OVERVIEW

The chapter began with a diagram illustrating the role of technology in the service encounter providing an opportunity
for students to give examples of each mode. A similar exercise can be conducted with students giving examples of
automation in services in each of the seven categories. The discussion of E-commerce and E-business Models again
allows for student input with examples. Comparisons can be made between electronic and traditional services with
reference to the "click-and-mortar" option adopted by many existing service firms. The economics of scalability is
shown to be fundamental to the success of Internet based firms. The readiness to embrace new technology by both
customers and employees provides an understanding of the management challenge of adopting new technology. The
chapter concludes with an examination of the opportunities for RFID implementation in services.

Questions
1. From the diagram illustrating the role of technology in the service encounter, give examples of each
mode, not repeating the ones in the text.
2. Giving examples of automation in services in each of the seven categories, not repeating the ones in the
text.
3. Do the same for E-commerce and E-business Models
4. In each case, please explain the topic under discussion
5. Give a brief summary of all the other topics (no more than one paragraph, in your own words)
The explanations will be given to the class. Students will be chosen at random or you will be done in groups
(not necessarily your own)

CHAPTER QUIZ QUESTIONS - True/False (Write True or False beside)

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

A visit to a psychiatrist would represent a technology-free service encounter.

Some organizations use a website for only internal communications.
Self service has evolved from machine-assisted to Internet facilitated.
In a technology-mediated service encounter the customer and server interact face-to-face.
The electronic E-service product dimension is defined in terms service content.
Electronic services share many of the characteristics of traditional services.
The E-service process dimension includes online and offline activities.
Scalability is a measure of how unit variable cost relates to transaction volume.
Infinite scalability can only occur when the variable cost is zero.
Healthcare is an example of a service that exhibits high scalability.
The rush for market share to cover fixed costs is an e-commerce phenomenon that is driven by the economics of
scalability.
A high scalability firm such as Kelly Blue Book (kkb.com) requires a call centre.
eBay is an example of an intermediary business model.
Value Net Integrator is an E-business model that provides value by integrating a full range of services in one domain.
Convenience is a competitive differentiation feature of a traditional service as personalization is for an E-service.
Reliance on a computer is an advantage of online shopping.
Less price and selection control is a disadvantage of online shopping.
Radio Frequency Identification (RFID) is replacing bar coding.
Privacy is enhanced when using electronic services.
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20. Scalability is enhanced with self-service.

21. An automatic teller machine is an example of a fixed-sequence robot.
22. An expert system can produce operations from memory that were originally executed by an expert in that particular
area.
23. Radical service innovations are mostly driven by technological innovations.
24. Automated parking lot gate is an example of a fixed sequence robot.
25. High-touch services are generally immune to self-service.
26. Self-service falls into the technology-generated service encounter category.
27. Readiness to embrace new technology is a measure of how fast new technology is adopted in the marketplace.
Multiple Choice. CIRCLE the correct letter
1. Which of the following is not a use for a website?
a. Virtual Community
a. To convey information
b. Intermediary
b. To process orders
c. Value Net Integrator
c. To answer customer complaints
d. Content Provider
d. To embellish existing service
8. E-service process dimensions include all but one of
2. The most widely advertised use of the Internet is the
the following features:
_____________
a. Include both front-office and back-office
a. portal.
processes
b. online retailer.
b. Degree of self-service
c. market maker.
c. Degree of customization
d. transaction enabler.
d. All of the above.
3. _________ is an example of variable sequence (V)
service automaton.
a. Airplane autopilot
b. Telephone answering machine
c. Automatic tell machine (ATM)
d. Electronic funds transfer

9. Which of the following features does not describe

the advantages of traditional shopping?
a. Convenience
b. Product sampling
c. Social interaction
d. Exposure to new items

4. Which one of the following is not a feature of Ecommerce?

a. Personalization
b. Anytime
c. Anonymity
d. Convenience

10. Disadvantages of online grocery shopping include

all but one of the following.
a. Forget items
b. Delivery fee
c. Reliance on personal computer
d. Impulse buying

5. Advantages of online grocery shopping include all

but one of the following.
a. Convenience
b. Saves time
c. Reduces impulse buying
d. Memory trigger

11. ___________ is an example of a shared

infrastructure.
a. SABRE
b. GE Supply
c. 7-Eleven Japan
d. Monster.com

6. E-service product dimensions include all but one of

the following features:
a. Intangible
b. Consumption and delivery are simultaneous
c. Have core and auxiliary elements
d. All of the above.
7. _______ brings together buyers and sellers by
concentrating information.

12. Which among the following is not an advantage of a

traditional grocery shopping?
a. Memory trigger
b. Product sampling
c. Safety
d. Social interaction

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13. Disadvantages of traditional shopping include all

but one of the following:
a. Time consuming
b. Memory trigger
c. Impulse buying
d. Safety
14. Sources of revenue for e-services include all but one
of the following:
a. Information and advise
b. Advertising
c. Commissions
d. Technology support
15. Internet ________ shared the highest customer
satisfaction score with Express Delivery.
a. search engines
b. auctions
c. brokerage
d. retail
16. Which one of the following is not an E-business
model?
a. Content provider
b. Online retailer
c. Full-service provider
d. Whole-of-enterprise
17. E-business is based on which of the following
technologies?
a. Addressing system of URLs

b. Communications standard TCP/IP

c. Personal computers
d. All of the above
18. To ______ is not an organizations use for a website?
a. process orders
b. convey information
c. communicate with membership
d. attract customers
19. Research on peoples reaction to technology
identified all but one of the following paradoxes.
a. Customization/personalization
b. Control/chaos
c. Freedom/enslavement
d. Engaging/disengaging
20. Which one of the following is not a dimension of
scalability?
a. Information vs. goods content
b. Degree of self-service
c. Cost of after-sales service
d. Shipping and handling costs
21. Self-service falls into the Technology - ______
Service Encounter category.
a. Assisted
b. Generated
c. Facilitated
d. Mediated

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