Deck 10: Building Customer Loyalty Through Service Quality

Question 1

Customers evaluate services differently from physical goods because services tend to be inherently low in search and credence qualities but high in experience qualities.

Answer 1

False

Question 2

It is not a good idea for a customer to try to assist the service provider in improving its service offerings.

Answer 2

False

Question 3

Service guarantees are not beneficial to the service provider.

Answer 3

False

Question 4

Customer delight occurs when customer expectations are significantly exceeded.

Question 5

In the quest for customer loyalty,service organizations should not consider the costs to serve a loyal customer.

Question 6

Research has demonstrated that return on investment and asset turnover are linked to perceived quality.

Question 7

Service organizations that use customer relationship management (CRM)systems recognize the importance of attracting and retaining profitable customers for the long-term.

Question 8

There is not a strong link between customer loyalty,employee loyalty,and investor loyalty.

Question 9

Customers tend to evaluate physical goods and services in the same way.

Question 10

Loyal customers are cheaper to serve.

Question 11

It is in a service organization's best interest to understand and accommodate customers' zones of tolerance.

Question 12

In general,customers who are satisfied with a service organization's products do not necessarily form strong relations with the service organization itself.

Question 13

The key to customer loyalty is to create and deliver superior quality and customer experience.

Question 14

Service quality is defined in the same way by the service organization and its customers.

Question 15

The value of the customer to the service organization has been referred to as customer equity.

Question 16

Managers find it relatively easy to maintain consistently high service quality.

Question 17

Research has demonstrated that quality has a significant impact on an organization's bottom line.

Question 18

Without customer loyalty,service organizations must depend too heavily on acquiring new customers in order to sustain long-term profitability.

Question 19

Customer expectations and perceptions of the service experience are not very important in determining customer satisfaction with the service.

Question 20

Service firms are thought to be better situated than manufacturers to develop customer knowledge.

Question 21

A extraordinary service guarantee possesses all of the following characteristics EXCEPT

A)It is unconditional.
B)It is easy and quick to collect on by the customer.
C)It is easy to understand.
D)It is developed to favor the service organization.
E)All of these characteristics should be included in a good service guarantee.

Question 22

When compared to physical goods,services tend to be higher in

A)experience characteristics.
B)credence characteristics.
C)search characteristics.
D)both experience and credence characteristics.
E)all of these.

Question 23

The _____________ award for quality was instituted in the United States and became a hallmark of excellence.

A)Deming
B)Juran
C)Malcolm Baldrige
D)ISO 9000
E)PIMS

Question 24

The primary objective of a good guarantee is to foster repeat business by providing opportunities to build strong customer relationships.

Question 25

When deciding on a service guarantee,an organization must decide on the guarantee's

A)degree of explicitness.
B)scope of what is covered.
C)conditions for coverage.
D)All of these must be decided on when developing a service guarantee.
E)None of these must be decided on when developing a service guarantee.

Question 26

Of the connections between the customer and service provider,the __________ link represents the interactive nature of the services and is strengthened by providing satisfying service encounters with the customer.

A)service delivery
B)customer satisfaction
C)customer-provider
D)Each of these represents the interactive nature of services that is strengthened by providing satisfying service encounters with the customer.
E)None of these represents the interactive nature of services that is strengthened by providing satisfying service encounters with the customer.

Question 27

Which of the following characteristics is NOT considered a benefit of service guarantees to the service provider?

A)A service guarantee forces the customer to focus on the firm's definition of service quality.
B)A service guarantee sets standards for the employees and customers.
C)A service guarantee generates feedback.
D)A service guarantee provides opportunities to study service failures.
E)Service guarantees tend to prevent service switching behavior by customers.

Question 28

Of the connections between the customer and service provider,the __________ link represents those aspects of the service encounter that affect the customer's degree of loyalty to the service provider.

A)service delivery
B)customer satisfaction
C)customer-provider
D)Each of these represents those aspects of the service encounter that affect the customer's degree of loyalty to the service provider.
E)None of these represents those aspects of the service encounter that affect the customer's degree of loyalty to the service provider.

Question 29

Which of the following dimensions is NOT incorporated into the SERVQUAL scale?

A)Tangibles
B)Reliability
C)Responsiveness
D)Assurance
E)Apathy

Question 30

A service organization is setting itself up for failure when it offers a service guarantee on quality that it cannot deliver.

Question 31

Of the connections between the customer and service provider,the __________ link results in the customer's commitment to the service provider.

