30 Questions
What is the key difference between an output and an outcome?
An output is created by the service provider, while an outcome is the result for a stakeholder.
In the context of a service provider organisation, what does 'co-creation' refer to?
Consumers providing input or activity in the service creation process.
How is value created in a service according to the text?
By having more positive than negative effects overall.
What role does a consumer play in risk reduction for a service provider organization?
Defining the service and its needs.
Which term describes 'what the service does' and whether it is fit for purpose?
Utility
What does 'warranty' refer to in the context of a service?
Assurance that a product or service will meet agreed requirements.
How do cost, risk, utility, and warranty contribute to a service's viability?
By providing a comprehensive understanding of a service's benefits.
Why is it essential for a service provider organization to understand costs?
To ensure profitability and adherence to budget constraints.
What is the primary focus of 'co-creation' in service provision?
Maximizing consumer involvement in the creation process.
How do outputs contribute to outcomes in a service provider organization?
Outputs help consumers achieve outcomes through their tangible or intangible nature.
What is a product according to the text?
A configuration of an organization's resources designed to offer value for a consumer
Which of the following is NOT mentioned as a resource for creating products?
Customers
What does a service provider organization need to balance to deliver attractive services?
Cost and Risk
Why might consumers quickly stop using a free online banking service according to the text?
It is insecure and risky
What is a service according to the text?
A means of enabling value co-creation
Why could free one-hour delivery for items ordered via a website be too costly according to the text?
'Free' offering may be unsustainable
Which of the following is NOT an area that service provider organizations need to consider when delivering value?
Partnerships
What must a product be designed to offer for a consumer, according to the text?
'Value' for a consumer
What does a service provide according to the text?
A 'means' of enabling 'value' co-creation
Why should service provider organizations balance various areas according to the text?
To deliver attractive services
What aspect of a service provider organization's products is designed to offer value for a consumer?
Value streams
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
What does a service offer to facilitate outcomes that customers want to achieve?
Value co-creation
Why might a free online banking service be unattractive to consumers according to the text?
It lacks secure transactions
Which resource is NOT mentioned in the text as part of creating products within service provider organizations?
Utility
What is the primary focus of assessing 'utility' of a service?
Determining if the service removes constraints from the consumer
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
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.
Why is co-creation considered important in the context of value creation for services?
To enhance consumer participation and input in creating value
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
Test your understanding of service management roles, products, services, utility, warranty, outcomes, and more with this quiz on Chapter 3: All About Services.
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