Focusing on Customer (Review Questions) Submitted by: Frances Marie Perez Dan Kenneth Rexes 1 _ Explain the difference between satisfaction and loyalty. Why Is loyalty more important? Customer loyalty is unnerving and unswerving; it cannot easily be changed, even in the face of remarkably changed situations. Customer satisfaction on the other hand is immensely fickle, and can change dramatically, even with the slightest of changes in situations. Loyalty is the willingness to make an investment. 2. What Is Consumer Benefit Package?
Why is It Important in understanding satisfaction and loyalty? Consumer Benefit Package Is the total package of products and services that a business offers with the price. Loyalty Is one of the most Important Indicators of good performing companies. Satisfaction is directly linked to customer loyalty it is evident that measuring customer satisfaction without taking customer loyalty into account and vice versa would be misleading. 3. Describe the model used in computing the American Customer Satisfaction Index. How might a business use the information from the SACS database? Seed to produce SACS links customer distraction to Its determinants: customer expectations, perceived value, and perceived quality. 4. Explain the Customer-driven quality cycle. What do expected quality, actual quality, and perceived quality mean, and how do they relate with one another? Customer driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about our customers to learn their needs and preferences and then providing products and services that satisfy the customer. To view of the process In which customer needs and expectations are 5.
List and provide an example of the six leading practices of customer-focused laity. A. They clearly define key customer groups and markets, considering competitors and other potential customers, and segment their customers accordingly. B. They understand both near-term and longer-term customer needs and expectations. C. They understand the linkages between the voices of customer. D. They build relationships with customers through commitments. E. They have effective complaint management processes by which customers can easily comment. F.
They measure customer satisfaction, compare the results relative to competitors. 6. Define the principal types of customers that an organization encounters. External Customers who may fall between the organization and the customer and who have distinct needs and expectations. Internal Customers who contribute to the company’s mission and depend on the departments. 7. Explain the AT & T customer-supplier model. Your supplier inputs your processes output your customer. 8. Why is it important to segment customers? Describe some ways of defining customer segments.
It’s no longer Just about having the best product or services. It’s also a lot about giving YOUR customer what he WANTS. What he wants to know… Hear… See… Feel… Taste… Smell… You want to give it to him. And your eventual profits will thank you for it. Heck, he probably will himself too! Precisely because of this, we have to appreciate Just how important customer segmentation is to your business. Customer segmentation might be based on geography, demographic factors, ways in which products are used, volumes, or expected levels of service. 9.
Explain the different dimensions of quality defined by David Carving and the key dimension of service quality. How are these dimensions similar and different? Performance refers to a product’s primary operating characteristics. Features are additional characteristics that enhance the appeal of the product or service to the user. Reliability is the likelihood that a product will not fail within a specific time period. Conformance is the precision with which the product or service meets the specified standards. Durability measures the length of a product’s life.
Serviceability is the speed with which the product can be put into service when it breaks down, as well as the competence and the behavior of the servicewoman. Aesthetics is the subjective dimension indicating the kind of response a user has to a product. Perceived Quality is the quality attributed to a good or service based on indirect measures. 10. What is the Voice of the customer? Is a term used in business and Information Technology to describe the in-depth process of capturing a customer’s expectations, preferences and aversions? 1 1 . What is the Kane model, and what are its implications for quality management?
This paper presents a theoretical and empirical analysis of the implications of a quality strategic approach and examines the extent to which, why, and how the triggering factors of strategic flexibility are related to CM elements. The hypotheses put forward are tested in an empirical study carried out on a sample of Spanish firms, using structural equation models. The results demonstrate the positive effect of adopting an integral CM initiative on enhancing strategic flexibility. CM enhances strategic flexibility more effectively when it is introduced comprehensively rather than in a piecemeal fashion. 12.
List the major approaches to gathering customer information. What are the advantages and disadvantages of each? A. ) Comment cards and formal surveys. B. ) Focus groups. C. ) Direct customer contact. D. ) Field intelligence. . ) Complaint analysis. F. ) Internet monitoring. 13. Describe how affinity diagrams and tree diagrams are used to organize and work with customer-related information. The tree diagram starts with one item that branches into two or more, each of which branch into two or more, and so on. It looks like a tree, with trunk and multiple branches. It is used to break down broad categories into finer and finer levels of detail.
