Question 1

Service quality,like advertising,has a cumulative effect on a company's profit.

Accepted Answer

A) True 
 B)False

Question 2

The comment card that is often found on the tables at a Wendy's fast-food restaurant asks about the customer's perceptions of the quality of the food,its cleanliness and the friendliness of the employees.These questions are focusing on _____ in Wendy's balanced performance scorecard.

Accepted Answer

A)  Competitive measures 
B)  Customer perceptual measures 
C)  Financial measures 
D)  Innovation and learning 
E)  Operational measures 
A)  Competitive measures 
B)  Customer perceptual measures 
C)  Financial measures 
D)  Innovation and learning 
E)  Operational measures

Question 3

FedEx measures customer satisfaction and service quality with a 12-item statistical measure called the Service Quality Indicator.One of the items measured by FedEx is the number of missed pickups per day.In a balanced performance scorecard,the number of missed pickups per day would represent a(n)_____ measure.

Accepted Answer

A)  Competitor 
B)  Customer 
C)  Financial 
D)  Innovation and learning 
E)  Operational 
A)  Competitor 
B)  Customer 
C)  Financial 
D)  Innovation and learning 
E)  Operational

Question 4

The key drivers of service quality,customer retention and profits include:

Accepted Answer

A)  The servicescape and internal marketing 
B)  The five dimensions of service quality and service encounters 
C)  External marketing communications and employee training 
D)  Public relations and direct marketing 
E)  All of the above 
A)  The servicescape and internal marketing 
B)  The five dimensions of service quality and service encounters 
C)  External marketing communications and employee training 
D)  Public relations and direct marketing 
E)  All of the above

Question 5

The operational measures used within the balanced performance scorecard should be:

Accepted Answer

A)  Customer-defined 
B)  Cost-driven 
C)  Competitively sensitive 
D)  Front-line employee-defined 
E)  Environmentally-derived 
A)  Customer-defined 
B)  Cost-driven 
C)  Competitively sensitive 
D)  Front-line employee-defined 
E)  Environmentally-derived

Question 6

Describe the innovation and learning area of the balanced performance scorecard including some of the specific measures that may be appropriate for this area.

Accepted Answer

This area of measurement involves a comp

Question 7

What area of the balanced performance scorecard is a company studying when it examines transaction time,throughput time,reduction in waste and process quality?

Accepted Answer

Operation

Question 8

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Accepted Answer

A)  Number of defections 
B)  Number of cross sales 
C)  Service perceptions 
D)  Long-term value of customer 
E)  Service expectations 
A)  Number of defections 
B)  Number of cross sales 
C)  Service perceptions 
D)  Long-term value of customer 
E)  Service expectations

Question 9

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years.The owner suspects that many of its regular customers are now buying flowers at the newly opened Kroger supermarket.It would be appropriate for the owner to institute _____ marketing.

Accepted Answer

A)  Guerrilla 
B)  Flanking-movement 
C)  Vertical integration 
D)  Defensive 
E)  Offensive 
A)  Guerrilla 
B)  Flanking-movement 
C)  Vertical integration 
D)  Defensive 
E)  Offensive

Question 10

Why have managers replaced traditional tools for measuring a company's performance with the balanced scorecard?

Accepted Answer

The traditional measures were financial

Question 11

All of the following are financial measures used in the balanced performance scorecard EXCEPT:

Accepted Answer

A)  Value of customer referrals 
B)  Customer satisfaction 
C)  Volume increases 
D)  Long-term value of the customer 
E)  Value of cross sales 
A)  Value of customer referrals 
B)  Customer satisfaction 
C)  Volume increases 
D)  Long-term value of the customer 
E)  Value of cross sales

Question 12

Attracting a new customer is five times as costly as retaining an existing one.

Accepted Answer

A) True 
 B)False

Question 13

The research exploring the relative importance of service dimensions on overall service quality or customer satisfaction has confirmed _____ as the most critical dimension.

Accepted Answer

A)  Assurance 
B)  Tangibles 
C)  Empathy 
D)  Responsiveness 
E)  Reliability 
A)  Assurance 
B)  Tangibles 
C)  Empathy 
D)  Responsiveness 
E)  Reliability

Question 14

There are several auto repair shops in a three-block area on King Street.One of the shop owners decided to extend her shop's operating hours until 10 p.m.Monday-Thursday and provide a pick-up and delivery service with bonded drivers as well as guarantee all repairs for six months.This job owner is engaged in _____ marketing.

