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When in doubt as to how to treat a customer who has not been provided a service as promised,the service provider should always try to overcompensate that customer.

A) True
B) False

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The empowerment of employees makes which of the following service recovery strategies easier to implement?


A) Make the service fail safe
B) Learn from lost customers
C) Treat customers fairly
D) Encourage and track complaints
E) Respond quickly

F) A) and C)
G) C) and E)

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When Tom had the satellite dish placed on the roof of his house,the installer dislodged and made no attempt to replace a half dozen roofing shingles.Tom has complained several times to his friends about the lousy service,but he would never complain to the Better Business Bureau,nor is he likely to recommend the installer to friends.What kind of complainer is Tom?

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When its sales were declining,Canadian Airline conducted a marketing survey to understand the expectations of the business traveler,its target market.It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel.If Canadian Airline had only surveyed former customers who were still in their database,it would have used which service recovery strategy?


A) Critical incident
B) Make the service fail safe
C) Welcome and encourage complaints
D) Learn from lost customers
E) Customer empowerment

F) A) and D)
G) All of the above

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Which service dimension is most important if the service provider has made the service failsafe as its primary service recovery strategy?

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Which of the following is NOT an example of a commonly used service recovery strategy?


A) Learn from recovery experience
B) Respond quickly
C) Encourage and track complaints
D) Implement the service paradox
E) Learn from lost customers

F) A) and C)
G) None of the above

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When Shelly hired the housecleaning service,she asked them to use her hypoallergenic cleaning supplies.Instead the workers used their own supplies and Shelly had to lose a day from work because of her allergic reaction to the smell of the cleaners.When Shelly looked at the service guarantee that the workers had left,she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction,an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners.This service guarantee is ineffective because it is NOT:


A) Easy to invoke and collect
B) Customized
C) Condition-specific
D) Challenging but realistic
E) Standardized by situation

F) A) and E)
G) A) and D)

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When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel the appointment,it is an example of _____ because the patient was made aware of the policy before making the appointment.


A) Functional fairness
B) Procedural fairness
C) Interactional fairness
D) Service equity
E) Outcome fairness

F) C) and D)
G) A) and B)

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When is a service guarantee inappropriate?


A) When prices for the service are high
B) When negative impact of unsolved problems is high
C) When service quality is truly uncontrollable
D) When company has a poor image for service quality
E) When company depends on frequent customer purchases

F) All of the above
G) A) and B)

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Guarantees that are written by the legal department are generally more meaningful to customers than any other type.

A) True
B) False

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________ refers to the fact that a complaining customer expects to be treated fairly,with care and honesty.


A) Functional equity
B) Procedural fairness
C) Interactional fairness
D) Service equity
E) Outcome fairness

F) C) and D)
G) A) and D)

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An example of outcome inequity occurred when Logan was rudely told he could not golf at a particular course because his clubs were not sanctioned by the U.S.Golf Association.

A) True
B) False

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When its sales were declining,Canadian Airline conducted a marketing survey to understand the expectations of the business traveler,its target market.It learned business travelers resent that they are bosses in their own offices but are totally controlled by the airlines when they travel.Canadian Airline instituted gate-side business centers,shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops.By listening to its business travelers and providing the services they want,Canadian Airline's sales started increasing.What service recovery strategy did Canadian Airline use?


A) Make the service fail safe
B) Learn from recovery experience
C) Treat customers reactively
D) Encourage and track complaints
E) Act quickly

F) B) and C)
G) A) and C)

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Which type of complainer has sometimes been called the service provider's best friend?

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A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n) :


A) Irate
B) Annoyance
C) Aggressive
D) Activist
E) Voicer

F) A) and B)
G) A) and C)

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Which of the following is NOT a benefit provided by a service guarantee?


A) The ability to generate meaningful and relevant feedback from customers
B) The ability to set clear standards for the organization
C) A way to improve employee morale
D) A way to increase a customer's sense of risk
E) A way to create useful feedback that can be integrated into continuous improvement efforts

F) B) and D)
G) B) and C)

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What is service recovery?

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The action taken by ...

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A friend of yours is setting up a math tutoring service.She has asked you,"Do all services need to offer customer guarantees"? Explain your answer.Then explain why or why not she should or should not offer a customer service guarantee.

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No.The text describes six occasions when...

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Adam was working late in his hotel room when the light bulb in the lamp at his desk burned out.He called the front desk and asked for a replacement bulb.The desk manager told Adam that a new one would be provided tomorrow morning and that he did not have the key to the stockroom.Adam tried to explain how much he needed the light to finish his sales report,but the manager was polite but adamant that he could not help.This example illustrates lack of:


A) Functional fairness
B) Procedural fairness
C) Interactional fairness
D) Service equity
E) Situational fairness

F) B) and E)
G) C) and E)

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Comment on the following statement: "The recovery paradox is a superior strategy to the 'Do it right the first time' strategy".

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The recovery paradox basically encourage...

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