Which statement is true? A. In the Service (Productt) Processs matrix, the degree of labor intensity refers to the ratio of labor cost to total cost. B. In the Service (Productt) Processs matrix, capital intensive services such as airlines and hospitals are grouped under the service category Masss Service. C. In the Service (Productt) Processs matrix, volume refers to the volume of business generated from new customers in the previous month. D. The Service (Productt) Processs matrix offers no place for large, capital-intensive businesses with 24/7, continuous production.
Service process matrix can be defined as a classification matrix of the service industry firms based on the characteristics of the individual firm's service processes.
It is useful in investigating the strategic change in the service operations. Moreover, there are unique managerial changes associated with each quadrant of the matrix. Through observing a closer attention to the challenges associated with their related classification, service organizations can be able to improve the performance and efficiency.
The classification characteristics could include degree of the labor intensity, and a jointly measured degree of customer interaction and customization.
Labor intensity is the ratio of labor costs to the equipment.
Customer interaction represent to the degree to which a customer can intervene and interact in a service process.
Customization refers to the need and ability to alter the service in order to satisfy the individual customer's particular preferences.
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