Deck 17: Customer Service

Question 1

Which of the following statements is True of perceived service?

A) Retailers need to consider only the actual customer service delivered in order to build a reputation.
B) Employees providing the service do not have an impact on customer satisfaction.
C) Customers' perceptions of a retailer's customer service depend on the actual service delivered.
D) Customers are influenced solely by the outcome of the service.
E) The store design and policies do not impact the service.

Answer 1

C
Customers' perceptions of a retailer's customer service depend on the actual service delivered. Customers are often influenced by the manner in which employees provide the service, not just the outcome.

Question 2

Retailers can reduce the knowledge gap and develop a better understanding of customer expectations by undertaking customer research.

Answer 2

True
Retailers can reduce the knowledge gap and develop a better understanding of customer expectations by undertaking customer research, increasing interactions between retail managers and customers, and improving communication between managers and the employees who provide customer service.

Question 3

Bronson has shopped at several toy stores. However, he really likes The Toy Corner because of the broad assortment offered for different age groups. Moreover, if a particular toy is not available at the store, Bronson can place an order and have it delivered directly to his home at a discounted price. Hence, Bronson feels that the service offered by The Toy Corner

A) is poor due to lack of instrumental support.
B) does not conform to promised delivery dates.
C) exceeds customer expectations.
D) does not provide value to customers.
E) is limited to specific customers.

Answer 3

C
Customers are satisfied when the perceived service meets or exceeds their expectations.

Question 4

Glamour Looks is a beauty salon. It offers various skin and hair treatment packages based on customer requests. Which of the following types of services is Glamour Looks offering?

A) Standardized service
B) Wardrobing
C) Micromanagement
D) Perceived service
E) Personalized service

Question 5

To reduce the delivery gap and provide a consistent service, retailers should ensure that employees get approval from their managers before making any decisions regarding customer service.

Question 6

Empowerment means allowing employees at a firm's lowest levels to make important decisions regarding how service will be provided to customers.

Question 7

Customer expectations are based on a customer's knowledge and experiences.

Question 8

McDonald's, with its use of specific policies and procedures to provide an acceptable, consistent service quality, would best be described as using the personalized approach for customer service.

Question 9

Catherine visited American Eagle, an apparel store, to browse through the new spring collection. The sales associate greeted her when she entered the store, showed her the new collection, and stayed with her throughout her shopping experience, bringing her additional items while Catherine was in the dressing room. This sales service can best be described as

A) a standardized service.
B) wardrobing.
C) micromanagement.
D) a personalized service.
E) a perceived service.

Question 10

A shopper is most likely to receive standardized customer service in

A) McDonald's.
B) Nordstrom.
C) Ritz Carlton Hotel.
D) Bass Pro Shops.
E) Marriott Hotel.

Question 11

Richard purchased a coffee maker from Amazon. As he was completing his purchase, the site suggested some brands of coffee for him to purchase. This is an example of

A) standardization.
B) information overload.
C) mobile marketing.
D) sales promotion.
E) personalization.

Question 12

Personalized service

A) does not require trained employees.
B) is more consistent than standardized service.
C) increases the consistency of service quality.
D) is based on establishing a set of rules for providing service.
E) depends on the judgment and capability of service providers.

Question 13

Empathy refers to the caring, individualized attention provided to customers.

Question 14

________ makes it hard to provide and maintain high-quality service because retailers cannot easily measure or check the service before it gets delivered to customers.

A) Intangibility
B) Flexibility
C) Assurance
D) Empathy
E) Instrumental support

Question 15

Providing high-quality service is difficult for a retailer because

A) competitors often easily duplicate the services.
B) services availed by customers are generally tangible.
C) most employees show a similar performance level.
D) the quality of service can vary dramatically across stores.
E) all employees are not involved in activities that increase customer value.

Question 16

Procedural fairness is a customer's perception of the benefits received compared with his or her costs in terms of inconvenience or monetary loss.

Question 17

Which of the following statements is True of customer service?

A) The retail offerings of a company are not influenced by customer service.
B) It is relatively easy for a company to duplicate the services offered by a competitor.
C) It does not provide major strategic advantages for a company.
D) It increases the value customers receive from the merchandise they buy.
E) Customer service perceptions are developed mostly by interacting with top management.

Question 18

A standardized service approach requires that service providers tailor their services to meet each customer's personal needs.

Question 19

Customers are satisfied when their expectations exceed the perceived service.

Question 20

The steps in effective service recovery are listening to the customer, providing a fair solution, and resolving the problem quickly.

