Deck 3: Customer Focus

Question 1

Affinity diagrams help firms to efficiently organize large volumes of information and identify natural patterns or groupings in the information.

Answer 1

True

Question 2

The effectiveness of the field intelligence method of gathering customer information depends upon a culture that encourages open communication with superiors.

Answer 2

True

Question 3

Loyal customers are most likely to be dissatisfied when problems are not resolved after complaining to the organization.

Answer 3

True

Question 4

Customer relationship management systems help organizations to identify and target their most profitable customers.

Question 5

The focus groups have a higher cost of implementation compared to other approaches used for gathering customer information.

Question 6

Customer satisfaction or dissatisfaction takes place during moments of truth.

Question 7

Customer contact employees are often the only means by which a customer interacts with an organization.

Question 8

According to Juran,the customers who fall under the category of "vital few" typically need only standardized attention as a group.

Question 9

The internal customers of a company are those people who ultimately purchase and use the company's products.

Question 10

Customer -supplier partnerships help organizations to improve products through early design recommendations and also reduce operations costs through better communications.

Question 11

According to the Kano Model,'satisfiers' are the basic requirements that customers expect in a product or service which are generally not stated by customers but assumed as given.

Question 12

Complaints allow an organization to learn about product failures and service problems,particularly the gaps between expectations and performance.

Question 13

The "reliability" dimension of a service depends on the ability of the service provider to provide what was promised to the customers,dependably and accurately.

Question 14

The needs and expectations of external customers are different from those of consumers.

Question 15

Customer-focused organizations empower their front-line people to do whatever is necessary to satisfy a customer.

Question 16

Dissatisfied individual and business customers often tend to complain to the organization about the problems.

Question 17

In the context of the dimensions of quality,as suggested by David A.Garvin,reliability is the amount of use one gets from a product before it physically deteriorates.

Question 18

In the context of the gap model,a customer will be satisfied when the expected quality of a product is higher than the actual quality.

Question 19

Customers who are merely satisfied may often purchase from competitors because of convenience,promotions,or other factors.

Question 20

Loyal customers are more costly to do business with compared to other customers.

Question 21

Which of the following is true of consumers of an organization?

A)The retail outlets which sell the products of an organization are considered the consumers of that organization.
B)The consumers of an organization receive inputs and produce outputs for other customers the organization.
C)The consumers of an organization are a part of one of the various departments or processes of the organization.
D)The consumers of an organization are the ultimate purchasers and users of the organization's products.

Question 22

Most women in the township of Adington prefer to visit Sharon's Hair Salon because of the attractive interiors,well-designed equipment and neatly dressed employees.Which of the following dimensions is influencing customer perceptions of quality in the above scenario?

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

Question 23

The customer satisfaction measurement of "customer perceived value" focuses more on customer satisfaction than on loyalty.

Question 24

Which of the following dimensions that contribute to customer perceptions of quality refers to the willingness of the service providers to help customers and provide prompt service?

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

Question 25

Customer satisfaction and engagement measurement allows an organization to identify causes of dissatisfaction and failed expectations as well as drivers of delight to understand the reasons why customers are loyal or not loyal to the company.

Question 26

The ASQ Quality Glossary defines customer _____ as "the result of delivering a
Product or service that meets customer requirements."

A)engagement
B)enrichment
C)satisfaction
D)loyalty

Question 27

The net present value of a customer is:

A)a measure of how customers assess the benefits of a product in making purchase decisions.
B)a measure of the likelihood that satisfied customers will recommend the product to other customers.
C)the total profits (revenues associated with a customer minus the expenses needed to serve a customer) discounted over time.
D)the total value of the benefits offered by a customer in a customer-supplier partnership.

Question 28

Maple Products is a manufacturer of electronic goods that markets its products in several countries across the world.The company makes sure that the spare parts of the products are available in all their markets and also ensures that the technical personnel in their retail outlets are adequately trained to repair their products.In the context of the dimensions of quality,as suggested by David A.Garvin,the efforts taken by the company will enhance the _____ dimension of its product quality.

A)durability
B)reliability
C)serviceability
D)conformance

Question 29

The _____ dimension of the quality,as suggested by David A.Garvin,refers to the amount of use one gets from a product before it physically deteriorates or until replacement is preferable.

A)durability
B)reliability
C)assurance
D)serviceability

Question 30

Internal customers of an organization are those people who:

A)are not a part of the organization but are involved in the supply of the organization's products to the consumers.
B)are not a part of the organization but sell resources to the organization so that the organization can produce it products
C)are a part of the organization who provide inputs and help to create outputs for customers.
D)are the end users of a company's products or services.

