Managing Quality Integrating The Supply Chain 6th Edition Foster Test Bank 1

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Supply Chain 6th Edition Foster 0133798259

9780133798258
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integrating-the-supply-chain-6th-edition-foster-0133798259-
9780133798258/
Managing Quality: Integrating the Supply Chain, 6e (Foster)

Chapter 5 The Voice of the Customer
1) ________ customers are employees receiving goods or services from within the same firm.
A) Primary
B) Capital
C) External
D) Secondary
E) Internal
Answer: E
Diff: 1
Learning Outcome: Discuss the total cost of quality and compare the common methods of
managing quality
LO: 5.1 Discuss the basics of customer relationship management.
AACSB: Application of Knowledge
Type: Concept
2) ________ customers are the bill-paying receivers of a company's work.

A) External
B) Internal
C) Primary
D) Secondary
E) Capital
1
Copyright © 2017 Pearson Education, Inc.
Answer: A
Diff: 1
managing quality
Type: Concept
3) The ________ customers are the ultimate people the company is trying to satisfy with its
work.
A) capital
B) internal
C) primary
D) external
E) secondary
Answer: D
Diff: 2
managing quality
Type: Concept
2
4) ________ customers are also known as end users.
A) External
B) Internal
C) Capital
D) Primary
E) Secondary
Answer: A
Diff: 1
managing quality
Type: Concept
5) The ________ model shows that a firm's quality performance is increasing while customer's
expectations are also increasing.
A) restructured customer-driven quality
B) relative customer-driven quality
C) redesigned customer-driven quality
D) receptive customer-driven quality
E) reactive customer-driven quality
Answer: E
Diff: 2
managing quality
Type: Concept
6) The view of the customer that asserts that he or she is a valued asset to be managed is referred
to as ________.
A) customer response
B) customer intelligence
C) customer data management
D) reactive customer-driven quality
E) customer-relationship management
Answer: E
Diff: 1
managing quality
Type: Concept
3
7) Which of the following is not a design aspect to customer-relationship management?
A) corrective action
B) guarantees
C) feedback
D) cost
E) complaint resolution
Answer: D
Diff: 2
managing quality
Type: Concept
8) The ________ process involves the transformation of a negative situation into one in which
the complainant is restored to the state existing prior to the occurrence of a problem.
A) complaint-reaction
B) complaint-restoration
C) complaint-resolution
D) complaint-response
E) complaint-reversal
Answer: C
Diff: 1
managing quality
Type: Concept
9) The first component of a complaint-resolution process is ________.

A) contrition
B) correction
C) compensation
D) communication
E) correlation
Answer: C
Diff: 2
managing quality
Type: Concept
4
10) The second component of a complaint-resolution process is ________.
A) contrition
B) correction
C) compensation
D) communication
E) correlation
Answer: A
Diff: 2
managing quality
Type: Concept
11) The process associated with resolving complaints is called the ________ process.
A) complaint-reversal
B) complaint-restoration
C) complaint-reaction
D) complaint-recovery
E) complaint-response
Answer: D
Diff: 2
managing quality
Type: Concept
12) Which of the following is not a component of an effective guarantee?

A) conditional
B) meaningful
C) understandable
D) communicable
E) painless to invoke
Answer: A
Diff: 2
managing quality
Type: Concept
5
13) Customer ________ is measured as the percentage of customers who return for more service.
A) approval
B) feedback
C) satisfaction
D) retention
E) response
Answer: D
Diff: 2
managing quality
Type: Concept
14) What are the three phases of customer-relationship management?

