Deck 9: Customer Service Management

Question 1

Refer to the following information. What is the unit fill rate?

A)95.80 percent
B)93.33 percent
C)96.30 percent
D)97.58 percent

Answer 1

93.33 percent

Question 2

A company surveyed both its customers and its senior management about customer expectations. Senior management's perceptions of customer expectations did not match customers' actual expectations. This is an example of:

A)A knowledge gap.
B)A standards gap.
C)A performance gap.
D)A perception gap.

Answer 2

A knowledge gap.

Question 3

Alpha Company has a performance standard of 97 percent fill rate. Last month it achieved a 94 percent fill rate. This is an example of:

A)A knowledge gap.
B)A standards gap.
C)A performance gap.
D)A perception gap.

Answer 3

A performance gap.

Question 4

Johnson Company has the following data about customer orders for the month of June: Orders Received: 5,000 orders
Total Units Ordered: 40,000 units
Total Units Delivered: 37,800
Total Orders Delivered Complete: 4,600
What was Johnson's unit fill rate?

A)92 percent
B)94.5 percent
C)12.5 percent
D)None of these

Question 5

Which measure of basic service will most likely show poorest performance for a firm?

A)Item fill rate
B)Order fill rate
C)Line fill rate
D)Perfect orders

Question 6

A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destination in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. If the firm improves its performance in on-time delivery to 98 percent, what is its new perfect order performance?

A)88 percent
B)98 percent
C)0 percent
D)80 percent
E)71.4 percent

Question 7

Jones Company makes every effort to consistently meet the expectations of all of its customers. It is clear that Jones Company is focused on:

A)Customer service.
B)Customer satisfaction.
C)Customer happiness.
D)Customer success.

Question 8

A firm has established a standard of 96 percent for on-time delivery. Over the past month the firm determined it actually delivered 94 percent on-time. The difference is the:

A)Standards gap.
B)Performance gap.
C)Satisfaction gap.
D)Knowledge gap.

Question 9

Order-to-delivery lead time generally would be longest for which type of product?

A)One that is engineered to order
B)One that is assembled to order
C)One that is made to order
D)One that is made to stock

Question 10

Customer relationship management attempts to:

A)Ensure the development of customer success for customers.
B)Ensure the development of strategically appropriate relationships with customers.
C)Meet the expectations of customers.
D)Use technology to replace human interaction with customers.

Question 11

If a company has some customers who express that they are satisfied with the company's performance, the company can count on the fact that:

A)Those customers are happy.
B)Those customers will continue to buy and be loyal.
C)The company meets requirements of those customers.
D)None of these.

Question 12

Jones Company promised a customer that the customer would receive at least 98 percent of all items ordered. In fact, the customer received 95 percent of the items. This is an example of which "gap" in the customer satisfaction model?

A)Performance gap
B)Knowledge gap
C)Standards gap
D)Communications gap

Question 13

Zanda Company has told a supplier that it is difficult to contact people in the supplier's company to learn the status of its orders and when they might arrive. Zanda is explaining which type of expectation it has of this supplier?

A)Reliability
B)Courtesy
C)Credibility
D)Access

Question 14

With respect to lead-time performance, most customers would prefer which of the following from a supplier?

A)A consistent three-day lead time
B)A lead time that averages three days with a range of one to four days
C)A lead time that averages two days with a range of one to four days
D)All of these are equally preferable.

Question 15

From an operations perspective, companies should strive to:

A)Provide customer success to all customers.
B)Realize different customer management approaches may be appropriate for different customers.
C)Realize that all customers desire close customer success types of relationships.
D)Never refuse to do business with a customer.

Question 16

Refer to the following information. What is the unit fill rate?

A)95 percent
B)98 percent
C)92 percent
D)99 percent

Question 17

A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destination in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. What is the best estimate of its perfect order performance?

A)90 percent
B)60 percent
C)0 percent
D)66 percent

Question 18

The difference between a "customer success" focus and a "customer satisfaction" focus is that:

A)Customer satisfaction is more difficult to achieve.
B)Customer success deals with expectations of customers, satisfaction deals with their requirements.
C)Customer satisfaction deals with expectations, customer success deals with requirements.
D)There really isn't any difference.

Question 19

Refer to the following information. What is the order fill rate?

A)98 percent
B)92 percent
C)91 percent
D)95 percent

Question 20

Which customer management approach requires a comprehensive supply chain perspective on the part of operations executives?

A)Customer success
B)Customer satisfaction
C)Customer service
D)Customer happiness

Question 21

Commitment to "customer success" is likely the best approach for a firm to use with:

A)All of its customers.
B)Customers who represent a small source of revenue for the firm.
C)Customers who have high expectations.
D)None of these.

Question 22

Anthony Company has analyzed its customer base and realizes that it has a few customers who provide both high revenue and high profitability. This suggests that the appropriate commitment to those customers would be:

A)Customer success.
B)Review reason for doing business.
C)Good basic customer service.
D)Customer satisfaction.

Question 23

Which of the following statements most clearly expresses a company's commitment to customer success?

A)"We attempt to meet or exceed the expectations of all of our customers."
B)"We attempt to meet our standards of providing perfect order performance to all of our customers."
C)"We attempt to meet the requirements of our customers."
D)All of these are clear expressions of commitment to customer success.

Question 24

The use of technology to collect and analyze data concerning customers' buying behavior is an important aspect of:

A)Basic customer service.
B)Customer satisfaction.
C)Customer relationship management.
D)Customer success.

Question 25

Customers who are both low revenue generators and low profit generators for a firm should be:

A)Terminated as customers.
B)Provided with a minimum level of customer service.
C)Reviewed for possible termination or continuation.
D)Treated with customer success relationships to improve revenue and profit.