Deck 5: The Voice of the Customer

Question 1

What are the three phases of customer-relationship management?

A) satisfaction, feedback, and retention
B) satisfaction, acquisition, and transition
C) response, feedback, and enhancement
D) acquisition, retention, and enhancement
E) response, transition, and acquisition

Answer 1

D

Question 2

________ customers are also known as end users.

A) External
B) Internal
C) Capital
D) Primary
E) Secondary

Answer 2

A

Question 3

The first component of a complaint-resolution process is ________.

A) contrition
B) correction
C) compensation
D) communication
E) correlation

Answer 3

C

Question 4

External customers are employees receiving goods or services from within the same firm.

Question 5

Which of the following is not a design aspect to customer-relationship management?

A) corrective action
B) guarantees
C) feedback
D) cost
E) complaint resolution

Question 6

________ customers are employees receiving goods or services from within the same firm.

A) Primary
B) Capital
C) External
D) Secondary
E) Internal

Question 7

Churn reduction involves the reduction in the loss of ________.

A) raw materials
B) suppliers
C) funds
D) products
E) customers

Question 8

The external customers are the ultimate people the company is trying to satisfy with its work.

Question 9

Which of the following is not a component of an effective guarantee?

A) conditional
B) meaningful
C) understandable
D) communicable
E) painless to invoke

Question 10

________ management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.

A) Knowledge
B) Order
C) Sales
D) Campaign
E) Channel

Question 11

The ________ phase of customer-relationship management involves improving service to the customer through the use of information systems.

A) acquisition
B) retention
C) enhancement
D) transition
E) response

Question 12

The ________ model shows that a firm's quality performance is increasing while customer's expectations are also increasing.

A) restructured customer-driven quality
B) relative customer-driven quality
C) redesigned customer-driven quality
D) receptive customer-driven quality
E) reactive customer-driven quality

Question 13

The ________ process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

A) complaint-reaction
B) complaint-restoration
C) complaint-resolution
D) complaint-response
E) complaint-reversal

Question 14

The ________ customers are the ultimate people the company is trying to satisfy with its work.

A) capital
B) internal
C) primary
D) external
E) secondary

Question 15

The second component of a complaint-resolution process is ________.

A) contrition
B) correction
C) compensation
D) communication
E) correlation

Question 16

________ customers are the bill-paying receivers of a company's work.

A) External
B) Internal
C) Primary
D) Secondary
E) Capital

Question 17

The process associated with resolving complaints is called the ________ process.

A) complaint-reversal
B) complaint-restoration
C) complaint-reaction
D) complaint-recovery
E) complaint-response

Question 18

The view of the customer that asserts that he or she is a valued asset to be managed is referred to as ________.

A) customer response
B) customer intelligence
C) customer data management
D) reactive customer-driven quality
E) customer-relationship management

Question 19

Customer ________ is measured as the percentage of customers who return for more service.

A) approval
B) feedback
C) satisfaction
D) retention
E) response

Question 20

Internal customers are the bill-paying receivers of a company's work.

Question 21

The complaint-resolution process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

Question 22

The process associated with resolving complaints is called the complaint-response process.

Question 23

The enhancement phase of customer-relationship management involves improving service to the customer through the use of information systems.

Question 24

Explain the reactive customer-driven quality (RCDQ) model.

Question 25

Amazon's customized desktops with recommendations for products based on historical purchases is an example of the customer enhancement phase of CRM.

Question 26

________ is a process for developing relationships with few suppliers for long-term contracts.

A) Single sourcing
B) Gap analysis
C) Supplier rationalization
D) Segmentation
E) Source loyalty

Question 27

The approach authorizing major suppliers to make purchases for their own accounts, resulting in suppliers providing only what is needed when it is needed, is referred to as ________.

A) single-source managed inventory
B) vendor managed inventory
C) account managed inventory
D) cost managed inventory
E) time managed inventory

Question 28

Customer-driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about the customers to learn their needs and preferences.

Question 29

Knowledge management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.

Question 30

What are the components and activities associated with the complaint resolution process?

Question 31

Differentiate between internal and external customers.

Question 32

Customer relationship management involves viewing the customer as a valued asset to be managed.

Question 33

To be effective, a guarantee should be unconditional.

Question 34

Guarantees should be designed prior to beginning business.

Question 35

Improving services such as customer service policies, sales processes, and after-sales services according to customer preferences is referred to as transactional analysis.

Question 36

Due to constantly changing customer needs, the reactive approach to customer-driven quality could lead to problems if customer requirements increase at a faster rate than quality and service improvement.

Question 37

A guarantee outlines the customer's rights.

Question 38

What are customer-relationship management systems?

Question 39

Customer retention is measured as the percentage of customers who return for more service.

Question 40

Which of the following is a diagram tool for managers that depicts a flowchart of interactions between service providers and customers?

A) process-chain-network diagram
B) precedence-network diagram
C) relationship-network diagram
D) activity-network diagram
E) interaction-network diagram

Question 41

________ results in the suppliers becoming de facto subsidiaries to their major customers.

A) Segmentation
B) Gap analysis
C) Strategic alliance
D) Source loyalty
E) Supplier rationalization

Question 42

Annuity relationships result in the customer providing a short-term income stream to the provider.

Question 43

The SERVQUAL instrument was developed by ________.

