Exam 13: Complaint Handling and Service Recovery

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People in lower socioeconomic levels are more likely to complain than those in higher levels.

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False

____________ involves the employees of the firm who provide the service recovery and their behavior toward the customer.

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Who are airline customers most likely to complain about an unsatisfactory meal?

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Flight attendants.

Explain what is meant by "the service recovery paradox."

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Complaining behavior can be influenced by role perceptions and social norms.

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Service recovery is an umbrella term for systematic efforts by a firm to correct a problem following a service failure and retain a customer's goodwill.

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What are the three main response options for customers who experience service failures?

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Proper service recovery can be accomplished by making it easy for customers to give feedback, enabling effective service recovery, and establishing appropriate compensation levels.

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Which of the following is NOT one of the elements of effective service recovery?

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The ____________ refers to the sometimes-observed effect that customers who experience a service failure and then have it resolved to their full satisfaction are more likely to make future purchases than are customers who have no problem in the first place.

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A single service problem can destroy a customer's confidence in a firm under what three conditions?

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Hampton Inn has developed a way to identify guests who appear to be cheating and give them a lot of personalized attention and follow-up from the company.

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The story about the desk clerk at the Marriott Long Wharf Hotel in Boston is a good example of what aspect of effective service recovery?

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Describe the three complaint barriers for dissatisfied consumers and explain how a firm can reduce these barriers.

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Effective service recovery procedures should be ____________, ____________, ____________, and ____________.

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Hampton Inn's 100 percent satisfaction guarantee is a good example of a service guarantee that goes wrong and hurts a firm's financial performance.

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Discuss the perceived advantages of Hampton Inn's 100 percent satisfaction guarantee.

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Which of the following is NOT one of the guidelines provided for the Front Line on how to handle customer complaints?

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Compensation should be based on the positioning of the firm, the severity of the failure, and who the specific affected customer is.

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Recent research shows that the amount of a guarantee payout has no effect on consumer cheating. Which of the following is one of the important managerial implications of this?

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