Chapter 14 Test Bank
1. Which of the following can be said regarding customer service?
A. Customers are getting used to poor customer service and it doesn’t bother them that much.
B. Only large companies that deal with many customers need to worry about good customer service.
2. All of the activities a firm engages in to satisfy the needs and wants of its customers is referred to as
A. customer communication.
B. customer satisfaction.
3. The two methods that encompass customer service activities are
4. Placing an order for a product on a company’s web page is a(n) _______ method for direct customer interaction.
A. human
B. internal
5. Which of the following companies most likely has a philosophy that elevates customer service to the highest level?
6. According to your text, the ultimate goal of delivering superior customer service is to
7. Which of the following is not a common objective listed in your text for all employees when building an effective customer
service strategy?
8. The ability of a company to deliver a good or service by the time the customer expects to have it available for sale or
consumption is referred to as
9. The total amount of time companies use to take a customer order and deliver goods to a customer is referred to as the
A. purchase process.
B. procurement process.
10. The function that takes in orders, checks stock for availability, and prints tickets for warehouse workers to reference as they
select products from warehouse locations occurs during which stage of the order cycle?
11. What is the customer service objective that involves ensuring customers can depend on receiving a good or service within a
stated lead time and that there will be no problems with the order?
12. Firms that establish effective inventory management policies, perform accurate sales forecasts, and maintain effective
transportation and distribution operations are adhering to the customer service objective of
13. The type of customer communication that provides the customer with information concerning the completeness of the order,
when it will ship from the firm, and when it will arrive to the customer is called
14. Janie ordered a boxed DVD set online for her friend’s birthday and she is hoping it will arrive on time. Luckily, the company
sent her the UPS tracking number of the package so Janie can track the package and know exactly when it will arrive. This form
of customer communication is referred to as
A. product fulfillment communication.
B. order authorization communication.
15. The term ease of doing business refers to
A. the ease with which a product can be promoted effectively.
B. how quickly a firm can recoup its costs and begin making a profit.
16. According to your text, which of the following is a major part of ease of doing business?
17. Which of the following would not promote ease of doing business?
A. A business offers its customers favorable payment terms and discounts for quick payments.
B. A salesperson on the store floor can place an order for a customer and have the item delivered to the customer’s home.
18. Which of the following companies is utilizing social media in customer service?
A. A retail store has a box on the check-out counter where customers can leave comments and suggestions.
B. A business e-mails customers order tracking information so they can track the delivery of their orders.
19. Web-based technologies that enable a company to build and manage social media solutions and services are referred to as
20. Companies can assess if they are doing a good job servicing their customers by establishing performance measurements,
also known as
A. touch points.
B. benchmarks.
21. The performance measurement that calculates the percentage of an order shipped on time and complete is called the
A. item fill rate.
B. accuracy rate.
22. What metric measures the percentage of the total number of items on the order that the firm shipped on time?
A. fill rate
23. An order has a total of 625 items (worth $17,000) and the firm ships 545 of the items (worth $13,000) on time. What is the
item fill rate?
A. 80 percent
B. 76 percent
24. What metric measures the value of goods shipped on time versus the total value of the order?
25. An order has a total of 368 items (worth $23,000) and the firm ships 354 of the items (worth $21,000) on time. What is the
dollar fill rate?
A. 96 percent
B. 86 percent
26. The performance measurement known as line fill rate measures
A. the percentage of an order shipped on time and complete.
B. the percentage of the total number of items on the order that the firm shipped on time.
27. Which of the following metrics judges the reliability of the order system, and determines that the failure to meet all of its
requirements results in a score of zero?
A. on-time delivery
B. item fill rate
28. Which of the following is not a requirement necessary to constitute a perfect order?
A. It must be delivered to the right place.
B. It must be billed correctly.
29. Which performance metric measures how many shipments are delivered per the requested delivery date?
A. fill rate
B. perfect order rate
30. The metric that measures the ability of the order system to react to customer orders is the
31. When a firm measures the accuracy and timeliness of the information fed back to a customer concerning product availability
and delivery dates, it is measuring customer communication at what point?
