1.Services differ from manufactured products in four ways. Intangibility, Inseparability, Perishability and _______________?

a) homogeneity

b) heterogeneity

c) intractability

d) invisibility

2.The Servuction model recognizes that operations can process customers through their infrastructure or through their ___________?

a) performance b) procedures c) staff d) systems

3.The extent to which a product or service may be customized is called _____________?

a) variability b) validity c) variety d) variation

4.The size of the product range or number of services offered is called _____________?

a) variability b) validity c) variety d) variation

Scenario 3: Franco is an agent for SureCo, Inc., an independent insurance agency that offers policies from several insurance companies. With the economy in crisis, SureCo is experiencing hard times. The boss tells the agents that if they do not start selling insurance policies, the agency is going to shut down and everyone will be out of a job. Franco needs this job badly, and starts calling his customers to see if he can sell some policies. He calls Raul, and tells Raul that if he increases his coverage at present rates, Franco will guarantee that the premiums will never go up. He tells other customers the same thing, and many take advantage of the offer to increase their coverage and lock in at the present rates. The commissions start rolling in, and the boss is pleased. A year later, when customers get bills for policy renewals, they are irate to see that premiums have gone up. The boss finds out for the first time what Franco has done when she is served with a lawsuit filed by a customer. She yells at Franco, and demands that he clear out his desk. She has security escort Franco out of the building in front of the other agents, who are shocked. When asked by the other agents about what happened, the boss tells them Franco was fired for stealing. Raul decides to get back at the agency, and marches up and down the street in front of the agency with a big sign that says, “SureCo cheats its customers!” The boss cannot let this continue, so she takes a staple gun, goes outside, and fires it in Raul’s direction, hoping to scare him away. Unfortunately, she misses and hits Raul in the eye, causing permanent blindness in that eye.