Question 21

The ________ can be closed by developing specific guidelines and systems for delivering high-quality service.

A) communication gap
B) standards gap
C) research gap
D) knowledge gap
E) delivery gap

Question 22

When Donna ordered a refrigerator, she expected the people who delivered it to install the refrigerator. However, the refrigerator was left at her door, and Donna's expectations were not met. Which of the following terms best describes the given scenario?

A) Procedural fairness
B) Distributive fairness
C) Learned response
D) Service gap
E) Services cape

Question 23

________ means to provide customer service personnel and sales associates that really want to help customers and provide prompt service.

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

Question 24

When the customer's perception of the service delivered by a retailer fails to meet the customer's expectations, a(n) ________ results.

A) standardized service
B) service gap
C) personalized service
D) procedural fairness
E) assurance

Question 25

Autumn calls the most reputable plumber in the community to repair the faucet in her kitchen. She pays the plumber for his work. However, the next day, Autumn sees the faucet leaking again and is stunned to see the repair was done with a strip of duct tape. This reaction from Autumn can be attributed to a(n)

A) faulty service agreement.
B) procedural fairness.
C) services cape.
D) service gap.
E) motivational guide.

Question 26

Karen ordered four books from Book Your Choice.com. She was informed that her order would be processed in two working days and she would receive the books three days from the date of ordering. The books were promptly delivered on the third day. Karen was immensely satisfied with the service provided by the website. Which customer service characteristic affecting perceptions of service quality is seen in the given scenario?

A) Instrumental support
B) Empathy
C) Tangibility
D) Reliability
E) Distributive fairness

Question 27

An electronic retailer surveys its customers to understand the factors that they consider before making a purchase decision. The retailer is trying to bridge the ________ by using customer research.

A) delivery gap
B) standards gap
C) performance gap
D) knowledge gap
E) communication gap

Question 28

Service excellence will occur only when the

A) top management provides leadership and demonstrates commitment.
B) top management refrains from empowering front-line service providers.
C) top management centralizes its decision-making activities.
D) retailer sets service standards based on internal operations rather than customers' perceptions.
E) retailer provides standardized services rather than personalized services when purchase decisions involve high risks.

Question 29

________ helps in the prompt resolution of service issues.

A) Procedural rigidity
B) Intangibility
C) Employee empowerment
D) Knowledge gap
E) Service gap

Question 30

When Peridot, a department store, centralized all its buying activities, the store and department managers were able to spend more time working with sales associates and talking with customers. As a result, the company was able to better understand the expectations of the customers. Which of the following gaps was reduced as a result of the centralization process?

A) Knowledge gap
B) Communication gap
C) Delivery gap
D) Standards gap
E) Research gap

Question 31

Customers at Chapter One Bookstore complained about how long they had to wait while the sales clerk manually checked the books to see which ones were available in the store's inventory. The owner, therefore, decided to install a computer and database management program to manage the store's inventory. Implementing customers' feedback and using technology reduced the store's

A) communication gap.
B) standards gap.
C) research gap.
D) brand gap.
E) knowledge gap.

Question 32

Dust-free, clean, and organized stores with updated dressing rooms and kiosks are examples of a retailer's commitment to customer service through

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

Question 33

Jane, the manager of a bookstore at Warren Wilson College, hires additional employees during the first few weeks of each semester but does not clearly define their responsibilities. Hence, during busy times, the students end up waiting for more than ten minutes to check out because there are not enough clerks ringing up sales. Some students get frustrated and leave without buying. This situation indicates a

A) standards gap.
B) communication gap.
C) brand gap.
D) research gap.
E) delivery gap.

Question 34

A retailer would be reducing the ________ by developing a better understanding of customer expectations and perceptions.

A) communications gap
B) standards gap
C) performance gap
D) knowledge gap
E) delivery gap

Question 35

When Amir opened his seafood market in Alabama, he was amazed at the number of customers who asked him to clean and prepare the fresh lobster, shrimp, and crawfish they had just purchased. When setting up his store, he had not set aside a place for performing this service. Therefore, a ________ resulted which could have been overcome by Amir through customer research.

A) brand gap
B) knowledge gap
C) delivery gap
D) standards gap
E) communication gap

Question 36

________ is the ability to perform the service dependably, accurately, and as promised.

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

Question 37

________ is the knowledge and courtesy of employees and their ability to convey trust and confidence.

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

Question 38

Which of the following factors does not affect customers' perceptions of service quality?

A) Reliability
B) Assurance
C) Tangibility
D) Responsiveness
E) Triviality

Question 39

Which of the following terms is not one of the gaps that contributes to the service gap?

