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The term "producer's risk" refers to the probability that a sample will indicate an acceptable quality incorrectly.

A) True
B) False

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In the service quality gap model, GAP 1 arises because of the management's lack of understanding about how customers formulate their expectations.

A) True
B) False

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Managing evidence of information is the key to closing the gap between customer perception and service delivery.

A) True
B) False

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True

Which of the following is not true of a walk-through audit (WtA) ?


A) Focuses on five dimensions of service package.
B) Emphasis is on evaluation of each stage of service delivery.
C) Survey is completed at customer convenience.
D) Survey usually conducted by operations personnel.

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

Correct Answer

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Shigeo Shingo is credited with which of the following quality ideas?


A) Robustness.
B) Quality is free.
C) Poka-yoke.
D) Quality function deployment.

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

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A gap in service quality is not the difference between ________.


A) customer expectations and management's perceptions of customer expectations
B) the service delivery and the results that are communicated externally to the customer
C) customer expectations and management's perception of the delivered service
D) the perceptions of the delivered service that are translated into service quality specifications and the actual service delivery

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

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Being meaningful and easy to invoke are important elements of a good unconditional service guarantee.

A) True
B) False

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A process is said to be in control when all the variation that is noticed can be assigned to specific causes.

A) True
B) False

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Which of the following statements is not true concerning a service guarantee?


A) A well designed and implemented service guarantee can help a firm gain control over its operation.
B) Fear of customer cheating inhibits some mangers from adopting a service guarantee.
C) Managers are likely to worry about the costs of a service guarantee, but for the wrong reasons.
D) Managers who seek control over the financial consequences of a service guarantee should require customers to meet various conditions.

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

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The walk-through audit (WtA) focuses on the effectiveness of each stage in the service delivery process.

A) True
B) False

Correct Answer

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Which of the following is a poka-yoke method?


A) Adopting a checklist to help an employee avoid making a mistake.
B) Designing a service to reflect the customers' needs and requirements.
C) Designing a service in a robust manner that can withstand abuse by customers.
D) Comparing a firm's quality performance to the performance of others that are considered "best in class."

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

Correct Answer

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A

Which of the following is a strategy for closing the gap between customer expectations and management perceptions of customer's expectations (GAP 1) ?


A) Standardization of service delivery.
B) Improved market research.
C) Employee empowerment.
D) Investment in training.

E) A) and D)
F) A) and C)

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Which of the following is not a reason that a service guarantee works?


A) Encourages individual employees to set their own standards.
B) Generates reliable data on poor performance.
C) Builds customer loyalty.
D) Forces a firm to identify failure points.

E) A) and D)
F) C) and D)

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A

Which of the following dimensions of service quality is most important to customers?


A) Empathy.
B) Assurance.
C) Reliability.
D) Tangibles.

E) A) and C)
F) B) and D)

Correct Answer

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Which of the following is not considered effective in achieving and maintaining service quality?


A) Encouraging service providers to be highly visible in dealing with customers.
B) Establishing peer groups among service providers to foster teamwork and a sense of pride.
C) Installing a system of incentives that emphasizes quality.
D) Increasing supervision of service providers.

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

Correct Answer

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When a process appears to be functioning properly when, in fact, it is out of control, the type of error and injured party are identified as ________.


A) Type I error and producer's risk
B) Type II error and consumer's risk
C) Type I error and consumer's risk
D) Type II error and producer's risk

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

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Serving complimentary drinks on a delayed flight is an example of empathy being shown by the service personnel to the irate customer.

A) True
B) False

Correct Answer

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Which of the following is not an advantage of offering a service guarantee?


A) It acts as a mechanism to differentiate the firm from its competitors.
B) It advertises the firm's commitment to quality.
C) It allows employees to interpret broadly the firm's service standards.
D) It acts as a means of receiving feedback from customers.

E) C) and D)
F) A) and D)

Correct Answer

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Which of the following is not possible using SERVQUAL?


A) Record customer expectations.
B) Track service quality trends.
C) Measure the quality of competitors.
D) Identify dimensions of service quality.

E) A) and C)
F) None of the above

Correct Answer

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Joseph M. Juran identified internal failure costs, external failure costs, detection costs, and prevention costs.

A) True
B) False

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