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Services Marketing 7th Edition Zeithaml

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Chapter 09 Customer-Defined Service Standards Answer Key

Multiple Choice Questions

1. The first step in delivering high service quality is:

A. Hiring the right people


B. Understanding customer requirements
C. Innovation
D. A service blueprint
E. Employee training

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Easy
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

2. Delta Airlines was dissatisfied with customer reactions to its attempt to offer passengers their choice of
cold deli sandwiches instead of the more traditional airplane meal. Its intent was to provide passengers
with better food. Passengers saw the move as another way Delta was trying to skimp on service and
save money. When trying to deliver service quality, Delta forgot to:

A. Consider customer requirements


B. Create a service blueprint
C. Offer relevant employee training
D. Consider the services marketing triangle
E. Estimate production/quality tradeoffs
Accessibility: Keyboard Navigation
Bloom: Apply
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

3. Service companies experience difficulty in setting standards to match or exceed customer expectations
because of a lack of:

A. Simultaneous organization and presentation


B. Vertical communication
C. Employee partnering
D. Functional integration
E. Operational benchmarking

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Easy
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

9-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
4. A land surveyor will come out to your home, survey your property and draw you a plat showing you the
shape of your land and how it looks in relation to land around it. The work is routine unless the deed for
the property is over one hundred years old. One of the ways a surveyor determines what land belongs to
you is by using old deeds. This becomes a complicated practice when the deed says "west from live oak
tree" and "northeast 30 feet from Gray family cemetery." Often these landmarks, which were there 100
years ago, are long gone and no one remembers where exactly they were. Surveyors may differ by a
couple of feet in their determination of where these landmarks used to be. This is an example of the
difficulty involved in:

A. Relying on the tangibles dimension of services


B. Integrating service functions
C. Standardizing services
D. Changing customers' perceptions
E. Modifying customers' expectations

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

5. Canadian Airline did market research to determine the expectations of business travelers-its target
market. It learned business travelers don't view air travel as a simple product any more but as a
sequential process with a series of customer service interactions which to them seemed at times
arbitrary. A traveler could not estimate how much time it would take to make reservations, to check-in,
to board or any of the other interactions. The time spent on these activities was typically directly related
to the experience and training of the airline's employees. Canadian Airline could provide better service
to its target customers if it could:

A. Change customers' perceptions of flying


B. Integrate all service functions
C. Standardize its services
D. Rely more on the tangible dimensions of service
E. Modify customers' expectations

Accessibility: Keyboard Navigation


Bloom: Apply
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

6. One of the ways in which standardization of services occurs is through:

A. Substitution of technology for personal contact and human effort


B. Organizational flattening
C. Employee encroachment
D. Division of labor and specialization
E. Autonomous management

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Easy
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

9-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
7. Which of the following is NOT a technology substitution for personal contact and human effort?

A. On-line services
B. Professional maid service
C. Voice mail
D. Automatic teller machines
E. Automatic car wash

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

8. Standardization of services in the form of ______________ is exemplified by maid services by Molly


Maids as well as routinized tax services developed by H&R Block.

A. Substitution of technology for personal contact and human effort


B. Improvement in work methods and training
C. Organizational flattening
D. Employee encroachment
E. Autonomous management

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

9. What is wrong with the following service goal posted in a restaurant: "Do not keep customers waiting
too long to be served"?

A. It is too formal
B. It is not actionable
C. It is not specific enough
D. It does not reflect the goal of the restaurant, which is to provide service quality
E. It is not responsive to customer needs

Accessibility: Keyboard Navigation


Bloom: Analyze
Difficulty: Challenging
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

10. Which of the following statements about service standardization and employee empowerment is true?

A. For every service standardized, some degree of employee empowerment is always eliminated
B. Any service standardization makes employee empowerment impossible
C. Service standardization is not necessary when the organization empowers its employees
D. The use of service standardization is compatible with employee empowerment
E. There is no overlapping relationship between service standardization and employee empowerment

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

9-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
11. Which of the following is NOT an example of an effective formal service goal?