A) Knowledge gap
B) Standards gap
C) Performance gap
D) Communication gap
E) Delivery gap

Question 40

Six weeks after Samuel purchased six portable computers for his realty business, he was called by the retailer who sold him the computers and asked if he was satisfied with the purchase and if there was anything that he would change about the way the store does business. In this scenario, the retailer is trying to reduce its

A) delivery gap.
B) standards gap.
C) production gap.
D) knowledge gap.
E) communication gap.

Question 41

Hector ordered a model fighter jet at a discounted price of $22 from a hobby catalog. However, he was charged an extra $10 for shipping charges that were not mentioned anywhere on the catalog. He decided never to buy anything from that catalog again. Due to a ________, the catalog retailer lost a customer.

A) delivery gap
B) communications gap
C) market gap
D) knowledge gap
E) research gap

Question 42

A radio advertisement announced that Dan's Ice Cream would be open until 10:00 p.m. on Friday evenings. Norm reached the store by 9:45 p.m. to buy an ice cream cone. The store was locked and a sign on the door said that the store closes at 9:00 p.m. This scenario is an example of a

A) communications gap.
B) market gap.
C) delivery gap.
D) knowledge gap.
E) research gap.

Question 43

Retailers reduce their ________ by utilizing mystery shoppers to assess service quality.

A) standards gap
B) knowledge gap
C) responsiveness
D) reliability
E) tangibility

Question 44

The Hometown Dog Groomer offered a free flea dip to its regular customers. The owner had extra employees to deal with the crowd but provided only one dip tank, which slowed down the process. What could the owner do to deliver the desired service level?

A) Plan for a better resource-to-yield output.
B) Provide instrumental support.
C) Offer incentives to customers.
D) Assure the customers of better service in future.
E) Adopt an antagonistic attitude toward customers.

Question 45

Mystery shoppers give importance to all of the following aspects except

A) the attitude of the sales associate toward the shopper.
B) the manner in which merchandise was displayed in the store.
C) the knowledge of the sales associate about merchandise he or she was selling.
D) the responsiveness of the sales associate to the shopper's complaints.
E) the price of the merchandise offered at the store.

Question 46

Customer satisfaction is affected by the amount of time it takes to get a question answered or a problem resolved. Retailers can minimize this time taken using all of the following steps except

A) providing customers with clear and precise information.
B) requiring store employees to get their manager's approval for all customer service decisions.
C) reducing the number of employees that customers must contact to resolve their issues.
D) not assuming they know what the customers are complaining about or what solution the customers are seeking.
E) not interrupting the customers when they air their complaints.

Question 47

Which of the following is the best example of a service goal for a retailer that is sincere about reducing the standards gap?

A) "Straighten and organize the merchandise when necessary."
B) "Greet all customers when they enter the selling area."
C) "Respond to e-mails as soon as possible."
D) "Display merchandise on racks within 24 hours of delivery."
E) "Respond positively to all customer complaints."

Question 48

Natalie is a senior executive of a department store chain. Every week, she visits one of the stores and pretends to be a customer. She records her observations on the service provided by the store's sales associates and the manner in which her queries were handled. Sales associates who meet the service standards are awarded a small bonus. Therefore, Natalie is a(n)

A) store advocate.
B) retail inspector.
C) early adopter.
D) mystery shopper.
E) innovator.

Question 49

Training employees to effectively deal with customers, providing better assistance to customers, and explaining the use of complex products to potential customers reduces the

A) production gap.
B) research gap.
C) communication gap.
D) delivery gap.
E) knowledge gap.

Question 50

The difference between the service promised by a retailer and the service actually delivered is known as the

A) communications gap.
B) delivery gap.
C) research gap.
D) market gap.
E) knowledge gap.

Question 51

Who among the following would be the best person to make sure that high-quality customer service standards are achieved by retailers?

A) Human resources manager
B) Marketing manager
C) Store manager
D) Advertising manager
E) Financial manager

Question 52

An electronic retailer advertised that returns would be quick and easy if customers were dissatisfied with a product. However, customers were unable to find any detailed information about the retailer's return policies on its website and on the purchase invoice. This lack of information is an example of a

A) market gap.
B) delivery gap.
C) communications gap.
D) research gap.
E) knowledge gap.

Question 53

Which of the following actions is a way to reduce the delivery gap?