A) Juran, Deming, and Shewhart
B) Ishikawa and Taguchi
C) Hammer and Champy
D) Parasuraman, Zeithamel, and Berry
E) Feigenbaum, Crosby, and Peters

Question 44

Single-sourcing arrangements are developing into strategic alliances where suppliers become de facto subsidiaries to their major customers.

Question 45

Customer rationalization results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

Question 46

Many companies use single sourcing as a way to increase the number of suppliers.

Question 47

________ results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

A) Customer segmentation
B) Customer-relationship management
C) Reactive customer-driven quality
D) Actively solicited customer-feedback
E) Customer rationalization

Question 48

In ________, suppliers integrate information systems and quality systems that allow close integration at all levels.

A) segmentation
B) gap analysis
C) annuity relationships
D) strategic alliances
E) supplier rationalization

Question 49

Customer-initiated contact such as filling out a restaurant complaint card, calling a toll-free complaint line, or submitting an inquiry via a company's Web site, is considered ________.

A) customer rationalization
B) passively solicited customer feedback
C) actively solicited customer feedback
D) reactive customer-driven quality
E) customer segmentation

Question 50

A process-chain-network diagram is a flowchart tool for managers to use when designing service delivery systems.

Question 51

Which of the following determinants of service quality means possession of the required skills and knowledge to perform the service?

A) reliability
B) responsiveness
C) competence
D) access
E) credibility

Question 52

Which of the following determinants of service quality involves consistency of performance and dependability?

A) reliability
B) responsiveness
C) competence
D) access
E) credibility

Question 53

Describe the concept of single sourcing. How is single sourcing related to strategic alliances?

Question 54

The gap refers to the differences between ________.

A) corrective action and preventive action
B) service quality and product quality
C) empowered employees and employees managed by a hierarchy
D) accurate quality projections and inaccurate quality projections
E) desired levels of performance and actual levels of performance

Question 55

Which of the following determinants of service quality involves politeness, respect, consideration, and friendliness of contact personnel?

A) reliability
B) responsiveness
C) competence
D) credibility
E) courtesy

Question 56

Which of the following determinants of service quality involves approachability and ease of contact?

A) reliability
B) responsiveness
C) competence
D) access
E) courtesy

Question 57

Customer-initiated contact, such as submitting an inquiry via a company's Web site, is considered passively solicited customer feedback.

Question 58

A(n) ________ relationship is one in which the customer provides a long-term, steady income stream to the provider.

A) perpetual
B) annuity
C) active
D) rational
E) passive

Question 59

Which of the following determinants of service quality concerns the willingness or readiness of employees to provide service?

A) reliability
B) responsiveness
C) competence
D) credibility
E) courtesy

Question 60

Active data collections tend to result in lower ratings of quality than passive data collections.

Question 61

________ data are ranked so that one measure is higher than the next.

A) Active
B) Discrete
C) Continuous
D) Ordinal
E) Passive

Question 62

The reliability determinant of service quality concerns the willingness or readiness of employees to provide service.

Question 63

The Gap refers to the differences between desired levels of performance and actual levels of performance.

Question 64

________ data is used to compare employee and customer perceptions of quality.

A) Hard
B) Soft
C) Active
D) Passive
E) Rational

Question 65

A(n) ________ group allows a supplier to gather feedback from a group of consumers at one time.

A) access
B) focus
C) service
D) ordinal
E) discussion

Question 66

Gathering data through customer comment cards is an example of a(n) ________ data gathering.

A) active
B) open
C) rational
D) passive
E) closed

Question 67

To segment markets means to distinguish customers or markets according to common characteristics.

Question 68

A(n) ________ consists of a series of items designed to capture perceptions.

A) survey
B) focus group
C) ordinal data system
D) passive data gathering
E) active data gathering

Question 69

What is gap analysis?

Question 70

________ includes all supplier-initiated contact with customers.

A) Customer-relationship management
B) Supplier rationalization
C) Single sourcing
D) Customer segmentation
E) Actively solicited customer feedback

Question 71

Gathering data through focus groups and surveys is an example of a(n) ________ data gathering.

A) active
B) open
C) rational
D) passive
E) closed

Question 72

Explain the ten determinants of service quality contributed by Parasuraman, Zeithamel, and Berry.

Question 73

Phone contacts, focus groups, and survey results are referred to as ________ data.

A) hard
B) soft
C) active
D) passive
E) rational

Question 74

The determinant of service quality pertaining to tangibles encompasses the physical evidence of the service.

Question 75

What is the first step in performing a focus group session?

A) develop questions
B) narrow scope of questions
C) identify purpose
D) select target population
E) run multiple groups

Question 76

What does segmenting markets involve?

A) distinguishing expected service and perceived service
B) distinguishing customers according to common characteristics
C) analyzing the management perceptions of consumer expectations
D) distinguishing service quality specs and service delivery
E) analyzing the external methods to communicate with customers

Question 77

Measurement data such as height, weight, volume, and speed are referred to as ________ data.

A) active
B) passive
C) rational
D) soft
E) hard

Question 78

The competence determinant of service quality means possession of the required skills and knowledge to perform the service.

Question 79

Which of the following determinants include the physical evidence of the service?

A) tangibles
B) aesthetics
C) features
D) intangibles
E) logistics

Question 80

Which of the following determinants of service quality involves trustworthiness, believability, honesty, and having the customer's best interests at heart?

A) reliability
B) responsiveness
C) competence
D) credibility
E) courtesy