Chapter 13 Your External and Internal Customers
True / False Questions
1.
(p. 316)
In many ways, the United States is now a service economy.
TRUE
2.
(p. 317)
The cost of finding a new customer is considerably lower than the cost of keeping one you
already have.
FALSE
3.
(p. 317–
318)
An external customer is the person who provides services and products to other people in
the same company.
FALSE
4.
(p. 318)
Unlike their internal counterparts, the external customers are tied to a company more
directly.
FALSE
5.
(p. 318)
The two simplest principles of customer service are finding out what the customer needs
and doing what is necessary to satisfy those needs.
TRUE
6.
(p. 319)
Having quality products alone is enough for a business to succeed.
FALSE
7.
(p. 321)
“Sorry we don’t accept credit cards. It’s our company policy.” This is the most effective way
of delivering the news to your customers that you do not accept credit cards.
FALSE
8.
(p. 319–
320)
Treating nonpaying customers well is a good business practice.
TRUE
9.
(p. 321)
One of the most accepted and effective ways of handling impossible customer requests is
to quote your company policy.
FALSE
10.
(p. 322)
A “nice” customer is someone who never complains but responds by taking his/her
business elsewhere.
TRUE
11.
(p. 322)
A customer complaint is a personal attack and should be tackled effectively.
FALSE
12.
(p. 322)
A customer complaint is an opportunity to improve.
TRUE
13.
(p. 322)
Customer complaints should be encouraged as they inspire improvements to service.
TRUE
14.
(p. 323)
Questions such as “How was the service?” and “Was everything okay?” typically generate
an honest and helpful response from customers.
FALSE
15.
(p. 324)
Cash prizes for surveys that ask for customer feedback are means of encouraging
customers to complain.
TRUE
16.
(p. 324)
When faced with an angry customer, cutting the customer off typically proves to be
beneficial.
FALSE
17.
(p. 325)
You should take a customers’ feedback personally, so that it helps your business to grow.
FALSE
18.
(p. 325)
You can escape the self-esteem trap by taking a customer’s attack personally and letting it
affect your own self-esteem.
FALSE
19.
(p. 325)
Instead of using your energy to show a difficult customer that you are right and that he or
she is wrong, you should focus on getting the customer calmed down.
FALSE
20.
(p. 325–
326)
“Going the extra mile” refers to the helpful actions of some customers who provide
valuable feedback and suggestions to improve the effectiveness of your service.
FALSE
21.
(p. 325–
326)
When a customer with an injured hand had to fill out a long customer survey form, Jason,
the store manager, took time out to do it for her. Jason was “going the extra mile” for the
customer.
TRUE
22.
(p. 326)
The customer service ethics of a company or organization is independent of the quality of
the services its customers will receive.
FALSE
23.
(p. 326)
Unethical customer service can result in victimized customers.
TRUE
24.
(p. 327)
The Golden Rule of ethical customer service is: Are you treating the customer the way you
would like to be treated in a similar situation?
TRUE
25.
(p. 328)
Ensuring that you are able to provide a service in spite of compromising on the profit
margins depicts good business sense.
FALSE
26.
(p. 328)
Regardless of company decisions, a loyal customer should be given the flexibility of going
against the decisions if needed.
FALSE
27.
(p. 329)
Relationship selling reduces the chances that a customer would return and buy from you
again.
FALSE
28.
(p. 330)
Empathy is the ability to put yourself in the other person’s place.
TRUE
29.
(p. 330)
One effective way of dealing with customers is to avoid any outside distractions and make
them feel important.
TRUE
30.
(p. 331)
Thanking the customer for his or her patience and for bringing the problem to your
attention is a positive way to end a customer interaction.
TRUE
Multiple Choice Questions
31.
(p. 316)
Dream Land manufactures toys for kids. In its advertisements, it stresses on its motto to
make the customers happy. In doing so, the company is trying to:
A.
sell good feelings.
B.
sell solutions to problems.
C.
go the extra mile.
D.
determine the needs of the customers.
32.
(p. 316)
The most obvious reason for increased importance for high-quality customer service is
____.
A.
greater competition
B.
C.
stricter government rules
D.
greater cultural diversity
33.
(p. 317)
An internal customer is best described as a person who:
A.
buys good feelings and solutions to his or her problems.
B.
depends on the other people in the company to provide the services and products for
the external customer.
C.
is a long-standing external customer, considered a part of the organization owing to his
or her loyalty.
D.
never complains, but responds to bad service by taking his or her business elsewhere.
34.
(p. 318)
Bruce is a customer service representative of GoodHomes appliances. He is responsible for
providing solutions to customers’ problems. To provide solutions to the customers, Bruce
depends on the team of technical experts in the company. From the given information, we
can conclude that Bruce is a(n):
A.
internal customer.
B.
“nice” customer.
C.
mediator.
D.
broker.
35.
(p. 318)
Two of the simplest principles of customer service include:
A.
Create needs in your customers; Try to satisfy those needs.
B.
Sell the product first; Explain how the product benefits the customer.
C.
Prepare the idea for a service; Find a customer to fit the service.
D.
Find out what the customer needs; Do whatever is necessary to satisfy those needs.
36.
(p. 319)
If a customer does not have a thorough understanding of what his or her own needs are:
A.
you should focus on providing quality products.
B.
you should consider revising your product and service offerings.
C.
you should probe to find out the needs behind their surface statements.
D.
you should try to satisfy the customer’s material needs and not the basic human needs.
37.
(p. 319)
If a customer simply wants to be noticed and is not interested in buying your products, you
should:
A.
sternly ask the customer to stop wasting your time.
B.
treat the customer as you would treat a paying customer.
C.
politely request the customer to come when he or she actually wants to purchase your
products.
