QSO 310 QSO310 MODULE 1 ASSIGNMENT ANSWERS - SNHU

QSO 310 QSO310 MODULE 1 ASSIGNMENT ANSWERS - SNHU

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QSO 310 Module 1 Assignment Answers

Chapter 1: The Service Economy

Multiple Choice Questions (The Service Economy)

Select the best answer. The quiz includes two bonus questions.

1.  Which one of the following, according to Daniel Bell, is not true of pre-industrial societies?

a. Agriculture, mining, and fishing

b. Low productivity

c. Democratic structure 

d. Low technology 

2.  Division of labor is the central concept of:

a. Industrial societies

b. Pre-industrial societies 

c. Agrarian societies 

d. Post-industrial societies 

3.  Which of the following is not a feature of the new experience economy?

a. The experience is memorable. 

b. The experience is customized. 

c. The customer is treated as a guest.

d. The experience is staged.

4.  The key technology of a post-industrial society is:

a. Machinery

b. Energy

c. Information

d. Intellectual capital of the workers

5.  Which of the following is projected to have the greatest percentage change in U.S. employment between 2008–2018?

a. Production

b. Professional and related

c. Sales and related

d. Office and administrative support

6.  The concept of economies of scope is best described as:

a. A synonym for economics of scale

b. The use of brand extensions

c. Using existing channels of distribution to introduce a new product

d. Extending existing distribution channels to reach new customers

7.  Which of the following is not included in the stages of economic activity?

a. Quarternary

b. Quinary

c. Binary

d. Secondary

8.​The realms of an experience include all but one of the following?

a. Entertainment

b. Education

c. Estheticism

d. Elation

9.​Which of the following is an example of a business service (B2B)?

a. Communications

b. Auditing

c. Retailing

d. Leasing

10.​A bureaucratic structure is a feature of which society?

a. Post-industrial 

b. Pre-industrial

c. Industrial

d. None of the above

11.​Service innovation is driven by which factor listed below?

a. New product technology

b. Customer needs

c. Observant contact employee

d. All of the above

12.  The service package consists of five features.  Which one of the features listed below is not included in the package?

a. Explicit services

b. Supporting facility

c. Information

d. Cost of service

13.  Which of the following is not true of services?

a. The customer is the input.

b. The customer takes an active part in the service.

c. A service can be inventoried.

d. Production and consumption occur simultaneously.

14.  The service process matrix classification consists of four categories of services.  Which one of the four features listed below is not included in this classification?

a. Service factory

b. Service shop

c. Public service

d. Professional service

15.  Which service offering is best described by the following service mix: a high degree of customer interaction and a high degree of labor intensity?

a. Public university

b. Cruise ship

c. Plumbing repair 

d. Chiropractor

16.  In an experience economy the method of supply is:

a. Delivered on demand

b. Stored in bulk

c. Revealed over time

d. Inventoried

17.  An empty airline seat or hotel room not occupied best illustrates the characteristic of a service's:

a. Time perishability

b. Labor intensity

c. Intangibility

d. Simultaneous production and consumption

18.  The low interaction in capital decisions, technological advances, and managing demand are some managerial challenges for a:

a. Service factory 

b. Service shop

c. Mass service

d. Professional service

19.  Which among the following strategies is used by fast-food restaurants to reduce costs?

a. Increasing advertising via the internet

b. Allowing the customer to play an active part in the service process  

c. Increasing prices

d. Increasing menu items to cater to varying tastes 

20.  Gaining employee loyalty is a managerial challenge that would most likely be associated with which type of industry?

a. Retailing

b. Hospitals

c. Airlines

d. Consulting  

21.  The presence of a friendly desk clerk in a budget hotel is an example of which of the four features of a service package?

a. Supporting facility

b. Facilitating goods

c. Explicit services

d. Implicit services  

22.  Distinctive characteristics of service operations include which of the following?

a. Customer participation and perishability

b. Intangibility and heterogeneity

c. Both (a) and (b) 

d. None of the above

Answer the following questions. Expand the space as necessary. 

