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Sometimes the personal values of the category of complainers called passives prevent them from complaining about a service even when they should.

A) True
B) False

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Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash.Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car,this service guarantee:


A) Shows the absence of a customer focus
B) Illustrates the importance of employee empowerment
C) Does not fit the service provider's image
D) Is very meaningful
E) Is unconditional

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

Correct Answer

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Which of the following statements about the benefits of service guarantees is true?


A) To be valid,service guarantees must be in writing
B) A good guarantee forces the company to focus on its customers
C) Employee morale can be adversely affected by service guarantees
D) The guarantee negates the service recovery strategy of act quickly
E) A good guarantee will generate a lot of feedback-most,if not all of it,useless

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

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

A) True
B) False

Correct Answer

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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) A) and B)

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The service 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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The category of complainers called irates has a very optimistic sense of the potential positive consequences of all types of complaining.

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) Service recovery paradox
C) Halo effect
D) Service dilemma
E) Service quandary

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

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

A) True
B) False

Correct Answer

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

Correct Answer

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What is the best way to conduct lost customer research?

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

A) True
B) False

Correct Answer

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All of the following are causes for customer's brand switching EXCEPT:


A) Ethical problems
B) Pricing
C) Inconvenience
D) A service paradox
E) Core service failure

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

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A guarantee is a particular type of service recovery tool.

A) True
B) False

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Which service recovery strategy is most closely connected to an employee empowerment strategy?

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

Correct Answer

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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) B) and C)
G) All of the above

Correct Answer

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

A) True
B) False

Correct Answer

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

Correct Answer

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