Exam
Name___________________________________

ESSAY.  Write your answer in the space provided or on a separate sheet of paper. 

1) 

Your author cites Ockham's razor–a logical approach which asserts that, when trying to understand a situation, the simplest explanation is usually the right one. What does this mean in the context of customer service? 

2) 

Define what the word "customer" means in the context of this chapter and discuss the two different kinds of customers that every business has. 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

3) 

Social capital is the resources available in and through personal and business networks. 

3) 

_______ 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

4) 

Despite many similarities between them, Wal-Mart and K-Mart have very different results, largely because of "little things" that seem to result in better customer service. How do the sales of these two companies compare? 

4) 

_______ 

A) 

Wal-Mart more than $400 Billion/yr; K-Mart about $50 Billion 

B) 

Wal-Mart $100B/yr; K-Mart $50B/yr 

C) 

K-Mart $100B/yr; Wal-Mart $50B/yr 

D) 

Sales figures are almost the same, although Wal-Mart customers seem to be happier. 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

5) 

Customers are defined solely within the realms of business and public volunteerism. 

5) 

_______ 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

6) 

A business will lose 10—30% of its customers in what time frame? 

6) 

_______ 

A) 

over its lifetime 

B) 

every four years 

C) 

every ten years 

D) 

every year 

7) 

Businesses that institute effective customer retention programs may see profits increase by how much? 

7) 

_______ 

A) 

20—40% 

B) 

10—20% 

C) 

15—30% 

D) 

25—100% 

8) 

In the example in the text, a dissatisfied customer at Happy Jack's store could cost the store how much in revenues and other lost customers over a ten-year period? 

8) 

_______ 

A) 

$442,000 and 17 other lost customers 

B) 

$86,000 and 15 other lost customers 

C) 

$198,000 and 21 other lost customers 

D) 

$43,000 and 12 other lost customers 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

9) 

Research indicates that it costs five to six times as much to attract a new customer as to keep an existing one. 

9) 

_______ 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

10) 

One of the main principles behind globalization and expansion across cultural and geographic boundaries is 

10) 

______ 

A) 

you cannot build relationships with people you don't understand. 

B) 

value and service are the same in any language. 

C) 

language barriers are not as important as value barriers. 

D) 

all of the above 

11) 

Among the issues of dealing with the "baby boomer" generation is the consideration that 

11) 

______ 

A) 

they buy the same items we all buy. 

B) 

they behave differently from their parents' generation. 

C) 

their values are different from their parents' values. 

D) 

their buying habits are different from today's youth. 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

12) 

The face of a company is often that of the lowest paid employees who meet the customers. 

12) 

______ 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

13) 

Giving the least effort and service that we can get away with results in 

13) 

______ 

A) 

more fun in the workplace. 

B) 

a feeling of superiority. 

C) 

a better bottom line. 

D) 

mind-numbing work. 

14) 

Customer loyalty is NOT 

14) 

______ 

A) 

a large share of the market. 

B) 

customer satisfaction alone. 

C) 

repeat buying alone. 

D) 

all of the above 

15) 

Customer loyalty is 

15) 

______ 

A) 

a reflection on the overall customer service of a business. 

B) 

driven by overall satisfaction. 

C) 

a measure of how satisfied a customer is. 

D) 

all of the above 

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false. 

16) 

A Gallup study proved that customers who signified that they were "extremely satisfied" with a store did not necessarily spend more money or add more value than those who were less than "extremely satisfied." 

16) 

______ 

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 

17) 

The Gallup organization studied the impact of customer ________ on long-term customer loyalty and profitability. 

17) 

______ 

A) 

satisfaction 

B) 

commitment to buy again 

C) 

engagement through emotional attachment 

D) 

none of the above 

 

1) 

Business's success results from the simple principle Satisfied, loyal customers make for successful organizations. 

2) 

Someone with whom we exchange value internal customers (employees and co-workers) and external customers (people outside the company with whom we do business) 

3) 

TRUE 

4) 

A 

5) 

FALSE 

6) 

D 

7) 

D 

8) 

A 

9) 

TRUE 

10) 

A 

11) 

B 

12) 

TRUE 

13) 

D 

14) 

D 

15) 

B 

16) 

TRUE 

17) 

C