External & Internal Customers – Ch13 | Test Bank 6e

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Student name:__________

1) According to Michael LeBoeuf, customers buy only two things: _____ and solutions.

2) According to the American Management Association, 65 percent of a typical company's business comes from repeat business by _____ customers.

3) Good service, which nearly always includes good ____, is the main reason for repeat business.

4) A(n) _____ is the person who depends on the other people in the company to provide the services and products for the external customer.

5) Ray processes data at a stock brokerage to determine trends in stock markets around the world. He relies on the firm's information technology department for a steady stream of data that is updated every minute, based on which he advises the clients of the firm. In this scenario, Ray is a(n) _____ _____ of the firm.

6) Finding out what the customer needs and doing whatever is necessary to satisfy that need are the _____ of customer service.

7) According to the rules for giving a customer bad news, one should avoid repeatedly apologizing for bad news and remember that customers want reasons and _____.

8) When giving a customer bad news, one has to maintain a _____ tone of voice.

9) The customer who never complains but responds to bad service by taking his or her business elsewhere is called a "_____" customer.

10) Reggie is a customer who never complains when the waiters of a restaurant are sloppy; he simply makes it a point to visit another restaurant if he continues to face the same issue with a particular restaurant. Reggie best exemplifies a(n) _____ customer.

11) According to Bill Gates, adopting a(n) _____ attitude toward customers rather than a defensive position makes customer complaints the most important part of improving the quality of a business process.

12) A complaint should not be viewed as a personal attack but as a(n) ____.

13) An emphasis on careful listening to complaints sends the signal to consumers that yours is a(n) _____ business.

14) A(n) _____ trap is the circumstance that comes from taking a customer's attack personally and letting it affect how you feel about yourself.

15) Callie responds to the comments of an angry customer by showing her own anger and frustration. She interprets the customer's aggressive comments as a personal attack against her. In the context of handing difficult customers, Callie has failed to avoid the _____.

16) Businesses can go the _____ by offering customers free services to ensure goodwill.

17) To succeed with customers, you must learn to bolster their ____.

18) _____ primarily involves forming meaningful relationships with your customers, which makes them much more likely to return and buy from you again.

19) Dream Land manufactures toys for kids. In its advertisements, the company stresses on its motto to make customers happy. In doing so, the company is trying to:

A) sell good feelings.
B) sell solutions to problems.
C) go the extra mile.
D) determine the needs of customers.

20) The most obvious reason for increased importance for high-quality customer service is ____.

A) greater competition
B) a more diverse customer base
C) stricter government rules
D) greater cultural diversity

21) An internal customer is best described as a person who:

A) buys good feelings and solutions to his or her problems.
B) depends on the other people in the company to provide the services and products for the external customer.
C) is a long-standing customer considered a part of the organization owing to his or her loyalty.
D) never complains but responds to bad service by taking his or her business elsewhere.

22) Bruce is a customer service representative of GoodHomes appliances. He is responsible for providing solutions to customers' problems. To provide solutions to customers, Bruce depends on the team of technical experts in the company. From the given information, we can conclude that Bruce is a(n):

A) internal customer.
B) "nice" customer.
C) mediator.
D) broker.

23) Two of the simplest principles of customer service include:

A) Creating needs in your customers and trying to satisfy those needs
B) Selling the product first and explaining how the product benefits the customer
C) Preparing the idea for a service and finding a customer to fit the service
D) Finding out what the customer needs and doing whatever is necessary to satisfy those needs

24) If a customer does not have a thorough understanding of what his or her own needs are:

A) you should focus on providing quality products.
B) you should consider revising your product and service offerings.
C) you should probe to find out the needs behind his or her surface statements.
D) you should try to satisfy his or her material needs and not basic human needs.

25) In the context of the two simple principles of customer services, if a customer is more interested in being noticed than in buying a product, one should:

A) redirect the customer to speak with one of the managers of the establishment.
B) treat the customer with the same cordiality one would treat a paying customer.
C) politely request the customer to come when he or she actually wants to purchase a product.
D) only pay attention to him or her after handling the needs of paying customers.