A) satisfaction, feedback, and retention
B) satisfaction, acquisition, and transition
C) response, feedback, and enhancement
D) acquisition, retention, and enhancement
E) response, transition, and acquisition
Answer: D
Diff: 2
managing quality
Type: Concept
15) The ________ phase of customer-relationship management involves improving service to the
customer through the use of information systems.
A) acquisition
B) retention
C) enhancement
D) transition
E) response
Answer: C
Diff: 2
managing quality
AACSB: Information Technology
Type: Concept
6
16) Churn reduction involves the reduction in the loss of ________.
A) raw materials
B) suppliers
C) funds
D) products
E) customers
Answer: E
Diff: 2
managing quality
Type: Concept
17) ________ management involves managing the mountain of information generated by Web
site usage in a way to improve marketing to key customers.
A) Knowledge
B) Order
C) Sales
D) Campaign
E) Channel
Answer: A
Diff: 1
managing quality
Type: Concept
18) Internal customers are the bill-paying receivers of a company's work.

Answer: FALSE
Diff: 2
managing quality
Type: Concept
19) External customers are employees receiving goods or services from within the same firm.
Answer: FALSE
Diff: 1
managing quality
Type: Concept
7
20) The external customers are the ultimate people the company is trying to satisfy with its work.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
21) Customer-driven quality represents a proactive approach to satisfying customer needs that is
based on gathering data about the customers to learn their needs and preferences.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
22) Due to constantly changing customer needs, the reactive approach to customer-driven quality
could lead to problems if customer requirements increase at a faster rate than quality and service
improvement.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
23) Customer relationship management involves viewing the customer as a valued asset to be
managed.
Answer: TRUE
Diff: 1
managing quality
Type: Concept
8
24) The complaint-resolution process involves the transformation of a negative situation into one
in which the complainant is restored to the state existing prior to the occurrence of a problem.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
25) Improving services such as customer service policies, sales processes, and after-sales
services according to customer preferences is referred to as transactional analysis.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
26) The process associated with resolving complaints is called the complaint-response process.
Answer: FALSE
Diff: 2
managing quality
Type: Concept
27) A guarantee outlines the customer's rights.

Answer: TRUE
Diff: 1
managing quality
Type: Concept
28) Guarantees should be designed prior to beginning business.

Answer: TRUE
Diff: 2
managing quality
Type: Concept
9
29) To be effective, a guarantee should be unconditional.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
30) Customer retention is measured as the percentage of customers who return for more service.
Answer: TRUE
Diff: 1
managing quality
Type: Concept
31) Amazon's customized desktops with recommendations for products based on historical
purchases is an example of the customer enhancement phase of CRM.
Answer: TRUE
Diff: 2
managing quality
Type: Application
32) The enhancement phase of customer-relationship management involves improving service to

the customer through the use of information systems.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
33) Knowledge management involves managing the mountain of information generated by Web
site usage in a way to improve marketing to key customers.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
10
34) Differentiate between internal and external customers.
Answer: Internal customers are employees receiving goods or services from within the same
firm. For example, management information systems (MIS) technicians and programmers view
the users within their company as internal customers. In contrast, external customers or end users
are the bill-paying receivers of a company's work. A person that enters a restaurant and
purchases a meal is an external customer.
Diff: 2
managing quality
Type: Concept
35) Explain the reactive customer-driven quality (RCDQ) model.