A) Reducing instrumental support
B) Empowering employees at the firm's lowest level
C) Assuming what the customer is about complain
D) Interrupting customers when they explain their problem
E) Adopting an antagonistic approach toward customers

Question 54

Retailers can reduce the delivery gap by

A) setting service standards based on internal operations rather than customers' perceptions.
B) providing employees the necessary skills and knowledge.
C) dwelling primarily on the negative aspects of customer problems.
D) providing standardized rather than personalized services for purchases involving high risk.
E) setting service goals that are broad and intangible.

Question 55

To reduce the delivery gap, retailers need to

A) avoid empowering their front-line employees.
B) always assume they know what the customer is complaining about.
C) encourage store employees to have an antagonistic attitude toward customer complaints.
D) provide instrumental and emotional support to employees.
E) set service standards based on internal operations rather than customers' perceptions.

Question 56

A customer returned a textbook to a bookstore because she decided to drop the class after a few weeks. The sales clerk refunded the customer's money immediately because the store had a "no questions asked" refund policy. Which of the following service gaps was reduced because of the clearly defined guideline?

A) Procurement gap
B) Knowledge gap
C) Communication gap
D) Research gap
E) Delivery gap

Question 57

Neil works as a customer service executive in a call center. He handles customer queries and is often hampered by network and telephone problems. Hence, he is unable to effectively address customers' problems. The poor quality of customer service in the given scenario can be attributed to

A) lack of instrumental support.
B) poor internal communication.
C) distributive fairness.
D) procedural fairness.
E) unrealistic customer expectations.

Question 58

Douglas decided to order a Deluxe Werewolf mask from a catalog and called the toll-free number. Although the call was answered immediately, the operator took Douglas's information and transferred the call twice to different departments. What bothered Douglas was that he had to repeat his contact information and customer ID number to different operators. The first operator was not trained to handle customer queries. What type of service gap did Douglas encounter?

A) Knowledge gap
B) Standards gap
C) Research gap
D) Communication gap
E) Delivery gap

Question 59

Marcel works in the linen department of a large department store. When a customer arrives to collect a tablecloth that she had specially ordered, she is disappointed to know that the delivery of the ordered merchandise has been delayed. Marcel is able to use empowerment to bridge the ________ by offering to deliver the product to the customer's residence.

A) knowledge gap
B) delivery gap
C) communication gap
D) research gap
E) brand gap

Question 60

At the Sonic Drive-In restaurant, employees are timed to measure how quickly an order is taken and delivered to customers. When employees' performance consistently meets or exceeds the norms, the restaurant manager gives them a $10.00 bonus check. The purpose of this incentive is to reduce the

A) communication gap.
B) research gap.
C) standards gap.
D) knowledge gap.
E) brand gap.

Question 61

Tyson orders pizzas at a take-out restaurant and is told that the order would be ready in twenty minutes. After waiting for almost half an hour, he is told that his order was taken up just five minutes ago and that the pizzas would be ready in 45 minutes. Which of the following service gaps is exemplified in this scenario?

A) Market gap
B) Communications gap
C) Knowledge gap
D) Delivery gap
E) Research gap

Question 62

Jack went to a bakery and ordered a dozen bagels for work. When he got to work, he discovered that the bagels were stale. The next morning he stopped by the bakery to complain. All of the following would be appropriate ways to deal with Jack's complaint except

A) giving him a coupon for free coffee.
B) giving him a $5.00 discount on his next purchase.
C) offering him a free replacement.
D) referring him to other employees at the bakery.
E) providing him with a coupon for a free breakfast.

Question 63

A sales associate who is confronted by a customer whose newly purchased smartphone does not function should

A) refer the customer to several different store employees to get the issue resolved.
B) always assume he or she knows what the customer is complaining about.
C) allow the customer to air the complaint without any interruption.
D) have an antagonistic attitude toward the customer.
E) offer the customer a discount on the next item he or she purchases.

Question 64

Retailers can minimize the time taken to get a problem resolved and increase customer satisfaction by

A) assuming what the customer is complaining about or what solution the customer is seeking.
B) minimizing the personal attention given to the customer and resolving the problem abruptly.
C) empowering the first contact employee to act quickly to solve the problem.
D) referring the customer to several different employees to get the problem resolved.
E) directing customers to leave feedback on the store's website.

Question 65

How has technology changed customer expectations with regard to retailers?

Question 66

Roselle was upset with the service she received when she was trying to purchase a handbag at a store. First, the salesperson seemed preoccupied with a conversation with another associate. When she finally acknowledged Roselle's presence, the salesperson offered no assistance to Roselle and had minimal information about merchandise. Roselle plans to make a formal complaint to the management. What should the store manager do to recover from this service failure?

