Chapter 5 Customer Voices

Front 1

1)________ customers are employees receiving goods or services from within the same firm

A) Primary

B) Capital

C) External

D)Secondary

E)Internal

Back 1

E)Internal

Front 2

2)________ customers are the bill-paying receivers of a company's work.A) External
A) External
B) Internal
C) Primary
D)Secondary
E)Capital

Back 2

External

Front 3

3) The________ customers are the ultimate people the company is trying to satisfy with its work.
A) capital
B) internal
C)primary
D)external
E)secondary

Back 3

D)external

Front 4

4)________ are also known as end users.
A) External
B) Internal
C) Capital
D)Primary
E) Secondary

Back 4

A) External

Front 5

5) Theacronym RCDQ stands for-------------
A) restructuredcustomer-driven quality
B) relative customer-drivenquality
C)redesigned customer-driven quality
D)receptive customer-driven quality
E) reactive customer-driven quality

Back 5

E)reactive customer-driven quality

Front 6

6)The ________ model shows that a firm's quality performance is increasing whilecustomer's expectations are also increasing.
A) restructuredcustomer-driven quality
B) relative customer-drivenquality
C)redesigned customer-driven quality
D)receptive customer-driven quality
E) reactive customer-driven quality

Back 6

B) relativecustomer-driven quality

Front 7

7)The acronym CRM stands for __
A)Customer Reaction Management
B)Customer Resource Management
C)Customer Response Management
D)Customer Risk Management
E) Customer Relationship Management

Back 7

E)Customer Relationship Management

Front 8

8)The view of the customer that asserts that he or she is a valued asset to bemanaged is referred to as ________.
A) customerresponse
B) customerintelligence
C)customer data management
D)reactive customer-driven quality
E) customer-relationship management

Back 8

E)customer-relationship management

Front 9

9)Which of the following is not a design aspect to customer-relationship management?
A) correctiveaction
B) guarantees
C)feedback
D)cost
E)complaint resolution

Back 9

D)cost

Front 10

10)The ________ process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.
A)complaint-reaction
B)complaint-restoration
C)complaint-resolution
D)complaint-response
E)complaint-reversal

Back 10

C)complaint-resolution

Front 11

11)The first component of a complaint-resolution process is ________.
A) contrition
B) correction
C) compensation
D) communication
E)correlation

Back 11

C) compensation

Front 12

12)The second component of a complaint-resolution process is ________.
A) contrition
B) correction
C) compensation
D) communication
E)correlation

Back 12

A) contrition

Front 13

13)The process associated with resolving complaints is called the ________process.
A)complaint-reversal
B)complaint-restoration
C)complaint-reaction
D)complaint-recovery
E)complaint-response

Back 13

D)complaint-recovery

Front 14

14)Which of the following is not a component of an effective guarantee?
A) conditional
B) meaningful
C)understandable
D)communicable
E)painless to invoke

Back 14

A) conditional

Front 15

15)The gap refers to the differences between ________.
A) correctiveaction and preventive action
B) servicequality and product quality
C)empowered employees and employees managed by a hierarchy
D)accurate quality projections and inaccurate quality projections
E)desired levels of performance and actual levels of performance

Back 15

E)desired levels of performance and actual levels of performance

Front 16

16)The SERVQUAL instrument was developed by ________.
A) Juran,Deming, and Shewhart
B) Ishikawa andTaguchi
C)Hammer and Champy
D)Parasuraman, Zeithamel, and Berry
E)Feigenbaum, Crosby, and Peters

Back 16

D)Parasuraman, Zeithamel, and Berry

Front 17

17)Which of the following determinants of service quality involves consistency of performance and dependability?
A)reliability
B)responsiveness
C)competence
D)access
E)credibility

Back 17

A)reliability

Front 18

18)Which of the following determinants of service quality concerns the readiness of employees to provide service?
A)reliability
B)responsiveness
C)competence
D)credibility
E)courtesy

Back 18

B)responsiveness

Front 19

19)Which of the following determinants of service quality means possession of the required skills and knowledge to perform the service?
A)reliability
B)responsiveness
C)competence
D)access
E)credibility