1. Describe Xpresso Lube's service package (200–400 words).

2. How are the distinctive characteristics of a service operation illustrated by Xpresso Lube? (200–400 words)

3. What elements of Xpresso Lube’s location contribute to its success? (100–200 words)

4. Given the example of Xpresso Lube, what other services could be combined to “add value” for the customer? (100–200 words)

QSO 310 QSO310 MODULE 6 ASSIGNMENT ANSWERS - SNHU

QSO 310 QSO310 MODULE 6 ASSIGNMENT ANSWERS - SNHU

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QSO 310 Module 6 Assignment Answers

Chapter 8: Service Facility Location

True/False (T/F)

1. Public and private sector are under the category of Geographic representation for service facility location

2. Locating a public service facility in an area that contains a large number of individuals for whom distance would be a strong barrier will maximize facility utilization.

3. Saturation clustering occurs when service firms locate their business near their competitors because they expect a high level of customer traffic.

4. The location set-covering problem locates facilities to minimize the distance that the most distant customer would travel to reach a facility (known as maximal service distance).

5. The absence of quantifiable criteria considerably diminishes the importance of facility location methods in the public sector.

6. Cross-median is an approach to the location of a single facility using the metropolitan metric to maximize the total distance traveled.

7. A gravity model is used to estimate consumer cost.

8. The Euclidian metric is used for locating a facility in an urban area.

9. The median has the property of minimizing the sum of absolute deviations from it.

10. Locating and getting to a website is another form of distance.

Multiple Choice Questions

Select the best answer. 

1.  A strategy that may be used by urban retailers to locate multiple sites close to each other in high-density areas despite the potential for cannibalization is called:

a. Competitive clustering

b. Marketing intermediaries

c. Saturation marketing

d. Saturation clustering

2.  The following marketing phenomenon occurs when there exists within two city blocks the following hamburger outlets: McDonald's, Burger King, Sonic, and Wendy’s

a. Competitive clustering

b. Customized marketing

c. Saturation marketing

d. Relationship marketing

3.  A cruise line has the option of locating its dock in Miami or Pensacola because both cities have adequate port facilities. Which of the following considerations would seem to be the most germane?

a. Adequate parking 

b. Location of competitors

c. Freeway access to the port 

d. City served by major airport

4.  Which of the following items does the Huff retail location model not consider?

a. The degree of accessibility

b. Travel time from the customer's location to the facility

c. Facility size

d. A parameter reflecting the importance of travel time by customers

5.  A strategy of locating sites in a number of states (or countries) can reduce the overall risk of financial crisis from a regional economic downturn. This strategic approach to facility location is known as:

a. Competitive positioning

b. Flexibility

c. Demand management

d. Focus

6.  In the decision to locate a public health clinic, which one of the following criteria is not appropriate?

a. Maximize utilization

b. Minimize distance per capita

c. Minimize distance per visit

d. Minimize cost

7.  Car dealerships are often located near one another along a “motor mile” to allow customers to make comparisons. This location strategy is known as

a. Competitive clustering

b. Saturation marketing

c. Marketing intermediaries

d. Competitive positioning

8. Site selection considerations include all but one of the following:

a. Access

b. Environment

c. Government

d. Weather 

9.  The disadvantage of saturation marketing lies in which of the following areas?

a. Increased advertising costs

b. Cannibalization 

c. Increased requirement for supervision

d. Reduction in customer awareness

10.  Cross-median approach is used for _________ location.

a. Single facility 

b. Multiple facility

c. Both (a) and (b)

d. None of the above

Problem 8-12 (Set Covering Method)

QSO 310 QSO310 MODULE 7 ASSIGNMENT ANSWERS - SNHU

QSO 310 QSO310 MODULE 7 ASSIGNMENT ANSWERS - SNHU

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QSO 310 Module 7 Assignment Answers

Managing Capacity and Demand

True/False (T/F)

1. The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy.

2. The strategy of segmenting demand to reduce variation makes use of the fact that demand for a service seldom is derived from a homogeneous source.

3. Yield management is the process of allocating a fixed perishable resource to several market segments in the most profitable manner.

