Lecture 14

Question 1

Customers tell ____ as many people about bad experiences as good experiences.

Answer 1

BAD

Question 2

A dissatisfied customer tell ________ people about the bad experience.

Answer 2

8 to 10

Question 3

___% of upset customer will remain you customer if you resolve the complaints satisfactory

Answer 3

70

Question 4

It is easier to get customer to repeat than…

Answer 4

It is to find new business

Question 5

Service firms rely on repeat customer for __________ of their business

Answer 5

85% to 95%

Question 6

____% of new product and service ideas come from customer ideas.

Answer 6

80

Question 7

The cost of keeping an existing customer is…

Answer 7

a sixth of the cost of attracting new customer.

Question 8

What is a customer?

Answer 8

A customer is the receiver of goods or services.
Internal customers
External customers
End user

Question 9

Voice of a Customer

Answer 9

Represents the wants, opinions, perceptions, and desires of the customer.

Question 10

Customer-Driven Quality Approach

Answer 10

A proactive approach to satisfying customer needs.

Based on gathering data about our customers

Question 11

Quality Function Deployment (QFD) or “House of quality”

Answer 11

Translates customer wants into a finished product design.

Question 12

Pitfalls of Reactive Customer-Driven Qualtiy

Answer 12

Customer’s needs are always changing.

Customer requirements increase at a faster rate than quality and service improvement.

Question 13

Customer-Relationship Management

Answer 13

Complaint resolution
Feedback
Guarantees
Corrective action

Question 14

Three common types of complaints

Answer 14

Regulatory complaints
Employee complaints
Customer complaints

Question 15

Compliant Resolution

Answer 15

Compensate people for losses.
Apologize to the customer (contrition).
Make it easy for the complainant to resolve his or her problem.

Question 16

Two main types of Feedback

Answer 16

Feedback to the customer

Feedback to the firm as a basis for process improvement

Question 17

Guarantees

Answer 17

Outlines the customer’s rights.

Both a design and an economic issue that must be addressed by all companies before the first sale occurs.

Question 18

To be effective, guarantees should be:

Answer 18

Unconditional
Meaningful
Understandable
Communicable
Painless to invoke

Question 19

The Gap

Answer 19

Refers to the differences between desired levels of performance and actual levels of performance.

Question 20

Gap Analysis

Answer 20

The formal approach for identifying and correcting these gaps.

Question 21

Key objective of Gap Analysis

Answer 21

Understanding the difference between the managerial perception and the customer’s perception of what the customer wants.

Question 22

Segment Markets

Answer 22

To distinguish customers or markets according to common characteristics.

Question 23

Four types of customers

Answer 23

Those customers we already have and can’t lose.
Those customers we could lose easily.
Those customers we could gain with minor product changes.
Those customers we can’t get.

Question 24

Customer Rationalization

Answer 24

Results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

Question 25

Annuity Relationship

Answer 25

An annuity relationship is one in which the customer provides a long-term, steady income stream to the provider.

Question 26

Gathering Data from Customers

Answer 26

Active data gathering | Passive data gathering

Question 27

Actively solicited customer feedback includes:

Answer 27

all supplier initiated contact with customers

Question 28

Three most common arenas of active gathering

Answer 28

Telephone customers Conducting focus groups Sending out surveys

Question 29

Types of Data

Answer 29

Soft Data Hard Data Ordinal Data

Question 30

Soft Data

Answer 30

Phone contacts Focus groups Survey results

Question 31

Hard Data

Answer 31

Height Weight Volume Speed

Question 32

Ordinal Data

Answer 32

Ranked data

Question 33

Passively Solicited Customer Feedback

Answer 33

Customer initiated contact, such as filling out a restaurant complaint card, calling a toll-free complaint line, or submitting an inquiry via a company’s Web site.

Question 34

Examples of Passive Feedback

Answer 34

Customer research cards Customer response lines Web site inquires

Question 35

Customer Retention

Answer 35

Measured as the percentage of customers that return for more service.

Question 36

Customer Loyalty

Answer 36

Can be instilled by offering specialized service not available from competitors.

Question 37

Quality Function Deployment (QFD)

Answer 37

A matrix used to depict customer requirements. used to capture the voice of the customer and translate it into technical information that an organization can use in order to create or improve a product.