Managing Quality Integrating The Supply Chain 6th Edition by S. Thomas Foster – Test Bank

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Managing Quality: Integrating the Supply Chain, 6e (Foster)

Chapter 5   The Voice of the Customer

 

1) ________ customers are employees receiving goods or services from within the same firm.

  1. A) Primary
  2. B) Capital
  3. C) External
  4. D) Secondary
  5. E) Internal

Answer:  E

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

2) ________ customers are the bill-paying receivers of a company’s work.

  1. A) External
  2. B) Internal
  3. C) Primary
  4. D) Secondary
  5. E) Capital

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

3) The ________ customers are the ultimate people the company is trying to satisfy with its work.

  1. A) capital
  2. B) internal
  3. C) primary
  4. D) external
  5. E) secondary

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

4) ________ customers are also known as end users.

  1. A) External
  2. B) Internal
  3. C) Capital
  4. D) Primary
  5. E) Secondary

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

5) The ________ model shows that a firm’s quality performance is increasing while customer’s expectations are also increasing.

  1. A) restructured customer-driven quality
  2. B) relative customer-driven quality
  3. C) redesigned customer-driven quality
  4. D) receptive customer-driven quality
  5. E) reactive customer-driven quality

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

6) The view of the customer that asserts that he or she is a valued asset to be managed is referred to as ________.

  1. A) customer response
  2. B) customer intelligence
  3. C) customer data management
  4. D) reactive customer-driven quality
  5. E) customer-relationship management

Answer:  E

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

7) Which of the following is not a design aspect to customer-relationship management?

  1. A) corrective action
  2. B) guarantees
  3. C) feedback
  4. D) cost
  5. E) complaint resolution

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

8) The ________ process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

  1. A) complaint-reaction
  2. B) complaint-restoration
  3. C) complaint-resolution
  4. D) complaint-response
  5. E) complaint-reversal

Answer:  C

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

9) The first component of a complaint-resolution process is ________.

  1. A) contrition
  2. B) correction
  3. C) compensation
  4. D) communication
  5. E) correlation

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

10) The second component of a complaint-resolution process is ________.

  1. A) contrition
  2. B) correction
  3. C) compensation
  4. D) communication
  5. E) correlation

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

11) The process associated with resolving complaints is called the ________ process.

  1. A) complaint-reversal
  2. B) complaint-restoration
  3. C) complaint-reaction
  4. D) complaint-recovery
  5. E) complaint-response

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

12) Which of the following is not a component of an effective guarantee?

  1. A) conditional
  2. B) meaningful
  3. C) understandable
  4. D) communicable
  5. E) painless to invoke

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

13) Customer ________ is measured as the percentage of customers who return for more service.

  1. A) approval
  2. B) feedback
  3. C) satisfaction
  4. D) retention
  5. E) response

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

14) What are the three phases of customer-relationship management?

  1. A) satisfaction, feedback, and retention
  2. B) satisfaction, acquisition, and transition
  3. C) response, feedback, and enhancement
  4. D) acquisition, retention, and enhancement
  5. E) response, transition, and acquisition

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

15) The ________ phase of customer-relationship management involves improving service to the customer through the use of information systems.

  1. A) acquisition
  2. B) retention
  3. C) enhancement
  4. D) transition
  5. E) response

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

 

16) Churn reduction involves the reduction in the loss of ________.

  1. A) raw materials
  2. B) suppliers
  3. C) funds
  4. D) products
  5. E) customers

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

17) ________ management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.

  1. A) Knowledge
  2. B) Order
  3. C) Sales
  4. D) Campaign
  5. E) Channel

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

18) Internal customers are the bill-paying receivers of a company’s work.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

19) External customers are employees receiving goods or services from within the same firm.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

20) The external customers are the ultimate people the company is trying to satisfy with its work.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

21) Customer-driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about the customers to learn their needs and preferences.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

22) Due to constantly changing customer needs, the reactive approach to customer-driven quality could lead to problems if customer requirements increase at a faster rate than quality and service improvement.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

23) Customer relationship management involves viewing the customer as a valued asset to be managed.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

 

24) The complaint-resolution process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

25) Improving services such as customer service policies, sales processes, and after-sales services according to customer preferences is referred to as transactional analysis.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

26) The process associated with resolving complaints is called the complaint-response process.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

27) A guarantee outlines the customer’s rights.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

28) Guarantees should be designed prior to beginning business.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

29) To be effective, a guarantee should be unconditional.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

30) Customer retention is measured as the percentage of customers who return for more service.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

31) Amazon’s customized desktops with recommendations for products based on historical purchases is an example of the customer enhancement phase of CRM.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Application

 

32) The enhancement phase of customer-relationship management involves improving service to the customer through the use of information systems.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

 

33) Knowledge management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

 

34) Differentiate between internal and external customers.