A)service delivery
B)customer satisfaction
C)customer-provider
D)Each of these results in the customer's commitment to the service provider.
E)None of these results in the customer's commitment to the service provider.

Question 32

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
_______________ is a key determinant if any organization's ability to sustain long-term profitability.

Question 33

It is a good idea for service organizations to use service guarantees whenever possible.

Question 34

Service guarantees are ways to reduce customer's perceived risk with the service.

Question 35

Which is NOT a major service quality gap that contributes to customer dissatisfaction with the service?

A)The difference between what the customer expects and what management perceives that the customer expects
B)The translation of management perceptions of customer expectations into the design of the service
C)The difference between what the service organization is designed to deliver and the actual service delivered to the customer
D)The difference between the service delivered and the service customer's expectation given its portrayal in various forms of marketing communication.
E)All of these are major contributors to customer dissatisfaction with a service.

Question 36

A service profit chain recognizes that there is a strong connection between customer loyalty and

A)Employee loyalty
B)Investor loyalty
C)customer equity
D)Both a and b
E)Statements a,b,and c

Question 37

A service guarantee should be viewed as a vehicle to improve service quality.

Question 38

Loyal customers tend to _______________.

A)feel a sense of belonging with the service provider
B)feel a sense of commitment to relationships with the service provider
C)provide positive word-of-mouth communications about the service organization
D)Both a and b
E)Statements a,b,and c

Question 39

The _________ program,developed in Europe,is a quality standard that every respectable organization in the world strives to achieve.

A)Deming approach
B)Juran approach
C)Malcolm Baldrige approach
D)ISO 9000
E)PIMS

Question 40

From a provider's perspective,service quality is defined in terms of

A)the product's features.
B)customer satisfaction with the product.
C)the extent to which the product exceeds customer expectations.
D)All of these define service quality from the provider's perspective.
E)None of these defines service quality from a provider's perspective.

Question 41

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
From a customer based perspective,____________ is defined as the level of service delivery that meets or exceeds customer expectations.

Question 42

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
Even though ____________ is a moving target,by exceeding customer expectations service organizations can win loyal customers.

Question 43

Describe the service quality gaps that can lead customers to report a dissatisfying experience with a service.

Question 44

During a meeting of top management,the discussion turned to how customers evaluate products.One manager,who has several years of experience marketing physical goods,claimed that customers evaluate services in the same way that they evaluate physical goods.How would you respond to this manager? Explain your answer.

Question 45

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
Customers possess a __________________,which is defined as the range between desired service and adequate service.

Question 46

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
__________ characteristics are attributes that are difficult to evaluate even after consumption of a service has occurred.

Question 47

Describe the chain of connections that link service customers and service providers.

Question 48

Why is customer loyalty to a service provider considered to be important to long-term profitability?

Question 49

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
In the service quality cycle,the _________________ represents the connection between the customer's level of satisfaction and degree of loyalty to the service provider.

Question 50

Why is it important for organizations to deliver service quality to their customers?

Question 51

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
__________ characteristics are attributes that can be evaluated before purchase.

Question 52

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
In the service quality cycle,the _________________ represents the mutually rewarding relationship between the customer and service provider resulting in the customer's commitment to that service provider.

Question 53

What is service quality?

Question 54

Why should service organizations be concerned with their customers' zones of tolerance?

Question 55

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
__________ characteristics are attributes that can be evaluated only during or after consumption.

Question 56

Describe the service profit chain.

Question 57

Your manager is thinking about designing a service guarantee for the firm's products.However,he did not know enough about guarantees to make an informed decision.Before making a decision,he wanted your input.What would you tell your manager about the potential advantages and disadvantages of a service guarantee?

Question 58

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
A _______________ is a promise to compensate customers if the service delivery fails to meet established standards.

Question 59

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
__________ is a scale designed to measure customer perceptions of service quality along five key dimensions.

Question 60

COMPLETION QUESTIONS
Customer Loyalty
Customer Delight
Perceived Service Quality
Service Delivery Link
Customer Satisfaction Link
Customer-Provider Link
Search
Experience
Credence
SERVQUAL
Zone of Tolerance
Service Guarantee
In the service quality cycle,the _________________ represents the interactive nature of the service and is strengthened through satisfying service encounters.

Question 61

What makes a service guarantee extraordinary (exceptional)?

Question 62

A local service provider decided that it wanted to design an effective guarantee for its services.However,the firm had no idea of how to develop one,and you were hired to help the firm.What are your recommendations for designing an effective service guarantee?