Back 19

C)competence

Front 20

20)Which of the following determinants of service quality involves approachabilityand ease of contact?
A)reliability
B)responsiveness
C)competence
D)access
E)courtesy

Back 20

D)access

Front 21

21)Which of the following determinants of service quality involves politeness,respect, consideration, and friendliness of contact personnel?
A)reliability
B)responsiveness
C)competence
D)credibility
E)courtesy

Back 21

E)courtesy

Front 22

22)Which of the following determinants of service quality involvestrustworthiness, believability, honesty, and having the customer's bestinterests at heart?
A)reliability
B)responsiveness
C)competence
D)credibility
E)courtesy

Back 22

D)credibility

Front 23

23)Which of the following determinants include the physical evidence of the service?
A)tangibles
B)aesthetics
C)features
D)intangibles
E)logistics

Back 23

A)tangibles

Front 24

24)What does segmenting markets involve?
(possible long answer question)
A)distinguishing expected service and perceived service
B)distinguishing customers according to common characteristics
C)analyzing the management perceptions of consumer expectations
D)distinguishing service quality specs and service delivery
E)analyzing the external methods to communicate with customers

Back 24

B)distinguishing customers according to common characteristics

Front 25

25)________ is a process for developing relationships with few suppliers for long contract terms.
A) Singlesourcing
B) Gap analysis
C)Supplier rationalization
D)Segmentation
E) Source loyalty

Back 25

A) Single sourcing

Front 26

26)________ results in the suppliers becoming de facto subsidiaries to their major customers.
A) Segmentation
B) Gap analysis
C)Strategic alliance
D)Source loyalty
E)Supplier rationalization

Back 26

C)Strategic alliance

Front 27

27)In ________, suppliers integrate information systems and quality systems thatallow close integration at all levels.
A)segmentation
B)gap analysis
C)annuity relationships
D)strategic alliances
E)supplier rationalization

Back 27

D)strategic alliances

Front 28

28)________ results from agreement between marketing and operations as to which customers add the greatest advantage and profits over
time.
A) Customersegmentation
B)Customer-relationship management
C)Reactive customer-driven quality
D)Actively solicited customer-feedback
E)Customer rationalization

Back 28

E)Customer rationalization

Front 29

29)A(n) ________ relationship is one in which the customer provides a long-term,steady income stream to the provider.
A) perpetual
B) annuity
C)active
D)rational
E)passive

Back 29

B) annuity

Front 30

30)Gathering data through focus groups and surveys is an example of a(n) ________data gathering.
A) active
B) open
C)rational
D)passive
E)closed

Back 30

A) active

Front 31

31)Gathering data through customer comment cards is an example of a(n) ________data gathering.
A) active
B) open
C)rational
D)passive
E)closed

Back 31

D)passive

Front 32

32) ________ includes all supplier-initiated contact with customers
A)Customer-relationship management
B)Supplier rationalization
C)Single sourcing
D)Customer segmentation
E)Actively solicited customer feedback

Back 32

E)Actively solicited customer feedback

Front 33

33)Phone contacts, focus groups, and survey results are referred to as ________data.
A) hard
B) soft
C)active
D)passive
E)rational

Back 33

A) hard

Front 34

34)Measurement data such as height, weight, volume, and speed are referred to as________
data.
A) active
B) passive
C)rational
D)soft
E)hard

Back 34

E)hard

Front 35

35)________ data are ranked so that one measure is higher than the next.
A) Active
B) Discrete
C) Continuous
D)OrdinalE)Passive

Back 35

D)Ordinal

Front 36

36)________ data is used to compare employee and customer perceptions of quality.
A) Hard
B) Soft
C)Active
D)Passive
E)Rational

Back 36

B) Soft

Front 37

37)A(n) ________ group allows a supplier to gather feedback from a group of consumers at one time.
A) access
B) focus
C)service
D)ordinal
E)discussion

Back 37

B) focus

Front 38

38)What is the first step in performing a focus group session?
A)develop questions
B)narrow scope of questions
C)identify purpose
D)select target population
E)run multiple groups