Answer:  Internal customers are employees receiving goods or services from within the same firm. For example, management information systems (MIS) technicians and programmers view the users within their company as internal customers. In contrast, external customers or end users are the bill-paying receivers of a company’s work. A person that enters a restaurant and purchases a meal is an external customer.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

35) Explain the reactive customer-driven quality (RCDQ) model.

Answer:  This reactive customer-driven quality (RCDQ) model shows that a firm’s quality performance is increasing while customers’ expectations also are increasing. Problems occur when customer requirements increase at a faster rate than quality and service improvement. This places a firm in a reactive mode that may signal the need for major process and service redesign. The RCDQ model demonstrates conceptually and graphically the primary pitfalls and dangers of RCDQ.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

36) What are the components and activities associated with the complaint resolution process?

Answer:  The first component is to compensate people for their losses. This may be as small as an easy return policy with no questions asked. The second component is contrition. The firm should apologize to the customer for the mistakes made. Third, the complaint-recovery process must be designed to make it easy for complainants to reach resolution to simple complaints.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

 

37) What are customer-relationship management systems?

Answer:  With business information systems—especially over the Internet—companies are receiving volumes of customer-related data. These data include personal, Internet, process, and customer preference information. As a result, systems have been created to mine these data to improve customer service and retention. These systems are called customer-relationship management systems (CRMS). CRMS use data to manage the three phases of customer-relationship management. These three phases are acquisition, retention, and enhancement.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

38) The approach authorizing major suppliers to make purchases for their own accounts, resulting in suppliers providing only what is needed when it is needed, is referred to as ________.

  1. A) single-source managed inventory
  2. B) vendor managed inventory
  3. C) account managed inventory
  4. D) cost managed inventory
  5. E) time managed inventory

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

39) Which of the following is a diagram tool for managers that depicts a flowchart of interactions between service providers and customers?

  1. A) process-chain-network diagram
  2. B) precedence-network diagram
  3. C) relationship-network diagram
  4. D) activity-network diagram
  5. E) interaction-network diagram

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Application

 

 

40) ________ is a process for developing relationships with few suppliers for long-term contracts.

  1. A) Single sourcing
  2. B) Gap analysis
  3. C) Supplier rationalization
  4. D) Segmentation
  5. E) Source loyalty

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

41) ________ results in the suppliers becoming de facto subsidiaries to their major customers.

  1. A) Segmentation
  2. B) Gap analysis
  3. C) Strategic alliance
  4. D) Source loyalty
  5. E) Supplier rationalization

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

42) In ________, suppliers integrate information systems and quality systems that allow close integration at all levels.

  1. A) segmentation
  2. B) gap analysis
  3. C) annuity relationships
  4. D) strategic alliances
  5. E) supplier rationalization

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Information Technology

Type:  Concept

 

 

43) ________ results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

  1. A) Customer segmentation
  2. B) Customer-relationship management
  3. C) Reactive customer-driven quality
  4. D) Actively solicited customer-feedback
  5. E) Customer rationalization

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

44) A(n) ________ relationship is one in which the customer provides a long-term, steady income stream to the provider.

  1. A) perpetual
  2. B) annuity
  3. C) active
  4. D) rational
  5. E) passive

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

45) Customer-initiated contact such as filling out a restaurant complaint card, calling a toll-free complaint line, or submitting an inquiry via a company’s Web site, is considered ________.

  1. A) customer rationalization
  2. B) passively solicited customer feedback
  3. C) actively solicited customer feedback
  4. D) reactive customer-driven quality
  5. E) customer segmentation

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Information Technology

Type:  Concept

 

 

46) A process-chain-network diagram is a flowchart tool for managers to use when designing service delivery systems.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

47) Many companies use single sourcing as a way to increase the number of suppliers.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

48) Single-sourcing arrangements are developing into strategic alliances where suppliers become de facto subsidiaries to their major customers.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

49) Customer rationalization results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

 

50) Annuity relationships result in the customer providing a short-term income stream to the provider.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

51) Customer-initiated contact, such as submitting an inquiry via a company’s Web site, is considered passively solicited customer feedback.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Information Technology

Type:  Concept

 

52) Active data collections tend to result in lower ratings of quality than passive data collections.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

53) Describe the concept of single sourcing. How is single sourcing related to strategic alliances?

