Chap 01_2e
Indicate whether the statement is true or false.
1. The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter
design.
a. True
b. False
2. The higher the customer participation in service processes, the more certainty a firm has with respect to service
time and capacity.
a. True
b. False
3. A pair of running shoes is an example of a durable good.
a. True
b. False
4. Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in
the value of the product.
a. True
b. False
5. A process invariably resides within a department or traditional management function.
a. True
b. False
6. Preproduction services of a value chain include warranty and claim services.
a. True
b. False
7. Vehicles, furniture, and dishwashers are examples of nondurable goods.
a. True
b. False
8. If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
a. True
b. False
9. Big data analytics is intended to support service businesses such as virtual banking.
a. True
b. False
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