Back 38

C)identify purpose

Front 39

39)A(n) ________ consists of a series of items designed to capture perceptions.
A) survey
B) focus group
C)ordinal data system
D)passive data gathering
E)active data gathering

Back 39

A) survey

Front 40

40)The ________ approach involves obtaining information from customers about the process
A) focus group
B) vendormanaged inventory
C)knowledge management
D)critical-incident
E)customer-relationship management

Back 40

D)critical-incident

Front 41

41)________ validity refers to the use of certain terms and whether terms really measure what it is we want to measure.
A) Criterion
B) Conformance
C)Content
D)Control
E)Construct

Back 41

E)Construct

Front 42

42)________ validity indicates that your measuring instrument has the ability topredict or agree with constructs external to that which you are measuring.
A)Criterion
B)Conformance
C)Content
D)Control
E)Construct

Back 42

A)Criterion

Front 43

43)________ validity refers to whether the item really measures what we want to measure.
A) Construct
B) Control
C) Criterion
D) Conformance
E) Content

Back 43

E) Content

Front 44

44)When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using ________ of the various categories of responses.
A)means
B)numerical responses
C)bar charts
D)simple correlations
E)histograms

Back 44

C)bar charts

Front 45

45)Customer-initiated contact such as filling out a restaurant complaint card,calling a toll-free complaint line, or submitting an inquiry via a company'sWeb site, is considered ________.
A) customerrationalization
B) passivelysolicited customer feedback
C)actively solicited customer feedback
E)customer segmentation

Back 45

B) passively solicited customer feedback

Front 46

46)Customer ________ is measured as the percentage of customers who return for
more service.
A)approval
B)feedback
C)satisfaction
D)retention
E)response

Back 46

D)retention

Front 47

47)What are the three phases of customer-relationship management?
A)satisfaction, feedback, and retention
B)satisfaction, acquisition, and transition
C)response, feedback, and enhancement
D)acquisition, retention, and enhancement
E)response, transition, and acquisition

Back 47

D)acquisition, retention, and enhancement

Front 48

48)The ________ phase of customer-relationship management involves improving service to the customer through the use of information systems.
A) acquisition
B) retention
C) enhancement
D)transition
E) response

Back 48

C) enhancement

Front 49

49)Churn reduction involves the reduction of the loss of ________.
A) raw materials
B)suppliers
C)funds
D)products
E) customers

Back 49

E)customers

Front 50

50)________ management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.
A)Knowledge
B)Order
C)Sales
D)Campaign
E)Channel

Back 50

A)Knowledge

Front 51

51)Internal customers are the bill-paying receivers of a company's work.

Back 51

Answer: FALSE
correct answer is
A) External

Front 52

52)External customers are employees receiving goods or services from within the same firm.

Back 52

Answer: FALSE

E)Internal

Front 53

53)The external customers are the ultimate people the company is trying to satisfy with its work.

Back 53

Answer: TRUE

Front 54

54)Customer-driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about the customers to learn their need sand preferences.

Back 54

Answer: TRUE

Front 55

55)RCDQ is the acronym for reactive customer-driven quality.

Back 55

Answer: TRUE

Front 56

56)The reactive customer-driven quality shows that a firm's quality performance is increasing while customers' expectations also are increasing.

Back 56

Answer: TRUE

relativecustomer-driven quality

Front 57

57)The aspect of customer-relationship management asserts that he or she is a valued asset to be managed.

Back 57

Answer: TRUE

customer-relationship management

Front 58

58)The complaint-resolution process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

Back 58

Answer: TRUE

complaint-resolution

Front 59

59)The first component of a complaint-resolution process is contrition

Back 59

Answer: FALSE


Correlation

Front 60

60)The process associated with resolving complaints is called the complaint-response process.

Back 60

Answer: FALSE

complaint-recovery

Front 61

61)A guarantee outlines the customer's rights.

Back 61

Answer: TRUE

Front 62

62)Guarantees should be designed prior to beginning business.

Back 62

Answer: TRUE

Front 63

63)To be effective, a guarantee should be conditional.

Back 63

Answer: TRUE

Front 64

64)The gap refers to the differences between desired levels of performance and actual levels of performance.

