41 Questions
What is service provision typically concerned with?
Management of resources and fulfillment of service actions
What is service consumption primarily concerned with?
Management of consumer's resources needed to use the service
What is the primary goal of service relationship management?
To ensure continual value co-creation
What is a key concept covered in this chapter?
Service management
What is an outcome in the context of service management?
A result for a stakeholder enabled by one or more outputs
What is the difference between an output and an outcome?
An output is a deliverable, while an outcome is the result achieved by the consumer
What is an example of a recreational theme park not fulfilling its warranty?
A significant number of rides are frequently unavailable due to mechanical difficulties
Why might it be difficult for a service provider to fully understand the desired outcomes of the consumer?
Because the provider and consumer do not have a clear understanding of each other's needs
What is an example of a recreational theme park not fulfilling its utility?
Rides do not have features that provide the levels of excitement expected by visitors
What do stakeholders play a crucial role in?
Value co-creation
What is a cost in the context of service management?
The amount of money spent on a specific activity or resource
What are the two types of costs involved in service relationships from the consumer's perspective?
Costs removed from the consumer and costs imposed on the consumer
What is the primary focus of service providers?
Meeting customer needs
What is a benefit of understanding customer needs?
Better service design
What is the role of business relationship managers (BRMs) in internal IT or HR departments?
To regularly talk with customers and discuss their needs and expectations
What is an example of a service provider predicting or creating demand for certain outcomes?
A social network creating a new feature
What is the relationship between service providers and consumers?
Complex and dependent
What are the key components of consumer value?
Benefits, costs, and risks
What is the importance of understanding customer needs?
It helps to design and deliver services
What will be built upon in the next few chapters?
Key concepts in service management
What kind of guidance will be provided in the next few chapters?
On applying service management concepts
What is essential for an organization to create value?
Cooperating with consumers in service relationships
What is a key aspect of a service relationship?
Cooperation between service providers and consumers
What is the role of a service provider?
To provide services to others
What is a result of a service provider delivering services?
Creation of new resources for the service consumer
What happens to the service consumer after using the new or modified resources?
Creates its own products to address another target consumer group
What is an example of a service that modifies existing resources?
Training service
What is a service relationship?
Cooperation between two organizations
What includes service provision, service consumption, and service relationship management?
Service relationship
What is a result of a service consumer using new or modified resources?
It creates its own products
What is an example of a service that creates new resources for the service consumer?
Software development service
What is the total cost of consuming a service comprised of?
The price charged by the service provider and other costs such as staff training
What do consumers consider when assessing the value created by a service?
Both types of cost and the risks involved
Why is it important for service providers to understand the cost of service provision?
To ensure that services are delivered within budget constraints
What are the two types of risk that are of concern to service consumers?
Risks removed from a consumer by the service and risks imposed on a consumer by the service
What is the duty of the provider in terms of risk management?
To manage the detailed level of risk on behalf of the consumer
How can consumers contribute to the reduction of risk?
By actively participating in the definition of the requirements of the service
What is utility in the context of a service?
The functionality offered by a product or service to meet a particular need
What is warranty in the context of a service?
Assurance that a product or service will meet agreed requirements
What is essential for a service to facilitate its desired outcomes and create value?
Both utility and warranty
What should be considered when assessing the viability of a service?
The impact of costs and risks on utility and warranty
Learn about the importance of service relationships in creating value for organizations and how they cooperate with consumers to co-create value. Understand the roles of service providers and service consumers in these relationships.
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