Question 31

According to the Kano Model,the basic requirements that customers expect in a product and which are generally not stated by customers but assumed as given,fall into the category of _____.

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

Question 32

In the case of a customer satisfaction survey,formal written surveys tend to generate more qualitative data than face-to-face interviews.

Question 33

The term 'customer engagement' refers to:

A)customers' involvement in the early design and improvement of products.
B)the strategic alliances of organizations with customers who share common values.
C)the expectations that define the quality of customer contact with an organization.
D)customers' investment in or commitment to a brand and product offerings.

Question 34

The Kano Model of customer requirements uses the term "satisfiers" to refer to:

A)the basic requirements that are generally not stated by a customer but are assumed as a given.
B)the aesthetic features of a product that do not add any value to the product.
C)the requirements that customers expressly say they want in a product.
D)the new or innovative features in a product that are not expected by customers in a product.

Question 35

Which of the following is true of the American Customer Satisfaction Index?

A)It is not effective in quantifying the value that customers place on products.
B)It is based on customer evaluations of the quality of goods and services.
C)It evaluates only the goods and services produced by the domestic firms.
D)It is updated on a rolling basis once a year by measuring all the sectors of the economy.

Question 36

Customer satisfaction surveys will be effective when the questions included in the survey can provide actionable results.

Question 37

The net promoter score is the difference in the percentage of promoters and detractors.

Question 38

According to the dimensions of quality,as suggested by David A Garvin,_____ refers to the probability of a product's surviving over a specified period of time under stated conditions of use.

A)Durability
B)Reliability
C)Conformance
D)Serviceability

Question 39

Which of the following dimensions of quality,as suggested by David A Garvin,refers to the degree to which physical and performance characteristics of a product match pre-established standards?

A)Conformance
B)Reliability
C)Performance
D)Durability

Question 40

According to the classification system proposed by Juran,customers who belong to the group of 'the vital few':

A)need only standardized attention as a group.
B)have needs and requirements that differ from general customers.
C)can be targeted through mass marketing strategies.
D)deserve special attention on an individual basis.

Question 41

Which of the following is true of the 'customer perceived value' measurement used by organizations to measure customer satisfaction?

A)It measures customer satisfaction based on the likelihood of customers recommending the product to other customers.
B)It measures how customers assess benefits of the product against costs in making purchase decisions.
C)It focuses more on customer satisfaction than on customer loyalty.
D)It takes into consideration only existing customers and not potential buyers.

Question 42

The _____ dimension of the quality,as suggested by David A.Garvin,refers to how a product looks,feels,sounds,tastes,or smells.

A)aesthetics
B)reliability
C)assurance
D)serviceability

Question 43

Which of the following is an advantage offered by customer-supplier partnerships to businesses?

A)It helps organizations in selecting their customer contact employees and training and empowering them to meet and exceed customer expectations.
B)It helps organizations to build and maintain a work environment conducive to the well-being and growth of all employees by paying attention to their issues.
C)It allows organizations to share the risks in new product development and improve products through early design recommendations.
D)It allows organizations to effectively respond to customers' complaints by systematically collecting and analyzing complaint data and using it for improvements.

Question 44

Which of the following survey instruments is most commonly used because of low data collection costs and ease of analysis associated with it?

A)Formal written surveys
B)Telephone interviews
C)Focus groups
D)Face-to-face interviews

Question 45

Which of the following survey instruments is most likely to be effective in generating a significant amount of qualitative information from the customers?

A)Mail surveys
B)Online surveys
C)Focus groups
D)Telephone interviews

Question 46

According to the Kano Model,new or innovative features that customers do not expect or even anticipate,fall under the category of _____.

A)delighters
B)dissatisfiers
C)continuous improvements
D)satisfiers

Question 47

According to the Kano model,which of the following features in a refrigerator is most likely to fall under the category of a delighter?

A)Temperature controls
B)Defrost option that allows to clear the frozen ice
C)A separate section for vegetables inside the refrigerator
D)Anti-freeze feature that does not freeze food inside the refrigerator

Question 48

According to the gap model,the term "_____" refers to the outcome of the production process and what is delivered to the customer.

A)expected quality
B)delighter
C)satisfier
D)actual quality

Question 49

The final task in designing a customer satisfaction survey is to:

A)design the reporting format and the data entry methods.
B)select the appropriate survey instrument.
C)define the sample frame,or target group from which the sample is chosen.
D)select the questions to be included in the survey.