4. Work shift scheduling attempts to deal with the service utilization problem by controlling the demand for the service and partitioning it so that utilization is uniform.

5. When peaks of activity are persistent and predictable such as meal times for restaurants, off-duty personnel can be placed on standby to supplement regular employees.

6. Time perishability of service capacity is a challenge for service managers because customers demand immediate service.

7. Yield management is a strategy that manages both demand and capacity.

8. Expected loss for an overbooking reservation strategy would be calculated by multiplying the loss for each no-show possibility and its probability of occurrence, and then adding the products.

9. Using part-time personnel at fast-food restaurants allows capacity to vary with demand.

10. Some restaurants use tables and chairs instead of booths to create more flexible capacity.

Multiple Choice Questions

Select the best answer. 

1.  For the strategy of segmenting demand, how is demand often grouped?

a. By homogeneous source

b. By variability

c. By random arrivals and planned arrivals

d. By capacity management strategy

2.  The purpose of differential pricing is to

a. Make peak period usage unattractive

b. Make off-peak usage attractive

c. Charge customers according to their ability to pay

d. Adjust capacity to demand

3.  A good overbooking strategy should

a. Minimize the expected opportunity cost of idle service capacity

b. Balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations

c. Minimize the expected cost of turning away reservations

d. None of the above; services should try to avoid overbooking

4.  Bars that offer happy hours in the afternoon are using the strategy of

a. Creating adjustable capacity

b. Developing complementary services

c. Increasing customer participation

d. Promoting off-peak demand

5.  Which one of the following is not a characteristic of yield management?

a. Capacity is relatively fixed.

b. There is one homogeneous customer class.

c. The service is considered a perishable inventory.

d. Demand fluctuates yet is somewhat predictable.

6.  Faced with variable demand and a perishable capacity, a service manager can smooth demand by:

a. Using part-time help during peak hours

b. Scheduling work-shifts to vary workforce needs according to demand

c. Increasing the customer self-service content of the service

d. Using reservations and appointments

7.  A health club offering a reduced rate membership for students to work out before 4:00 p.m. on weekdays is:

a. Promoting off-peak demand

b. Partitioning demand

c. Using yield management

d. Offering price incentives

8.  Several approaches to demand management exist, but only _______ seek(s) to maximize revenue.

a. Promoting off-peak demand

b. Reservation systems

c. Offering price incentives

d. Yield management

9.  Which of the following is not a strategy for managing capacity?

a. Developing complementary services

b. Using part-time employees

c. Forecasting demand

d. Scheduling shifts

10.  Which of the following is not a characteristic of firms using yield management?

a. ability to segment their market

b. perishable inventory

c. variable capacity

d. product sold in advance

Problem 11-5 (Overbooking)

An airline serving Denver's International Airport and Steamboat Springs, Colorado, is considering overbooking its flights to avoid flying with empty seats. For example, the ticket agent is thinking of taking seven reservations for an airplane that has only six seats. During the past month, the no-show experience has been:

No-shows	0	1	2	3	4
Percentage	30	25	20	15	10

The operating costs associated with each flight are pilot, $150; first officer, $100; fuel, $30; and landing fee, $20.

What would be your recommendation for overbooking if a one-way ticket sells for $80 and the cost of not honoring a reservation is a free lift ticket worth $50 plus a seat on the next flight?

Develop a table similar to Table 11-7 and determine the best overbooking level based on expected cost (loss) approach. If you used Excel, copy and paste your spreadsheet here.

Problem 11-7 (Employee Work Week Scheduling)

The sheriff has been asked by the county commissioners to increase weekend patrols in the lake region during the summer months. The sheriff has proposed the following weekly schedule, shifting deputies from weekday assignments to weekends:

Day	Sun.	Mon.	Tues.	Wed.	Thurs.	Fri.	Sat.
Assignments	6	4	4	4	5	5	6

Develop a weekly work shift schedule of duty tours, providing 2 consecutive days off per week for each officer. Note: Use the heuristic approach posted on the Blackboard. If you use Excel, copy and paste the spreadsheet here.