A. Deliver products quickly


B. Call the customer back within 2 hours
C. Replace lost credit cards within 48 hours 98 percent of the time
D. Answer phones within 3 rings
E. Connect new cable service on the date promised

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Easy
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

12. Progressive Insurance examined insurance from the customers' viewpoint and saw how difficult it was
to get an auto claim processed and paid by insurance companies. Then the company crafted its service
strategy around solving that problem. The company now has fleets of claim adjustors on the road every
day, ready to rush to the scene of an accident in their territory and provide fast claims processing-
sometimes on the spot. Progressive Insurance relies on _____ service standards.

A. Company-defined
B. Competitor-focused
C. Customer-defined
D. Cost-focused
E. Service provider-defined

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Easy
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

13. Things that can be counted, timed or observed through audits are _____ customer-defined service
standards.

A. Formal
B. Hard
C. Informal
D. Qualitative
E. Responsive

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Easy
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

9-4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
14. One of the customer-defined standards at Delta Airlines is "the number of pieces of luggage damaged
per day." "The number of pieces of luggage damaged per day" is a _____ customer-defined service
standard.

A. Formal
B. Hard
C. Informal
D. Measurable
E. Soft

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

15. Which of the following is NOT an example of a hard customer-defined service standard?

A. On-time delivery
B. 36-hour response time
C. Number of missed pickups
D. Orders entered the same day they are received
E. Understand the customer's question or request

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

16. One of the Four Seasons Hotel’s customer-defined standards is “staff will speak to guests in an
attentive, natural, and courteous manner." This is an example of a(n) ________ customer-defined
standard.

A. Responsive
B. Intangible
C. Informal
D. Measurable
E. Soft

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

17. ________ customer-defined standards are opinion-based measures and cannot be directly observed.

A. Responsive
B. Intangible
C. Informal
D. Measurable
E. Soft

Accessibility: Keyboard Navigation


Bloom: Remember

9-5
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Difficulty: Easy
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

18. New management of the Falcons football team surveyed former season ticket holder to determine why
they were no longer attending the games. As a result, it set "Clean and well-stocked restrooms" as one
of its _____ customer-defined standards.

A. Responsive
B. Hard
C. Informal
D. Measurable
E. Soft

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

19. Which of the following is NOT a soft customer-defined standard?

A. Uniforms are to be immaculate


B. Avoid other tasks while on the telephone with customers
C. Deliver orders on the date promised
D. Thank the customer at the end of the call
E. Listen to customers attentively

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

20. Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called
the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by
phone to determine their level of satisfaction with the company. Only completely satisfied customers
count toward an employee ESQi score, which is used to measure employee's potential for promotion.
Enterprise is using a _____ customer-defined standard.

A. Reactive
B. Proactive
C. Informal
D. Hard
E. Soft

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

9-6
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
21. When a local Taco Bell extended its operating hours on Friday and Saturday nights to 24-hour service
to satisfy its college market, it was instituting a(n):

A. Compliant standard
B. Concrete substitution
C. Internal anchor
D. One-time fix
E. Quick solution

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

22. When the customers of Granite Rock expressed their desire for 24-hour availability of ground rock
products from the quarry, the company responded by creating an ATM-like system and the Granite
Xpress Card that allows customers to enter the quarry and select and receive ground rock products at
any time of the day or night. Granite Rock addressed customer requests with a(n):

A. Compliant standard
B. Concrete substitution
C. Internal anchor
D. One-time fix
E. Quick solution

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

23. Nike's introduction of women-only boutiques called Nike Goddess to satisfy the needs of a growing
number of women athletes is an example of a(n):

A. Compliant standard
B. Concrete substitution
C. Internal anchor
D. One-time fix
E. Quick solution

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

9-7
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
24. Canadian Airline did market research to determine the expectations of business travelers-its target
market. It learned business travelers don't view air travel as a simple product but as a inconsistently
performed sequential process that includes making reservations, checking-in, waiting, boarding, in-
flight time and baggage pick-up. Canadian Airline diagnosed that a problem existed with its:

A. Service encounter sequence


B. Internal performance requirement
C. Diagnostic capabilities
D. Overall service quality perception
E. Service dimension gap

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-03 Explain the critical role of the service encounter sequence in developing customerdefined standards.