Answer:  Many companies use single sourcing as a way to reduce the number of suppliers. Single sourcing is a process for developing relationships with few suppliers for long contract terms. Increasingly, single-sourcing arrangements are developing into strategic alliances where the suppliers become de facto subsidiaries to their major customers. In these arrangements, not only are suppliers single-source providers, but they also integrate information systems and quality systems that allow close interaction at all levels.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

 

54) The gap refers to the differences between ________.

  1. A) corrective action and preventive action
  2. B) service quality and product quality
  3. C) empowered employees and employees managed by a hierarchy
  4. D) accurate quality projections and inaccurate quality projections
  5. E) desired levels of performance and actual levels of performance

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

55) The SERVQUAL instrument was developed by ________.

  1. A) Juran, Deming, and Shewhart
  2. B) Ishikawa and Taguchi
  3. C) Hammer and Champy
  4. D) Parasuraman, Zeithamel, and Berry
  5. E) Feigenbaum, Crosby, and Peters

Answer:  D

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

56) Which of the following determinants of service quality involves consistency of performance and dependability?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) access
  5. E) credibility

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

57) Which of the following determinants of service quality concerns the willingness or readiness of employees to provide service?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) credibility
  5. E) courtesy

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

58) Which of the following determinants of service quality means possession of the required skills and knowledge to perform the service?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) access
  5. E) credibility

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

59) Which of the following determinants of service quality involves approachability and ease of contact?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) access
  5. E) courtesy

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

60) Which of the following determinants of service quality involves politeness, respect, consideration, and friendliness of contact personnel?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) credibility
  5. E) courtesy

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

61) Which of the following determinants of service quality involves trustworthiness, believability, honesty, and having the customer’s best interests at heart?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) credibility
  5. E) courtesy

Answer:  D

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

62) Which of the following determinants include the physical evidence of the service?

  1. A) tangibles
  2. B) aesthetics
  3. C) features
  4. D) intangibles
  5. E) logistics

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

63) What does segmenting markets involve?

  1. A) distinguishing expected service and perceived service
  2. B) distinguishing customers according to common characteristics
  3. C) analyzing the management perceptions of consumer expectations
  4. D) distinguishing service quality specs and service delivery
  5. E) analyzing the external methods to communicate with customers

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

64) The Gap refers to the differences between desired levels of performance and actual levels of performance.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

65) The reliability determinant of service quality concerns the willingness or readiness of employees to provide service.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

66) The competence determinant of service quality means possession of the required skills and knowledge to perform the service.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

67) The determinant of service quality pertaining to tangibles encompasses the physical evidence of the service.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

68) To segment markets means to distinguish customers or markets according to common characteristics.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

69) What is gap analysis?

Answer:  Typically, the gap refers to the differences between desired levels of performance and actual levels of performance. This could be something like the difference between the desired conformance level versus the existing conformance level in a manufacturing environment. In services, this is the difference between the expected and the actual level of service provided. Gaps are important in that once a gap is identified, it is a candidate for corrective action and process improvement. The formal means for identifying and correcting these gaps is called gap analysis. One of the differences studied by gap analysis identifies the difference between managerial and customer perceptions of what the customer wants.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

70) Explain the ten determinants of service quality contributed by Parasuraman, Zeithamel, and Berry.

Answer:  In addition to the gaps model, Parasuraman, Zeithamel, and Berry contributed a number of important concepts to managing service quality. These include 10 determinants of service quality:

  • Reliability involves consistency of performance and dependability.
  • Responsiveness concerns the willingness or readiness of employees to provide service.
  • Competence means possession of the required skills and knowledge to perform the service.
  • Access involves approachability and ease of contact.
  • Courtesy involves politeness, respect, consideration, and friendliness of contact personnel.
  • Communication means keeping customers informed in language they can understand and listening to them.
  • Credibility involves trustworthiness, believability, and honesty.
  • Security is the freedom from danger, risk, or doubt.
  • Understanding/knowing the customer involves making the effort to understand the customer’s needs.
  • Tangibles include the physical evidence of the service.

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

71) Gathering data through focus groups and surveys is an example of a(n) ________ data gathering.

  1. A) active
  2. B) open
  3. C) rational
  4. D) passive
  5. E) closed

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

72) Gathering data through customer comment cards is an example of a(n) ________ data gathering.

  1. A) active
  2. B) open
  3. C) rational
  4. D) passive
  5. E) closed

Answer:  D

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

73) ________ includes all supplier-initiated contact with customers.