26) An elderly customer approaches Mara, a sales executive at a store that sells smartphones. The customer seems confused by the variety of options available at the store, and he makes vague statements about how telephones looked and functioned very differently in his youth. In the context of the two simple principles of customer services, how should Mara deal with the customer?

A) She should explain the function of each smartphone to help him understand the quality of the products.
B) She should ask him a series of questions to find out what his needs are and which of the store's products would best fulfil them.
C) She should politely ask the customer to return to the store when he has decided which smartphone he needs.
D) She should redirect him to speak to a manager at her store and focus her efforts on helping paying customers.

27) Which of the following is a faulty notion regarding customer service?

A) Knowing the issues involved in a business is important to develop the skills of effective customer service.
B) Customer service is of little importance as customers exist for the benefit of businesspeople.
C) The most obvious reason for increased importance for high-quality customer service is high competition.
D) Keeping customers happy and loyal simply makes good economic sense.

28) In the context of a business environment, bad news skills refer to:

A) the skills necessary to deliver bad news to customers but still retain their business and goodwill.
B) the ability to receive bad news without being emotional or sentimental.
C) the ability of gossipmongers to spread rumors within an organization.
D) the required skills to bluntly deliver bad news to clients without wasting time sugarcoating the news.

29) When delivering bad news to a customer, you should typically:

A) use an aggressive tone of voice.
B) avoid apologizing when the news is related to company policies.
C) use a polite tone of voice.
D) dwell on long apologies.

30) Which of the following statements is a rule for giving bad news to a customer?

A) One must explain the bad news to the customer by citing company policies.
B) One must focus on talking to the customer about potential solutions for a problem.
C) One should repeatedly apologize to the customer while giving them the bad news.
D) One should cut off the customer if he or she rants after receiving the bad news.

31) Lana informs a customer that the car she purchased will be delivered three weeks later than expected. She speaks to the customer politely and clearly. She briefly apologizes and explains that the problems at the company's assembly plant caused the delay. Lana offers the customer a replacement car to use in the meantime, which the customer gratefully accepts. In the context of effective customer service, Lana has:

A) the ability to encourage customer complaints.
B) sound bad news skills.
C) fallen into the self-esteem trap.
D) prioritized customer service over achieving company goals.

32) Why should a firm encourage customer complaints?

A) Customer complaints that a firm receives have little impact on its positive image.
B) Complaints are a means of ensuring work for the customer service department.
C) Complaining customers can be segmented and treated as a separate group to be handled differently.
D) Customer complaints inspire improvements to service that would otherwise have gone unnoticed.

33) A "nice" customer is best described as a person who:

A) does not complain but responds to bad service by taking his or her business elsewhere.
B) is a long-standing customer and stays loyal in spite of bad service.
C) regularly provides feedback after using a product.
D) is a regular customer who helps a business serve better.

34) Why are "nice" customers often considered detrimental to a business?

A) They have many complains about the products of a business.
B) They do not provide honest feedback.
C) They are difficult to satisfy.
D) They have an aggressive temperament.

35) Which of the following scenarios illustrates the characteristics of a "nice" customer?

A) Rebecca is unhappy with the quality of the food at a restaurant. Though she does not complain about it to the management, she never returns to the restaurant and tells all her friends to avoid going there.
B) Steve is disappointed with the quality of the paper he receives from a supplier. However, he does not complain about it and continues to make further purchases from the supplier.
C) Mark receives a half-baked pie at a restaurant. He complains to his waiter about it and has his meal comped by the manager.
D) Mina realizes that she purchased a faulty printer from a store. She writes to the store about it, and they send her a replacement printer.

36) Which of the following is true of a customer complaint?

A) It is a personal attack against the owner of a business.
B) It means that the relationship with the customer is broken permanently.
C) It is an opportunity for a business to improve.
D) It is typically an attempt to spoil the company's name.

