Question 1

Objectives of a customer feedback system does NOT include ____________.

Accepted Answer

While a customer feedback system may involve surveys, its objective is not necessarily to conduct a total market survey. The other options listed are all common objectives of a customer feedback system.

Question 2

Higher productivity should lead to higher profitability through reduced customer turnover.

Accepted Answer

Higher productivity can lead to increased profitability by reducing costs and increasing output, but it does not directly affect customer turnover. Customer turnover is more related to customer satisfaction and service quality.

Question 3

Service quality gap is the difference between what customers expect and their perception of the service actually delivered.

Accepted Answer

Service quality gap is a well-established concept in service marketing and management, which recognizes that customers have certain expectations regarding the quality of service they receive from a company, and that there may be a gap between these expectations and the actual level of service provided. This gap can arise due to a variety of reasons, such as inadequate training of employees, poor communication, or lack of resources, and can have a negative impact on customer satisfaction and loyalty. Therefore, firms need to understand and manage this gap effectively to enhance the quality of their service and improve customer retention.

Question 4

The Gaps Model is used to ____________.

Accepted Answer

The Gaps Model is a framework used to diagnose and address service quality problems in order to improve customer satisfaction. It identifies and analyzes gaps between customers' expectations and perceptions of service delivery, as well as gaps between management perceptions and their actual ability to meet customer expectations. The ultimate goal is to improve service quality, which can lead to increased profitability. Therefore, the correct answer is C.

Question 5

Service quality is a high standard of performance that consistently meets ____________.

Accepted Answer

Service quality is all about meeting or exceeding customer expectations. While profit and productivity may be important factors in measuring overall success, they are not the primary focus of service quality. Therefore, option C is the best choice as it directly relates to the definition of service quality.

Question 6

Hard measures are used to measure service quality by talking to the customers.

Accepted Answer

Hard measures involve quantitative metrics such as response time, resolution time, and number of complaints, and are typically collected through automated systems and data analysis. Soft measures, on the other hand, are based on customers' perceptions and feedback, and involve qualitative information obtained through surveys, interviews or focus groups.

Question 7

Which following reasons add more complexity to the Service Quality-Productivity-Profit Triangle?

Accepted Answer

Option A suggests that productivity improvements may negatively impact customer satisfaction, which adds complexity to the triangle as companies need to balance between increasing productivity and ensuring customer satisfaction. Option B states that some customer satisfaction strategies can be costly, which adds complexity to the triangle by highlighting the trade-off between investing in customer satisfaction and profitability. Option C suggests that some quality improvements may not result in any productivity gains, which adds complexity by emphasizing the need to measure the impact of quality improvements on productivity. Therefore, all three options (A, B, and C) add more complexity to the Service Quality-Productivity-Profit Triangle.

Question 8

Which of the following is NOT a category in extended Fishbone Diagram?

Accepted Answer

The categories in an extended Fishbone Diagram typically include Equipment, Personnel, Information, Environment, Materials, Methods, and Measurement. Accounting is not typically included as a category.

Question 9

Pareto Analysis underlies the 80/20 rule, because 80% of problems are caused by 20% of variables.

Accepted Answer

Pareto Analysis is used to identify the most important factors or causes contributing to a problem or situation. It is based on the principle that 80% of effects come from 20% of causes. Therefore, Pareto Analysis underlies the 80/20 rule, making option A true.

Question 10

The Return on Quality approach are based on all of the following assumptions EXCEPT

Accepted Answer

The Return on Quality approach assumes that not all quality expenditures are equally justified, it is possible to spend too much on quality, quality efforts must make sense financially, and quality is an investment. However, it does not assume that quality is imperative and resources must be put behind it. The approach suggests that quality should be balanced with other business objectives and resources allocated accordingly.

Question 11

Some marketing strategies for customer satisfaction can prove to be costly and disruptive.

Accepted Answer

Some marketing strategies such as offering discounts, freebies, and promotions can cost the company money and may disrupt the normal flow of business operations. This may lead to additional expenses and delays in delivering products or services to customers.

Question 12

Which factors in service redesign can lead to productivity-customer satisfaction alignment?

Accepted Answer

All the factors, i.e., leaner design, faster design, and convenient design, can lead to productivity-customer satisfaction alignment. Leaner design ensures efficiency and eliminates any waste in the service process, leading to improved productivity. Faster design helps in quicker delivery of the service, meeting customer expectations and improving satisfaction levels. Convenient design ensures that the service is accessible and easy-to-use, catering to the customers' convenience and enhancing their satisfaction. Therefore, all the above factors contribute to aligning productivity with customer satisfaction.

Question 13

SERVQUAL is an example of a ____________ measure of service quality.

Accepted Answer

SERVQUAL is a soft measure of service quality as it assesses customer perceptions and expectations through surveys and questionnaires.

Question 14

TQM comprises of requirements, definitions, guidelines, and related standards to provide independent quality assessment.

Accepted Answer

TQM (Total Quality Management) is a management approach focused on continuous improvement and customer satisfaction, not a set of standards for independent quality assessment.

Question 15

The ____________ is the difference between what service providers believe customers expect and customers' actual needs and expectations

Accepted Answer

The knowledge gap is the difference between what service providers believe customers expect and customers' actual needs and expectations. This gap can occur when service providers lack information about customers' needs or when they misunderstand customer needs. Failure to bridge this gap can result in poor service quality and customer dissatisfaction.

Question 16

The GAPS model is used to capture all possible sources of gaps in customer service quality perceptions.

Accepted Answer

The GAPS model is a widely-used framework for identifying and analyzing the various gaps that can occur in the delivery of customer service, and for developing effective strategies to close those gaps. It is designed specifically to capture all of the potential sources of discrepancies between customers' expectations and perceptions of service quality, as well as the contributing factors and underlying causes of those gaps. By identifying and addressing these various gaps, organizations can improve their overall level of customer satisfaction, loyalty, and retention, and gain a competitive advantage in their industry.

Question 17

One weakness of mystery shopping for customer feedback collection is that it is expensive.

Accepted Answer

Mystery shopping involves hiring independent experts to observe and rate customer experiences, which can be costly. Additionally, conducting multiple mystery shopping visits over time can add up to a significant expense.

Question 18

Efficiency is a measure of the degree to which an organization meets its goals and desired outcomes.

Accepted Answer

Efficiency measures how well resources are used to achieve outputs, while effectiveness measures the degree to which goals and desired outcomes are met.

Question 19

Which of the following is one of the customer-driven approaches to improving productivity?

Accepted Answer

Changing the timing of customer demand can help to smooth out production cycles and reduce wasted resources, ultimately improving productivity. By offering incentives or adjusting pricing to encourage customers to purchase during off-peak times, businesses can better manage their resources and streamline their production processes.

Question 20

Cutbacks in front-stage staffing means that there are insufficient personnel to serve customers promptly.

Accepted Answer

When there are cutbacks in front-stage staffing, there are fewer staff to serve customers, leading to longer wait times and potentially poor service quality.

Quiz 14: Improving Service Quality and Productivity