcreateaServicescape.Competition.ServiceSystem.FirstMoverAdvantage.HRMworksonbuildingandmaintainingaservice-orientedcultureandcreatinganoutstandingWorkforce.CRM.ServiceAmbience.Environment.True/FalseOuestionsGENERALCONTENTResearchisusedtomeasurecustomersatisfactionandobtainideasforserviceenhancement.Thereisastrongrelationshipbetweencustomersatisfactionandshareholdervalue.ImplementingtheService-ProfitChainrequiresacompleteunderstandingofhowmarketing,accounting,andhumanresourcesworktogether.Controllingworkersisapracticemostlikelyseeninthe"servicelosers”categoryofserviceperformance.Inservicelosers,marketingonlyplaysatacticalrole.Consistentlymeetingorexceedingcustomerexpectationsacrossmultipledimensionsisapracticemostlikelyseeninthe"serviceleader“categoryofserviceperformance.Thecompanynamesofthe"serviceprofessionals^levelofserviceperformancearesynonymouswithserviceexcellence,andanabilitytodelightcustomers.Leadersareinadifferentleaguefromnonentitiesandhaveaclearmarketpositioningstrategy.Companieswhobasetheircompetitiveadvantageinaspecifictechnologicalprocessarelikelytosucceed.Serviceleadersarerecognizedfortheirinnovationineachfunctionalareaofmanagementaswellasfortheirsuperiorinternalcommunicationsandcoordination.APPLICATIONCONTENTIdeally,servicefirmsshouldbeorganizedinwaysthatenablethethreefunctionsofmarketing,operations,andhumanresourcestoworkcloselytogethersothattheorganizationcanberesponsivetoitsvariousstakeholdersandachievesuccessinitschosenmarkets.Servicesystemsareevolvingintoasciencewhereitisnecessarytohaveknowledgeexpertsthatcutacrossdifferentdisciplines.Organizationsthataredevotedtosatisfyingtheircurrentcustomersmaymissimportantshiftsinthemarketplaceandfindthemturningintohas-beens.Companieswhoworkforyearsbuildingaloyalworkforcewithastrongserviceethic
mayfindthatsuchaculturecaneasilybedestroyedthroughchangeinleadership.Seniorexecutivesdonotseequalityofemployeesasastrategicadvantage.ShortAnswerOuestionsGENERALCONTENTListthelinksintheService-ProfitChain.Whatarethefourlevelsofserviceperformancedescribedinthechapter?Whatisthemainreasonthatcustomerspatronizeservicelosers?Whatisthedominantoperationsmind-setforaservicenonentity?Describetheroleofhumanleaderstoachieveahigherlevelofserviceperformance.APPLICATIONCONTENTGiveexamplesofserviceleaders.ListoneofAmericanExpress'smaincompetitors.WhataretheviewsoncorporatefocusaccordingtoDonPeppersandMarthaRogers?D.EssayOuestionsGENERALCONTENTDiscussthelevelsofServicePerformanceAssessment.Explainthelinksbetweencustomersatisfactionandcorporateperformance.APPLICATIONCONTENTWhatarethepowerfulreasonsformovingtohighperformancelevels?DiscusshowFornellgotananswerfromACSIfindings.ANSWERKEYMULTIPLECHOICEQUESTIONSGENERALCONTENT:1-b,2-a,3-b,4-c,5-b,6-c,7-b,8-a,9-a,10-cAPPLICATIONCONTENT:11-c12-d,13-aTRUE/FALSEGENERALCONCEPT:1-T,2-T,3-F,4-T,5-T,6-F,7-F,8-F,9-F,10-TAPPLICATIONCONTENT:11-T,12-T,13-T,14-T,15-FSHORTANSWERQUESTIONSGENERALCONTENT:Customerloyaltydrivesprofitabilityandgrowth,customersatisfactiondrivesloyalty,valuedrivescustomersatisfaction,qualityandproductivitydrivesvalue,employeeloyaltydrivesservicequalityandproductivity,employeesatisfactiondrivesemployeeloyalty,internalqualitydrivesemployeesatisfaction,andtopmanagementleadershipunderliesinthechain'ssuccess.Servicelosers,servicenonentities,serviceprofessionals,andserviceleaders.Lackofviablealternatives.Achievingcostsavingsthroughstandardization.?Itrequireshumanleadersatalllevelsofanorganizationtotakeaservicefirmintherightdirection,settherightstrategicpriorities,andensuretherelevantstrategiesareimplementedthroughouttheorganization.APPLICATIONCONTENT:Starbucks,McKinsey.Visa.Themoreshort-termacompany'sfbcusbecomes,themorelikelyisthefirmtoengageinbehaviorthatactuallydestroysvalue.D.ESSAYQUESTIONSGENERALCONTENT:ServiceLosers:Firmsfallingunderthiscategoryareatthebottomofthebarrelfromcustomer,employeeandmanagerialperspectives,andgetfailinggradesinmarketing,operations,andHRM.ServiceNonentities:Nonentitiesaredominatedbyatraditionaloperationsmindset,typicallybasedonachievingcostsavingsthroughstandardization.ServiceProfessionals:Serviceprofessionalsareinadifferentleaguefromnonentitiesandhaveaclearmarketpositioningstrategy.ServiceLeaders:Theseorganizationsarebreakthroughserviceorganizations,world-classserviceleaders,andarethecremedelacremeoftheirrespectiveindustries.Thereisconvincingevidenceofstrategiclinksbetweenthelevelofcustomersatisfactionwithafirm'sserviceofferingsandoverallfirmperformance.ResearchersfromtheUniversityofMichiganfoundthat,onanaverage,every1%increaseincustomersatisfactionisassociatedwitha2.4%increaseinafirm'sreturnoninvestment(ROI).Analysisofcompanies9scoresontheACSIshowsthat,onanaverage,amongpubliclytradedfirms,a5%changeintheACSIscoreisassociatedwitha19%changeinthemarketvalueofcommonequity.APPLICATIONCONTENTAlmostallcompanieswanttobeserviceleaders.Wewantto
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