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?

Accepted Answer

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.

Accepted Answer

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.

Accepted Answer

Social capital refers to the networks of relationships among people who live and work in a particular society, enabling that society to function effectively. It encompasses the resources that are accessed and mobilized through personal and business networks.

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.

Accepted Answer

Wal-Mart's sales significantly exceed those of K-Mart, with Wal-Mart generating more than $400 billion annually compared to K-Mart's approximately $50 billion.

Question 5

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

Accepted Answer

Customers can be found in various contexts beyond business and public volunteerism, including education, healthcare, and government services, where the term refers to individuals or entities receiving a product or service.

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

Accepted Answer

On average, businesses can expect to lose about 10-30% of their customers each year due to various factors such as competition, changes in customer preferences, and dissatisfaction with products or services.

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%

Accepted Answer

Studies and research in the field of customer relationship management have shown that businesses that implement effective customer retention programs can see their profits increase by 25-100%. This is because retaining existing customers is generally more cost-effective than acquiring new ones, and loyal customers tend to spend more over time.

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

Accepted Answer

The answer of In the example in the text, a...

Question 9

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

Accepted Answer

Studies in marketing and customer relationship management have consistently shown that attracting a new customer costs significantly more than retaining an existing one, with estimates often citing a factor of five to six times more expensive. This is due to the costs associated with marketing, sales efforts, and the time it takes to build trust with new customers.

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

Accepted Answer

Understanding is crucial for building relationships, which is a key principle in globalization and expansion across cultural and geographic boundaries.

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.

Accepted Answer

They behave differently from their parents' generation.

Question 12

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

Accepted Answer

The lowest paid employees, such as customer service representatives or front-line workers, are often the ones who interact directly with customers, making them the "face" of the company in the eyes of the public.

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.

Accepted Answer

Giving the least effort and service typically leads to tasks becoming repetitive and uninspiring, which can make work feel mind-numbing. This approach lacks innovation and engagement, contributing to a dull and unfulfilling work environment.

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

Accepted Answer

Customer loyalty involves more than just repeat buying, customer satisfaction, or holding a large market share. It encompasses a strong, positive emotional connection to a brand that leads to long-term engagement and advocacy, beyond just transactional interactions or satisfaction with a product or service.

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

Accepted Answer

The answer of Customer loyalty is:
A) driven by overall satisfaction.
B)...

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."

Accepted Answer

The Gallup study found that merely being "extremely satisfied" does not guarantee that customers will spend more or be more valuable to a business compared to those who are less satisfied, indicating that satisfaction scores alone are not reliable predictors of customer spending behavior or value.

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

Accepted Answer

The Gallup organization has conducted research indicating that customer engagement through emotional attachment has a significant impact on long-term customer loyalty and profitability. This engagement goes beyond mere satisfaction or a commitment to buy again, emphasizing the emotional connection between the customer and the brand.

Quiz 1: Know Why Service Matters

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?

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

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

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?

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

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

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

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?

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

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

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

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

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

Customer loyalty is NOT:

Customer loyalty is:

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."

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