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Indicate whether the statement is true or false.
1. The effectiveness of the field intelligence method of gathering customer information depends upon a culture that
encourages open communication with superiors.
a.
True
b.
False
2. Affinity diagrams help firms to efficiently organize large volumes of information and identify natural patterns or
groupings in the information.
a.
True
b.
False
3. According to Juran, customers who fall under the category of “useful many” typically need only standardized attention
as a group.
a.
True
b.
False
4. Loyal customers are most likely to become dissatisfied when problems are not resolved after complaining to the
organization.
a.
True
b.
False
5. According to the Kano model, “satisfiers” are the basic requirements customers expect in a product or service that
are generally not stated by customers but assumed as given.
a.
True
b.
False
6. Customer-focused organizations empower their front-line people to do whatever is necessary to satisfy a customer.
a.
True
b.
False
7. Customer relationship management systems help organizations increase customer loyalty, target their most profitable
customers, and streamline customer communication processes.
a.
True
b.
False
8. Customer-contact employees are particularly important in creating customer satisfaction as they often are the only
means by which a customer interacts with an organization.
a.
True
b.
False
9. The internal customers of a company are those people who ultimately purchase and use the company’s products.
a.
True
b.
False
10. 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.
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a.
True
b.
False
11. Focus groups have a lower cost of implementation compared to other approaches used for gathering customer
information.
a.
True
b.
False
12. Customer satisfaction or dissatisfaction takes place during moments of truth.
a.
True
b.
False
13. Dissatisfied individual and business customers tend not to complain to organizations about problems.
a.
True
b.
False
14. In the case of a customer satisfaction survey, face-to-face interviews tend to generate more qualitative data than formal
written surveys.
a.
True
b.
False
15. The needs and expectations of external customers are different from those of consumers.
a.
True
b.
False
16. The customer satisfaction measurement of customer perceived value focuses more on customer loyalty than on
satisfaction.
a.
True
b.
False
17. Loyal customers are less costly to do business with compared to other customers.
a.
True
b.
False
18. Customers who are merely satisfied may often purchase from competitors because of convenience, promotions, or
other factors.
a.
True
b.
False
19. Complaints allow an organization to learn about product failures and service problems, particularly the gaps between
expectations and performance.
a.
True
b.
False
20. In the context of the gap model, a customer will be satisfied when the expected quality of a product is higher than the
actual quality.
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a.
True
b.
False
21. Customer satisfaction and engagement measurement allows an organization to identify causes of dissatisfaction and
failed expectations as well as drivers of delight to understand the reasons why customers are loyal or not loyal to the
company.
a.
True
b.
False
22. In the context of the dimensions of quality, as suggested by David A. Garvin, reliability is the amount of use one gets
from a product before it physically deteriorates.
a.
True
b.
False
23. Customer satisfaction surveys will be effective when the questions included in the survey can provide actionable
results.
a.
True
b.
False
24. Customer–supplier partnerships help organizations to improve products through early design recommendations and
reduce operations costs through better communications.
a.
True
b.
False
25. The net promoter score is the difference in the percentage of promoters and detractors.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
26. According to the gap model, the term _____ refers to the outcome of the production process and what is delivered to
the customer.
a.
expected quality
b.
delighter
c.
satisfier
d.
actual quality
27. Which of the following statements regarding customer perceived value (CPV) is true?
a.
It measures how customers assess benefits of the product against costs in making purchase decisions.
b.
It measures customer satisfaction based on the likelihood of customers recommending the product to other
customers.
c.
It focuses more on customer satisfaction than on customer loyalty.
d.
It takes into consideration only existing customers and not potential buyers.
28. The Kano model of customer requirements uses the term “satisfiers” to refer to the
a.
basic requirements that are generally not stated by a customer but are assumed as a given.
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b.
requirements that customers expressly say they want in a product.
c.
aesthetic features of a product that do not add any value to it.
d.
new or innovative features in a product that are not expected by customers in a product.
29. Which of the following survey instruments is most commonly used because of low data collection costs and ease of
analysis associated with it?
a.
Formal written surveys
b.
Telephone interviews
c.
Focus groups
d.
Face-to-face interviews
30. The _____ dimension of 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.
assurance
b.
reliability
c.
durability
d.
serviceability
31. Which of the following statements about why organizations measure customer engagement and satisfaction is true?
a.
It helps them in determining their financial requirements and the required value of the cash reserve ratio.
b.
It helps them to segment markets based on demographic characteristics of 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 human resource requirements.
32. Which of the following statements regarding customers who are identified as “promoters” based on the net promoter
score is true?
a.
They spread negative comments about the organization.
b.
They usually defect at higher rates.
c.
They are not likely to purchase from the organization again.
d.
They are less price-sensitive and more profitable.
33. According to the Kano model, new or innovative features that customers do not expect or even anticipate fall under
the category of
a.
delighters.
b.
dissatisfiers.
c.
continuous improvements.
d.
satisfiers.
