Service Operation Management

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Answer the following Questions Each Question is of 5 marks 1. Explain At least four differences between goods and services 2. Explain customer contact model for classifying service organization. 3. In 1986 Schmenner proposed Service Process Matrix as another way to view services. He differentiates service processes according to two major differentiating factors; explain them in your own words: 4. What are the differential Cost Drivers of online and offline Firms? Give Example to support your answer. ANS no 1 : Goods 1) A good or commodity in economics is any object or service that increases utility, directly or indirectly, not to be confused with good in a moral or ethical sense 2) A good that cannot be used by consumers directly, such as an office building or capital equipment, can also be referred to as a good as an indirect source of utility through resale value or as a source of income 3) A 'good' in economic usage does not imply moral acceptance or even legality. 4) A good is tangible object used either once or repeatedly. Services 1) A service is the non-material equivalent of a good. 2) A service provision is an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods 3) A service is claimed to be a process that creates benefits by facilitating a change in customers, a change in their physical possessions, or a change in their intangible assets. 4) Services are often jobs or work that contributes to an overall goal. ANS NO 2: designing the service encounter to deliver high level of customer satisfactions one of major issues facing service organizations today. Unfortunately our state of knowledge of how to go about such designs in manufacturing. In latter the

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