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A radio advertisement announced that Dan's Ice Cream would be open until 10:00 p.m. on Friday evenings. Norm reached the store by 9:45 p.m. to buy an ice cream cone. The store was locked and a sign on the door said that the store closes at 9:00 p.m. This scenario is an example of a


A) communications gap.
B) market gap.
C) delivery gap.
D) knowledge gap.
E) research gap.

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When Peridot, a department store, centralized all its buying activities, the store and department managers were able to spend more time working with sales associates and talking with customers. As a result, the company was able to better understand the expectations of the customers. Which of the following gaps was reduced as a result of the centralization process?


A) Knowledge gap
B) Communication gap
C) Delivery gap
D) Standards gap
E) Research gap

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Which of the following actions is a way to reduce the delivery gap?


A) Reducing instrumental support
B) Empowering employees at the firm's lowest level
C) Assuming what the customer is about complain
D) Interrupting customers when they explain their problem
E) Adopting an antagonistic approach toward customers

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Why is it important to empower employees for quick resolution of customer problems?

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Customer satisfaction is affected by the...

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Tyson orders pizzas at a take-out restaurant and is told that the order would be ready in twenty minutes. After waiting for almost half an hour, he is told that his order was taken up just five minutes ago and that the pizzas would be ready in 45 minutes. Which of the following service gaps is exemplified in this scenario?


A) Market gap
B) Communications gap
C) Knowledge gap
D) Delivery gap
E) Research gap

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An electronic retailer surveys its customers to understand the factors that they consider before making a purchase decision. The retailer is trying to bridge the ________ by using customer research.


A) delivery gap
B) standards gap
C) performance gap
D) knowledge gap
E) communication gap

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________ makes it hard to provide and maintain high-quality service because retailers cannot easily measure or check the service before it gets delivered to customers.


A) Intangibility
B) Flexibility
C) Assurance
D) Empathy
E) Instrumental support

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Bronson has shopped at several toy stores. However, he really likes The Toy Corner because of the broad assortment offered for different age groups. Moreover, if a particular toy is not available at the store, Bronson can place an order and have it delivered directly to his home at a discounted price. Hence, Bronson feels that the service offered by The Toy Corner


A) is poor due to lack of instrumental support.
B) does not conform to promised delivery dates.
C) exceeds customer expectations.
D) does not provide value to customers.
E) is limited to specific customers.

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Thelma goes to collect her clothes from a dry-cleaning store at 8 p.m. The store guarantees a 24-hour pick-up service in all of its advertisements. However, she is disappointed to find that the pick-up service is available only between 11 a.m. and 7 p.m. This is an example of a


A) market gap.
B) delivery gap.
C) knowledge gap.
D) communications gap.
E) research gap.

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Personalized service


A) does not require trained employees.
B) is more consistent than standardized service.
C) increases the consistency of service quality.
D) is based on establishing a set of rules for providing service.
E) depends on the judgment and capability of service providers.

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Hector ordered a model fighter jet at a discounted price of $22 from a hobby catalog. However, he was charged an extra $10 for shipping charges that were not mentioned anywhere on the catalog. He decided never to buy anything from that catalog again. Due to a ________, the catalog retailer lost a customer.


A) delivery gap
B) communications gap
C) market gap
D) knowledge gap
E) research gap

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________ is the ability to perform the service dependably, accurately, and as promised.


A) Reliability
B) Assurance
C) Tangibility
D) Empathy
E) Responsiveness

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From a retailer's perspective, which of the following is a good rule for resolving customer complaints?


A) Motivate store employees to assume they know what the customer is complaining about.
B) Interrupt customers when they are airing their complaints.
C) Allow the customers to complain if they feel they have not been treated properly.
D) Instruct store employees to assume what solution the customer is seeking.
E) Encourage store employees to have an antagonistic attitude when handling customer complaints.

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Retailers can minimize the time taken to get a problem resolved and increase customer satisfaction by


A) assuming what the customer is complaining about or what solution the customer is seeking.
B) minimizing the personal attention given to the customer and resolving the problem abruptly.
C) empowering the first contact employee to act quickly to solve the problem.
D) referring the customer to several different employees to get the problem resolved.
E) directing customers to leave feedback on the store's website.

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Customers are satisfied when their expectations exceed the perceived service.

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What are the steps involved in effective service recovery?

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The steps in effective service...

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Customer expectations are based on a customer's knowledge and experiences.

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Retailers can reduce the delivery gap by


A) setting service standards based on internal operations rather than customers' perceptions.
B) providing employees the necessary skills and knowledge.
C) dwelling primarily on the negative aspects of customer problems.
D) providing standardized rather than personalized services for purchases involving high risk.
E) setting service goals that are broad and intangible.

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Service excellence will occur only when the


A) top management provides leadership and demonstrates commitment.
B) top management refrains from empowering front-line service providers.
C) top management centralizes its decision-making activities.
D) retailer sets service standards based on internal operations rather than customers' perceptions.
E) retailer provides standardized services rather than personalized services when purchase decisions involve high risks.

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The difference between the service promised by a retailer and the service actually delivered is known as the


A) communications gap.
B) delivery gap.
C) research gap.
D) market gap.
E) knowledge gap.

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