DIFFERENCES BETWEEN MANUFACTURING AND SERVICE ORGANIZATIONSOrganizations can be divided into two broad categories: manufacturing organizations and service organizations, each posing unique challenges for the operations function. There are two primary distinctions between these categories. First, manufacturing organizations produce physical, tangible goods that can be stored in inventory before they are needed. By contrast, service organizations produce intangible products that cannot be produced ahead of time. Second, in manufacturing organizations most customers have no direct contact with the operation. Customer contact occurs through distributors and retailers. For example, a customer buying a car at a car dealership never comes into contact with the automobile factory. However, in service organizations the customers are typically present during the creation of the service. Hospitals, colleges, theaters, and barber shops are examples of service organizations in which the customer is present during the creation of the service. Show
 Organizations that primarily produce a tangible product and typically have low customer contact. Organizations that primarily produce an intangible product, such as ideas, assistance, or information, and ... Abstract Are there economic benefits to improving customer satisfaction? Many firms that are frustrated in their efforts to improve quality and customer satisfaction are beginning to question the link between customer satisfaction and economic returns. The authors investigate the nature and strength of this link. They discuss how expectations, quality, and price should affect customer satisfaction and why customer satisfaction, in turn, should affect profitability; this results in a set of hypotheses that are tested using a national customer satisfaction index and traditional accounting measures of economic returns, such as return on investment. The findings support a positive impact of quality on customer satisfaction, and, in turn, profitability. The authors demonstrate the economic benefits of increasing customer satisfaction using both an empirical forecast and a new analytical model. In addition, they discuss why increasing market share actually might lead to lower customer satisfaction and provide preliminary empirical support for this hypothesis. Finally, two new findings emerge: First, the market's expectations of the quality of a firm's output positively affects customers' overall satisfaction with the firm; and second, these expectations are largely rational, albeit with a small adaptive component. Journal Information The Journal of Marketing (JM) develops and disseminates knowledge about real-world marketing questions relevant to scholars, educators, managers, consumers, policy makers and other societal stakeholders. It is the premier outlet for substantive research in marketing. Since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline? Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. Relative to manufacturing, service operations generally involve ________________.Select one:a.a lower degree of customer contact.b.greater variability of inputsc.lower dependence on labourd.less difficulty in measuring productivity Which support function is most directly associated with the interface between marketing andoperations?Select one: Get answer to your question and much more For an airline company, deciding on the number of planes to acquire and where to use the planesinvolves what aspect of operations?Select one: Get answer to your question and much more Japanese manufacturers are typically credited with what two contributions to the evolution ofoperations management?Select one: Get answer to your question and much more Which decision area involves system design that has strategic, long term implications foroperations?Select one:a.Aggregate planningb.Capacityc.Inventory managementd.Material requirements planning Within operations, achieving the intended goals of quality and responsiveness refers tooperational _____________.Select one: Get answer to your question and much more Are service operations with a high degree of customer contact more or less difficult to control than those with a low degree of customer contact?From this conceptualization, it follows that service systems with high customer contact are more difficult to control and more difficult to rationalize than those with low customer contact.
What is customer service in operation management?Customer service management is how a company runs its customer service operation and enables consistently great service experiences that drive customer loyalty. It includes everything from training new service reps, to optimizing support processes, to measuring service success.
What is the term used for the bundle of goods and services that are provided in some environment by every service organization?The Service Package The service package is defined as a bundle of goods and services that is provided in some environment.
What is the term used for the bundle of goods and services that are provided in some environment by every service operation quizlet?All service systems provide some combination of service and goods in a certain environment that the customer interacts with to some degree. This total combination is referred to as the service package.
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Are service operations with a high degree of customer contact more difficult or less difficult to control than those with a low degree of customer contact?
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