Deck 5: Focusing On Customers

Question 1

Likert scales allow customers to express their degree of opinion.

Answer 1

True

Question 2

The computation of "customer perceived value" (CPV)involves identifying product attributes and weighing them equally for consumers.

Answer 2

False

Question 3

Unexpected dissatisfaction occurs when expected quality is higher than actual quality.

Answer 3

True

Question 4

Expected quality is a measure of what a manufacturer thinks customers want in a product or service.

Question 5

Producers should focus on a customer's perception of quality since perceived quality can influence consumer behavior.

Question 6

The first step in designing a customer satisfaction survey is to determine the necessary sample size.

Question 7

The scope of customer satisfaction criteria is broader in the ISO 9000:2000 standard than in the Baldrige criteria.

Question 8

Failure to identify appropriate quality dimensions has been cited as a common reason why some customer satisfaction schemes fail.

Question 9

The total package of products and services offered by a company is often called the provider's benefit package.

Question 10

According to Kano's classifications,as customers become more familiar with new or innovative product features,an "exciter/delighter" becomes a "satisfier."

Question 11

Customer-contact employees are employees who experience "moments of truth" with the customer.

Question 12

Sellers that provide the greatest CPV at the time of the purchasing decision always win the sale.

Question 13

Providing a clean service environment (such as a clean auto-repair facility)affects the "tangible" dimension of service quality.

Question 14

A product's primary operating characteristics is referred to as the "performance" dimension of quality.

Question 15

Gross present value of the customer (GPVC)is defined as the revenue associated with a customer minus expenses need to serve the customer,discounted over time.

Question 16

Surveys are a more effective means of gathering customer information than are focus groups.

Question 17

A disadvantage of focus groups is the inability to probe the participants.

Question 18

At the process level,the internal customers are other departments or processes within the organization.

Question 19

Critical to quality (CTQ)characteristics in the Six Sigma methodology cannot be linked to customer satisfaction.

Question 20

The speed,courtesy,and competence of repair work are referred to as the "reliability" dimension of quality.

Question 21

If a competitor's product offers the same benefits at a lower price,then the competitor's product provides:

A)higher value.
B)lower quality.
C)lower value.
D)higher quality.

Question 22

_____ is the product quality dimension which relates to the degree to which a product's physical and performance characteristics match pre-established standards.

A)Features
B)Performance
C)Conformance
D)Serviceability

Question 23

Which of the following is NOT TRUE about the American Customer Satisfaction Index?

A)It focuses on buyer satisfaction associated with consumer non-durable goods.
B)It was first conducted in 1994.
C)It is based on a large national sample of consumers.
D)It is designed to indicate national trends as well as industry trends.

Question 24

Suppose an advertisement for an automobile stresses that the car does not need a tune-up for 100,000 miles.It can be best described that this advertisement is focusing on which product quality dimension?

A)Reliability
B)Features
C)Tangibles
D)Assurance

Question 25

The outcome of the production process that is delivered to the customer is referred to as:

A)net quality.
B)design quality.
C)perceived quality.
D)actual quality.

Question 26

Dave noticed that where he gets his haircut at Hair Town,there is an employee who (every 15 minutes)sweeps up the hair that has fallen on the floor.By doing this,the management at Hair Town is trying to affect which quality dimension?

A)Reliability
B)Tangibles
C)Competence
D)Empathy

Question 27

Measurable performance levels that define the quality of customer contact with an organization's representatives are known as:

A)customer contact requirements.
B)quality function deployments.
C)indexed service standards.
D)consumer benefits packages.

Question 28

According to Garvin's quality dimensions,which one of the following definitions does NOT match the associated dimension?

A)Dimension: features; Definition: the "bells and whistles" of a product
B)Dimension: aesthetics; Definition: how a product looks, feels, smells, etc.
C)Dimension: reliability; Definition: a product's primary operating characteristics
D)Dimension: conformance; Definition: the degree to which the product meets pre-established standards

Question 29

Bill designs and maintains the inventory management software that his coworker John uses when customers call the company to place an order for merchandise.Bill is John's ____________.

A)internal customer
B)external customer
C)internal supplier
D)external supplier

Question 30

Leading practices of customer focused organizations include all of the following EXCEPT:

A)defining and segmenting customer groups
B)having effective complaint management processes
C)ensuring that every contact with a customer results in a sale
D)employing systematic processes for listening to customers

Question 31

Maintaining a clean,well-lighted waiting room in a doctor's office is an example of which service quality dimension?

A)Competence
B)Courtesy
C)Assurance
D)Tangibles

Question 32

Employees' ability to convey trust and confidence pertains to which service quality dimension?

A)Empathy
B)Responsiveness
C)Assurance
D)Reliability

Question 33

The net present value of the customer relates to:

A)the cost to keep the customer minus the cost to replace the customer.
B)the profit gained from the customer minus the cost to keep the customer.
C)the total profits gained from the customer discounted over time.
D)the revenue gained from the customer after deducting rebates.