25. Which of the following is an example of a specific behavior or action that defines the performance
expected by customers?

A. Cost estimate is price customer pays


B. Fixes the product right the first time
C. Delivers the product on the promised date
D. Greets customers within 5 minutes of entering the store
E. All of the above

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

26. When translating abstract customer requirements into concrete behaviors and actions, the pertinent
information should be gathered and interpreted by _________ to avoid the creation of company-defined
standards rather than customer-defined standards.

A. Company managers
B. An objective source such as an outside research firm
C. Contact employees only
D. Company managers and contact employees
E. The company’s board of directors

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-8
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
27. When a customer enters John Robert’s Spa, which has a reputation for extraordinary service, some of
the _________ expected of employees are, “greet the client enthusiastically within 8 to 10 seconds,”
“confirm the client’s appointment,” and “offer to provide a refreshment.”

A. Attitudes
B. Specific behaviors and actions
C. Value dimensions
D. Abstract requirements
E. General requirements

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

28. Which of the following is NOT an example of a hard measurement?

A. Number of times a service guarantee is invoked


B. Length of time spent on service calls
C. Satisfaction with reservation process
D. Length of time it takes to resolve complaints
E. Percentage of packages delivered after the promised date

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

29. First National Bank of Chicago tracks 650 service quality measures relating to timely, accurate and
responsive service. The measures include speed of telephone answering, number of abandoned calls,
turnaround time on inquiries and the speed at which the bank transfers securities. The measures used by
First Bank of Chicago are _____ measurements.

A. Hard
B. Basic
C. Formal
D. Tangible
E. Informal

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

9-9
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
30. When students at Fairleigh Dickinson University complete a student evaluation of faculty questionnaire
at the end of a semester, one of the items they are asked to evaluate on a five-point scale is, "The
instructor presented the material clearly and summarized major points." This statement evaluation is a
_____ measurement.

A. Tangible
B. Basic
C. Formal
D. Soft
E. Informal

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

31. New owners of the Atlanta Falcons football team were concerned about declining attendance figures. As
a result, Falcons staff set up kiosks at arena exits and asked attendees what would make the game day
experience more fun. The management was gathering _____ measurements.

A. Tangible
B. Basic
C. Formal
D. Soft
E. Informal

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

32. Which of the following research methods provides feedback on soft measures?

A. Complaint solicitation
B. Lost customer research
C. Trailer calls
D. Customer panels
E. Critical incident studies

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-10
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
33. Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called
the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by
phone to determine their level of satisfaction with their most recent Enterprise service encounter. Only
completely satisfied customers count toward an employee ESQi score, which is used to measure
employee's potential for promotion. Enterprise is using_________ to determine whether performance
meets standards.

A. Complaint solicitation
B. Lost customer research
C. Trailer calls
D. Customer panels
E. Critical incident studies

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

34. American Airlines conducts ongoing in-flight surveys to assess passengers' perceptions of the ticket
buying process, gate agents, flight attendants, food and beverage service, condition/comfort of airplanes
and adherence to departure/arrival schedules. American Airlines' research provides feedback on _____
measurements.

A. Hard
B. Basic
C. Formal
D. Soft
E. Informal

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

35. A vacuum cleaner repair shop that called recent customers to ask if the people who waited on them were
friendly and courteous, if the cleaner had been clean when it was returned to them and if they had any
trouble finding the new store is collecting feedback on _____ measurements.

