Service Management: All About Services

Play an AI-generated podcast conversation about this lesson

What is the key difference between an output and an outcome?

An output is related to costs, while an outcome is related to risks.
An output is intangible, while an outcome is tangible.
An output is created by the service provider, while an outcome is the result for a stakeholder. (correct)
An output is the desired result, while an outcome is the deliverable of an activity.

In the context of a service provider organisation, what does 'co-creation' refer to?

Consumers providing input or activity in the service creation process. (correct)
Service providers creating products based solely on internal decisions.
Consumers receiving services without any involvement.
Service providers outsourcing the creation of services to other organizations.

How is value created in a service according to the text?

When a service has more negative than positive effects.
When a service eliminates all risks for the consumer.
By having more positive than negative effects overall. (correct)
By increasing costs for the consumer.

What role does a consumer play in risk reduction for a service provider organization?

Defining the service and its needs. (D) Signup and view all the answers

Which term describes 'what the service does' and whether it is fit for purpose?

Utility (A) Signup and view all the answers

What does 'warranty' refer to in the context of a service?

Assurance that a product or service will meet agreed requirements. (A) Signup and view all the answers

How do cost, risk, utility, and warranty contribute to a service's viability?

By providing a comprehensive understanding of a service's benefits. (A) Signup and view all the answers

Why is it essential for a service provider organization to understand costs?

To ensure profitability and adherence to budget constraints. (C) Signup and view all the answers

What is the primary focus of 'co-creation' in service provision?

Maximizing consumer involvement in the creation process. (B) Signup and view all the answers

How do outputs contribute to outcomes in a service provider organization?

Outputs help consumers achieve outcomes through their tangible or intangible nature. (A) Signup and view all the answers

What is a product according to the text?

A configuration of an organization's resources designed to offer value for a consumer (A) Signup and view all the answers

Which of the following is NOT mentioned as a resource for creating products?

Customers (A) Signup and view all the answers

What does a service provider organization need to balance to deliver attractive services?

Cost and Risk (C) Signup and view all the answers

Why might consumers quickly stop using a free online banking service according to the text?

It is insecure and risky (C) Signup and view all the answers

What is a service according to the text?

A means of enabling value co-creation (B) Signup and view all the answers

Why could free one-hour delivery for items ordered via a website be too costly according to the text?

'Free' offering may be unsustainable (D) Signup and view all the answers

Which of the following is NOT an area that service provider organizations need to consider when delivering value?

Partnerships (A) Signup and view all the answers

What must a product be designed to offer for a consumer, according to the text?

'Value' for a consumer (D) Signup and view all the answers

What does a service provide according to the text?

A 'means' of enabling 'value' co-creation (C) Signup and view all the answers

Why should service provider organizations balance various areas according to the text?

To deliver attractive services (C) Signup and view all the answers

What aspect of a service provider organization's products is designed to offer value for a consumer?

Value streams (A) Signup and view all the answers

In the context of service provider organizations, what is the primary focus of balancing cost, risk, outputs, outcomes, utility, and warranty?

Ensuring the viability of services (B) Signup and view all the answers

What does a service offer to facilitate outcomes that customers want to achieve?

Value co-creation (C) Signup and view all the answers

Why might a free online banking service be unattractive to consumers according to the text?

It lacks secure transactions (A) Signup and view all the answers

Which resource is NOT mentioned in the text as part of creating products within service provider organizations?

Utility (D) Signup and view all the answers

What is the primary focus of assessing 'utility' of a service?

Determining if the service removes constraints from the consumer (D) Signup and view all the answers

Why does a consumer's attitude to risk need to be understood by a service provider organization?

To design the service appropriately based on risk preferences (A) Signup and view all the answers

How does 'warranty' differ from 'utility' in a service?

Warranty refers to the functionality offered by a product or service, while utility refers to how it performs. (A) Signup and view all the answers

Why is co-creation considered important in the context of value creation for services?

To enhance consumer participation and input in creating value (C) Signup and view all the answers

What is the critical aspect that differentiates an 'output' from an 'outcome' in a service provider organization?

'Output' refers to consumer deliverables, whereas 'outcome' relates to stakeholder results (D) Signup and view all the answers