Concerning the nonstandardized nature of most industrial services, which of the following statements is incorrect?
A) The more labor-intensive the service, the less uniform will be the output.
B) As the extent to which equipment is utilized to produce the service increases, variability will increase.
C) As automation of the service decreases, uniformity of the output will also decrease.
D) It is important to develop systems to minimize human error.
E) It is often difficult for the user to judge service quality before the service is provided.
Question 2
In the production and sale of industrial services, productive capacity is often a substitute for inventory. In other words, capacity will reflect the level of demand which the service provider can meet. This is primarily in response to which service characteristic?
A) perishability
B) lack of ownership
C) nonstandardized output
D) simultaneous production and consumption
E) the extent to which tangible elements dominate intangible elements
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