activity-based costing (ABC) Costing method that breaks down the organization into a set of activities, and activities into tasks, which convert materials, labor, and technology into outputs.
activity time The time required to perform one
activity at one station.
adequate service The level of service quality a
customer is willing to accept.
aftermarketing Marketing technique that emphasizes marketing after the initial sale has been made.
after-sales surveys A type of satisfaction survey that addresses customer satisfaction while the service encounter is still fresh in the customer’s mind.
ambient conditions The distinctive atmosphere of the service setting that includes lighting, air quality, noise, music, and so on.
anticipating Mitigating the worst effects
of supply and demand fluctuations by planning for them.
apathetic customers Consumers who seek conve-
nience over price and personal attention.
apologetic strategies A set of verbal recovery
strategies involving apologies from front-line providers and/or upper-level management.
approach/avoidance behaviors Consumer responses to the set of environmental stimuli that are characterized by a desire to stay or leave an establishment, explore/interact with the service environment or ignore it, or feel satisfaction or disappointment with the service experience.
arousal-nonarousal The emotional state that reflects the degree to which consumers and employees feel excited and stimulated.
assurance dimension The SERVQUAL assessment of a firm’s competence, courtesy to its customers, and
security of its operations.
attribution The allocation of responsibility to self
and other people, or even chance.
auditing consumer performance expertise Measuring the current extent to which the consumer understands the script that the service system has been designed to deliver.
awareness set The set of alternatives of which a
consumer is aware.
behavioral modeling Categorizing customers to enable providers to more easily process them and remove stress. beliefs Consumers’ opinions about the provider’s ability to perform the service.
benchmarking Setting standards against which to
compare future data collected.
benefit concept The encapsulation of the benefits
of a product in the consumer’s mind.
benefit-driven pricing A pricing strategy that
charges customers for services actually used as opposed to overall “membership” fees.
blueprinting The flowcharting of a service operation.
bottlenecks Points in the system at which consumers wait the longest periods of time.
boundary-spanning personnel Personnel who provide their services outside the firm’s physical facilities.
boundary-spanning roles The various parts played by contact personnel who perform dual functions of interacting with the firm’s external environment and internal organization
buffering Surrounding the technical core with input and output components to buffer environmental influences.
buffering the technical core The operations man-
agement concept of ensuring that the core of the production process is able to run as efficiently as possible. For manufacturing plants this is...