37) An emphasis on careful listening to customer complaints is important because:

A) it is typically an attempt to spoil the company's name.
B) it is a personal attack against your business.
C) it helps in retaining "nice" customers.
D) it sends the signal that yours is a customer-focused business.

38) When customers perceive that you are willing to listen to their problems and that you are encouraging their response, they are most likely to:

A) respond honestly and openly.
B) become suspicious and hold back their responses.
C) take this as a sign of weakness and take advantage of your courtesy.
D) demand compensation for their suggestions and feedback.

39) Which of the following is the best way of soliciting complaints?

A) "How is our new cafe?"
B) "What are the factors that impressed you the most at our cafe?"
C) "Suggest one thing that we can do to improve your experience at our cafe."
D) "Name three unique things you noticed at our new cafe."

40) Which of the following is the most important factor in the customer complaint process?

A) Correcting the problems customers are complaining about
B) Rewarding the customers who complain with gifts
C) Making a database of all customer complaints
D) Encouraging more customers to register their complaints

41) In the context of handling difficult customers, when dealing with an unreasonable, angry, or overly demanding customer, one should:

A) repeatedly apologize about the issue to calm the customer down.
B) resist the urge to express one's own anger and frustration in return.
C) offer the customer a monetary incentive for complaining.
D) walk away from the customer to give him or her the chance to cool off.

42) In the context of handling difficult customers, when a customer has an emotional outburst about a problem, one must:

A) walk away from the customer to let him or her cool off.
B) express anger openly rather than bottling it up and letting it damage one's morale.
C) compliment the customer to bolster his or her self-esteem trap.
D) resist the urge to fall into the self-esteem trap.

43) The self-esteem trap is best described as:

A) the circumstance that arises when a customer with a low self-esteem fails to express his or her needs clearly.
B) the circumstance that comes from taking a customer's attack personally and letting it affect your own self-esteem.
C) the condition in which a person with a high self-esteem looks down upon people with low-self-esteems.
D) the subconscious activity that compares your self-image against your image of others.

44) When a company gives customers free products or services as a way of showing appreciation for their relationship with them, it is referred to as:

A) going the extra mile.
B) providing employee assistance programs.
C) practicing conditional positive regard.
D) compensating for a weakness.

45) Uranus, a retail store, provides supervised child care for its customers. This is an example of:

A) providing an employee assistance program.
B) providing intrinsic motivators.
C) practicing conditional positive regard.
D) going the extra mile.

46) Which of the following questions is an effective self-check when deciding on an ethical approach to a situation?

A) "Would I want all of my procedures to be made public knowledge?"
B) "Would I want to continue with this customer?"
C) "Would this customer be pleased with my suggestions?"
D) "Would my actions lead to a solution to the issue?"

47) Which of the following questions is the Golden Rule for ethical customer service?

A) "Is this customer a valuable resource to be considered with utmost importance?"
B) "Would you want to continue with this customer?"
C) "Are you treating the customer the way you would like to be treated in a similar situation?"
D) "Is there an easier, non-controversial manner to resolve the customer's problem?"

48) Which of the following strategies should be followed when dealing with customers?

A) You should take customers' complaints personally.
B) To succeed with customers, you must avoid bolstering their self-esteem.
C) You should be cautious when accepting feedback and suggestions from customers as, most often, these turn out to be personal attacks.
D) You should respect your customers and give them the highest-quality service but should never let them run your business.

49) According to Michael LeBoeuf, what are the two things that customers buy?

50) Explain why the importance of high-quality customer service has increased.

51) Discuss the importance of customer service.

52) Why is it important to treat internal customers right?

53) Describe ways of identifying a customer's unspoken needs.

54) List three basic human needs that all customers share.

55) How should a person treat a customer who is not interested in purchasing any product but just wants to be noticed? Substantiate your response.

56) What kind of attitude should be avoided when dealing with customers?

57) Why are bad news skills important?

58) What are the effective ways of delivering bad news to a customer?

59) Why should firms encourage complaints?

60) Why should firms lay emphasis on the practice of listening to customer complaints?