A. Hard
B. Basic
C. Formal
D. Soft
E. Informal

Accessibility: Keyboard Navigation


Bloom: Apply
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-11
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
36. Which of the following measurement research methods can document customers' opinions about
whether performance met the standards established?

A. Structured brainstorming
B. Relationship surveys
C. Customer panels
D. In-depth interviews
E. Critical incident studies

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

37. The first step in the process of developing customer-defined standards is to:

A. Develop feedback mechanisms for measurement of standards


B. Establish measures and target levels for standards
C. Identify existing or desired service encounter sequence
D. Decide whether hard or soft standards are appropriate
E. Translate customer expectations into behaviors and actions for each service

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Easy
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

38. New owners of the Atlanta Falcons wanted to increase attendance by giving customers what they
wanted, such as an online site to purchase tickets, clean restrooms, more opportunities to interact with
the players and family-oriented halftime show. The first step to developing these customer-defined
standards was to:

A. Translate customer requirements into hard measures


B. Create an action program that contained every possible service encounter
C. Identify the existing service encounter sequence
D. Develop continual feedback mechanisms
E. Brainstorm

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-12
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
39. After determining that responsiveness was a major concern of customers, American Express conducted
additional research to establish the exact number of days customers defined as responsive for the
various company processes (e.g., 2 days for reissuing lost cards and 15 days for deciding on an
application). By conducting additional research, American Express was addressing which of the
following steps in the process for developing customer-defined standards?

A. Developing feedback mechanisms for measurement of standards


B. Identifying existing or desired service encounter sequences
C. Establishing measures and target levels for standards
D. Deciding whether hard or soft standards are appropriate
E. Translating customer expectations into behaviors and actions for each service

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

40. New owners of the Atlanta Falcons wanted to increase attendance by giving customers want they
wanted. After determining that family-oriented halftime shows were an important consideration for a
large portion of its target market, the Falcons researched specific ideas such as fireworks displays, a
battle of the bands featuring local high school bands, drawings for prizes and musical concerts. The
additional research would have been done during which step of the developing customer-defined
standards?

A. Developing feedback mechanisms for measurement of standards


B. Identifying existing or desired service encounter sequences
C. Establishing measures and target levels for standards
D. Deciding whether hard or soft standards are appropriate
E. Translating customer expectations into specific behaviors and actions

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

41. After determining that reliability was a major concern for its customers, a pest control company
translated customer expectations into behaviors and actions for its monthly sprayings of homes and
businesses. Having accomplished that, the pest control company needs next to:

A. Provide feedback about performance to employees


B. Establish target levels for standards
C. Determine whether hard or soft standards are appropriate
D. Develop measurements for standards
E. Track behaviors and actions against existing standards

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-13
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
42. Because appropriate hard measurements are not always intuitive or obvious, the potential for counting
or tracking an irrelevant aspect of operations is high. Thus, it is often desirable to link operational
performance measures with _________ to be sure they are strongly correlated.

A. Tangible measurements
B. Basic measurements
C. Soft measurements
D. Formal standards
E. Customer panels

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

43. All of the following are important criteria for creation of appropriate service standards EXCEPT:

A. The standards should be based on behaviors and actions that are very important to customers
B. The standards should cover performance that needs to be improved or maintained
C. The standards should be understood and accepted by employees
D. The standards should be reactive rather than predictive
E. The standards should be challenging, but realistic

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

44. Which of the following statements is a criterion for the creation of appropriate service standards?

A. The standards should be based on behaviors and actions that are very important to customers
B. The standards should be challenging even if that means they are unrealistic
C. The standards should be based on past complaints rather than current and future customer
expectations
D. The standards should be established for behaviors and actions that at the present time cannot be
improved
E. All of the above are criteria for the creation of appropriate service standards

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Challenging
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-14
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
45. When customers complained that employees at Freddy’s Fast Stop Stores were unfriendly, Freddy’s
instituted its Smiling Service program, which required all employees to greet and make eye contact with
every customer they see within 5 seconds and always smile and offer help whenever the customer
appeared to need any. Employees were counseled, sent to training courses and terminated if they failed
to follow these instructions. What mistake did Freddy’s make when it instituted this program?

