Page 543 - Business Principles and Management

Unit 6

image and level of quality. Examples of franchised service businesses include
car repair, video rentals, tax preparation and legal services, and house-cleaning
businesses.
Service businesses are responding to the specific needs of customers. Extended
hours, more service locations, a greater variety of services, and follow-up activities
with customers to ensure satisfaction are all ways that businesses are attempting
to meet customer needs. Managers of service businesses are learning that they must
plan their service processes as carefully as manufacturers plan their production
processes. In both cases, customers expect a quality product or service delivered
in a timely fashion at a fair price.

CHECKPOINT

Explain how a business can ensure service quality.

19.3 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. Which of the following describes a service business accurately?
a. Services are tangible.
b. A service is separate from the person or business.
c. Service businesses do not need to worry about quality.
d. A service cannot be stored or held.
2. The SERVQUAL survey measures all of the following except:
a. intangibles
b. reliability
c. responsiveness
d. assurance

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Explain how services are different from tangible products.
4. Explain why the SERVQUAL survey collects data
from customers, service providers, and managers.

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