  1. A) Customer-relationship management
  2. B) Supplier rationalization
  3. C) Single sourcing
  4. D) Customer segmentation
  5. E) Actively solicited customer feedback

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

74) Phone contacts, focus groups, and survey results are referred to as ________ data.

  1. A) hard
  2. B) soft
  3. C) active
  4. D) passive
  5. E) rational

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

75) Measurement data such as height, weight, volume, and speed are referred to as ________ data.

  1. A) active
  2. B) passive
  3. C) rational
  4. D) soft
  5. E) hard

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

76) ________ data are ranked so that one measure is higher than the next.

  1. A) Active
  2. B) Discrete
  3. C) Continuous
  4. D) Ordinal
  5. E) Passive

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

77) ________ data is used to compare employee and customer perceptions of quality.

  1. A) Hard
  2. B) Soft
  3. C) Active
  4. D) Passive
  5. E) Rational

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

78) A(n) ________ group allows a supplier to gather feedback from a group of consumers at one time.

  1. A) access
  2. B) focus
  3. C) service
  4. D) ordinal
  5. E) discussion

Answer:  B

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

79) What is the first step in performing a focus group session?

  1. A) develop questions
  2. B) narrow scope of questions
  3. C) identify purpose
  4. D) select target population
  5. E) run multiple groups

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

 

80) A(n) ________ consists of a series of items designed to capture perceptions.

  1. A) survey
  2. B) focus group
  3. C) ordinal data system
  4. D) passive data gathering
  5. E) active data gathering

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

81) The ________ approach involves obtaining information from customers about the process they use to receive goods and services.

  1. A) focus group
  2. B) vendor managed inventory
  3. C) knowledge management
  4. D) critical-incident
  5. E) customer-relationship management

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

82) ________ validity refers to the use of certain terms and whether terms really measure what it is we want to measure.

  1. A) Criterion
  2. B) Conformance
  3. C) Content
  4. D) Control
  5. E) Construct

Answer:  E

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

83) ________ validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring.

  1. A) Criterion
  2. B) Conformance
  3. C) Content
  4. D) Control
  5. E) Construct

Answer:  A

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

84) ________ validity refers to whether the item really measures what we want to measure.

  1. A) Construct
  2. B) Control
  3. C) Criterion
  4. D) Conformance
  5. E) Content

Answer:  E

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

85) When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using ________ of the various categories of responses.

  1. A) means
  2. B) numerical responses
  3. C) bar charts
  4. D) simple correlations
  5. E) histograms

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

86) If survey responses are consistent but they are not measuring the right thing, the instrument is reliable but it is not valid.

Answer:  TRUE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

 

 

87) A continuum of “strongly disagree-disagree-neutral-agree-strongly agree” on a five-point scale is an example of relatively ranked ordinal data points.

Answer:  TRUE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

88) Gathering data through focus groups and surveys are examples of passive data gathering.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

89) Actively solicited customer feedback includes all supplier-initiated contact with customers.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

90) Phone contacts and focus groups are referred to as hard data.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

91) Soft data are measurement data such as height, weight, volume, or speed that can be measured on a continuous scale.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

92) Ordinal data are ranked so one measure is higher than the next.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

93) A focus group allows a supplier to gather feedback from a group of consumers at one time.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

94) Focus groups draw individuals with similar characteristics or demographics.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

95) Criterion validity refers to whether the item really measures what we want to measure.

Answer:  FALSE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

96) Construct validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring.

Answer:  FALSE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

 

97) When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using bar charts of the various categories of responses.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

 

98) Differentiate between soft data and hard data.

Answer:  Phone contacts, focus groups, and survey results are referred to as soft data. As opposed to soft data, hard data are measurement data such as height, weight, volume, or speed that can be measured on a continuous scale. Soft data are not continuous and are, at best, ordinal.

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

99) What is the function of a focus group?

Answer:  A focus group allows a supplier to gather feedback from a group of consumers at one time. The groups are focused in two ways: First, focus groups narrowly address a single topic or group of topics. Second, focus groups draw individuals with similar characteristics or demographics. This limits the discussion to subjects and market segments that are of particular interest to the firm.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

100) Differentiate between construct validity and content validity.

Answer:  Construct validity refers to the use of certain terms and whether terms really measure what it is we want to measure. For example, self-reported measures or percentage growth in sales might not be a valid measure of success in customer satisfaction. Sales increases may instead reflect favorable market conditions. Content validity, in contrast, refers to whether the item really measures what we want to measure. Usually, this includes asking five or six “experts” to review the instrument and determine whether the instrument is valid.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

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