A. order fill point
B. delivery point
32. A firm’s flexibility is measured by which metric?
A. on-time delivery
B. order cycle time
33. What do post-incident surveys measure?
A. the time a customer had to wait to talk or receive a text back from a service representative
B. whether or not customers found answers to their questions at the company‘s website
34. Which measure of customer service effectiveness focuses on trends in repeat buying from current customers?
A. abandonment rates
B. customer service website experience
35. A critical element to performance measurement metrics is
36. According to your text, the ultimate goal of achieving customer satisfaction is
A. to attract new customers.
B. to increase brand recognition.
37. When companies meet the needs and expectations customers have for their goods or services, they have achieved
38. A consumer can be happy with a product but switch to another company’s good or service if it can provide additional value.
This is why, according to your text, customer-driven companies strive to ________ their customers.
A. satisfy
B. pacify
39. A company’s emphasis on customer satisfaction develops as a consequence of a
40. The marketing strategy that reflects the idea that a firm’s long-term success must include a company-wide effort to satisfy
customer needs and wants is referred to as
A. customer service.
B. customer relationship management.
41. Which of the following is not true regarding the application of a marketing concept?
A. Companies that base their business on the marketing concept maintain a focus on delivering value to the customer in any
profitable way they can.
B. A marketing concept puts the customer in the center of a firm’s thinking in terms of both strategy and operations.
42. A manufacturer of kitchen cabinets relies on timely delivery from its wood supplier in order to produce its products. The
company would like to have its shipment of wood delivered all at once, but it often comes in multiple shipments. While this is not
usually a problem and the manufacturer is generally happy with its supplier, it has found another supplier that will deliver the
wood in one shipment. Because of this, the manufacturer has decided to switch suppliers. This is an example of how
43. The mechanism that filters large amounts of information about many consumers’ previous purchases that may be related in
some way in order to predict consumer preferences is known as
A. specialized marketing.
B. client marketing.
44. Geri was shopping at a local strip mall. Suddenly, her smartphone chimed to let her know that certain stores in the mall were
offering coupons. This is an example of
A. retail filtering.
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Topic: Enhancing Customer Satisfaction
45. The term used to describe a business that focuses on attracting, maintaining, and enhancing customer relationships in order
to build brand loyalty is
A. ease of doing business.
B. marketing concept.
46. The perceived benefits, both monetary and nonmonetary, that a customer receives from a product compared to the cost
associated with obtaining it is referred to as
A. ease of doing business.
B. relationship marketing.
47. A company that personalizes service by tailoring product information for individual customers in order to provide an
exceptional, personalized shopping experience is practicing
A. data mining.
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Topic: Improving Customer Relationships
48. When a business allows employees to make decisions about how service is provided to customers it is practicing
A. relationship management.
49. Trisha works in an upscale department store. She has been instructed by the management staff that she can take up to 20
percent off a product if it appears damaged in some way. In addition, Trisha is encouraged to help customers as she sees fit,
including giving customers discount coupons on future purchases if they return a product because they weren’t satisfied. The
management at Trisha’s store is practicing
50. The concept of empowerment means
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Difficulty: 1 Easy
Learning Objective: 14-03 Discuss how companies can improve relationships with B2B and B2C customers.
Topic: Improving Customer Relationships
51. Maintaining and enhancing good customer relationships begins with a company culture that
A. eliminates employee empowerment.
B. strives to increase brand recognition.
52. The process by which companies get new customers, keep the customers they already have, and grow the business by
increasing their share of customers’ purchases is referred to as
A. relationship marketing.
B. lifetime value marketing.
53. A company uses a software program to capture and analyze consumer data to create and maintain customer profiles,
including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its
customers. The company is most likely engaged in
D. lifetime value marketing.
E. target market segmentation.
54. Any point at which a customer and the company come into contact is called a
A. sales point.
B. communication point.
55. CRM technologies allow marketers to do all the following except
56. A company that tracks customers’ shopping patterns and then sends them sales offers that complement their previous
purchases is engaged in
57. The customer relationship management process is described in your text as being
58. The first step in the customer relationship management process is to
A. understand how customers interact.
B. store and analyze information.