Chapter 3 Quiz

Which of the following survey instruments is most likely to be effective in generating a significant amount of qualitative information from the customers? a. Focus groups b. Mail surveys c. Telephone interviews d. Online surveys

a. Focus groups

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

a. They make it easy for the customers to conduct business.

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

a. True

Customer relationship management systems help organizations to identify and target their most profitable customers. a. True b. False

a. True

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

a. True

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

a. True

Dissatisfied individual and business customers seldom complain to the organization about the problems. a. True b. False

a. True

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

a. True

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

a. effectively resolving complaints increases customer loyalty and retention.

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

b. 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

b. False

Which of the following survey instruments is most commonly used because of low data collection costs and ease of analysis associated with it? a. Telephone interviews b. Formal written surveys c. Face-to-face interviews d. Focus groups

b. Formal written surveys

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

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

The _____ dimension of the 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. serviceability b. durability c. assurance d. reliability

b. durability

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

Which of the following is a reason why organizations measure customer engagement and satisfaction? a. It helps them in determining their human resource requirements. 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 financial requirements and the required value of the cash reserve ratio.

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

Which of the following is true of the American Customer Satisfaction Index? a. It evaluates only the goods and services produced by the domestic firms. b. It is not effective in quantifying the value that customers place on products. 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.

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

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

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

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

c. deserve special attention on an individual basis.

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. Selecting the group or individuals who will conduct the survey d. Determining the purpose of the survey

d. Determining the purpose of the survey