Marketing Chapter 11: Customer Satisfaction Metrics
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Questions and Answers

Which dimension reflects the consistency and dependability of a firm's performance?

  • Tangibles Dimension
  • Responsiveness Dimension
  • Reliability Dimension (correct)
  • Empathy Dimension

The Tangibles Dimension is considered the most important in measuring service quality.

False (B)

What is the purpose of mystery shopping in service quality assessment?

To measure individual employee performance/behavior.

The ________ dimension reflects the competence and courtesy extended to customers.

<p>Assurance</p> Signup and view all the answers

Match the service quality dimensions with their descriptions:

<p>Reliability = Consistency and dependability of performance Responsiveness = Commitment of employees to provide the service Assurance = Competence and courtesy extended to customers Empathy = Ability to experience the customer's feelings as one's own</p> Signup and view all the answers

Which of the following is NOT a key component of a service quality information system?

<p>Marketing strategies (C)</p> Signup and view all the answers

Employee satisfaction has no relation to customer satisfaction.

<p>False (B)</p> Signup and view all the answers

What dimension is considered least important in evaluating service quality?

<p>Tangibles Dimension</p> Signup and view all the answers

The ________ dimension measures a firm's ability to manage its physical appearance.

<p>Tangibles</p> Signup and view all the answers

What is the predictive power in the context of service quality?

<p>Ability to predict consumer purchase intentions (A)</p> Signup and view all the answers

What does a larger gap in the SERVQUAL evaluation indicate?

<p>Lower service quality (A)</p> Signup and view all the answers

The Communication Gap refers to the disparity in employee-job fit.

<p>False (B)</p> Signup and view all the answers

Name one dimension of service quality measured by SERVQUAL.

<p>Reliability</p> Signup and view all the answers

The inability to translate into a written ________ plan can lead to service discrepancies.

<p>business</p> Signup and view all the answers

Match the gaps with their descriptions:

<p>Standards Gap = Lack of clear service quality goals Communication Gap = Inadequate exchanges of information Delivery Gap = Differences between expected and actual service performance Feasibility Gap = Perceptions of what can realistically be achieved</p> Signup and view all the answers

Which of the following factors is NOT a reason for the Delivery Gap?

<p>Length of the questionnaire (C)</p> Signup and view all the answers

Commitment to service quality can sometimes conflict with the desire to reduce costs.

<p>True (A)</p> Signup and view all the answers

What is the primary purpose of the SERVQUAL tool?

<p>To determine gap scores in service quality.</p> Signup and view all the answers

Which of the following outcomes involves a customer verbally expressing dissatisfaction?

<p>Voice (C)</p> Signup and view all the answers

An exit outcome means the consumer continues to shop as usual.

<p>False (B)</p> Signup and view all the answers

What are the three components of perceived justice in service recovery?

<p>Distributive justice, procedural justice, and interactional justice.</p> Signup and view all the answers

In a high retaliation outcome, a customer might attempt to __________ the store.

<p>physically damage</p> Signup and view all the answers

Match the complaining outcomes with their descriptions:

<p>Voice = Customer communicates dissatisfaction verbally Exit = Customer stops patronizing the store Retaliation = Customer takes action to damage the store</p> Signup and view all the answers

Which recovery strategy involves informal beliefs and values within a firm?

<p>Organic processes (D)</p> Signup and view all the answers

The first step in managing service recovery is to identify service failure.

<p>False (B)</p> Signup and view all the answers

Describe one high-level exit outcome.

<p>Never purchases again.</p> Signup and view all the answers

Distributive justice focuses on the specific __________ of the firm's recovery efforts.

<p>outcome</p> Signup and view all the answers

Match the complaining outcome levels with their corresponding actions:

<p>High Voice = Tells the store manager Medium Voice = Tells the sales clerk Low Voice = Does not communicate High Exit = Never purchases again</p> Signup and view all the answers

What is the primary reason customers complain instrumentally?

<p>To alter an undesirable state of affairs (C)</p> Signup and view all the answers

Which of the following is NOT a benefit of customer retention?

<p>Increased marketing costs (A)</p> Signup and view all the answers

Reducing customer defections by 5% can boost profits by up to 85% depending on the industry.

<p>True (A)</p> Signup and view all the answers

Customers who do not complain often believe that it will not lead to any positive change.

<p>True (A)</p> Signup and view all the answers

What does lifetime value of a customer refer to?

<p>The average dollar amount per sale multiplied by the average number of times customers reorder.</p> Signup and view all the answers

Name one type of customer who is characterized as a chronic complainer.

<p>The Chronic Complainer Customer</p> Signup and view all the answers

It is ________ times cheaper to keep a customer than to recruit a new one.

<p>3 to 5</p> Signup and view all the answers

The _____ customer is known for expecting the best and complaining in a reasonable manner.

