Ch 3: Customer Focus

Most women in the township of Adington prefer to visit Sharon's Hair Salon because of the attractive interior, well-designed equipment, and neatly dressed employees. Which of the following dimensions is influencing customer perceptions of quality in this scenario? a. Empathy b. Assurance c. Responsiveness d. Tangibles

Tangibles

According to Juran, customers who fall under the category of "useful many" typically need only standardized attention as a group. a. True b. False

True

Affinity diagrams help firms to efficiently organize large volumes of information and identify natural patterns or groupings in the information. a. True b. False

True

Complaints allow an organization to learn about product failures and service problems, particularly the gaps between expectations and performance. a. True b. False

True

According to the Kano model, which of the following features in a refrigerator is most likely to fall under the category of a delighter? a. Temperature controls b. A defrost option to clear ice c. A separate section for vegetables inside the refrigerator d. An anti-freeze feature that prevents the freezing of food inside the refrigerator

An anti-freeze feature that prevents the freezing of food inside the refrigerator

Which of the following dimensions of quality, as suggested by David A. Garvin, refers to the degree to which physical and performance characteristics of a product match pre-established standards? a. Performance b. Reliability c. Conformance d. Durability

Conformance

Which of the following is the first step in developing a customer satisfaction survey? a. Selecting the appropriate survey instrument b. Designing the survey c. Determining the purpose of the survey d. Selecting the group or individuals who will conduct the survey

Determining the purpose of the survey

According to the Kano model, "satisfiers" are the basic requirements customers expect in a product or service that are generally not stated by customers but assumed as given. a. True b. False

False

Focus groups have a lower cost of implementation compared to other approaches used for gathering customer information. a. True b. False

False

In the context of the dimensions of quality, as suggested by David A. Garvin, reliability is the amount of use one gets from a product before it physically deteriorates. a. True b. False

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. a. True b. False

False

The "conformance" dimension of a service depends on the ability of the service provider to provide what was promised to the customers, dependably and accurately. a. True b. False

False

The internal customers of a company are those people who ultimately purchase and use the company's products. a. True b. False

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 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

Which of the following statements regarding an advantage offered by customer-supplier partnerships to businesses is true? a. It helps organizations in selecting their customer-contact employees and training and empowering them to meet and exceed customer expectations. b. It helps organizations to build and maintain a work environment conducive to the well-being and growth of all employees by paying attention to their issues. c. It allows organizations to share the risks in new product development and improve products through early design recommendations. d. It allows organizations to effectively respond to customers' complaints by systematically collecting and analyzing complaint data and using it for improvements.

It allows organizations to share the risks in new product development and improve products through early design recommendations.

Which of the following statements about why organizations measure customer engagement and satisfaction is true? 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 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 statements regarding the American Customer Satisfaction Index is true? a. It is not effective in quantifying the value that customers place on products. b. It evaluates only the goods and services produced by domestic firms. c. It is based on customer evaluations of the quality of goods and services. d. It is updated on a rolling basis once a year by measuring all the sectors of the economy.

It is based on customer evaluations of the quality of goods and services.

Which of the following statements regarding customer perceived value (CPV) is true? a. It measures how customers assess benefits of the product against costs in making purchase decisions. b. It measures customer satisfaction based on the likelihood of customers recommending the product to other customers. c. It focuses more on customer satisfaction than on customer loyalty. d. It takes into consideration only existing customers and not potential buyers.

It measures how customers assess benefits of the product against costs in making purchase decisions.

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 statements regarding consumers of an organization is true? a. The retail outlets that sell the products of an organization are considered the consumers of that organization. b. They receive inputs from and produce outputs for other customers in the organization. c. They are a part of one of the various departments or processes of the organization. d. The consumers of an organization are the ultimate purchasers and users of the organization's products.

The consumers of an organization are the ultimate purchasers and users of the organization's products.

Which of the following statements regarding customers who are identified as "promoters" based on the net promoter score is true? 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.

Which of the following is a disadvantage associated with using formal written surveys as survey instruments for measuring customer satisfaction? a. They generally measure predetermined perceptions of what is important to customers. b. They incur high costs. c. They are very difficult to analyze. d. They are not effective in probing deeply into issues.

They generally measure predetermined perceptions of what is important to customers.

Which of the following statements regarding customer-focused organizations is most likely true? a. They make it easy for customers to conduct business. b. They do not encourage customer complaints as it will affect their brand image. c. They are less keen on engaging in a face-to-face conversation with customers. d. They do not provide explicit guarantees and warranties to customers.

They make it easy for customers to conduct business.

