In the Service-System Design Matrix, a Face-To-Face Total Customization Service

question 32

Multiple Choice

In the service-system design matrix, a face-to-face total customization service encounter is expected to have which of the following?

• A)Low sales opportunity
• B)Low production efficiency
• C)High production efficiency
• D)Low degree of customer/server contact
• E)None of the above

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Definitions:

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.

Output

The total amount of goods or services produced by a company, industry, or economy within a particular period.

Diminishing Marginal Returns

A rule indicating that when increasing amounts of a variable input are introduced to a constant input, the output gained from each subsequent unit of input will ultimately diminish.