Chapter 6: Service Development and Innovation

In the UK and Germany what percentage of the workforce are employed in service organizations?
1. 8%
2. 5%
3. 15%
4. 2%
5. 20%
It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Product Development Stage refers to:
1. ideas conceived and researched
2. ideas conceived and launched
3. research and launch
4. research and awareness building
5. none of the above
It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Introduction Stage refers to:
1. introducing a change to the service
2. introducing new service overseas
3. introducing new ideas to the market
4. introducing existing services to new markets
5. none of the above
It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Growth Stage refers to:
1. growth of the new service in the minds of employees
2. introduction of new services to grow the portfolio of the company
3. grow advertising spend to loyal customers
4. raise awareness new service to new customer
5. none of the above
It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Maturity Stage refers to:
1. sales reach their peak
2. new services are targeted at the mature market
3. sales with the mature market are declined
4. sales begin to grow in the mature market
5. none of the above
It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Saturation Stage refers to:
1. All competitors leave the market place
2. New competitors join the market place
3. Many competitors seeking the same customers
4. All competitors seek the same customers
5. None of the above
It is important for organizations to change and develop. The stages that service organisations go through are known as the Product Life Cycle. The Decline Stage refers to:
1. Sales decline but remain profitable
2. Profitability improves and sales decline
3. Sales increase and profitability declines
4. Profitability declines and sales decline
5. none of the above
Which of the following was NOT discussed as a Driver for Service Change?
1. Regulations
2. Perishability
3. Consumer
4. Competitors
5. Seasonal patterns
Which strategy option is more intense than others?
1. sell new services to existing customers
2. sell more existing services to existing customers
3. sell existing services o new customers
4. sell new services to new customers
5. all of the above
The characteristics of what and when new services are delivered and how they are delivered to the customer are called:
1. continuum of new service development
2. service delivery continuum
3. continuum of service delivery
4. new service and customer delivery continuum
5. customer delivery continuum
Niklas Zenstrom and Janus Friis created a new internet service called Skype.
Which new service development did they introduce?
1. Major process innovation
2. Process-line extensions
3. Service improvements
4. Style changes
5. Major service innovations
Top Shop recently introduced a Personal Shopper at some of the larger stores.
Which new service development did they introduce?
1. Major process innovation
2. Process-line extensions
3. Service improvements
4. Style changes
5. Major service innovations
The Polish Open University (POU) offers two modes of study in two different languages. Considering the E-learning mode of study, in English or Polish at POU, which service development did they introduce?
1. Major process innovation
2. Process-line extensions
3. Product-line extensions
4. Style changes
5. Major service innovations
BA recently introduced BA CityFlyer. Which service development did they introduce?
1. Major process innovation
2. Process-line extensions
3. Product-line extensions
4. Style changes
5. Major service innovations
First Bus employees recently received their staff uniform. The blazer now includes a pocket on the inside so hold a mobile phone; an item given to all drivers to report emergencies or breakdown? The new blazer’s development to service is classed as:
1. Major process innovation
2. Process-line extensions
3. Service improvements
4. Style changes
5. Major service innovations
Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included. Which of the following includes autonomy, independence and initiative?
1. Risk-taking
2. Playfulness and humour
3. Idea time
4. Freedom
5. Debate
Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included.

Which of the following includes spontaneity, fun and laughter?
1. Risk-taking
2. Playfulness and humour
3. Idea time
4. Freedom
5. Debate
Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included.

Which of the following includes tolerance of uncertainty, ambiguity and the chance to “take a gamble”?
1. Risk-taking
2. Playfulness and humour
3. Idea time
4. Freedom
5. Debate
Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included.

Which of the following includes encounters with others and disagreement?
1. Risk-taking
2. Playfulness and humour
3. Idea time
4. Freedom
5. Debate
Creating an environment for innovation and creativity is important. To encourage innovation and creativity 8 activities should be included.

Which of the following includes flexible deadlines, flexible opportunities to explore and develop ideas?
1. Risk-taking
2. Playfulness and humour
3. Idea time
4. Freedom
5. Debate
The new service development process includes several stages. Which stage means organisations have to consider sales, set-up costs and profitability?
1. Hire and train personnel
2. Cross-functional team
3. Pilot run
4. Idea generation
5. Business analysis
The new service development process includes several stages. Which stage means organisations have to stimulate the customer/personnel interface and role-play all situations?
1. Hire and train personnel
2. Cross-functional team
3. Pilot run
4. Idea generation
5. Business analysis
The new service development process includes several stages. Which stage means organisations have to ensure staff across all department work together and know their role?
1. Hire and train personnel
2. Cross-functional team
3. Pilot run
4. Idea generation
5. Business analysis
The new service development process includes several stages. Which stage means organisations have to review comments from customer comments cards, B2B feedback and market trends?
1. Hire and train personnel
2. Cross-functional team
3. Pilot run
4. Idea generation
5. Business analysis
The new service development process includes several stages. Which stage means organisations have to advertise and recruit employees?
1. Hire and train personnel
2. Cross-functional team
3. Pilot run
4. Idea generation
5. Business analysis
The service industry has several emerging trends that organisations need to be aware of. Which of these should organisations keep a look out for?
1. new competitors entering the marketplace
2. advances in the internet
3. heightened customer expectations
4. advances in e-commerce
5. all of the above

Chapter 6: Service Development and Innovation

Test Yourself on MIS