Question 34

Which of the following is used to organize large number of ideas or facts into natural groupings?

A)Process flow chart
B)Scoring system
C)Affinity diagram
D)Likert scale

Question 35

The determinants of the American Customer Satisfaction Index value include all of the following EXCEPT:

A)perceived value.
B)customer loyalty.
C)customer expectations.
D)perceived quality.

Question 36

According to Kano's classification of customer requirements,a cup of coffee that is served hot and fresh at a restaurant specializing in breakfasts fits which class of customer requirements?

A)Dissatisfier
B)Satisfier
C)Exciter
D)Delighter

Question 37

"Moments of truth" are instances when:

A)new products are launched.
B)a firm is audited.
C)a customer comes into contact with an employee.
D)a new competitor enters the market with higher quality.

Question 38

Which of the following is NOT a dimension of product quality listed in the textbook?

A)Performance
B)Responsiveness
C)Features
D)Conformance

Question 39

Suggested reasons why many customer satisfaction efforts fail include all of the following EXCEPT:

A)using poor satisfaction measurement schemes
B)failing to weight quality dimensions equally
C)confusing loyalty with satisfaction
D)failing to identify appropriate quality dimensions

Question 40

Leading customer-oriented practices of successful companies include all of the following EXCEPT:

A)recognize that all customers should to be treated in the same manner.
B)understand the linkages between customer needs and business processes.
C)make commitments to customers that build trust and confidence.
D)compare customer satisfaction results to those of their competitors.

Question 41

Which one of the following is least likely to occur?

A)Actual quality exceeds design quality
B)Expected quality exceeds actual quality
C)Actual quality exceeds perceived quality
D)Design quality exceeds expected quality

Question 42

Questions in a satisfaction survey must be properly designed in order to:

A)be short.
B)cover all facets of the market.
C)achieve actionable results.
D)address more than one issue per question.

Question 43

_____ is an important outcome of a customer-focused culture and the organization's listening,learning,and performance- excellence strategy.

A)Customer benefit package
B)Feedback loop
C)Customer service
D)Customer engagement

Question 44

The Kano classification scheme segments customer requirements into:

A)responders, non-responders, and no opinions.
B)internalists, externalists, and quasi-receptors.
C)dissatisfiers, satisfiers, and exciters.
D)non-necessities, necessities, and luxuries.

Question 45

The willingness to schedule deliveries at the customer's convenience,explaining technical jargon in a layperson's language,and recognizing regular customers by name are all examples of the _____ dimension of service quality.

A)reliability
B)assurance
C)responsiveness
D)empathy

Question 46

________ quality is what the customer assumes will be received from the product.

A)Actual
B)Expected
C)Design
D)Perceived

Question 47

Organizations can use the ACSI data to do all of the following EXCEPT:

A)predict customer loyalty.
B)identify potential barriers to entry within markets.
C)predict return on investments.
D)pinpoint areas in which customer expectations are not being satisfied.

Question 48

Actionable results are achieved if survey responses are:

A)skewed toward the pain points in the system.
B)tied directly to key business processes.
C)similar to key problems identified by the management.
D)collected from an even mix of internal and external customers.

Question 49

Which of the following is a critical question to ask when developing a customer satisfaction measurement program?

A)What is the cost of the program?
B)Who is the customer?
C)Why is the program needed?
D)Which level of management has responsibility for the program?

Question 50

A question on a customer service questionnaire uses the following measurement scale.

This is an example of what type of measurement scale?

A)Taguchi
B)Shewhart
C)Garvin
D)Likert

Question 51

The ability to accurately and dependably provide a customer with what was promised illustrates the service quality dimension of:

A)reliability
B)assurance.
C)responsiveness.
D)empathy.

Question 52

Which of the following is NOT TRUE of the net present value of customers?

A)A firm can determine the net value of offering increasing levels of benefits to users.
B)Profit potential can be measured by the net present value of the customer.
C)The number of transactions associated with repeat customers cannot be estimated.
D)Firms can use it to eliminate customers with low or negative values that represent a financial liability.

Question 53

The easiest way to identify customers is to think in terms of:

A)communication channels.
B)service-delivery models.
C)customer-supplier relationships.
D)stakeholders in the service delivery system.

Question 54

_____ can be measured by the net present value of the customer.

A)Break-even point
B)Repeat sales
C)Profit potential
D)Market value

Question 55

Modern outlook on customer satisfaction requires that firms must first:

A)avoid creating dissatisfied customers because of product or service failures.
B)design efficient customer service systems.
C)enforce stringent quality control standards for product delivery.
D)conduct effective feasibility studies before delivering a product or service.

Question 56

Juran suggests classifying customers into two main groups: the ____ and the _____.

A)vital few; useful many
B)organizers; opportunists
C)exciters; delighters
D)internal; external

Question 57

Efficient customer satisfaction measurement schemes should try to identify:

A)the customer's importance and the firm's performance of key quality characteristics.
B)inconsistencies in satisfaction responses of the target customer group.
C)the firm's performance of key quality characteristics but not the customer's importance.
D)key customer groups that provide the major revenue to the business.

