Exam 11: Regaining Customer Confidence Through Customer Service and Service Recovery

The cost of retaining existing customers is estimated to be three to five times more expensive than it is to gain new customers.

Customer service does not really help the firm recover from failed service encounters.

COMPLETION QUESTIONS Customer Service Critical Incidents Service Recovery Management by Walking Around Lifetime Value Double Deviation Moment of Truth Annoyance Victimization Symbolic Atonement -__________ occurs when a customer is upset about some aspect of a company's service delivery.

What should be the first step in the service recovery process?

Many service organizations have comprehensive service recovery policies that are designed to restore customer franchise to its fullest.

Even after elevating customer service to a strategic level,the information from dissatisfied customers is not considered to be a strategic organizational resource.

Service recovery is the effort an organization expends to win back customer goodwill once it has been lost due to service failure.

All moments of truth carry the same significance for producing customer satisfaction.

A customer lifetime value approach is one way in which service organizations can predict the long-term cost of losing a customer.

Which service recovery step does a service organization use when it attempts to understand why the customer is disappointed with the service?

Which service recovery step does a service organization use when it quickly acts to correct the service problem?

Even if it fails,it is better for a service provider to make an effort at service recovery than to make no recovery effort at all.

Service recovery cannot reduce the incidence of bungled moments of truth even if the information regarding customers' dissatisfaction is put to good use.

Enlightened service organizations devise plans to manage service failures.

COMPLETION QUESTIONS Customer Service Critical Incidents Service Recovery Management by Walking Around Lifetime Value Double Deviation Moment of Truth Annoyance Victimization Symbolic Atonement -___________________is the practice of having service managers spend time "in the trenches" for the purpose of detecting when service recovery efforts may be needed.

What are the benefits that a service organization may realize through its service recovery efforts?

To be successful in overcoming customer dissatisfaction,all five steps of the service recovery process should be performed whenever a service failure occurs.

Which of the following recommendations should a service organization consider when it wants to identify the need to engage in service recovery efforts?

Why is service failure inevitable,even for well-managed,customer-oriented service organizations?

Supplementary services,such as customer service,cannot be used to achieve a competitive advantage in situations where the core product is considered to be a standard commodity.