Question 1

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.

Accepted Answer

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Question 2

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.

Accepted Answer

Research does not specifically indicate that 5-10 percent of a company's customer base premeditates rip-offs, nor does it suggest that firms universally respond by treating the majority of honest customers like criminals. Companies employ various strategies to detect and prevent fraud without broadly penalizing their customer base.

Question 3

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

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Question 4

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.

Accepted Answer

The statement is incorrect. Hampton Inn's 100 percent satisfaction guarantee is actually a successful service guarantee that has helped improve their financial performance by attracting and retaining customers who value the assurance of a quality experience.

Question 5

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

Accepted Answer

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Question 6

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

Accepted Answer

This statement is true. Customers tend to feel more intimidated or hesitant to approach professionals such as doctors and lawyers with complaints, while they may feel more comfortable expressing dissatisfaction to restaurant staff.

Question 7

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

Accepted Answer

Public bus companies are often complained about, so they represent how little complaining consumers actually do.

Question 8

Explain what is meant by a "combined guarantee."

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Question 9

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.

Accepted Answer

The research shows that the amount of guarantee payout has no effect on consumer cheating, implying that higher guarantees do not lead to increased cheating. Therefore, managers can use higher guarantee levels for marketing purposes without worrying about increased payouts due to cheating.

Question 10

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

Accepted Answer

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Question 11

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

Accepted Answer

The answer of What is the purpose of a service...

Question 12

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.

Accepted Answer

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 13

Give an example of a full-satisfaction guarantee.

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Question 14

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

Accepted Answer

The answer of Which of the following is NOT one...

Question 15

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

Accepted Answer

Oral abusers were the most reported category of jaycustomer behavior in the research by Lloyd Harris and Kate Reynolds, indicating that verbal abuse towards staff is a common issue in the hospitality industry.

Question 16

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

Accepted Answer

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Question 17

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

Accepted Answer

Radio frequency identification (RFID) technology is used for tracking items, but there's no widely reported case specifically involving an Asian airline using RFID to track a missing suitcase of a fraudulent customer to catch them in the act.

Question 18

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?

Accepted Answer

The answer of The story about the desk clerk at...

Question 19

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

Accepted Answer

The recovery paradox states that customers may be even more satisfied and loyal after experiencing a service failure that has been properly addressed and resolved. However, this paradox only holds true for one failure. If a service firm continues to commit multiple failures, it will eventually erode customer trust and loyalty, and the recovery paradox will no longer apply. Therefore, the best choice is A) One failure.

Question 20

Discuss the four common service recovery mistakes made by organizations.

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Quiz 13: Complaint Handling and Service Recovery

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.

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.

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

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.

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

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

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

Explain what is meant by a "combined guarantee."

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?

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

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

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.

Give an example of a full-satisfaction guarantee.

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

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

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

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?

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

Discuss the four common service recovery mistakes made by organizations.