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.
A) Primary
B) Capital
C) External
D) Secondary
E) Internal
2) ________ customers are the bill-paying receivers of a company’s work.
A) External
B) Internal
C) Primary
D) Secondary
E) Capital
3) The ________ customers are the ultimate people the company is trying to satisfy with its
work.
A) capital
B) internal
C) primary
D) external
E) secondary
4) ________ customers are also known as end users.
A) External
B) Internal
C) Capital
D) Primary
E) Secondary
5) The ________ model shows that a firm’s quality performance is increasing while customer’s
expectations are also increasing.
A) restructured customer-driven quality
B) relative customer-driven quality
C) redesigned customer-driven quality
D) receptive customer-driven quality
E) reactive customer-driven quality
6) The view of the customer that asserts that he or she is a valued asset to be managed is referred
to as ________.
A) customer response
B) customer intelligence
C) customer data management
D) reactive customer-driven quality
E) customer-relationship management
7) Which of the following is not a design aspect to customer-relationship management?
A) corrective action
B) guarantees
C) feedback
D) cost
E) complaint resolution
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.
A) complaint-reaction
B) complaint-restoration
C) complaint-resolution
D) complaint-response
E) complaint-reversal
9) The first component of a complaint-resolution process is ________.
A) contrition
B) correction
C) compensation
D) communication
E) correlation
10) The second component of a complaint-resolution process is ________.
A) contrition
B) correction
C) compensation
D) communication
E) correlation
11) The process associated with resolving complaints is called the ________ process.
A) complaint-reversal
B) complaint-restoration
C) complaint-reaction
D) complaint-recovery
E) complaint-response
12) Which of the following is not a component of an effective guarantee?
A) conditional
B) meaningful
C) understandable
D) communicable
E) painless to invoke
13) Customer ________ is measured as the percentage of customers who return for more service.
A) approval
B) feedback
C) satisfaction
D) retention
E) response
14) What are the three phases of customer-relationship management?
A) satisfaction, feedback, and retention
B) satisfaction, acquisition, and transition
C) response, feedback, and enhancement
D) acquisition, retention, and enhancement
E) response, transition, and acquisition
15) The ________ phase of customer-relationship management involves improving service to the
customer through the use of information systems.
A) acquisition
B) retention
C) enhancement
D) transition
E) response
16) Churn reduction involves the reduction in the loss of ________.
A) raw materials
B) suppliers
C) funds
D) products
E) customers
17) ________ management involves managing the mountain of information generated by Web
site usage in a way to improve marketing to key customers.
A) Knowledge
B) Order
C) Sales
D) Campaign
E) Channel
18) Internal customers are the bill-paying receivers of a company’s work.
19) External customers are employees receiving goods or services from within the same firm.
20) The external customers are the ultimate people the company is trying to satisfy with its work.
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.
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.
23) Customer relationship management involves viewing the customer as a valued asset to be
managed.
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.
25) Improving services such as customer service policies, sales processes, and after-sales
services according to customer preferences is referred to as transactional analysis.
26) The process associated with resolving complaints is called the complaint-response process.
27) A guarantee outlines the customer’s rights.
28) Guarantees should be designed prior to beginning business.
29) To be effective, a guarantee should be unconditional.
30) Customer retention is measured as the percentage of customers who return for more service.
31) Amazon’s customized desktops with recommendations for products based on historical
purchases is an example of the customer enhancement phase of CRM.
32) The enhancement phase of customer-relationship management involves improving service to
the customer through the use of information systems.
33) Knowledge management involves managing the mountain of information generated by Web
site usage in a way to improve marketing to key customers.
34) Differentiate between internal and external customers.
35) Explain the reactive customer-driven quality (RCDQ) model.
36) What are the components and activities associated with the complaint resolution process?
37) What are customer-relationship management systems?
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
________.
A) single-source managed inventory
B) vendor managed inventory
C) account managed inventory
D) cost managed inventory
E) time managed inventory
39) Which of the following is a diagram tool for managers that depicts a flowchart of interactions
between service providers and customers?
A) process-chain-network diagram
B) precedence-network diagram
C) relationship-network diagram
D) activity-network diagram
E) interaction-network diagram
40) ________ is a process for developing relationships with few suppliers for long-term
contracts.
A) Single sourcing
B) Gap analysis
C) Supplier rationalization
D) Segmentation
E) Source loyalty
41) ________ results in the suppliers becoming de facto subsidiaries to their major customers.
A) Segmentation
B) Gap analysis
C) Strategic alliance
D) Source loyalty
E) Supplier rationalization
42) In ________, suppliers integrate information systems and quality systems that allow close
integration at all levels.
A) segmentation
B) gap analysis
C) annuity relationships
D) strategic alliances
E) supplier rationalization
43) ________ results from agreement between marketing and operations as to which customers
add the greatest advantage and profits over time.
A) Customer segmentation
B) Customer-relationship management
C) Reactive customer-driven quality
D) Actively solicited customer-feedback
E) Customer rationalization
44) A(n) ________ relationship is one in which the customer provides a long-term, steady
income stream to the provider.
A) perpetual
B) annuity
C) active
D) rational
E) passive
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 ________.
A) customer rationalization
B) passively solicited customer feedback
C) actively solicited customer feedback
D) reactive customer-driven quality
E) customer segmentation
46) A process-chain-network diagram is a flowchart tool for managers to use when designing
service delivery systems.
47) Many companies use single sourcing as a way to increase the number of suppliers.
48) Single-sourcing arrangements are developing into strategic alliances where suppliers become
de facto subsidiaries to their major customers.
49) Customer rationalization results from agreement between marketing and operations as to
which customers add the greatest advantage and profits over time.
50) Annuity relationships result in the customer providing a short-term income stream to the
provider.
51) Customer-initiated contact, such as submitting an inquiry via a company’s Web site, is
considered passively solicited customer feedback.
52) Active data collections tend to result in lower ratings of quality than passive data collections.
53) Describe the concept of single sourcing. How is single sourcing related to strategic alliances?