<p>High-Roller</p> Signup and view all the answers

Match the following efforts to their corresponding strategies:

<p>Providing discretionary effort = Flexibility Training and empowering employees = Building trust through reliability Remembering your customers’ purchases = Being available when you’re needed the most Providing incentives = Leading through top-down loyalty</p> Signup and view all the answers

Match the types of complaints with their definitions:

<p>Instrumental = Expressed to alter an undesirable state Noninstrumental = Expressed without expectation of change Ostensive = Complaints directed at someone or something Reflexive = Complaints directed at an inner aspect of the complainer</p> Signup and view all the answers

Which of the following is NOT a reason why customers complain?

<p>To seek out a refund (B)</p> Signup and view all the answers

What is a consequence of rising marketing costs?

<p>Increase in the cost of advertising (D)</p> Signup and view all the answers

Customers today are generally less informed than before.

<p>False (B)</p> Signup and view all the answers

The Aggressive Customer type is always quiet and submissive in their complaints.

<p>False (B)</p> Signup and view all the answers

What might a customer do to release frustration when they complain?

<p>Emotional release</p> Signup and view all the answers

A customer who wants more than they are entitled to is referred to as a _____ customer.

<p>Rip-Off</p> Signup and view all the answers

Which type of complainer is typically seen as humble and rarely complains?

<p>The Meek Customer (A)</p> Signup and view all the answers

Flashcards

Service Quality Gap

The difference between customer expectations and what the company actually delivers in terms of service quality.

Gap 2: The Standards Gap

This gap arises when the company lacks a clear understanding of customer expectations.

Gap 3: The Delivery Gap

Occurs when the company has set standards, but employees lack the skills, knowledge, or resources to meet those standards.

Gap 4: The Communication Gap

This gap arises when the company promises more than it can deliver.

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SERVQUAL

A diagnostic tool used to measure service quality by comparing customer expectations with perceptions of service delivery.

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Reliability (SERVQUAL)

This dimension of SERVQUAL refers to the ability to perform the service dependably and accurately.

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Responsiveness (SERVQUAL)

This dimension of SERVQUAL measures the willingness of employees to provide prompt and helpful service.

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Assurance (SERVQUAL)

This dimension of SERVQUAL refers to the knowledge and courtesy of employees in providing service.

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Instrumental Complaint

A customer complaint expressed with the goal of changing an undesirable situation.

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Noninstrumental Complaint

A customer complaint made without expecting any change in the undesirable situation.

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Ostensive Complaint

A complaint directed towards someone or something outside the complainer's direct control.

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Reflexive Complaint

A complaint directed at the complainer's own internal feelings or thoughts.

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The Meek Customer

A customer who never complains, regardless of the situation.

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The Aggressive Customer

A customer who repeatedly complains loudly and publicly.

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The High-Roller Customer

A customer who expects excellent service and is willing to pay for it, typically complaining in a reasonable manner.

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The Rip-Off Customer

A customer who desires more than they are entitled to and often complains.

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The Chronic Complainer Customer

A customer who is constantly dissatisfied yet continues to return.

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Service Recovery

The process of turning a negative customer service experience into a positive one.

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Reliability (Service Quality)

The degree to which a service provider consistently delivers on its promises regarding quality, dependability, and performance.

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Responsiveness (Service Quality)

The ability of a service provider to respond quickly and effectively to customer requests, problems, or inquiries.

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Assurance (Service Quality)

The competence, courtesy, and security conveyed by service providers, inspiring trust and confidence in customers.

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Empathy (Service Quality)

The extent to which service providers understand and care about customer needs and preferences, offering personalized and empathetic service.

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Tangibles (Service Quality)

The tangible aspects of a service provider's offerings, such as its physical facilities, equipment, and communication materials.

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Service Quality Information System

A system that collects and analyzes data to understand customer expectations, monitor service quality, and identify improvement opportunities.

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Mystery Shopping

The process of using undercover shoppers to evaluate service quality from a customer's perspective.

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Employee Surveys (Service Quality)

Surveys and assessments conducted with employees to gather feedback on their experiences, satisfaction, and perceptions of service quality.

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Service Quality

The degree to which a service consistently meets or exceeds customer expectations, fulfilling their needs and desires.

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Customer Voice

When a customer expresses dissatisfaction with a product or service, either verbally or in writing.

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Customer Exit

When a customer decides to stop doing business with a company or retailer.

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Customer Retaliation

When a customer takes deliberate action to harm a company's business, like spreading negative reviews or boycotting.

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Mechanistic Service Recovery

A structured, step-by-step approach to handling service failures. It involves defined processes for identifying issues, analyzing causes, and implementing solutions.

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Organic Service Recovery

A more informal and flexible approach to service recovery, based on company values and beliefs. It emphasizes proactive solutions and customer empathy.