A) Motivate sales associates to have an antagonistic attitude while dealing with the customer complaint.
B) Encourage the customer to complain without interruption and then give a sympathetic response.
C) Instruct sales associates to always assume they know what the customer is complaining about.
D) Ensure that the customer is referred to several different store employees to get the issue resolved.
E) Tell the customer to leave feedback on the store's website.

Question 67

Distributive fairness is

A) customers' perceived fairness of the process used to resolve service complaints.
B) customers' perception of a retailer's customer service on the basis of reliability, assurance, tangibility, empathy, and responsiveness.
C) customers' perception of the benefits received compared with their costs in terms of inconvenience or monetary loss.
D) the retailer's rigid adherence to the set guidelines in order to reduce variability in handling customer complaints.
E) the standard approach used by a retailer to deal with all customer complaints.

Question 68

How do all employees of a retail firm and the elements of a retail mix contribute to services that increase the value of the merchandise to customers?

Question 69

Loretta went to a store to buy thermal underwear. The underwear had been featured in an advertisement for $24.99 a pair. She was disappointed to learn that the underwear sold out within two days and complained to the sales associate. The sales associate offered to deliver the merchandise directly to Loretta's home. Loretta was satisfied with how her complaint was handled. Jane, another customer, also came to the store with the intention of buying the thermal underwear and complained about the merchandise being out-of-stock. In addition to offering to deliver the merchandise to her home, the sales associate offered Jane the product at a discounted price of $21.99. In trying to resolve both customers' problems, the sales associate was dealing with

A) distributive fairness.
B) consistent fairness.
C) procedural fairness.
D) service equity.
E) perceptual equity.

Question 70

What are the five customer service characteristics that affect customer's opinions of service quality and what constitutes customer satisfaction?

Question 71

Thelma goes to collect her clothes from a dry-cleaning store at 8 p.m. The store guarantees a 24-hour pick-up service in all of its advertisements. However, she is disappointed to find that the pick-up service is available only between 11 a.m. and 7 p.m. This is an example of a

A) market gap.
B) delivery gap.
C) knowledge gap.
D) communications gap.
E) research gap.

Question 72

Moe's Restaurant recently advertised that it offered unlimited pasta and burritos for $15 on Friday nights. However, when customers tried to avail the offer, they were told that enrolling for a membership was mandatory for the offer. The membership fee turned out to be $10. The membership condition was not mentioned in Moe's advertisement. Which form of service gap can be seen in the given example?

A) Market gap
B) Communications gap
C) Knowledge gap
D) Delivery gap
E) Research gap

Question 73

Procedural fairness

A) significantly increases the variability in handling customer complaints.
B) is achieved when store employees have an antagonistic attitude when handling complaints.
C) is customers' perceptions of the benefits received compared with their costs in terms of inconvenience or monetary loss.
D) makes customers feel they have been dealt with fairly when store employees follow company guidelines.
E) empowers store employees and gives them more flexibility to resolve complaints than distributive fairness.

Question 74

Kevin is a salesperson selling electronic goods. A customer complains about problems with the music player purchased by him the previous week. He requests a replacement. Kevin explains the store's exchange policies and asks the customer to fill out a complaint form. Therefore, Kevin is dealing with the customer's problems with

A) service equity.
B) consistent fairness.
C) perceptual equity.
D) distributive fairness.
E) procedural fairness.

Question 75

From a retailer's perspective, which of the following is a good rule for resolving customer complaints?

A) Motivate store employees to assume they know what the customer is complaining about.
B) Interrupt customers when they are airing their complaints.
C) Allow the customers to complain if they feel they have not been treated properly.
D) Instruct store employees to assume what solution the customer is seeking.
E) Encourage store employees to have an antagonistic attitude when handling customer complaints.

Question 76

What is the difference between personalized services and standardized services?

Question 77

Which of the following approaches would not be effective in service recovery?

A) Listening to the customer
B) Providing a fair solution
C) Resolving the problem quickly
D) Interrupting the customer
E) Responding sympathetically

Question 78

How can retailers reduce the knowledge gap?

Question 79

Which of the following is an excellent source of information about a retailer's offering that helps in increasing customer satisfaction?

A) Discount coupons
B) Employee handbook
C) External environmental assessments
D) Customers' complaints
E) Competitors' financial performance

Question 80

________ is the perceived fairness of the process used to resolve complaints.

A) Variable fairness
B) Perceptual equity
C) Procedural fairness
D) Service equity
E) Distributive fairness