34. Internal customers are
a.
not a part of the organization but are involved in the supply of the organization’s products to the consumer.
b.
not a part of the organization but sell resources to the organization so that the organization can produce its
products.
c.
a part of the organization who provide inputs and help to create outputs for customers.
d.
the end users of a company’s products or services.
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35. Customer-focused organizations consider complaints as opportunities for improvement because
a.
they allow them to test the aptitude and efficiency of their employees in handling customer complaints.
b.
they allow them to reduce the cost of research and development, since they learn about potential features
through customers.
c.
effectively resolving complaints increases customer loyalty and retention.
d.
they help employees understand what it feels like to be a customer.
36. The term “voice of the customer” refers to
a.
performance levels or expectations that define the quality of customer contact with an organization.
b.
customer requirements as expressed in the customer’s own terms.
c.
involvement of customers in the development of new products.
d.
customers’ investment or commitment to a brand or a product.
37. Which of the following statements regarding the American Customer Satisfaction Index is true?
a.
It is not effective in quantifying the value that customers place on products.
b.
It evaluates only the goods and services produced by domestic firms.
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.
38. Maple Products is a manufacturer of electronic goods that markets its products in several countries across the world.
The company makes sure that the spare parts of the products are available in all its markets and ensures that the technical
personnel in its retail outlets are adequately trained to repair its products. As suggested by David A. Garvin, the efforts
taken by the company will enhance the _____ dimension of its product quality.
a.
durability
b.
reliability
c.
conformance
d.
serviceability
39. Which of the following dimensions that contribute to customer perceptions of quality refers to the willingness of the
service providers to help customers and provide prompt service?
a.
Assurance
b.
Empathy
c.
Reliability
d.
Responsiveness
40. An affinity diagram is a tool that can be used by organizations to
a.
measure the response of customers by allowing them to express their degree of satisfaction on a five-point
scale.
b.
streamline their communication process with customers.
c.
gather and organize a large number of ideas or facts.
d.
train their employees on service recovery.
41. The final task in designing a customer satisfaction survey is to
a.
design the reporting format and the data entry methods.
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b.
select the appropriate survey instrument.
c.
define the sample frame, or target group from which the sample is chosen.
d.
select the questions to be included in the survey.
42. Which of the following statements regarding an advantage offered by customer–supplier partnerships to businesses is
true?
a.
It helps organizations in selecting their customer–contact employees and training and empowering them to
meet and exceed customer expectations.
b.
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.
d.
It allows organizations to effectively respond to customers’ complaints by systematically collecting and
analyzing complaint data and using it for improvements.
43. Which of the following survey instruments is most likely to be effective in generating a significant amount of
qualitative information from the customers?
a.
Mail surveys
b.
Online surveys
c.
Focus groups
d.
Telephone interviews
44. The term “customer engagement” refers to
a.
customers’ involvement in the early design and improvement of products.
b.
customers’ investment in or commitment to a brand and product offerings.
c.
expectations that define the quality of customer contact with an organization.
d.
strategic alliances of organizations with customers who share common values.
45. According to the Kano model, the basic requirements that customers expect in a product or service that are generally
not stated by customers but are assumed as given fall into the category of
a.
dissatisfiers.
b.
exciters.
c.
satisfiers.
d.
delighters.
46. Most women in the township of Adington prefer to visit Sharon’s Hair Salon because of the attractive interior, well-
designed equipment, and neatly dressed employees. Which of the following dimensions is influencing customer
perceptions of quality in this scenario?
a.
Empathy
b.
Assurance
c.
Responsiveness
d.
Tangibles
47. According to the gap model, the term _____ refers to the true needs and requirements of a customer.
a.
actual quality
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b.
delighters
c.
expected quality
d.
exciters
48. According to Juran’s classification system, customers who belong to the “vital few”
a.
need only standardized attention as a group.
b.
deserve special attention on an individual basis.
c.
can be targeted through mass marketing strategies.
d.
have needs and requirements that differ from general customers.
49. Which of the following statements regarding customer-focused organizations is most likely true?
a.
They make it easy for customers to conduct business.
b.
They do not encourage customer complaints as it will affect their brand image.
c.
They are less keen on engaging in a face-to-face conversation with customers.
d.
They do not provide explicit guarantees and warranties to customers.
50. When designing a customer satisfaction survey, organizations should use
a.
compound questions.
b.
questions with double negatives.
c.
leading questions.
d.
questions that address only one issue or idea.
51. Which of the following is used by organizations to measure customer response by allowing them to express their
degree of opinion?
a.
Histogram
b.
Likert scale
c.
R-chart
d.
Cause-and-effect diagram
52. The _____ dimension of quality, as suggested by David A. Garvin, refers to how a product looks, feels, sounds, tastes,
or smells.
a.
aesthetics
b.
reliability
c.
assurance
d.
serviceability
53. The ASQ Quality Glossary defines customer _____ as “the result of delivering a product or service that meets
customer requirements.”
a.
engagement
b.
satisfaction
c.
enrichment
d.
loyalty
54. The net present value of the customer is
a.
a measure of how customers assess the benefits of a product in making purchase decisions.