D.
discourage the customer from visiting again.
38.
(p. 319)
Which of the following statements is true of customer needs?
A.
Each customer has basic human needs that are unique.
B.
Every customer’s needs include being treated fairly.
C.
Understanding the customer as a person just like yourself makes it difficult to
anticipate his or her needs.
D.
If a customer does not have a thorough understanding of what his or her own needs
are, you should consider revising your product and service offerings.
39.
(p. 320)
Which of the following is a faulty notion regarding customer service?
A.
Knowing the issues involved in a business is important to develop the skills of effective
customer service.
B.
Customer service is of little importance as customers exist for the benefit of
businesspeople.
C.
The most obvious reason for increased importance for high-quality customer service is
greater competition.
D.
Keeping customers happy and loyal simply makes good economic sense.
40.
(p. 320)
In the context of a business environment, bad news skills refer to:
A.
the skills necessary to deliver bad news to the customers but still retain their business
and goodwill.
B.
the ability to receive bad news without being emotional or sentimental.
C.
the ability of gossipmongers to spread rumors within an organization.
D.
the required skills to bluntly deliver bad news to clients without wasting time
sugarcoating the news.
41.
(p. 321)
When delivering bad news to a customer, you should typically:
A.
use an aggressive tone of voice.
B.
avoid apologizing when the news is related to company policies.
C.
use a polite tone of voice.
D.
dwell on long apologies.
42.
(p. 321)
Which of the following practices is effective when delivering bad news to a customer?
A.
You should avoid apologizing when the news is related to company policies.
B.
You should close your message with a positive statement.
C.
You should provide long apologies to alleviate customer’s discontent.
D.
You should use a stern and aggressive tone of voice.
43.
(p. 321)
Which of the following practices should be avoided when delivering bad news to a
customer?
A.
Dealing with why the problem exists
B.
Being overly apologetic about the situation
C.
Using a polite tone of voice
D.
Talking about what can be done to solve the problem
44.
(p. 322)
Why should a firm encourage customer complaints?
A.
Customer complaints a firm receives have little impact on its positive image.
B.
Complaints are a means of ensuring work for the customer service department.
C.
Complaining customers can be segmented and treated as a separate group to be
handled differently.
D.
Customer complaints inspire improvements to service that would otherwise have gone
unnoticed.
45.
(p. 322)
A “nice” customer is best described as a person who:
A.
does not complain, but responds to bad service by taking his or her business elsewhere.
B.
is a long-standing customer and stays loyal in spite of bad service.
C.
regularly provides feedback after using a product.
D.
is a regular customer, helping a business to serve better.
46.
(p. 322)
Why is a “nice” customer often considered detrimental to a business?
A.
They have many complains about the products of a business.
B.
They do not provide honest feedback.
C.
They are difficult to satisfy.
D.
They have an aggressive temperament.
47.
(p. 322)
Which of the following is the best way to deal with a customer complaint?
A.
You should take it as an opportunity to learn about the problems of your products and
improve.
B.
You should ignore it as all customers cannot be equally satisfied.
C.
You should cover up the complaint as these instances have a negative effect on the
company.
D.
You should blame the person responsible for the complaint.
48.
(p. 322)
Which of the following is true of a customer complaint?
A.
It is a personal attack against the owner of a business.
B.
It means that the relationship with the customer is broken permanently.
C.
It is an opportunity for a business to improve.
D.
It is typically an attempt to spoil the company’s name.
49.
(p. 323)
An emphasis on careful listening to customer complaints is important because:
A.
it is typically an attempt to spoil the company’s name.
B.
it is a personal attack against your business.
C.
it helps in retaining the “nice” customers.
D.
it sends the signal that yours is a customer-focused business.
50.
(p. 323)
When customers perceive that you are willing to listen to their problems and that you are
encouraging their response, they are most likely to:
A.
respond honestly and openly.
B.
become suspicious and hold back their responses.
C.
take this as a sign of weakness and take advantage of your courtesy.
D.
demand compensation for their suggestions and feedback.
51.
(p. 323)
Which of the following is the best way of soliciting complaints?
A.
How is our new cafe?
B.
What are the factors that impress you the most at our cafe?
C.
Suggest one thing that we can do to improve your experience at our cafe.
D.
Name three unique things you noticed at our new cafe.
52.
(p. 324)
Which of the following is the most important factor in the customer complaint process?
A.
Correcting the problems customers are complaining about.
B.
Rewarding the customers who complain with gifts.
C.
Making a database of all the customer complaints.
D.
Encouraging more customers to register their complaints.
53.
(p. 324)
When dealing with an unreasonable, angry, or overly demanding customer, you should:
A.
remain silent about the problem.
B.
remain focused on the issue.
C.
express your anger about the issue.
D.
walk away from the scene.
54.
(p. 325)
The best way to deal with an unreasonable, angry, or overly demanding customer is to:
A.
allow the customer’s outbursts to negatively influence your thoughts.
B.
express your anger openly rather than bottling it up and feeling miserable.
C.
let the customer fall into the self-esteem trap.
D.
avoid the self-esteem trap.
55.
(p. 325)
The self-esteem trap is best described as:
A.
the circumstance that arises when a customer with a low self–esteem fails to express
his or her needs clearly.
B.
the circumstance that comes from taking a customer’s attack personally and letting it
affect your own self-esteem.
C.
the condition in which a person with a high self-esteem looks down upon people with
low-self-esteems.
D.
the subconscious activity that compares your self-image against your image of others.
56.
(p. 325)
When a company gives customers free products or services as a way of showing
appreciation for their relationship with them, it is referred to as:
A.
going the extra mile.
B.
providing employee assistance programs.
C.
practicing conditional positive regard.
D.
compensating for a weakness.