A. It did not want to use audits or operating data to see how well the new program was being
implemented
B. It chose a hard standard without seeing if a soft standard would be more appropriate
C. It selected behavior/actions for service standards instead of attributes
D. It did not establish a means of measuring performance against standards
E. It chose a soft standard without seeing if a hard standard was more appropriate

Accessibility: Keyboard Navigation


Bloom: Analyze
Difficulty: Challenging
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

46. When customers complained that employees at Freddy’s Fast Stop Stores were unfriendly, Freddy’s
instituted its Smiling Service program, which required all employees to greet and make eye contact with
every customer and always smile and offer help whenever the customer appeared to need any. Mystery
shoppers were used extensively to make sure the employees were adhering to the Smiling Service
program. In terms of the process for developing service standards, the mystery shoppers were an
example of:

A. Benchmarking
B. Trailer surveys
C. Relationship research
D. Feedback mechanisms
E. Experiential research

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

47. A medical clinic conducted a research study to determine the standard for patients' wait times in the
reception area by having the patients note the time when they arrived on a sign-in sheet. As each patient
went back to the examining room, the office manager noted the time on another sheet and then asked the
patient five questions about his or her perceptions of the wait. The medical clinic conducted a _____
study to establish target levels for wait time standards.

A. Critical incident benchmarking


B. Event-triggered requirements
C. Hypothetical satisfaction-performance
D. Participant observation tracking
E. Simple perception-action correlation
Accessibility: Keyboard Navigation
Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and

9-15
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
actionable.

48. Federal Express distributes a weekly Service Quality Indicator report comparing performance to goals
on 12 different items. Upon receipt of the report, managers and contact personnel investigate root causes
of service failures. By distributing a weekly Service Quality Indicator report and investigating service
failures, Federal Express is addressing which of the following steps in the process for developing
customer-defined standards?

A. Translating customer expectations into behaviors and actions for each service
B. Tracking measures against standards
C. Electing behaviors and actions for standards
D. Establishing measures and target levels for standards
E. Deciding whether hard or sod measures are appropriate

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

49. The final step in the process for developing customer-defined standards is to:

A. Provide feedback about performance to employees


B. Periodically update target levels and measures
C. Track measures against standards
D. Provide feedback about performance to customers
E. Establish measures and target levels

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

50. American Express's "Service Tracking Report" systematically measures both customer satisfaction and
employee performance worldwide. Compiled on a monthly basis, the document uses statistics to
measure the performance of business units throughout the world against more than 100 service quality
factors related to their customers' three major service dimensions-responsiveness, timeliness and
accuracy. American Express's "Service Tracking Report" is a(n):

A. Service performance index


B. Quality improvement measure
C. Total quality management assessment
D. Customer service indicator
E. Internal-external service control benchmark

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-16
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McGraw-Hill Education.
True / False Questions

51. Standardization of service behaviors and actions is inconsistent with employee empowerment.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

52. Companies that have been successful in delivering consistently high service quality do not have formal
standards to guide employees.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

53. Virtually all companies possess standards and measures that are company defined.

TRUE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

54. "Improving skills among contact employees" is an effective customer-defined service standard.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

55. "Answering questions promptly" would be an example of a hard customer-defined standard.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

56. "Having more room in your airplane seat" would be an example of a soft customer-defined standard.

TRUE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

9-17
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
57. A pharmacy that installs a computer system that automatically checks to see if a new prescription is
compatible with other medication a customer is currently taking has used a one-time fix.