Answer: This reactive customer-driven quality (RCDQ) model shows that a firm's quality
performance is increasing while customers' expectations also are increasing. Problems occur
when customer requirements increase at a faster rate than quality and service improvement. This
places a firm in a reactive mode that may signal the need for major process and service redesign.
The RCDQ model demonstrates conceptually and graphically the primary pitfalls and dangers of
RCDQ.
Diff: 2
managing quality
Type: Concept
36) What are the components and activities associated with the complaint resolution process?
Answer: The first component is to compensate people for their losses. This may be as small as
an easy return policy with no questions asked. The second component is contrition. The firm
should apologize to the customer for the mistakes made. Third, the complaint-recovery process
must be designed to make it easy for complainants to reach resolution to simple complaints.
Diff: 2
managing quality
Type: Concept
11
37) What are customer-relationship management systems?
Answer: With business information systems—especially over the Internet—companies are
receiving volumes of customer-related data. These data include personal, Internet, process, and
customer preference information. As a result, systems have been created to mine these data to
improve customer service and retention. These systems are called customer-relationship
management systems (CRMS). CRMS use data to manage the three phases of customer-
relationship management. These three phases are acquisition, retention, and enhancement.
Diff: 2
managing quality
Type: Concept
38) The approach authorizing major suppliers to make purchases for their own accounts,
resulting in suppliers providing only what is needed when it is needed, is referred to as
________.
A) single-source managed inventory
B) vendor managed inventory
C) account managed inventory
D) cost managed inventory
E) time managed inventory
Answer: B
Diff: 2
managing quality
LO: 5.2 Distinguish how managing quality in services is different from manufacturing.
Type: Concept
39) Which of the following is a diagram tool for managers that depicts a flowchart of interactions
between service providers and customers?
A) process-chain-network diagram
B) precedence-network diagram
C) relationship-network diagram
D) activity-network diagram
E) interaction-network diagram
Answer: A
Diff: 2
managing quality
Type: Application
12
40) ________ is a process for developing relationships with few suppliers for long-term
contracts.
A) Single sourcing
B) Gap analysis
C) Supplier rationalization
D) Segmentation
E) Source loyalty
Answer: A
Diff: 2
managing quality
Type: Concept
41) ________ results in the suppliers becoming de facto subsidiaries to their major customers.
A) Segmentation
B) Gap analysis
C) Strategic alliance
D) Source loyalty
E) Supplier rationalization
Answer: C
Diff: 2
managing quality
Type: Concept
42) In ________, suppliers integrate information systems and quality systems that allow close
integration at all levels.
A) segmentation
B) gap analysis
C) annuity relationships
D) strategic alliances
E) supplier rationalization
Answer: D
Diff: 2
managing quality
Type: Concept
13
43) ________ results from agreement between marketing and operations as to which customers
add the greatest advantage and profits over time.
A) Customer segmentation
B) Customer-relationship management
C) Reactive customer-driven quality
D) Actively solicited customer-feedback
E) Customer rationalization
Answer: E
Diff: 2
managing quality
Type: Concept
44) A(n) ________ relationship is one in which the customer provides a long-term, steady
income stream to the provider.
A) perpetual
B) annuity
C) active
D) rational
E) passive
Answer: B
Diff: 2
managing quality
Type: Concept
45) Customer-initiated contact such as filling out a restaurant complaint card, calling a toll-free
complaint line, or submitting an inquiry via a company's Web site, is considered ________.
A) customer rationalization
B) passively solicited customer feedback
C) actively solicited customer feedback
D) reactive customer-driven quality
E) customer segmentation
Answer: B
Diff: 2
managing quality
Type: Concept
14
46) A process-chain-network diagram is a flowchart tool for managers to use when designing
service delivery systems.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
47) Many companies use single sourcing as a way to increase the number of suppliers.
Answer: FALSE
Diff: 1
managing quality
Type: Concept
48) Single-sourcing arrangements are developing into strategic alliances where suppliers become
de facto subsidiaries to their major customers.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
49) Customer rationalization results from agreement between marketing and operations as to
which customers add the greatest advantage and profits over time.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
15
50) Annuity relationships result in the customer providing a short-term income stream to the
provider.
Answer: FALSE
Diff: 2
managing quality
Type: Concept
51) Customer-initiated contact, such as submitting an inquiry via a company's Web site, is
considered passively solicited customer feedback.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
52) Active data collections tend to result in lower ratings of quality than passive data collections.
Answer: FALSE
Diff: 2
managing quality
Type: Concept
53) Describe the concept of single sourcing. How is single sourcing related to strategic alliances?
Answer: Many companies use single sourcing as a way to reduce the number of suppliers.
Single sourcing is a process for developing relationships with few suppliers for long contract
terms. Increasingly, single-sourcing arrangements are developing into strategic alliances where
the suppliers become de facto subsidiaries to their major customers. In these arrangements, not
only are suppliers single-source providers, but they also integrate information systems and
quality systems that allow close interaction at all levels.
Diff: 2
managing quality
Type: Concept
16
54) The gap refers to the differences between ________.
A) corrective action and preventive action
B) service quality and product quality
C) empowered employees and employees managed by a hierarchy
D) accurate quality projections and inaccurate quality projections
E) desired levels of performance and actual levels of performance
Answer: E
Diff: 2
managing quality
LO: 5.3 Implement gap analysis in a service firm using SERVQUAL.
Type: Concept
55) The SERVQUAL instrument was developed by ________.