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b.
a measure of the likelihood that satisfied customers will recommend the product to other customers.
c.
the total profits (revenues associated with a customer minus expenses needed to serve a customer) discounted
over time.
d.
the total value of the benefits offered by a customer in a customer–supplier partnership.
55. According to the dimensions of quality, as suggested by David A. Garvin, _____ refers to the probability of a product
surviving over a specified period of time under stated conditions of use.
a.
durability
b.
serviceability
c.
conformance
d.
reliability
56. Which of the following statements regarding consumers of an organization is true?
a.
The retail outlets that sell the products of an organization are considered the consumers of that organization.
b.
They receive inputs from and produce outputs for other customers in the organization.
c.
They are a part of one of the various departments or processes of the organization.
d.
The consumers of an organization are the ultimate purchasers and users of the organization’s products.
57. Which of the following is a disadvantage associated with using formal written surveys as survey instruments for
measuring customer satisfaction?
a.
They generally measure predetermined perceptions of what is important to customers.
b.
They incur high costs.
c.
They are very difficult to analyze.
d.
They are not effective in probing deeply into issues.
58. 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.
Determining the purpose of the survey
d.
Selecting the group or individuals who will conduct the survey
59. According to the Kano model, which of the following features in a refrigerator is most likely to fall under the category
of a delighter?
a.
Temperature controls
b.
A defrost option to clear ice
c.
A separate section for vegetables inside the refrigerator
d.
An anti-freeze feature that prevents the freezing of food inside the refrigerator
60. Which of the following dimensions of quality, as suggested by David A. Garvin, refers to the degree to which physical
and performance characteristics of a product match pre-established standards?
a.
Performance
b.
Reliability
c.
Conformance
d.
Durability
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61. What are the key customer requirements identified by Unique Online Furniture, Inc.?
62. How does Harley-Davidson define its customer segments for heavyweight (651+ cc) motorcycles?
63. How does Unique Online Furniture, Inc. provide personal attention to its individual customers?
64. Describe the “Creativity Model” established by Harley-Davidson.
65. What are the various ways in which Harley-Davidson builds its competitive advantage?
66. Discuss the Harley Owners Group® concept.
67. What is Harley-Davidson’s vision?
68. What is the result of Unique Online Furniture, Inc.’s customer-focused approaches?
69. List some steps Harley-Davidson has taken to attract customers.
70. How are the products of Harley-Davidson marketed to retail customers worldwide?
71. What are customer contact requirements? Why is it important for organizations to train and develop customer-contact
employees?
72. How do CRM systems help firms gain and maintain a competitive advantage?
73. Why do organizations measure customer satisfaction and engagement?
74. Why do organizations engage in customer segmentation? What are the different approaches that can be used for
customer segmentation?
75. List some reasons why customer satisfaction efforts fail to produce useful results.
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52. a
53. b
54. c
55. d
56. d
57. a
58. c
59. d
60. c
61. The key customer requirements identified by Unique Online Furniture, Inc. are as follows:
1. Affordability: Customers want unique items at affordable prices.
2. Variety: Customers in our market are looking for variety in home furnishing products that they cannot necessarily find
in their local brick and mortar stores.
3. Online Purchase Security: When purchasing large ticket items online, our customers want to feel safe and secure during
the transaction.
4. Guarantees or Low Risk: Customers want the risks of buying sight unseen minimized.
5. Free or Low-Cost shipping: Customers want large items delivered to their front door at no additional cost.
62. Harley defines its customer segments for heavyweight (651+ cc) motorcycles as follows:
1. Traditional (a basic motorcycle which usually features upright seating for one or two passengers);
2. Sportbike (incorporates racing technology, aerodynamic styling, low handlebars with a “sport” riding position and high
performance tires);
3. Cruiser (emphasizes styling and individual owner customization);
4. Touring (incorporates features such as saddlebags, fairings, or large luggage compartments and emphasizes rider
comfort and load capacity); and
5. Dual (designed with the capability for use on public roads as well as for off-highway recreational use).
63. Unique Online Furniture, Inc. provides a very high level of client service throughout the buying process. It has a
formal client experience process that client service team members follow, and it uses multiple communication
mechanisms—phone, e-mail, and live chat—to meet client’s communication needs. This includes a video e-mail from the
president thanking them for their order and setting expectations, a personal phone call within 24 hours after an order has
been received to confirm all details, a shipping video e-mail to provide detailed instructions on how to properly receive
their large item, a video on eco–friendly solutions on how to dispose of the large amount of packing materials, a gift
certificate that can be used on future orders, and a thank-you gift that is wrapped and mailed to every client.
64. In 2010, Harley-Davidson established what it calls a “Creativity Model,” whereby it uses Web-based crowd-sourcing
as a source for its main marketing creative development. Crowd-sourcing draws on the ideas of passionate brand fans
around the world to help guide the creative direction of the brand.
65. Harley-Davidson builds its competitive advantage in two ways: (1) by supporting the motorcycling lifestyle across a
wide demographic range through events, rides, and rallies and (2) by making available other products, services, and
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