Chapter 3

Focus groups have a lower cost of implementation compared to other approaches used for gathering customer information. T/F

False

In the context of the gap model, a customer will be satisfied when the expected quality of a product is higher than the actual quality. T/F

False

Which of the following survey instruments is most likely to be effective in generating a significant amount of qualitative information from the customers? A]Mail surveys B]Online surveys C]Focus groups D]Telephone interviews

Focus groups

Which of the following survey instruments is most commonly used because of low data collection costs and ease of analysis associated with it? A]Formal written surveys B]Telephone interviews C]Focus groups D]Face-to-face interviews

Formal written surveys

Which of the following is a reason why organizations measure customer engagement and satisfaction? A]It helps them in determining their financial requirements and the required value of the cash reserve ratio. B]It helps them to segment markets based on demographic characteristics of the customers. C]It helps them to discover customer perceptions of how well the organization is doing in meeting customer needs. D]It helps them in determining their human resource requirements.

It helps them to discover customer perceptions of how well the organization is doing in meeting customer needs.

Which of the following is used by organizations to measure customer response by allowing them to express their degree of opinion? A]Histogram B]Likert Scale C]R-chart D]Cause-and-effect diagram

Likert Scale

According to the dimensions of quality, as suggested by David A Garvin, _____ refers to the probability of a product's surviving over a specified period of time under stated conditions of use. A]Durability B]Serviceability C]Conformance D]Reliability

Reliability

Which of the following dimensions that contribute to customer perceptions of quality refers to the willingness of the service providers to help customers and provide prompt service? A]Assurance B]Empathy C]Reliability D]Responsiveness

Responsiveness

Which of the following is true of customers who are regarded as "promoters" based on the net promoter score associated with these customers? A]They spread negative comments about the organization. B]They usually defect at higher rates. C]They are not likely to purchase from the organization again. D]They are less price-sensitive and more profitable.

They are less price-sensitive and more profitable.

According to Juran, the customers who fall under the category of "useful many" typically need only standardized attention as a group. T/F

True

Customer contact employees are often the only means by which a customer interacts with an organization. T/F

True

Loyal customers are less costly to do business with compared to other customers. T/F

True

The customer satisfaction measurement of "customer perceived value" focuses more on loyalty than on customer satisfaction. T/F

True

According to the gap model, the term "_____" refers to the outcome of the production process and what is delivered to the customer. A]expected quality B]delighter C]satisfier D]actual quality

actual quality

The _____ dimension of the quality, as suggested by David A. Garvin, refers to how a product looks, feels, sounds, tastes, or smells. A]aesthetics B]reliability C]assurance D]serviceability

aesthetics

Internal customers of an organization are those people who: A]are not a part of the organization but are involved in the supply of the organization's products to the consumers. B]are not a part of the organization but sell resources to the organization so that the organization can produce it products C]are a part of the organization who provide inputs and help to create outputs for customers. D]are the end users of a company's products or services.

are a part of the organization who provide inputs and help to create outputs for customers.

The term "customer engagement" refers to: A]customers' involvement in the early design and improvement of products. B]customers' investment in or commitment to a brand and product offerings. C]the expectations that define the quality of customer contact with an organization. D]the strategic alliances of organizations with customers who share common values.

customers' investment in or commitment to a brand and product offerings.

Customer-focused organizations consider complaints as opportunities for improvement as: A]it allows them to test the aptitude and efficiency of their employees in handling customer complaints. B]it allows them to reduce the cost of research and development because they come to know about potential features through customers. C]effectively resolving complaints increases customer loyalty and retention. D]it helps employees understand what it feels like to be a customer.

effectively resolving complaints increases customer loyalty and retention.

Maple Products is a manufacturer of electronic goods that markets its products in several countries across the world. The company makes sure that the spare parts of the products are available in all their markets and also ensures that the technical personnel in their retail outlets are adequately trained to repair their products. In the context of the dimensions of quality, as suggested by David A. Garvin, the efforts taken by the company will enhance the _____ dimension of its product quality. A]durability B]reliability C]conformance D]serviceability

serviceability

The term "voice of the customer" refers to: A]the performance levels or expectations that define the quality of customer contact with an organization. B]the customer requirements as expressed in the customer's own terms. C]the involvement of customers in the development of new products. D]customers' investment or commitment to a brand or a product.

the customer requirements as expressed in the customer's own terms.