27. The service output is more difficult to standardize compared to goods. This

Question

27. The service output is more difficult to standardize compared to goods. This is primarily due to which of the following? customer participation and perishability intangibility and heterogeneity intangibility and customer participation none of the above a. b. c. d. 28. Complete the blank spaces below: At McDonald's fast food restaurant, the extent to which service is customized is relatively relatively_ and the extent to which contact personnel exercise judgment is a. high, high b. low, low c. o, high high, low d. 29. Which of the following is usually NOT appropriate when the strategy of overall cost leadership is used? a. b. c. d. Concentrate on routine/standardized services. Offer as many different services as possible to spread overhead costs. Replace labor with capital where possible. Perform some service activities off-line at a centralized site 30. Which one of the following is a key characteristic that makes the competitive environment difficult in service industries compared to goods industry? a. Low barriers to entry b. Low switching costs for customers c. Stronger opportunity to take advantage of economy of scale d. (a) and (b) above 31. Services may have service qualifying, service winning or service losing features. Suppose your friend is planning to fly to Los Angeles and is in the process of making a reservation. Which of the following is likely to be a servicc qualifier for an airline company? a. Quality of the meals. b. Politeness of the crew c. On-time performance. d. Safety record.

Explanation / Answer

27.a. Intangibility and heterogeneity

28. b. Low, low. It is mostly fixed

29. c. This option increases cost.

30. a. In Service industry, switching cost is low since there is low barrier to entry.

31. b. Crew's behaviour is important in air travel

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