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Positive Internal Recovery Culture

A company's culture that emphasizes the importance of resolving customer complaints quickly and efficiently.

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Distributive Justice

The fairness of the outcome of a service recovery effort, considering the customer's perspective.

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Procedural Justice

The fairness of the process used to resolve a service failure, from the customer's perspective.

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Interactional Justice

The perceived fairness of the interactions between the customer and the company during service recovery.

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Increase in Competition

The increase in competitors makes it harder for a business to stand out. This often leads to a situation where everyone starts selling the same product or service, making it difficult to attract customers.

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Customer Retention

Keeping customers happy is crucial. They are more likely to buy from you again and recommend you to others.

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Lifetime Value (LTV) of a Customer

The total amount of money a customer spends with a business over their entire relationship with the company. It's more profitable to keep existing customers than to constantly acquire new ones.

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Benefits of Customer Retention

The cost of acquiring new customers is higher than retaining existing ones. Loyal customers are more likely to buy again and spend more.

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Customers Have Changed

Customers are more informed and skeptical than ever before due to information overload and access to online reviews and comparisons. Businesses need to provide accurate and honest information to build trust.

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Standards Gap

The company's understanding of what customers want vs. what they actually deliver. It's crucial to understand customer needs and expectations to provide a high-quality experience.

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Study Notes

Chapter 11: Defining and Measuring Customer Satisfaction

  • Customer satisfaction is defined as the overall evaluation of a firm's performance, focusing on how well the firm performs.
  • Customer satisfaction is a short-term, transaction-specific measure.
  • Satisfaction is driven by expectations.
  • Customer satisfaction surveys offer formal customer feedback, valuing customer input, and evaluating employee performance.
  • Surveys help identify existing and potential problems and assist with advertising and competitive analysis.
  • Satisfied customers are more likely to do business with a firm again.
  • 96% of dissatisfied customers do not complain.
  • For every complaint, 26 similar issues exist.
  • Complainers are more likely to do business again, particularly with swift resolution.
  • Customer surveys can identify and compare against competitors.

Recipe for Customer Service Disasters

  • Inflation, price wars, labor shortages, and automation contribute to customer dissatisfaction.
  • Customers are becoming more demanding.

Measuring Customer Satisfaction

  • Indirect measures include sales records, profits, and customer complaints.
  • Direct measures include various scales (e.g., 1-100 scale, "Very Dissatisfied/Very Satisfied," combined).
  • The combined approach is most effective, including multiple methods.

Chapter 12: Defining and Measuring Service Quality

  • Service quality and customer satisfaction are distinct but related concepts.
  • Service quality is evaluated over the long term considering the firm's performance.
  • Measurement of service quality involves examining the gap between customer expectations and perceptions.
  • Knowledge, standard, delivery, communications, and service gaps reflect the differences among what customers expect and the firm's performance.
  • Factors influence the size of these gaps.

Diagnosing Failure Gaps in Service Quality

  • The knowledge gap exists when customer expectations are misjudged by management.
  • The standards gap results from setting poor service quality standards.
  • The delivery gap occurs when standards aren't met during delivery.
  • The communications gap is a disconnect between promises and actual service.

Measuring Service Quality: SERVQUAL

  • SERVQUAL is a diagnostic tool measuring service quality through gaps between customer expectations and perceptions.
  • It assesses service quality via reliability, responsiveness, assurance, empathy, and tangibles.
  • SERVQUAL's five dimensions provide overall service quality feedback.

Chapter 13: Complaints and Service Recovery

  • Service failure types include instrumental, noninstrumental, ostensive, and reflexive complaints.
  • Common complainer types include meek, aggressive, high-roller, and chronic complainers.
  • Customers may complain for control, sympathy, or testing consensus.
  • Reasons for not complaining include difficulty identifying the right person, doubts about the effectiveness of complaints, and avoidance of conflicts.
  • Complaining outcomes can be exit, voice, or retaliation.
  • Service recovery cultures are vital to address service failures.

Chapter 14: Customer Loyalty and Retention

  • Customer loyalty and retention are correlated.
  • Loyalty reflects emotional and business attachment, while retention aims to satisfy existing customers.
  • Customer retention is increasingly important due to high competitive markets, increasing advertising costs, and evolving customer expectations.
  • Strategies for customer loyalty include understanding perspectives, staying connected, providing discretionary effort, training empowered employees, remembering customers, building trust, and showing flexibility.
  • Importance of frequency, relationship, and after-marketing strategies for customer retention.
  • Guarantees (implicit, specific result, unconditional) influence trust and satisfaction.
  • Defection management, a systematic strategy, is key to retaining customers.

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Description

Explore the intricacies of customer satisfaction as defined in Chapter 11. This quiz delves into how customer evaluations shape business performance and the significance of surveys in gathering feedback. Understanding the factors influencing customer satisfaction can lead to improved business strategies and competitive advantage.

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