48) Firms that are customer-centric exhibit a high degree of customer orientation, which means
that they ________.
A) instill an organization-wide focus on understanding customers’ requirements
B) generate an understanding of the marketplace and keep that information confidential
C) align system capability externally so that an organization can respond with competitively
similar goods and services
D) develop mass-produced goods and services that sell well in both large and small markets
E) treat employees as customers and develop systems and benefits that satisfy their needs
49) When a company follows a customer-centric philosophy with a high degree of customer
orientation, it is likely to ________.
A) keep everyone up-to-date on the progress of relevant legislation
B) generate an understanding of the marketplace and disseminate that knowledge to everyone in
the firm
C) produce products solely for the loyal customers from higher socio-economic status
D) place customers at the top of the organizational chart
E) align system capability externally so that the organization can respond with competitively
similar goods and services
50) An organization’s focus on internal service quality implies that employees ________.
A) are less likely to be satisfied
B) lack job security
C) are highly reward-oriented
D) hold a customer mind-set
E) need motivation to change
51) In the service-profit chain, customer satisfaction leads to customer loyalty, and results in
________.
A) revenue growth and profitability
B) changes in the organizational structure
C) competitive intelligence for future growth
D) competitive retaliation based on service strategy
E) external service value
52) José, an employee of a company that has worked hard to have a customer mind-set,
understands that ________.
A) whether internal or external to the firm, satisfying customers is central to doing his job well
B) all members of the firm must get to work on time and start their computers by 8:30 a.m.
C) it is essential to generate an understanding of the marketplace and keep that information
confidential
D) products must be produced solely for loyal customers from higher socio-economic status
E) system capability must be aligned externally so that the organization can respond with
competitively similar goods and services
53) One of the central concepts of the service-profit chain is to ________.
A) enable a firm’s customers to participate and contribute in strategic decision making
B) create an environment in which all employees can be successful
C) implement market penetration strategies in order to increase sales and profitability
D) create elements of change within people to do things above their capabilities
E) encourage employees to engage in groupthink and to resist any change to existing systems
54) As noted in the text, Caesars Entertainment points with pride to the fact that everyone in the
firm understands and can articulate its branding and values. This would be an indication that
Caesars is devoted to ________.
A) creating self-actualization for management
B) providing work-focused training for valued employees
C) internal marketing to achieve the goals in the service-profit chain
D) external marketing to achieve the goals of stress-relief ergonomics
E) producing products that are similar to that of its competitors
55) When a company underpromises but overdelivers with respect to its services, it is said to be
practicing ________ management.
A) inferior service
B) change
C) customer salience
D) customer expectations
E) total quality
56) In the service-profit chain, external service value leads to all of the following EXCEPT
________.
A) customer satisfaction
B) employee turnover
C) customer loyalty
D) revenue growth
E) profitability
57) A frequent Caesars guest who serves as a strong advocate for the Caesars experience to
friends and acquaintances is referred to as a(n) ________.
A) whistleblower
B) pacifier
C) apostle
D) champion
E) polemicist
58) As discussed in the text, Caesars Entertainment has found that customers who fall into the
zone of ________ spend considerably more money and provide a substantially greater return on
customer investment than others.
A) defection
B) affection
C) indifference
D) competition
E) retention
59) The zone of defection describes the area of ________.
A) slightly satisfied customers
B) extremely dissatisfied customers
C) loyal customers
D) apostles
E) very satisfied customers
60) One of the difficulties associated with search qualities for consumers when evaluating
different service offerings is ________.
A) services are not offered in a store
B) customers do not truly know how a service performs until after the sale
C) it is difficult to compare services online
D) a service may be inseparable from its price
E) customers find it difficult to analyze services since they have too many search attributes
61) Compared to products, services are ________.
A) low in credence qualities
B) separable in nature
C) easy to evaluate
D) low in search qualities
E) tangible in nature
62) Sometimes, customers can tell if they received good service. For example, vacations,
haircuts, and restaurants all have ________ attributes that allow customers to decide whether
they will repeat the purchase another time.
A) purchasable
B) tangible
C) focused
D) experience
E) search
63) When a customer cannot make a reasonable evaluation of the quality of a service even after
use because they lack expertise, this relates to a service’s ________ attributes.
A) secondary
B) credence
C) search
D) focused
E) observable
64) The assessment of which of the following attributes would require customers to have
expertise not generally shared by the public?
A) search
B) credence
C) experience
D) observable
E) tangible
65) Which of the following services is MOST likely to be high in credence attributes?
A) restaurants
B) hair cuts
C) tax preparation
D) child care facilities
E) vacations
66) Some business schools take the approach that the primary customers for their business are
________.
A) professional health care service providers
B) graduate schools
C) parents and relatives of students
D) companies that hire their students
E) professors and lecturers
67) Once a customer begins to have a positive experience with a service provider and builds a
relationship with the firm, customer loyalty ________.
A) tends to be lesser for services than for goods
B) tends to be greater for services than for goods
C) is the same for services and goods
D) develops, but only for a temporary period in all cases
E) develops and increases regardless of future service experiences
68) ________ represents a formalization of the measurement of customer expectations of a
service compared to perceptions of actual service performance.
A) Customer delight
B) Service encounter
C) Service quality
D) Service excellence
E) Moment of truth
69) Exceeding customer expectations is often referred to as customer ________.
A) excellence
B) loyalty
C) essence
D) delight
E) satisfaction
70) ________ is the period during which a customer interacts in any way with a service provider.
A) Service encounter
B) Moment of truth
C) Service period
D) Service quality
E) Time of service