Quality Management Chapter 7 Flashcards
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Questions and Answers

What is benchmarking?

  • A measure of customer loyalty
  • The systematic evaluation of practices of excellent organizations (correct)
  • The use of statistics to quantify production problems
  • An evaluation of customer satisfaction

    • What does subjective assessment of quality refer to?

    The degree to which a product does what consumers expect it to do.

    Define quality in the context of a company's products or services.

    The degree of excellence in a company's products or services.

    What is statistical quality control?

    <p>The use of statistics to isolate and quantify production line problems.</p> Signup and view all the answers

    What does customer loyalty measure?

    <p>How often a customer purchases a particular brand.</p> Signup and view all the answers

    What is dynamic quality?

    <p>Quality that results from a change that makes an existing standard obsolete.</p> Signup and view all the answers

    Which assessment evaluates whether a product does what it is supposed to do?

    <p>Objective assessment of quality.</p> Signup and view all the answers

    How is customer defections defined?

    <p>The percentage of customers who switch to another brand or supplier.</p> Signup and view all the answers

    What is a customer satisfaction measurement program?

    <p>An ongoing survey of customers to obtain continuous estimates of satisfaction.</p> Signup and view all the answers

    What are satisfaction ratings?

    <p>Ratings provided by testing agencies that compare purchase and/or performance satisfaction.</p> Signup and view all the answers

    What does cost structure refer to?

    <p>The amount of money required to produce a specific amount of sales.</p> Signup and view all the answers

    What is customer satisfaction?

    <p>A customer's positive, neutral, or negative feeling about the value received.</p> Signup and view all the answers

    What is the Malcolm Baldrige National Quality Award?

    <p>A program designed to raise quality awareness and practice among U.S. businesses.</p> Signup and view all the answers

    What are customer expectations?

    <p>Consumer beliefs about the performance of a product based on prior experience.</p> Signup and view all the answers

    Define static quality.

    <p>Quality that results when individuals or organizations perfect an accepted practice.</p> Signup and view all the answers

    What is customer lifetime value (CLV)?

    <p>The amount of profit a company expects to obtain over the course of a customer relationship.</p> Signup and view all the answers

    How is quality described in a company's products and services?

    <p>It refers to the degree of excellence.</p> Signup and view all the answers

    In addition to generating sales, loyal customers affect the ________ __________.

    <p>cost structure</p> Signup and view all the answers

    What results when accepted practices are perfected?

    <p>Static quality.</p> Signup and view all the answers

    Which of the following is a reason why customers may defect from a company? (Select all that apply)

    <p>They receive poor treatment (A), They have relocated (B), They prefer another product (C)</p> Signup and view all the answers

    What is the effect of continuously improving product quality?

    <p>It affects static quality (C)</p> Signup and view all the answers

    Study Notes

    Key Concepts in Quality Management

    • Benchmarking: Evaluation of excellent organizations' practices to improve customer service.
    • Quality: Degree of excellence in products or services provided by a company.
    • Dynamic Quality: Results from changes that make existing standards obsolete.
    • Static Quality: Achieved by perfecting accepted practices to high quality standards.

    Customer Evaluation Metrics

    • Customer Satisfaction: Customer feelings regarding the value received from a product, which can be positive, neutral, or negative.
    • Customer Loyalty: Measure of frequency with which customers choose a particular brand from a product class.
    • Subjective Assessment of Quality: Reflects how well a product meets customer expectations.
    • Objective Assessment of Quality: Evaluates whether a product performs as intended.
    • Customer Defections: Percentage of customers who switch to different brands or suppliers.

    Assessing Quality and Satisfaction

    • Customer Satisfaction Measurement Program: Ongoing surveys to track customer satisfaction continuously.
    • Satisfaction Ratings: Allow customers to compare brands and provide feedback on product performance.
    • Satisfaction Factors: Include customer treatment, product satisfaction, and preferences.

    Financial Aspects of Customer Relationships

    • Cost Structure: Resources required to produce a specific amount of sales; influenced by customer loyalty.
    • Customer Lifetime Value (CLV): Expected profit from a customer relationship over time.

    Awards and Recognition

    • Malcolm Baldrige National Quality Award: Initiative to enhance quality awareness and practices in U.S. businesses.

    Understanding Customer Expectations

    • Customer Expectations: Formed from prior experience and communication, affecting their perception of product performance.

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    Description

    Test your understanding of key concepts in quality management with these flashcards from Chapter 7. Learn important terms like benchmarking, subjective assessment of quality, and statistical quality control. Perfect for students looking to reinforce their knowledge in quality practices.

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