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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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When Robin and Liam arrived at the restaurant, their table was not ready. The hostess gave them free drinks at the bar while they waited for their table to be cleared. What type of fairness does this best represent?

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Service guarantees are appropriate for any company and every service situation.

A) True
B) False

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The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result.


A) Baker's dozen paradigm
B) Recovery paradox
C) Halo effect
D) Service dilemma
E) Service quandary

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

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The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a passive type when it comes to complaining would react to this by:


A) Firing the original carpenter and hiring another one
B) Taking no action whatsoever
C) Complaining to the Better Business Bureau about the terrible service
D) Threatening to sue the carpenter if he didn't return immediately
E) Complaining daily to the carpenter's answering machine

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

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Which of the following is the BEST example of outcome 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) The sign posted on the wall stated the hair salon would not fix the hair of anyone who did 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 halfway 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 airplane flight

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

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What is the best way to conduct lost customer research?

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In-depth interviews ...

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The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by:


A) Assuming he had done something to alienate the carpenter
B) Taking no action whatsoever
C) Spreading negative word of mouth about the carpenter to all of his or her friends and relatives
D) Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor
E) Hiring another carpenter to finish the job

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

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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 is an example of:


A) Functional unfairness
B) Procedural unfairness
C) Interactional unfairness
D) Service inequity
E) Situational unfairness

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

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

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A consumer is more likely to complain when:


A) The individual's involvement with the product being purchased is low
B) The level of ego involvement in the purchase is high
C) He or she is the only one who experienced service failure
D) The purchase is one that is made routinely
E) Service failure costs less than $5.00

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

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_____ focuses on the interpersonal treatment received by the consumer during the complaint process.


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

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

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The type of complainer that is called a(n) _____ has an above average propensity to complain. They have a very optimistic sense of the potential positive consequences of all types of complaining.


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

F) C) and E)
G) C) and D)

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Many frequent flyers have missed their flights due to long, slow security checks before being allowed to enter the airline's terminal. This policy designed to ensure safe flights has resulted in problems associated with perceived:


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

F) D) and E)
G) C) and D)

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Which of the following statements about service failure and service recovery is true?


A) Those customers who never complain are as likely to repurchase as those who had a satisfying service experience
B) Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty
C) All firms employ effective recovery strategies
D) Effective service recovery should not be expected to improve overall service performance
E) All of the above statements about service failure and recovery are true

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

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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) Act quickly

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

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Why would a consumer be more likely to complain about a poorly mended prom dress than burnt toast?

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Formal market research of lost customers' motivations is a waste of resources.

A) True
B) False

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A florist had promised to have the bridal flowers delivered to the wedding rehearsal dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal was nearly over and the bride and her mother were very upset. To show how sorry he was for the poor service, the florist put extra flowers in the bridal bouquet and gave each mother and grandmother a free orchid corsage. The bride and her mother were extremely pleased with the extra flowers and have recommended the florist to a number of their friends. The florist is wondering if he shouldn't deliberately underdeliver other jobs, compensate the consumer with some upgrade and benefit from even more positive feedback. The florist is responding to the:


A) Baker's dozen paradigm
B) Recovery paradox
C) Halo effect
D) Service dilemma
E) Service quandary

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

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A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining.


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

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

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