A) Juran, Deming, and Shewhart
B) Ishikawa and Taguchi
C) Hammer and Champy
D) Parasuraman, Zeithamel, and Berry
E) Feigenbaum, Crosby, and Peters
Answer: D
Diff: 3
managing quality
Type: Concept
56) Which of the following determinants of service quality involves consistency of performance
and dependability?
A) reliability
B) responsiveness
C) competence
D) access
E) credibility
Answer: A
Diff: 2
managing quality
Type: Concept
17
57) Which of the following determinants of service quality concerns the willingness or readiness
of employees to provide service?
A) reliability
B) responsiveness
C) competence
D) credibility
E) courtesy
Answer: B
Diff: 2
managing quality
Type: Concept
58) Which of the following determinants of service quality means possession of the required
skills and knowledge to perform the service?
A) reliability
B) responsiveness
C) competence
D) access
E) credibility
Answer: C
Diff: 2
managing quality
Type: Concept
59) Which of the following determinants of service quality involves approachability and ease of
contact?
A) reliability
B) responsiveness
C) competence
D) access
E) courtesy
Answer: D
Diff: 2
managing quality
Type: Concept
18
60) Which of the following determinants of service quality involves politeness, respect,
consideration, and friendliness of contact personnel?
A) reliability
B) responsiveness
C) competence
D) credibility
E) courtesy
Answer: E
Diff: 2
managing quality
Type: Concept
61) Which of the following determinants of service quality involves trustworthiness,

believability, honesty, and having the customer's best interests at heart?
A) reliability
B) responsiveness
C) competence
D) credibility
E) courtesy
Answer: D
Diff: 1
managing quality
Type: Concept
62) Which of the following determinants include the physical evidence of the service?
A) tangibles
B) aesthetics
C) features
D) intangibles
E) logistics
Answer: A
Diff: 1
managing quality
Type: Concept
19
63) What does segmenting markets involve?
A) distinguishing expected service and perceived service
B) distinguishing customers according to common characteristics
C) analyzing the management perceptions of consumer expectations
D) distinguishing service quality specs and service delivery
E) analyzing the external methods to communicate with customers
Answer: B
Diff: 2
managing quality
Type: Concept
64) The Gap refers to the differences between desired levels of performance and actual levels of
performance.
Answer: TRUE
Diff: 1
managing quality
Type: Concept
65) The reliability determinant of service quality concerns the willingness or readiness of
employees to provide service.
Answer: FALSE
Diff: 2
managing quality
Type: Concept
66) The competence determinant of service quality means possession of the required skills and
knowledge to perform the service.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
20
67) The determinant of service quality pertaining to tangibles encompasses the physical evidence
of the service.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
68) To segment markets means to distinguish customers or markets according to common

characteristics.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
69) What is gap analysis?