Back 64

Answer: TRUE

Front 65

65)Feigenbaum, Crosby, and Peters developed the survey instrument called SERVQUAL

Back 65

Answer: FALSE

Parasuraman,Zeithamel, and Berry

Front 66

66)Credibility involves consistency of performance and dependability

Back 66

Answer: FALSE)


reliability

Front 67

67)Reliability concerns the willingness or readiness of employees to provide service.

Back 67

Answer: FALSE

Responsiveness

Front 68

68)Competence means possession of the required skills and knowledge to perform the service.

Back 68

Answer: TRUE

Front 69

69)Tangibles include the physical evidence of the service

Back 69

Answer: TRUE

Front 70

70)To segment markets means to distinguish customers or markets according to common

Back 70

Answer: FALSE

distinguishingcustomers according to common characteristics

Front 71

71)Many companies use single sourcing as a way to increase the number of suppliers

Back 71

Answer: FALSE

single sourcingisa process for developing relationships with few suppliers for long contractterms.

Front 72

72)Single-sourcing arrangements are developing into strategic alliances where suppliers become de facto subsidiaries to their major customers.

Back 72

Answer: TRUE

Front 73

73)Customer rationalization results from agreement between marketing and operations as to which customers add the greatest advantage and profits overtime.

Back 73

Answer: TRUE

Front 74

74)Annuity relationship results in the customer providing a short-term income stream to the provider.

Back 74

Answer: FALSE

)A(n) Annuity________ relationship is one in which the customer provides a long-term,steady income stream to the provider.

Front 75

75)Gathering data through focus groups and surveys are examples of passive data gathering.

Back 75

Answer: FALSE

active

Front 76

76)Actively solicited customer feedback includes all supplier-initiated contact with customers.

Back 76

Answer: TRUE

Front 77

77)Phone contacts and focus groups are referred to as hard data.

Back 77

Answer: FALSE

Soft data

Front 78

78)Soft data are measurement data such as height, weight, volume, or speed thatcan be measured on a continuous scale.

Back 78

Answer: FALSE

Hard DATA

Front 79

79)Ordinal data are ranked so one measure is higher than the next.

Back 79

Answer: TRUE

Front 80

80)A focus group allows a supplier to gather feedback from a group of consumers atone time.

Back 80

Answer: TRUE

Front 81

81)Focus groups draw individuals with similar characteristics or demographics.

Back 81

Answer: TRUE

Front 82

82)Criterion validity refers to whether the item really measures what we want to measure.

Back 82

Answer: FALSE

Construct

Front 83

83)Construct validity indicates that your measuring instrument has theability to predict or agree with constructs external to that which you aremeasuring.

Back 83

Answer: FALSE

Criterion validity

Front 84

84)When analyzing the results of a survey, open-ended questions are analyzed withPareto analysis using bar charts of the various categories of responses.

Back 84

Answer: TRUE

Front 85

85)Customer-initiated contact, such as submitting an inquiry via a company's Website, is considered passively solicited customer feedback

Back 85

Answer: TRUE

Front 86

86)Active data collections tend to result in lower ratings of quality than passive data collections.

Back 86

Answer: FALSE

Front 87

87)Customer retention is measured as the percentage of customers who return for more service.

Back 87

Answer: TRUE

Front 88

88)The three phases of customer-relationship management systems are response,transition, and feedback.

Back 88

Answer: FALSE

acquisition, retention, and enhancement

Front 89

89)The enhancement phase of customer-relationship management involves improvingservice to the customer through the use of information systems.

Back 89

Answer: TRUE

Front 90

90)Knowledge management involves managing the mountain of information generated byWeb site usage in a way to improve marketing to key customers.

Back 90

Answer: TRUE

Front 91

91)Differentiate between internal and external customers .( long answer question)

Back 91

Answer: Internal customers are employees receiving goods or services from within the same firm. For example, management information systems (MIS) technicians and programmers view the users within their company as internal customers. In contrast, external customers or end users are the bill-paying receivers of a company's work. A person that enters a restaurant and purchases a meal is an external customer.

