Chapter 13: Fixing Service Failures
TRUE/FALSE
1. For most service failures, the people part of the delivery system succeeded, but other aspects were
unsatisfactory.
2. Hospitality organizations should not admit liability for unfortunate, unavoidable occurrences that are
not its fault, but they should do everything in their power to rectify such situations.
3. The main reason for empowering servers to provide on-the-spot service recovery is to keep dissatisfied
customers from leaving that way.
4. An evangelist is created by exceeding expectations.
5. No matter how the recovery is handled, the original failure is always more important to the customer.
6. In excellent organizations, servers solicit complaints about their own performance.
7. A guest’s body language can indicate a service failure.
8. The best way to ensure that someone quickly finds and fixes a service failure is to empower the front
line.
9. If a server recovers successfully from a system failure, the manager should be informed, even if the
guest’s problem was resolved.
10. If the cost of failure to the guest is high, fixing the problem quickly is especially important.
11. Satisfaction with service recovery efforts decreases as the amount of time it takes to provide a
resolution increases.
12. What matters to guests is to receive a fair settlement for a service failure, even if the organization
makes the settlement reluctantly.
13. Interactional justice seems to have the greatest effect on guest satisfaction in service recovery.
14. More than half of organizational efforts to respond to customer complaints actually increase negative
reactions to the service.
15. Research shows that more than half of organizational efforts to respond to consumer complaints make
things better.
16. A guest failure is a great opportunity for the organization.
17. If a restaurant serves a meal that the guest finds unsatisfactory, replacing the meal is adequate as a
recovery strategy.
18. A service failure is a great opportunity for the organization.
19. Service recovery is necessary for public relations and is always good business.
20. In instances of total service catastrophe, neutralizing the unhappy customer may be the best that the
organization can hope for.
21. The Internet has reduced the effect that negative word of mouth can have on a business.
22. Word of mouth is extremely important because testimonials from friends tend to have more credibility
than impersonal or anonymous testimonials.
23. Allowing customers to complain strengthens the negative impression from a service failure, so
organizations should try to prevent customers from complaining.
24. From a guestology point of view, a failure is an opportunity to improve.
25. Once a service failure occurs, it is impossible to restore customer satisfaction and loyalty.
MULTIPLE CHOICE
26. Which of the following is NOT one of the four types of service failures?
a.
failures caused by employee actions or inactions
b.
failure to meet explicit or implicit customer requests
c.
service product failures
d.
All of the above are types of service failures.
27. What are the three most common critical incidents during service encounters which cause customers to
switch to other services?
a.
failures in the service itself, negative employee actions, and unsatisfactory employee
response to service failure
b.
failures in the product, disappointment with the product, and lack of care
c.
lack of focus on the end goal, lack of employee attentiveness, and disinterest in the
product
d.
none of the above
28. Which of the following is a potential outcome when a guest has a problem?
a.
The problem is fixed and the formerly unhappy guest leaves the experience happy.
b.
The problem isn’t fixed and the unhappy guest leaves unhappy.
c.
The organization tries to fix the problem and only succeeds in neutralizing the unhappy
guest.
d.
All of the above are usual outcomes.
29. According to the research, customers who had bad experiences told approximately
a.
11 people.
b.
30 people.
c.
50 people.
d.
no one.
30. Unhappy customers are ______ as likely to spread negative word of mouth as happy ones are to spread
positive word of mouth.
a.
just
b.
twice
c.
three times
d.
four times
31. The percentage of dissatisfied customers who complain is estimated to be about
a.
5–10 percent.
b.
10–25 percent.
c.
25–50 percent.
d.
over 50 percent.
32. Research suggests that most of the guests who complain
a.
are satisfied with the organization’s efforts to resolve the complaint.
b.
eventually become evangelists on behalf of the organization.
c.
complain again if the problem is not fixed.
d.
are dissatisfied with the organization’s efforts to resolve the complaint.
33. Organizations should
a.
teach guests to complain.
b.
encourage guests to complain.
c.
thank guests for complaining.
d.
all of the above.
