To reduce the variability of its output and improve its productivity,a service firm might ______.
A)decrease the degree of customer interaction
B)increase the degree of customization it provides
C)switch to a different product
D)switch to a different market

Question

Quizplus · Accepted Answer

Decreasing the degree of customer interaction can help reduce variability in output because human interactions can be a major source of variation. This can be achieved through technology like self-service kiosks or automated call trees. Increasing customization (B) could actually increase variability as each unique request would need to be fulfilled differently. Switching to a different product (C) would not necessarily reduce variability in output, and switching to a different market (D) may not address the root cause of variability in the service firm's output.

To Reduce the Variability of Its Output and Improve Its