Customer relationship management systems help organizations increase customer loyalty, target their most profitable customers, and streamline customer communication processes. a. True b. False

True

Customer satisfaction and engagement measurement allows an organization to identify causes of dissatisfaction and failed expectations as well as drivers of delight to understand the reasons why customers are loyal or not loyal to the company. a. True b. False

True

Customer satisfaction or dissatisfaction takes place during moments of truth. a. True b. False

True

Customer satisfaction surveys will be effective when the questions included in the survey can provide actionable results. a. True b. False

True

Customer-contact employees are particularly important in creating customer satisfaction as they often are the only means by which a customer interacts with an organization. a. True b. False

True

Customer-focused organizations empower their front-line people to do whatever is necessary to satisfy a customer. a. True b. False

True

Customer-supplier partnerships help organizations to improve products through early design recommendations and reduce operations costs through better communications. a. True b. False

True

Customers who are merely satisfied may often purchase from competitors because of convenience, promotions, or other factors. a. True b. False

True

Dissatisfied individual and business customers tend not to complain to organizations about problems. a. True b. False

True

In the case of a customer satisfaction survey, face-to-face interviews tend to generate more qualitative data than formal written surveys. a. True b. False

True

Loyal customers are less costly to do business with compared to other customers. a. True b. False

True

Loyal customers are most likely to become dissatisfied when problems are not resolved after complaining to the organization. a. True b. False

True

The customer satisfaction measurement of customer perceived value focuses more on customer loyalty than on satisfaction. a. True b. False

True

The effectiveness of the field intelligence method of gathering customer information depends upon a culture that encourages open communication with superiors. a. True b. False

True

The needs and expectations of external customers are different from those of consumers. a. True b. False

True

The net promoter score is the difference in the percentage of promoters and detractors. a. True b. False

True

Internal customers are a. not a part of the organization but are involved in the supply of the organization's products to the consumer. b. not a part of the organization but sell resources to the organization so that the organization can produce its products. c. a part of the organization who provide inputs and help to create outputs for customers. d. the end users of a company's products or services.

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

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 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

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

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

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. expectations that define the quality of customer contact with an organization. d. strategic alliances of organizations with customers who share common values.

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

According to the Kano model, new or innovative features that customers do not expect or even anticipate fall under the category of a. delighters. b. dissatisfiers. c. continuous improvements. d. satisfiers.

delighters

According to Juran's classification system, customers who belong to the "vital few" a. need only standardized attention as a group. b. deserve special attention on an individual basis. c. can be targeted through mass marketing strategies. d. have needs and requirements that differ from general customers.

deserve special attention on an individual basis.

The final task in designing a customer satisfaction survey is to a. design the reporting format and the data entry methods. b. select the appropriate survey instrument. c. define the sample frame, or target group from which the sample is chosen. d. select the questions to be included in the survey.

design the reporting format and the data entry methods.

According to the Kano model, the basic requirements that customers expect in a product or service that are generally not stated by customers but are assumed as given fall into the category of a. dissatisfiers. b. exciters. c. satisfiers. d. delighters.

dissatisfiers

The _____ dimension of quality, as suggested by David A. Garvin, refers to the amount of use one gets from a product before it physically deteriorates or until replacement is preferable. a. assurance b. reliability c. durability d. serviceability

durability

Customer-focused organizations consider complaints as opportunities for improvement because a. they allow them to test the aptitude and efficiency of their employees in handling customer complaints. b. they allow them to reduce the cost of research and development, since they learn about potential features through customers. c. effectively resolving complaints increases customer loyalty and retention. d. they help employees understand what it feels like to be a customer.

effectively resolving complaints increases customer loyalty and retention.

According to the gap model, the term _____ refers to the true needs and requirements of a customer. a. actual quality b. delighters c. expected quality d. exciters

expected quality

An affinity diagram is a tool that can be used by organizations to a. measure the response of customers by allowing them to express their degree of satisfaction on a five-point scale. b. streamline their communication process with customers. c. gather and organize a large number of ideas or facts. d. train their employees on service recovery.

gather and organize a large number of ideas or facts.

According to the dimensions of quality, as suggested by David A. Garvin, _____ refers to the probability of a product surviving over a specified period of time under stated conditions of use. a. durability b. serviceability c. conformance d. reliability

reliability

When designing a customer satisfaction survey, organizations should use a. compound questions. b. questions with double negatives. c. leading questions. d. questions that address only one issue or idea.

questions that address only one issue or idea.

The Kano model of customer requirements uses the term "satisfiers" to refer to the a. basic requirements that are generally not stated by a customer but are assumed as a given. b. requirements that customers expressly say they want in a product. c. aesthetic features of a product that do not add any value to it. d. new or innovative features in a product that are not expected by customers in a product.

requirements that customers expressly say they want in a product.

The ASQ Quality Glossary defines customer _____ as "the result of delivering a product or service that meets customer requirements." a. engagement b. satisfaction c. enrichment d. loyalty

satisfaction

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 its markets and ensures that the technical personnel in its retail outlets are adequately trained to repair its products. 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 net present value of the customer is a. a measure of how customers assess the benefits of a product in making purchase decisions. b. a measure of the likelihood that satisfied customers will recommend the product to other customers. c. the total profits (revenues associated with a customer minus expenses needed to serve a customer) discounted over time. d. the total value of the benefits offered by a customer in a customer-supplier partnership.

the total profits (revenues associated with a customer minus expenses needed to serve a customer) discounted over time.