Developing the tree diagram helps you move your thinking step by step from generalities to specifics. The affinity diagram is a business tool used to organize ideas and data. It is one of the Seven Management and Planning Tools. The tool is commonly used within project management and allows large numbers of ideas stemming from brainstorming to be sorted into groups, based on their natural relationships, for review and analysis. 14. Explain the concept of Moments of Truth. Moments of Truth can be further defined in real-world examples like: The tone of voice portrayed when you pick up the phone to greet a customer. 5. Explain the importance of accessibility and commitments such as guarantees to building customer relationship. Accessibility is about making your website accessible to all Internet users (both disabled and non-disabled), regardless of what browsing technology they’re using. In addition to complying with the law, an accessible website can reap huge benefits on to your website and your business. Commitment ignites action. To commit is to pledge yourself to a certain purpose or line of conduct. It also means practicing your beliefs consistently. 16. Who are customer-contact employees?
Why are they critical to an organization? ] The latter are, in turn, presented as antecedents to helping behaviors directed at customers. The model is structured on three interfaces: employee-manager, employee-role, and employee-customer. 17. Define the term customer-contact requirements. Why are they important? Customer-contact requirements are measurable performance levels or expectations that define the quality of customer contact with representatives of an organization. 18. Explain the role of training and empowerment of customer-contact employees in achieving customer satisfaction.
A department or a part of the Human Resources function within an organization. Organization Development is a growing field that is responsive to many new approaches. Employees are pivotal in shaping a customer’s level of the perceived laity of a service, in their study, asked what causes service quality problems, and executives consistently mentioned the essential role of contact personnel. Customers received from customer contact employees. 19. Why should a company make it easy for customers to complain? How should complaint information be used?
If they do, at least you know that they are still talking to you. Also, if you listen, respond and take action you might Just learn something new or figure out how to improve the service you deliver to them. 20. Outline a generic complaint management process. The Investor Affairs and Complaints Department will ensure that the complainant will receive an acknowledgement within 3 business days of receipt*. If the complaint does not require a full fledged investigation by the SC, the Investor Affairs and Complaints Department will endeavourer to resolve the matter within 15 business days.
For complaints that require more time to be resolved due to the complexity of the case, the complainant will be notified of the status of the case every three months until the issues arising from the complaint are addressed. 21 . Why are strategic partnerships and alliances useful to an organization? A strategic partnership is a formal alliance between two commercial enterprises, usually formalized by one or more business contracts but falls short of forming a legal partnership or, agency, or corporate affiliate relationship.
Typically two companies form a strategic partnership when each possesses one or more business assets that will help the other, but that each respective other does not wish to develop internally. A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives need while remaining independent organizations. This form of cooperation lies between M&A and organic growth. 2. How can customer relationship management (CRM) software help companies develop and improve a focus on customers?
CRM software is essentially meant to address the needs of marketing, sales and customer service and support divisions within an organization and allow the three to share data on clients to improve sales and customer service. 23. Why does an organization measure customer satisfaction? Customers are the most important asset for any organization as they are only responsible to drives the business. Measuring customer satisfaction helps in identifying specific customer information which is needed to run business smoothly. 24. Describe the key steps that must be addressed in designing customer satisfaction surveys.
Successful customer satisfaction surveys maximize the retention of current customers, and help enterprises to better position themselves among prospective clients. However, customer satisfaction surveys that do not uncover customer perceptions or needs, improve customer loyalty, or help the enterprise to make improvements are essentially useless. To develop successful customer satisfaction plan, design, implement, and manage survey questions that lend themselves to effective trend analysis. This will help ensure that customers are completely satisfied tit enterprise offerings and/or support, and identify areas of potential improvement. 5. Explain the concept of importance-performance analysis and its benefit to an organization. Importance-performance analysis has gained popularity among hospitality and tourism researchers for its simplicity and ease of application. This article revisited several conceptual and methodological issues inherent, but often overlooked, in using the importance-performance analysis framework. 26. Why do many customer satisfaction efforts fail? Determining and using customer satisfaction information should be viewed as a key equines process.
Just going through the motions can often lead to failure. 27. What specific issues of customer focus are addressed in the Baldrics Award criteria? The survey instrument used a comprehensive set of 101 questions that were directly tied to specific criteria in the 1995 MAMBA Criteria. Results reported here represent the first published article that tests the MAMBA performance relationships and causal model using comprehensive measurement and structural models. Answer: They don’t go to school and they don’t learn because of the computers they escaped in their classes.