Question 50

Affinity diagram is a tool that can be used by organizations to:

A)measure the response of customers by allowing them to express their degree of satisfaction on a five-point scale.
B)gather and organize a large number of ideas or facts.
C)streamline their communication process with the customers.
D)train their employees on service recovery.

Question 51

Customer-focused organizations consider complaints as opportunities for improvement as:

A)it allows them to test the aptitude and efficiency of their employees in handling customer complaints.
B)it allows them to reduce the cost of research and development because they come to know about potential features through customers.
C)effectively resolving complaints increases customer loyalty and retention.
D)it helps employees understand what it feels like to be a customer.

Question 52

Which of the following is the first step in developing a customer satisfaction survey?

A)Selecting the appropriate survey instrument
B)Designing the survey
C)Determining the purpose of the survey
D)Selecting the group or individuals who will conduct the survey

Question 53

While designing a customer satisfaction survey,organizations should use:

A)compound questions.
B)questions with double negatives.
C)leading questions.
D)questions that address only one issue or idea.

Question 54

Which of the following is true of customers who are regarded as "promoters" based on the net promoter score associated with these customers?

A)They spread negative comments about the organization.
B)They usually defect at higher rates.
C)They are less price-sensitive and more profitable.
D)They are not likely to purchase from the organization again.

Question 55

Which of the following is used by organizations to measure customer response by allowing them to express their degree of opinion?

A)Likert Scale
B)Histogram
C)R-chart
D)Cause-and-effect diagram

Question 56

The term "voice of the customer" refers to:

A)the performance levels or expectations that define the quality of customer contact with an organization.
B)the customer requirements as expressed in the customer's own terms.
C)the involvement of customers in the development of new products.
D)customers' investment or commitment to a brand or a product.

Question 57

Which of the following is a reason why organizations measure customer engagement and satisfaction?

A)It helps them in determining their financial requirements and the required value of the cash reserve ratio.
B)It helps them to discover customer perceptions of how well the organization is doing in meeting customer needs.
C)It helps them to segment markets based on demographic characteristics of the customers.
D)It helps them in determining their human resource requirements.

Question 58

Which of the following is a disadvantage associated with using formal written surveys as survey instruments for measuring customer satisfaction?

A)They generally measure predetermined perceptions of what is important to the customers.
B)They incur high costs.
C)They are very difficult to analyze.
D)They are not effective in probing deeply into the issues.

Question 59

Which of the following is most likely to be true of a customer-focused organization?

A)They make it easy for the customers to conduct business.
B)They do not encourage customer complaints as it will affect their brand image.
C)They are less keen on engaging in a face-to-face conversation with the customers.
D)They do not provide explicit guarantees and warranties to the customers.

Question 60

According to the gap model,the term "_____" refers to the needs and requirements of a customer.

A)actual quality
B)delighters
C)expected quality
D)exciters

Question 61

List some of the products sold by Unique Online Furniture,Inc.

Question 62

How do CRM systems help firms to maintain a competitive advantage?

Question 63

How are the products of Harley-Davidson marketed to retail customers worldwide?

Question 64

How does Unique Online Furniture provide personal attention to its individual customers?

Question 65

What are the key customer requirements identified by Unique Online Furniture,Inc?

Question 66

List some of the competitors of Unique Online Furniture,Inc.

Question 67

What is Harley-Davidson,Inc.famous for?

Question 68

What are the various products and services offered by Harley-Davidson?

Question 69

Explain the "Creativity Model" established by Harley-Davidson.

Question 70

Why do organizations engage in customer segmentation? What are the different approaches that can be used for customer segmentation?

Question 71

What is the vision of Harley-Davidson?

Question 72

What are the various ways in which Harley-Davidson builds its competitive advantage?

Question 73

List some of the steps taken by Harley-Davidson to attract customers.

Question 74

Where are Harley-Davidson's Complete Knock Down assembly plants built?

A)Germany and India
B)Germany and France
C)Brazil and India
D)France and Brazil

Question 75

How does Harley-Davidson define its customer segments for heavyweight (651+ cc) motorcycles?

Question 76

What is the result of Unique Online Furniture's customer-focused approaches?

Question 77

Why do organizations measure customer satisfaction and engagement?

Question 78

What are customer contact requirements? Why is it important for organizations to train and develop customer contact employees?

Question 79

List some of the reasons why customer satisfaction efforts fail to produce useful results.

Question 80

Discuss the Harley Owners Group concept established by Harley-Davidson.