61) What are the various means of rewarding customers who complain?

62) What are the two things to remember when dealing with unreasonable, angry, or overly demanding customers?

63) What is the self-esteem trap?

64) Discuss the practice of "going the extra mile."

65) Why is it important to act ethically in all dealings with customers?

66) According to Christopher MacDonald, what are the ways in which customer service can become unethical?

67) Suggest practices that companies can employ to ensure the highest standards of professionalism and ethics in their delivery of customer service.

68) In the context of effective customer service, define the practice known as relationship selling.

69) In the context of issues in customer service, what should one keep in mind while suggesting a solution to a customer?

70) What should you do when customer service conflicts with ethics?

71) The American economy is based on delivery of services.

⊚ true
⊚ false

72) The cost of finding a new customer is considerably lower than the cost of keeping one you already have.

⊚ true
⊚ false

73) An external customer is the person who provides services and products to other people in the same company.

⊚ true
⊚ false

74) Unlike their internal counterparts, external customers are tied to a company more directly.

⊚ true
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75) The two simplest principles of customer service are finding out what the customer needs and doing what is necessary to satisfy those needs.

⊚ true
⊚ false

76) Having quality products alone is enough for a business to succeed.

⊚ true
⊚ false

77) Treating nonpaying customers well is a good business practice.

⊚ true
⊚ false

78) When giving a customer bad news, one should avoid apologizing too much and focus on providing reasons and taking actions to fix the problem.

⊚ true
⊚ false

79) One of the most accepted and effective ways of handling impossible customer requests is to quote your company's policy.

⊚ true
⊚ false

80) A "nice" customer is someone who never complains but responds by taking his/her business elsewhere.

⊚ true
⊚ false

81) A customer complaint is a personal attack and should be tackled effectively.

⊚ true
⊚ false

82) A customer complaint is an opportunity to improve.

⊚ true
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83) Customer complaints should be encouraged as they inspire improvements to service.

⊚ true
⊚ false

84) Questions such as "How was the service?" and "Was everything okay?" typically generate an honest and helpful response from customers.

⊚ true
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85) Cash prizes for surveys that ask for customer feedback are a means of encouraging customers to complain.

⊚ true
⊚ false

86) You can escape the self-esteem trap by taking a customer's attack personally and letting it affect your own self-esteem.

⊚ true
⊚ false

87) Instead of using your energy to show a difficult customer that you are right and that he or she is wrong, you should focus on getting the customer calmed down.

⊚ true
⊚ false

88) "Going the extra mile" refers to the helpful actions of some customers who provide valuable feedback and suggestions to improve the effectiveness of your service.

⊚ true
⊚ false

89) When a customer with an injured hand had to fill out a long customer survey form, Jason, the store manager, took time out to do it for her. Jason was "going the extra mile" for the customer.

⊚ true
⊚ false

90) The customer service ethics of a company or organization is independent of the quality of the services its customers will receive.

⊚ true
⊚ false

91) Unethical customer service can result in victimized customers.

⊚ true
⊚ false

92) Regardless of company decisions, a loyal customer should be given the flexibility of going against the decisions if needed.

⊚ true
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93) When faced with an angry customer, cutting him or her off typically proves to be beneficial.

⊚ true
⊚ false

94) You should take a customer's feedback personally so that it helps your business grow.

⊚ true
⊚ false

95) The Golden Rule of ethical customer service is: Are you treating the customer the way you would like to be treated in a similar situation?

⊚ true
⊚ false

96) In the context of handling a difficult customer, identifying the source of an upset customer's fear is an important step in solving a clash with him or her.

⊚ true
⊚ false

97) Relationship selling reduces the chances that a customer would return and buy from you again.

⊚ true
⊚ false

98) Empathy is the ability to put yourself in the other person's place.

⊚ true
⊚ false

99) One effective way of dealing with customers is to avoid any outside distraction and make them feel important.

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100) Thanking the customer for his or her patience and for bringing the problem to your attention is a positive way to end a customer interaction.

⊚ true
⊚ false