TRUE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

58. A customer's overall service quality evaluation is the accumulation of evaluations of multiple service
experiences.

TRUE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Easy
Learning Objective: 09-03 Explain the critical role of the service encounter sequence in developing customerdefined standards.

59. Setting a service standard in broad conceptual terms is ineffective because the standard is difficult to
interpret, measure and achieve.

TRUE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Easy
Learning Objective: 09-04 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

60. The two research methods used to document customers' opinions about whether service performance
met the standards established are benchmarking and critical incident surveys.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

61. The first step in the process for setting customer-defined standards is to translate customer expectations
into behaviors and actions for each service encounter.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Easy
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

62. Customer-defined standards should be established based on customer complaints and other forms of
reactive feedback.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and

9-18
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
actionable.

63. One of the steps in the process for developing customer-defined standards is to provide feedback about
performance to employees.

TRUE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Easy
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

64. In most service companies, the marketing and operations functions are seamlessly integrated to facilitate
the development of service quality standards.

FALSE
Accessibility: Keyboard Navigation
Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

Short Answer Questions

65. Two major types of customer-defined service standards can be distinguished. What kind of a customer-
defined standard is the following: “Leave no customer on hold for longer than five minutes?”

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Easy
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

66. Two major types of customer-defined service standards can be distinguished. What kind of a customer-
defined standard is the following: “Maintain a neat and tidy appearance?”

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Easy
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

67. When a hair salon introduced a database system for keeping up with information on clients' hair, such as
hair color and timing of permanents, it is one way of addressing customer requirements. What name
applies to this method of changing services to better meet customer needs?

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

9-19
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
68. What is the first step in developing customer-defined standards?

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

69. Research has indicated service providers need to focus on the "back end" of the service encounter
sequence. What does this mean for an airline?

Accessibility: Keyboard Navigation


Bloom: Apply
Difficulty: Challenging
Learning Objective: 09-03 Explain the critical role of the service encounter sequence in developing customerdefined standards.

70. What are the two types of research methods that can be used to document customers' opinions about
whether service performance met standards?

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

71. What is the second step in the process for setting customer-defined standards?

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

72. In which of the step in the process for setting customer-defined standards would a company use a
simple perception-action correlation matrix?

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

73. What does it mean when a company says its standards are predictive rather than reactive?

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-20
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
74. What is the final step in the process for setting customer-defined standards?

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

75. The Bank of Charleston uses a Performance Measurement Program that links its most important
customer-defined standards to tangible and measurable aspects of service provision and uses the
feedback provided by this program to locate and improve service problems. What term should be used
to describe the bank's Performance Measurement Program?

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

76. Imagine you are the manager of an electrical contracting company that does repair work, remodeling
and new construction for homeowners. You understand that you need to set customer-defined standards
in order to close the gap between customer expectations and what your company is now delivering. List
and define the two major types of customer-defined standards and give three examples of each.

Accessibility: Keyboard Navigation


Bloom: Apply
Difficulty: Challenging
Learning Objective: 09-02 Differentiate among "hard" and "soft" customer-defined service standards and one-time fixes.

77. Once a service provider has translated customer expectations into behaviors and actions, it must select
those behaviors and actions that will be used to create employee standards. What are the six most
important criteria for the creation of those standards?

Accessibility: Keyboard Navigation


Bloom: Remember
Difficulty: Challenging
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

78. What are service performance indexes, how are they created and how do companies use these indexes?

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Moderate
Learning Objective: 09-05 Illustrate how to translate customer expectations into behaviors and actions that are definable, repeatable, and
actionable.

9-21
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
79. Describe the three factors necessary for appropriate service standards.

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

80. Discuss the ways in which companies are using “big data” to define service standards and improve the
customer experience.

Accessibility: Keyboard Navigation


Bloom: Understand
Difficulty: Challenging
Learning Objective: 09-01 Distinguish between company-defined and customer-defined service standards.

9-22
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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