Accepted Answer

A)  Defensive 
B)  Churn 
C)  Guerilla 
D)  Flank-movement 
E)  Offensive 
A)  Defensive 
B)  Churn 
C)  Guerilla 
D)  Flank-movement 
E)  Offensive

Question 15

In 1991 when the US.General Accounting Office (GAO)studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award,it determined that these elite quality firms benefited in all of the following ways EXCEPT:

Accepted Answer

A)  Increased market share 
B)  Improved return on sales 
C)  Improved sales per employees 
D)  Increased return on assets 
E)  Increased advertising 
A)  Increased market share 
B)  Improved return on sales 
C)  Improved sales per employees 
D)  Increased return on assets 
E)  Increased advertising

Question 16

The ROSQ approach would be appropriate for a service provider:

Accepted Answer

A)  That used service blueprints 
B)  That terminated relationships with its least profitable customers 
C)  Deciding to purchase employee dental insurance 
D)  That was thinking of developing a home delivery service in addition to offering products at a central location 
E)  Deciding to increase prices for basic services by ten percent 
A)  That used service blueprints 
B)  That terminated relationships with its least profitable customers 
C)  Deciding to purchase employee dental insurance 
D)  That was thinking of developing a home delivery service in addition to offering products at a central location 
E)  Deciding to increase prices for basic services by ten percent

Question 17

Many companies do not identify and act on the correct non-financial measures.One of the four major mistakes that companies make is _______.In other words,companies attempt to measure complex phenomenon with one or two simple measures or use quantitative metrics to capture qualitative results for factors such as leadership.

Accepted Answer

A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard 
A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard

Question 18

Many companies do not identify and act on the correct non-financial measures.One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Accepted Answer

A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard 
A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard

Question 19

Service encounters are among the key drivers of service quality.

Accepted Answer

A) True 
 B)False

Question 20

Many companies that have adopted a customer retention strategy are now using the extent of _________ as their main measure of customer loyalty.

Accepted Answer

A)  Word-of-mouth 
B)  Personalized direct mail 
C)  Network television advertising 
D)  Publicity 
E)  Advertising in prestige magazines 
A)  Word-of-mouth 
B)  Personalized direct mail 
C)  Network television advertising 
D)  Publicity 
E)  Advertising in prestige magazines

Service quality,like advertising,has a cumulative effect on a company's profit.

The comment card that is often found on the tables at a Wendy's fast-food restaurant asks about the customer's perceptions of the quality of the food,its cleanliness and the friendliness of the employees.These questions are focusing on _____ in Wendy's balanced performance scorecard.

The key drivers of service quality,customer retention and profits include:

The operational measures used within the balanced performance scorecard should be:

Describe the innovation and learning area of the balanced performance scorecard including some of the specific measures that may be appropriate for this area.

What area of the balanced performance scorecard is a company studying when it examines transaction time,throughput time,reduction in waste and process quality?

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Why have managers replaced traditional tools for measuring a company's performance with the balanced scorecard?

All of the following are financial measures used in the balanced performance scorecard EXCEPT:

Attracting a new customer is five times as costly as retaining an existing one.

The research exploring the relative importance of service dimensions on overall service quality or customer satisfaction has confirmed _____ as the most critical dimension.

In 1991 when the US.General Accounting Office (GAO)studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award,it determined that these elite quality firms benefited in all of the following ways EXCEPT:

The ROSQ approach would be appropriate for a service provider:

Many companies do not identify and act on the correct non-financial measures.One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Service encounters are among the key drivers of service quality.

Many companies that have adopted a customer retention strategy are now using the extent of _________ as their main measure of customer loyalty.

Introduction to Services

Conceptual Framework of the Book: The GAPS Model of Service Quality

Customer Expectations of Service

Customer Perceptions of Service

Listening to Customers Through Research

Building Customer Relationships

Service Recovery

Service Innovation and Design

Customer-Defined Service Standards

Physical Evidence and the Servicescape

Employees Roles in Service Delivery

Customers Roles in Service Delivery

Managing Demand and Capacity

Integrated Service Marketing Communications

Pricing of Services

Filters

Exam 16: The Financial and Economic Impact of Service

Service quality,like advertising,has a cumulative effect on a company's profit.

The comment card that is often found on the tables at a Wendy's fast-food restaurant asks about the customer's perceptions of the quality of the food,its cleanliness and the friendliness of the employees.These questions are focusing on _____ in Wendy's balanced performance scorecard.

The key drivers of service quality,customer retention and profits include:

The operational measures used within the balanced performance scorecard should be:

Describe the innovation and learning area of the balanced performance scorecard including some of the specific measures that may be appropriate for this area.

What area of the balanced performance scorecard is a company studying when it examines transaction time,throughput time,reduction in waste and process quality?

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Why have managers replaced traditional tools for measuring a company's performance with the balanced scorecard?

All of the following are financial measures used in the balanced performance scorecard EXCEPT:

Attracting a new customer is five times as costly as retaining an existing one.

The research exploring the relative importance of service dimensions on overall service quality or customer satisfaction has confirmed _____ as the most critical dimension.

In 1991 when the US.General Accounting Office (GAO)studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award,it determined that these elite quality firms benefited in all of the following ways EXCEPT:

The ROSQ approach would be appropriate for a service provider:

Many companies do not identify and act on the correct non-financial measures.One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Service encounters are among the key drivers of service quality.

Many companies that have adopted a customer retention strategy are now using the extent of _________ as their main measure of customer loyalty.

Introduction to Services

Conceptual Framework of the Book: The GAPS Model of Service Quality

Customer Expectations of Service

Customer Perceptions of Service

Listening to Customers Through Research

Building Customer Relationships

Service Recovery

Service Innovation and Design

Customer-Defined Service Standards

Physical Evidence and the Servicescape

Employees Roles in Service Delivery

Customers Roles in Service Delivery

Managing Demand and Capacity

Integrated Service Marketing Communications

Pricing of Services

Filters