Answer: Typically, the gap refers to the differences between desired levels of performance and
actual levels of performance. This could be something like the difference between the desired
conformance level versus the existing conformance level in a manufacturing environment. In
services, this is the difference between the expected and the actual level of service provided.
Gaps are important in that once a gap is identified, it is a candidate for corrective action and
process improvement. The formal means for identifying and correcting these gaps is called gap
analysis. One of the differences studied by gap analysis identifies the difference between
managerial and customer perceptions of what the customer wants.
Diff: 2
managing quality
Type: Concept
21
70) Explain the ten determinants of service quality contributed by Parasuraman, Zeithamel, and
Berry.
Answer: In addition to the gaps model, Parasuraman, Zeithamel, and Berry contributed a
number of important concepts to managing service quality. These include 10 determinants of
service quality:
• Reliability involves consistency of performance and dependability.
• Responsiveness concerns the willingness or readiness of employees to provide service.
• Competence means possession of the required skills and knowledge to perform the service.
• Access involves approachability and ease of contact.
• Courtesy involves politeness, respect, consideration, and friendliness of contact personnel.
• Communication means keeping customers informed in language they can understand and
listening to them.
• Credibility involves trustworthiness, believability, and honesty.
• Security is the freedom from danger, risk, or doubt.
• Understanding/knowing the customer involves making the effort to understand the
customer's needs.
• Tangibles include the physical evidence of the service.
Diff: 3
managing quality
Type: Concept
71) Gathering data through focus groups and surveys is an example of a(n) ________ data
gathering.
A) active
B) open
C) rational
D) passive
E) closed
Answer: A
Diff: 1
managing quality
LO: 5.4 Develop a customer service survey using specific examples and critical incidents.
Type: Concept
22
72) Gathering data through customer comment cards is an example of a(n) ________ data
gathering.
A) active
B) open
C) rational
D) passive
E) closed
Answer: D
Diff: 1
managing quality
Type: Concept
73) ________ includes all supplier-initiated contact with customers.

A) Customer-relationship management
B) Supplier rationalization
C) Single sourcing
D) Customer segmentation
E) Actively solicited customer feedback
Answer: E
Diff: 2
managing quality
Type: Concept
74) Phone contacts, focus groups, and survey results are referred to as ________ data.
A) hard
B) soft
C) active
D) passive
E) rational
Answer: B
Diff: 2
managing quality
Type: Concept
23
75) Measurement data such as height, weight, volume, and speed are referred to as ________
data.
A) active
B) passive
C) rational
D) soft
E) hard
Answer: E
Diff: 2
managing quality
Type: Concept
76) ________ data are ranked so that one measure is higher than the next.
A) Active
B) Discrete
C) Continuous
D) Ordinal
E) Passive
Answer: D
Diff: 2
managing quality
Type: Concept
77) ________ data is used to compare employee and customer perceptions of quality.
A) Hard
B) Soft
C) Active
D) Passive
E) Rational
Answer: B
Diff: 2
managing quality
Type: Concept
24
78) A(n) ________ group allows a supplier to gather feedback from a group of consumers at one
time.
A) access
B) focus
C) service
D) ordinal
E) discussion
Answer: B
Diff: 1
managing quality
Type: Concept
79) What is the first step in performing a focus group session?

A) develop questions
B) narrow scope of questions
C) identify purpose
D) select target population
E) run multiple groups
Answer: C
Diff: 2
managing quality
Type: Application
80) A(n) ________ consists of a series of items designed to capture perceptions.