Question 58

Identifying customer-supplier relationships begins with asking some fundamental questions as mentioned below EXCEPT:

A)What goods or services are produced by my work?
B)Who uses these products and services?
C)Why do I call, write to, or answer questions for?
D)Who supplies the inputs to my process?

Question 59

The _____ includes the physical product and its quality dimensions,presale support,and post-sale support.

A)customer engagement
B)customer benefit package
C)organizational support
D)total quality package

Question 60

The physical facility and equipment of a resort hotel represent which dimension of service quality?

A)Responsiveness
B)Tangibles
C)Reliability
D)Assurance

Question 61

Which of the following statements is NOT TRUE of designing customer satisfaction surveys?

A)The first step in developing a customer satisfaction survey is to determine its purpose.
B)Customer satisfaction measurement should not be confined to external customers.
C)Independent third-party organizations often have more credibility to respondents and can ensure objectivity in the results.
D)Telephone interviews are the most common means of measuring customer satisfaction.

Question 62

Because _____ quality drives consumer behavior,producers should make every effort to ensure that ____ quality conforms to _____ quality.

A)perceived; actual; expected
B)expected; perceived; actual
C)expected; actual; perceived
D)actual; perceived; expected

Question 63

Some of the key approaches to gathering customer information include all of the following EXCEPT:

A)direct customer contact.
B)focus groups.
C)external consultant information.
D)monitor the Internet.

Question 64

_____ are measurable performance levels or expectations that define the quality of customer contact with representatives of an organization.

A)Attitude scales
B)Behaviorally Anchored Rating Scales
C)Customer experience indexes
D)Customer contact requirement

Question 65

A car's fit and finish and freedom from noises and squeaks can reflect this dimension.

A)Performance
B)Features
C)Conformance
D)Aesthetics

Question 66

Studies in the service management literature suggest that customers who rated service quality highly also had the highest expectations for _____.

A)service recovery
B)customer service
C)perceived value
D)net present value

Question 67

Measurement of customer engagement through the feedback process helps the organization in all of the following EXCEPT:

A)discover customer perceptions of how well the organization is doing in meeting customer needs, and compare performance relative to competitors.
B)identify market demographics to effectively segment the product market to achieve better results.
C)identify internal work process that drive satisfaction and loyalty and discover areas for improvement.
D)track trends to determine whether changes actually result in improvements.

Question 68

Customer-focused organizations consider complaints as:

A)outcomes of public relations failure.
B)opportunities for improvement.
C)a symptom of systemic defects.
D)the rationale for customer service.

Question 69

Which of the following is NOT TRUE of complaints?

A)Organizations involved in customer relationship management train customer contact personnel to deal with complaints.
B)The objective of customer service is to convert complaints into chargeable service opportunities.
C)Complaints provide a source of product and process improvement ideas.
D)The complaint process itself needs to be monitored, evaluated, and improved.

Question 70

Research identified five principal dimensions that contribute to customer perceptions of service quality.Which of the following is NOT one of them?

A)Reliability
B)Assurance
C)Fringe benefits
D)Responsiveness

Question 71

Customer requirements,as expressed in the customer's own terms,is called the:

A)appreciative inquiry
B)market intelligence
C)customer's meaning
D)voice of the customer

Question 72

One way to evaluate customer satisfaction and use it effectively is to collect information on both the importance and the performance of _____.

A)the marketing process
B)customer service personnel
C)key quality characteristics
D)sales data.

Question 73

_____ allows the company to align its internal processes according to the most important customer expectations or their impact on shareholder value.

A)Market value
B)Segmentation
C)Penetration strategy
D)Relation analysis

Question 74

_____ quality is the outcome of the production process and what is delivered to the customer.

A)Delivery
B)Actual
C)Service
D)Design

Question 75

_____ refer to the requirements that are expected in a product or service.

A)Dissatisfiers
B)Satisfiers
C)Exciters
D)Delighters

Question 76

Benefits of customer-supplier partnerships include all of the following EXCEPT:

A)access to technology or distribution channels not available internally.
B)shared risks in new investments and product development.
C)improved products through early design recommendations based on supplier capabilities.
D)increased operations costs through better communications.

Question 77

Providing _____ is often considered the minimum required to stay in business.

A)dissatisfiers
B)satisfiers
C)exciters
D)delighters

Question 78

_____ refers to a product's primary operating characteristics.

A)Performance
B)Features
C)Conformance
D)Aesthetics

Question 79

Any employee who comes in direct contact with customers can obtain useful information simply by engaging in conversation and listening to customers.This is an example of:

A)focus groups
B)direct customer contact
C)field intelligence
D)study complaints

Question 80

One useful tool for organizing large volumes of information efficiently and identifying natural patterns or groupings in the information is the _____.

A)interrelationship diagraph
B)tree diagram
C)matrix diagram
D)affinity diagram