The Corporate Culture



1. The corporate culture of a firm does not significantly influence the quality of the service it provides because the culture is internal and, therefore, not perceived by the customer. (F)

2. Flexibility in meeting customer needs is the main reason that some service firms have empowered contact personnel. (T)

3. A self-service gasoline station that is equipped with a credit card reader is an example of a customer-dominated service encounter. (T)

4. Conducting a pre-employment interview that requires the applicant to answer a question regarding a specific episode is called a situational vignette. (T)

5. The majority of difficulties in customer/employee interactions are caused by unrealistic expectations of the customers. (T)

6. In the service encounter triad, the potential conflict between the service organization and its contact personnel is one of efficiency vs. satisfaction. (F)

7. The effectiveness of an online encounter can be measured using E-S-QUAL. (T)

8. The Disney organization refers to its employees as cast members in order to promote its organizational culture. (T)

9. When the customer's role is built into the service delivery system, he or she is said to be a coproducer. (T)

10. Informal ethical controls are necessary to set boundaries for what is considered acceptable behavior (F)

11. The service profit chain argues that internal quality drives leads to profitability and growth. (T)

12. An organization can standardize service delivery by effecting strict operating procedures in order to follow a cost leadership strategy. (T)

13. Situational vignette, role playing, and direct questioning all have been used in evaluating potential front-line employees. (F)

14. Internet banking is a service that would appeal to the economizing customer, the personalizing customer, and the convenience customer. (F)

15. Efficiency- versus-satisfaction is the possible source of conflict in the relationship between the customer and the service organization. (T)

16. A customer who does not clear his or her table at a fast-food restaurant has violated his or her script. (T)

17. Easy access is a success factor that is common to both human-to-human service encounters as well as machine-to-machine service encounters. (F)

18. Southwest Airlines delivered high service value because of employee retention and productivity. (T)

19. Acceptance of new technology by customers is hampered because a new script must be learned. (F)

20. Empowerment begins with delegation. (F)

21. Delegation is acting on another’s behalf. (T)

22. Serving a disabled person is an example of an unreasonable demand. (F)

23. A visit to a psychiatrist represents a technology-free service encounter. (T)

24. Some organizations use a website for internal communications only. (T)

25. Self-service has evolved from machine-assisted to Internet-facilitated. (T)

26. Customer and server interact face-to-face in technology-mediated service encounters. (F)

Multiple Choice

1. A customer who is interested in the self-service option would find which of the following dimensions of service most important?

a. Risk involvement

b. Customer's control of the situation*

c. Amount of time involved

d. Efficiency of the service process

2. Which interviewing technique would be appropriate to determine how a potential employee would react in a service encounter?

a. Situational vignette*

b. Abstract questioning

c. Direct questioning

d. Acting as a customer

3. The most common reason for difficulties during the interaction of customers and contact personnel is:

a. unreasonable demands.*

b. a technical breakdown in service delivery.

c. incompetent contact personnel.

d. a lack of attention to detail by contact personnel.

4. All of the following are characteristics of a service organization with an inverted "T" structure, except:

a. the layers of supervision are reduced.

b. contact personnel are trained, motivated, and supplied with timely computer-based information.

c. the service encounter is managed at the point of delivery.

d. limiting discretion of contact personnel.*

5. A person who drives 100 miles to a factory outlet once a month to buy clothing for the family is:

a. an economizing customer.*

b. an ethical customer.

c. a personalizing customer.

d. a convenience customer.

6. A "moment of truth" is not:

a. an opportunity to influence a customer's perception of the service quality.

b. critical in achieving a reputation for superior quality.

c. when the customer is forming an opinion about the efficiency of the service.*

d. an interaction between a customer and a service provider.

7. The most important attribute of customer-contact personnel is:

a. education.

b. sales related knowledge.

c. intelligence.

d. empathy for the customer.*

8. In an organization that has empowered its front-line employees, the middle managers become:

a. obsolete.

b. facilitators.*

c. inspectors.

d. supervisors.

9. Consider the following vignette. Aboard the cruise ship Royal Majesty, a breakfast diner complains to the waiter that the meal is cold. The waiter sends the meal back to the kitchen and returns shortly with a plate of steaming eggs and bacon. The customer refuses the meal. Rattled, the waiter expresses his confusion to the maitre d'. This breakdown in customer interaction can best be described as:

a. unacceptable service.

b. slow performance.

c. unacceptable treatment of employees.

d. unreasonable demands.*

10. A service organization’s culture is communicated by all but one of the following methods?

a. Choice of language.

b. Use of stories.

c. Motto

d. Manual*

11. Which of the following is not a classification of shopping attitude for a service customer?

a. Personalizing customer

b. Convenience customer

c. Goal-seeking customer*

d. Ethical customer

12. Jiffy Lube, a franchised oil change and lubrication service, is an example of a service encounter dominated by

a. the organization.*

b. contact personnel.

c. the customer.

d. corporate culture.

13. Three elements (the service organization, the contact personnel and the customer) interact in the service encounter triad shown below. Which position represents the customer?

14. Employee empowered service companies have committed to all but one of the following:

a. investment in people

b. use of information technology

c. linking compensation to performance*

d. development of training programs for employees

15. Which of the following occurrences would be considered a “moment of truth” in a restaurant setting?

a. A diner considering the amount of tip to leave.

b. A child telling his parent what item on the menu looks good.

c. A waiter telling the cook what he really thinks of the manager.

d. A receptionist assigning a table to a customer.*

16. Which of the following is the least likely source of difficulty with interactions between customers and contact personnel?

a. poor employee selection and training

b. customers not understanding their role in the process

c. customers having no money to pay the bill*

d. unrealistic customer expectations

17. In the context of the service encounter triad, the trade-off between the service organization and the contact personnel is one of

a. efficiency-versus-satisfaction.

b. Efficiency-versus-autonomy.*

c. perceived control.

d. Autonomy-versus-satisfaction.

18. Which one of the following is not a factor for success in a machine-to-machine service encounter?

a. Easy access*

b. Automatic verification

c. Transaction security

d. Fail-safe operation

19. In the service profit-chain model, which one of the following was not listed as a component of the internal service delivery system?

a. Job design/decision-making latitude

b. Selection and training

c. Pay and compensation*

d. Information and communication

20. Which of the following firms has an encounter not dominated by the service organization?

a. Enterprise Rent-A-Car *

b. H & R Block

c. McDonald’s

d. Jiffy Lube

21. __________ is not one of the dimensions of the E-S-QUAL Web site survey instrument.

a. Fulfillment

b. System availability

c. Navigation*

d. Privacy

22. A customers who becomes intoxicated and disruptive is an example of:

a. unreasonable demands.

b. abusive or hostile attitude.

c. inappropriate behavior.*

d. demands contrary to policies.

23. ____________ is not an example of unethical customer-contact behavior.

a. Creating a need for service*

b. Performing unnecessary services

c. Sharing customer information with third parties

d. Giving away a guaranteed reservation

24. Self-service falls into the Technology - ______ service encounter category.

a. assisted

b. generated*

c. facilitated

d. mediated

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