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People who do not complain often believe that complaining is a waste of time and effort.

A) True
B) False

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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) Act quickly
C) Encourage and track complaints
D) Implement the service paradox
E) Learn from lost customers

F) A) and B)
G) A) and E)

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People who complain can be categorized as:


A) Irates, passives and aggressives
B) Passives, activitists, liaisons and negativists
C) Activists, mediators, chronic and passives
D) Voicers, irates, activists and passives
E) Aggressives, passives and mediators

F) A) and E)
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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A guarantee is a particular type of service recovery tool.

A) True
B) False

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________ refers to the actions taken by an organization in response to a service failure.


A) Service recovery
B) Service paradox
C) Service inconsistency
D) Outcome fairness
E) Procedural recovery

F) None of the above
G) D) and E)

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L. L. Bean, the catalog retailer, promises its customers, "100 percent satisfaction in every way, forever". Which service recovery strategy does L. L. Bean use?


A) Make the service fail safe
B) Learn from lost customers
C) Treat customers reactively
D) Implement the service paradox
E) Use procedural fairness

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

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Which of the following is the BEST example of procedural fairness?


A) The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly
B) Miriam decided the missing button was not important enough to make another trip to the cleaners and complain
C) When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not fix the hair of anyone who does not have an appointment"
D) The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke half way through showing the newest Brad Pitt movie
E) The hotel refused to help a man find a room for the night when he missed his scheduled flight

F) D) and E)
G) B) and D)

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What are poka-yokes?


A) Customers who have a propensity to complain
B) Automatic warnings or controls to ensure mistakes don't happen
C) Service failures
D) Common sources of complaints
E) Methods for tracking complaints

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

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When in doubt of 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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Will and Thom NaJami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones and provide a pool-cleaning service. Why should they consider designing and implementing an effective service recovery strategy?

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An effective service recovery strategy c...

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The recovery paradox states that all recovery service efforts deepen the long-term relationship between the customer and the service provider.

A) True
B) False

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Kate recently learned to play golf. Last week, she decided to try a new golf course. She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again. According to Kate, "There was just too many things you had to know before you could become a real golfer". Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example? A. Make the service fail safe B. Learn from lost customers C. Treat customers proactively D. Use procedural fairness E. Learn from lost customers

Correct Answer

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An effective service guarantee would never be described as:


A) Unconditional
B) Easy to invoke and collect
C) Standardized and/or generic
D) Meaningful
E) Easy to understand and communicate

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

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A pseudo-relationship occurs when


A) The service encounter is static
B) The customer interacts many times with the same company, but with different service providers
C) The company interacts with different members of a household
D) Frequency of service is greater than service reach
E) The service provider has accepted the validity of the service paradox

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

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

Correct Answer

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Customers who experience a service failure and do not complain are more likely to make a repurchase than those who do complain.

A) True
B) False

Correct Answer

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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 E)
G) C) and D)

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The empowerment of employees is a useful tool in service recovery.

A) True
B) False

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With which service recovery strategy is total quality management (TQM) most closely associated?


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

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

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