Front 92

92)Explain the reactive customer-driven quality (RCDQ) model.( long answer question)

Back 92

Answer: This reactive customer-driven quality (RCDQ)model shows that a firm's quality performance is increasing while customers' expectations also are increasing. Problems occur when customer requirements increase at a faster rate than quality and service improvement. This places a firm in a reactive mode that may signal the need for major process and serviceredesign. The RCDQ model demonstrates conceptually and graphically the primarypitfalls and dangers of RCDQ.

Front 93

93)What are the components and activities associated with the complaint resolution process?

Back 93

Answer: The first component is to compensate people for their losses. This may be as small as an easy return policy with no questions asked. The second component is contrition. The firm should apologize to the customer for the mistakes made. Third, the complaint-resolution process must be designed to make it easy for complainants to reach resolution to simplecomplaints.

Front 94

94)What is gap analysis?

Back 94

Typically,the gap refers to the differences between desired levels of performance and actual levels of performance. This could be something like the difference between the desired conformance level versus the existing conformance level in a manufacturing environment. In services, this is the difference between theexpected and the actual level of service provided. Gaps are important in thatonce a gap is identified, it is a candidate for corrective action and processimprovement. The formal means for identifying and correcting these gaps iscalled gap analysis. One of the differences studied by gap analysis identifiesthe difference between managerial and customer perceptions of what the customerwants.

Front 95

95)Explain the ten determinants of service quality contributed by Parasuraman,Zeithamel, and Berry.

Back 95

In addition to the gaps model, Parasuraman, Zeithamel, and Berry contributed a number of importantconcepts to managing service quality. These include 10 determinants of servicequality:• Reliability involves consistency of performance and dependability.• Responsivenessconcerns the willingness or readiness of employees to provide service.• Competencemeans possession of the required skills and knowledge to perform the service.• Accessinvolves approachability and ease of contact.• Courtesyinvolves politeness, respect, consideration, and friendliness of contactpersonnel.• Communicationmeans keeping customers informed in language they can understand and listening to them.• Credibilityinvolves trustworthiness, believability, and honesty.• Securityis the freedom from danger, risk, or doubt.• Understanding/knowingthe customer involves making the effort to understand the customer's needs.• Tangiblesinclude the physical evidence of the service.

Front 96

96)Describe the concept of single sourcing. How is single sourcing related tostrategic alliances?

Back 96

Answer: Many companies use single sourcing as a way to reduce the number of suppliers. Single sourcing is a process for developing relationships with few suppliers for long contract terms. Increasingly,single-sourcing arrangements are developing into strategic alliances where the suppliers become de facto subsidiaries to their major customers. In these arrangements, not only are suppliers single-source providers, but they alsointegrate information systems and quality systems that allow close interactionat all levels.

Front 97

97)Differentiate between soft data and hard data.

Back 97

Phone contacts, focus groups, and survey results are referred to as soft data. As opposed to soft data, hard data are measurement data such as height, weight,volume, or speed that can be measured on a continuous scale. Soft data are notcontinuous and are, at best, ordinal

Front 98

98)What is the function of a focus group?

Back 98

: A focus group allows a supplier to gather feedback from a group of consumers at one time. The groups are focused in two ways: First, focus groups narrowly address a single topic or group of topics.Second, focus groups draw individuals with similar characteristics or demographics. This limits the discussion to subjects and market segments that are of particular interest to the firm.

Front 99

99)Differentiate between construct validity and content validity.

Back 99

Construct validity refers to the use of certain terms and whether terms really measure what it is we want to measure. For example, self-reported measures or percentage growth in sales might not be a valid measure of success in customer satisfaction. Sales increases may instead reflect favorable market conditions.Content validity, in contrast, refers to whether the item really measures whatwe want to measure. Usually, this includes asking five or six"experts" to review the instrument and determine whether theinstrument is valid.

Front 100

100)What are customer-relationship management systems?

Back 100

With business information systems–especially over the Internet–companies are receiving volumes of customer-related data. These data include personal,Internet, process, and customer preference information. As a result, systems have been created to mine these data to improve customer service and retention.These systems are called customer-relationship management systems (CRMS). CRMS use data to manage the three phases of customer-relationship management. These three phases are acquisition, retention, and enhancement