34. Encouraging guest complaints has which of the following advantages?
a.
You can fix the guest’s specific problem.
b.
You can find and fix the source of the problem.
c.
You let your employees know you care about guest service.
d.
All of the above.
35. If a guest complaint is resolved on the spot, the probability of getting future business from that guest is
said to be about
a.
10 percent.
b.
30 percent.
c.
67 percent.
d.
95 percent.
36. The company’s worst-case scenario from a service failure is that the guest will become a/an
a.
avenger.
b.
evangelist.
c.
complainer.
d.
fighter.
37. A dissatisfied guest can do any of the following. From the organization’s perspective, which is
WORST?
a.
Leave never to return.
b.
Complain.
c.
Spread negative word of mouth.
d.
Suffer in silence.
38. How the recovery is handled
a.
is more important to the guest than the original failure.
b.
is just as important to the guest as the original failure.
c.
is not as important as the original failure.
d.
is unrelated to the original failure.
39. A dissatisfied guest can do any of the following. From the organization’s perspective, which is BEST?
a.
Leave never to return.
b.
Complain.
c.
Spread negative word of mouth.
d.
Suffer in silence.
40. Which of the following are the four dimensions of justice?
a.
judicial, economic, social, and political
b.
procedural, interactional, distributive, and informational
c.
economic, personal, interactive and informational
d.
procedural, economic, determinative, and service
41. Interactional justice refers to
a.
whether or not the customer believes company procedures for handling service failures are
fair.
b.
an assessment by the customer of the fairness associated with whatever compensation he
or she received to rectify a service failure.
c.
the customer’s feeling of being treated with respect and courtesy and given the opportunity
to express the complaint fully.
d.
the guest’s satisfaction with the adequacy of the information and communication provided
by the organization.
42. Which of the following is a characteristic of a good recovery strategy?
a.
It should be communicated clearly to the employees charged with responding to customer
dissatisfaction.
b.
It should ensure that the failure is addressed quickly.
c.
It should be flexible enough to accommodate the different types of failures and different
expectations that customers have of the guest experience.
d.
All of the above.
43. Which of the following is TRUE about customer failures?
a.
In service organizations, any failure is always the organization’s fault.
b.
Customer failure can occur, even if the company has done a perfect job.
c.
Customer failure only occurs when the organization fails to conduct proper planning.
d.
Customer failure is always caused by employee failure.
44. The organization’s attempt to make right or compensate for a service failure is called
a.
distributive justice.
b.
procedural justice.
c.
service quality assurance.
d.
service recovery
45. The most basic way to find out if there is a service problem is to
a.
analyze on-line comments and reviews.
b.
ask customers “is everything okay?”
c.
conduct in-depth interviews
d.
use comment cards.
46. Outcome fairness is also known as
a.
compensatory justice.
b.
distributive justice.
c.
outcome justice.
d.
procedural justice.
47. Informational justice refers to guest satisfaction with the
a.
accuracy of employee answers to customer questions
b.
adequacy of the information and communication provided by the organization
c.
customer’s feeling about being treated with respect and courtesy.
d.
feelings about the speed of the company’s information systems.
48. The important lesson that justice theory teaches is that
a.
all customers who file complaints want their money back.
b.
different people will see failure and recovery through different perceptions of fairness
c.
everyone is most focused on the compensation received after filing a complaint.
d.
once a customer experiences a service failure, it is impossible to make that customer
satisfied.
49. The first step in the process of analyzing failures is to
a.
identify the service failures.
b.
identify why service failures have occurred.
c.
implement service recovery efforts.
d.
select an approach recovery strategy.
50. Which of the following is an essential characteristic of a good recovery strategy?
a.
Ensure that a manager gets involved to supervise any recovery effort.
b.
Ensure that every complaint is addressed with some form of direct compensation.
c.
Make sure that recovery strategies are easy for the customer to find and use.
d.
Make sure that you can find out which customers are “faking” a complaint.