Deck 1: Know Why Service Matters

Question 1

Your author cites Ockham's razor-a logical approach which asserts that, when trying to understand a situation, the simplest explanation is usually the right one. What does this mean in the context of customer service?

Answer 1

Business's success results from the simple principle: Satisfied, loyal customers make for successful organizations.

Question 2

Define what the word "customer"means in the context of this chapter and discuss the two different kinds of customers that every business has.

Answer 2

Someone with whom we exchange value: internal customers (employees and co-workers) and external customers (people outside the company with whom we do business)

Question 3

Social capital is the resources available in and through personal and business networks.

Answer 3

True

Question 4

Despite many similarities between them, Wal-Mart and K-Mart have very different results, largely because of "little things"that seem to result in better customer service. How do the sales of these two companies compare?

A) Wal-Mart more than $400 Billion/yr; K-Mart about $50 Billion
B) Wal-Mart $100B/yr; K-Mart $50B/yr
C) K-Mart $100B/yr; Wal-Mart $50B/yr
D) Sales figures are almost the same, although Wal-Mart customers seem to be happier.

Question 5

Customers are defined solely within the realms of business and public volunteerism.

Question 6

A business will lose 10-30% of its customers in what time frame?

A) every year
B) over its lifetime
C) every ten years
D) every four years

Question 7

Businesses that institute effective customer retention programs may see profits increase by howmuch?

A) 15-30%
B) 25-100%
C) 10-20%
D) 20-40%

Question 8

In the example in the text, a dissatisfied customer at Happy Jack's store could cost the store how much in revenues and other lost customers over a ten-year period?

A) $43,000 and 12 other lost customers
B) $198,000 and 21 other lost customers
C) $86,000 and 15 other lost customers
D) $442,000 and 17 other lost customers

Question 9

Research indicates that it costs five to six times as much to attract a new customer as to keep an existing one.

Question 10

One of the main principles behind globalization and expansion across cultural and geographic boundaries is:

A) language barriers are not as important as value barriers.
B) you cannot build relationships with people you don't understand.
C) value and service are the same in any language.
D) all of the above

Question 11

Among the issues of dealing with the "baby boomer"generation is the consideration that:

A) their values are different from their parents' values.
B) they buy the same items we all buy.
C) they behave differently from their parents' generation.
D) their buying habits are different from today's youth.

Question 12

The face of a company is often that of the lowest paid employees who meet the customers.

Question 13

Giving the least effort and service that we can get away with results in:

A) a feeling of superiority.
B) more fun in the workplace.
C) a better bottom line.
D) mind-numbing work.

Question 14

Customer loyalty is NOT:

A) a large share of the market.
B) repeat buying alone.
C) customer satisfaction alone.
D) all of the above

Question 15

Customer loyalty is:

A) driven by overall satisfaction.
B) a reflection on the overall customer service of a business.
C) a measure of how satisfied a customer is.
D) all of the above

Question 16

A Gallup study proved that customers who signified that they were "extremely satisfied"with a store did not necessarily spend more money or add more value than those who were less than "extremely satisfied."

Question 17

The Gallup organization studied the impact of customer ________ on long-term customer loyalty and profitability.

A) satisfaction
B) commitment to buy again
C) engagement through emotional attachment
D) none of the above