Deck 13: Complaint Handling and Service Recovery

Question 1

The best cure for vandalism is ______________.

A)creating positive goodwill
B)improving client relations
C)prevention
D)arbitration
E)ignoring it

Answer 1

C

Question 2

The ______________ jaycustomer has no intention of paying and sets out to steal goods or services.

A)cheat
B)thief
C)rulebreaker
D)belligerent
E)vandal

Answer 2

B

Question 3

Complaining behavior can be influenced by role perceptions and social norms.

Answer 3

True

Question 4

Service guarantees are always appropriate.

Question 5

People in lower socioeconomic levels are more likely to complain than those in higher levels.

Question 6

A person exhibiting "air rage" is categorized as a Rulebreaker.

Question 7

Which of the following is NOT one of the reasons why customers complain that is listed in the book?

A)Better understand the failure
B)Vent their anger
C)Help improve the service
D)Obtain restitution or compensation
E)For altruistic reasons

Question 8

Interactional justice involves the employees of the firm who provide the service recovery and their behavior toward the customer.

Question 9

Which of the following is NOT one of the guidelines provided for the Front Line on how to handle customer complaints?

A)Consider compensation
B)Keep the customer informed of progress
C)Explain the problem from the service firm's point of view
D)Acknowledge the customer's feelings
E)Act fast

Question 10

Service recovery is an umbrella term for systematic efforts by a firm to correct a problem following a service failure and retain a customer's goodwill.

Question 11

What is procedural justice?

Question 12

____________ involves the employees of the firm who provide the service recovery and their behavior toward the customer.

A)Procedural justice
B)Legal justice
C)Interactional justice
D)Relational justice
E)Outcome justice

Question 13

The ____________ refers to the sometimes-observed effect that customers who experience a service failure and then have it resolved to their full satisfaction are more likely to make future purchases than are customers who have no problem in the first place.

A)referent renewal paradox
B)referent contribution paradox
C)referent acquisition paradox
D)service recovery paradox
E)service renewal paradox

Question 14

On average, what percentage of customers complains when they are unhappy with service?

A)0 percent
B)5-10 percent
C)15-25 percent
D)30-50 percent
E)60-75 percent

Question 15

Compensation should be based on the positioning of the firm, the severity of the failure, and who the specific affected customer is.

Question 16

Procedural justice concerns the compensation that a customer receives as a result of the losses and inconveniences incurred because of a service failure.

Question 17

Effective service recovery procedures should be ____________, ____________, ____________, and ____________.

A)proactive, engaged, universal, empowered
B)planned, engaged, universal, trained
C)proactive, planned, trained, empowered
D)trained, engaged, flexible, spontaneous
E)trained, engaged, universal, empowered

Question 18

What are the three main response options for customers who experience service failures?

Question 19

Service recovery efforts should be fairly rigid to make sure the same recovery is achieved each time.

Question 20

All EXCEPT which of the following are reasons that service guarantees are powerful tools for both promoting and achieving service quality?

A)Guarantees reduce consumer complaining, increasing customer satisfaction and information from customers.
B)Guarantees force firms to focus on what their customers want and expect in each element of the service.
C)Guarantees set clear standards, telling customers and employees alike what the company stands for.
D)Guarantees building "market muscle" by reducing the risk of the purchase decision and developing long-term loyalty.
E)Guarantees force service organizations understand why they fail and encourage them to identify and overcome potential fail points.

Question 21

Give an example of a single attribute-specific guarantee.
a.m.and 2:00 p.m.If the pizza is late, the customer's next order is free.

Question 22

Research indicates that at least 5-10 percent of a company's customer base is composed of consumers who premeditate rip-offs and firms defend themselves by treating the 90-95 percent of honest customers like crooks.

Question 23

Who are airline customers most likely to complain about an unsatisfactory meal?

Question 24

Hampton Inn's 100 percent satisfaction guarantee is a good example of a service guarantee that goes wrong and hurts a firm's financial performance.

Question 25

Explain a situation where a service firm should not implement a service guarantee.

Question 26

Customers are less likely to complain to doctors and lawyers than they are to restaurant staff.

Question 27

Which of the following services best represents how little complaining consumers actually do?

A)TARP
B)Land's End
C)Hampton Inn
D)FedEx
E)A public bus company

Question 28

Explain what is meant by a "combined guarantee."

Question 29

Recent research shows that the amount of a guarantee payout has no effect on consumer cheating. Which of the following is one of the important managerial implications of this?

A)Guarantees can be restricted to new customers because of the propensity for repeat customers to cheat.
B)Guarantees can be kept low to prevent rewarding cheaters.
C)Managers can reap the marketing rewards of higher guarantees without increased payouts due to consumer cheating.
D)Managers cannot expect to recover the difference in guarantees for different types of consumers.
E)Guarantee levels can be used to dissuade consumer cheating.

Question 30

Explain what is meant by "the service recovery paradox."

Question 31

What is the purpose of a service guarantee from the customer's perspective?

Question 32

Hampton Inn has developed a way to identify guests who appear to be cheating and give them a lot of personalized attention and follow-up from the company.

Question 33

Give an example of a full-satisfaction guarantee.

Question 34

Which of the following is NOT one of the elements of effective service recovery?

A)Do the job right the first time
B)Seek alternative recompense strategies
C)Identify service complaints
D)Resolve complaints effectively
E)Learn from the recovery experience

Question 35

According to research by Lloyd Harris and Kate Reynolds, the most reported category of jaycustomer behavior by both employees and customers in hotels, restaurants, and bars is ____________.

A)compensation letter writers
B)undesirable customers
C)oral abusers
D)vindictive customers
E)physical abusers

Question 36

A single service problem can destroy a customer's confidence in a firm under what three conditions?

Question 37

An Asian airline tracked a missing suitcase of a fraudulent customer using radio frequency identification to catch him in the act.

Question 38

The story about the desk clerk at the Marriott Long Wharf Hotel in Boston is a good example of what aspect of effective service recovery?

Question 39

How many failures can a service firm commit before the recovery paradox is wiped out?

A)One failure
B)Two failures
C)Three failures
D)Four failures
E)Five failures

Question 40

Discuss the four common service recovery mistakes made by organizations.

Question 41

Describe the three complaint barriers for dissatisfied consumers and explain how a firm can reduce these barriers.

Question 42

Discuss the perceived advantages of Hampton Inn's 100 percent satisfaction guarantee.

Question 43

Describe a service guarantee offered in the chapter that instills confidence and one that does not.