A) survey
B) focus group
C) ordinal data system
D) passive data gathering
E) active data gathering
Answer: A
Diff: 2
managing quality
Type: Concept
25
81) The ________ approach involves obtaining information from customers about the process
they use to receive goods and services.
A) focus group
B) vendor managed inventory
C) knowledge management
D) critical-incident
E) customer-relationship management
Answer: D
Diff: 2
managing quality
Type: Concept
82) ________ validity refers to the use of certain terms and whether terms really measure what it
is we want to measure.
A) Criterion
B) Conformance
C) Content
D) Control
E) Construct
Answer: E
Diff: 3
managing quality
Type: Concept
83) ________ validity indicates that your measuring instrument has the ability to predict or agree
with constructs external to that which you are measuring.
A) Criterion
B) Conformance
C) Content
D) Control
E) Construct
Answer: A
Diff: 3
managing quality
Type: Concept
26
84) ________ validity refers to whether the item really measures what we want to measure.
A) Construct
B) Control
C) Criterion
D) Conformance
E) Content
Answer: E
Diff: 3
managing quality
Type: Concept
85) When analyzing the results of a survey, open-ended questions are analyzed with Pareto
analysis using ________ of the various categories of responses.
A) means
B) numerical responses
C) bar charts
D) simple correlations
E) histograms
Answer: C
Diff: 2
managing quality
Type: Concept
86) If survey responses are consistent but they are not measuring the right thing, the instrument
is reliable but it is not valid.
Answer: TRUE
Diff: 3
managing quality
Type: Application
27
87) A continuum of "strongly disagree-disagree-neutral-agree-strongly agree" on a five-point
scale is an example of relatively ranked ordinal data points.
Answer: TRUE
Diff: 3
managing quality
Type: Application
88) Gathering data through focus groups and surveys are examples of passive data gathering.
Answer: FALSE
Diff: 1
managing quality
Type: Concept
89) Actively solicited customer feedback includes all supplier-initiated contact with customers.
Answer: TRUE
Diff: 2
managing quality
Type: Concept
90) Phone contacts and focus groups are referred to as hard data.
Answer: FALSE
Diff: 2
managing quality
Type: Concept
91) Soft data are measurement data such as height, weight, volume, or speed that can be
measured on a continuous scale.
Answer: FALSE
Diff: 2
managing quality
Type: Concept
28
92) Ordinal data are ranked so one measure is higher than the next.
Answer: TRUE
Diff: 1
managing quality
Type: Concept
93) A focus group allows a supplier to gather feedback from a group of consumers at one time.
Answer: TRUE
Diff: 1
managing quality
Type: Concept
94) Focus groups draw individuals with similar characteristics or demographics.

Answer: TRUE
Diff: 2
managing quality
Type: Concept
95) Criterion validity refers to whether the item really measures what we want to measure.
Answer: FALSE
Diff: 3
managing quality
Type: Concept
96) Construct validity indicates that your measuring instrument has the ability to predict or agree
with constructs external to that which you are measuring.
Answer: FALSE
Diff: 3
managing quality
Type: Concept
29
97) When analyzing the results of a survey, open-ended questions are analyzed with Pareto
analysis using bar charts of the various categories of responses.
Answer: TRUE
Diff: 2
managing quality
Type: Application
98) Differentiate between soft data and hard data.

Answer: Phone contacts, focus groups, and survey results are referred to as soft data. As
opposed to soft data, hard data are measurement data such as height, weight, volume, or speed
that can be measured on a continuous scale. Soft data are not continuous and are, at best, ordinal.
Diff: 1
managing quality
Type: Concept
99) What is the function of a focus group?

Answer: A focus group allows a supplier to gather feedback from a group of consumers at one
time. The groups are focused in two ways: First, focus groups narrowly address a single topic or
group of topics. Second, focus groups draw individuals with similar characteristics or
demographics. This limits the discussion to subjects and market segments that are of particular
interest to the firm.
Diff: 2
managing quality
Type: Concept
100) Differentiate between construct validity and content validity.

Answer: Construct validity refers to the use of certain terms and whether terms really measure
what it is we want to measure. For example, self-reported measures or percentage growth in sales
might not be a valid measure of success in customer satisfaction. Sales increases may instead
reflect favorable market conditions. Content validity, in contrast, refers to whether the item really
measures what we want to measure. Usually, this includes asking five or six "experts" to review
the instrument and determine whether the instrument is valid.
Diff: 2
managing quality
Type: Concept
30

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Test Bank for Managing Quality Integrating the

Supply Chain 6th Edition Foster 0133798259

Download full solution manual at:

Managing Quality: Integrating the Supply Chain, 6e (Foster)

2) ________ customers are the bill-paying receivers of a company's work.

9) The first component of a complaint-resolution process is ________.

12) Which of the following is not a component of an effective guarantee?

14) What are the three phases of customer-relationship management?

18) Internal customers are the bill-paying receivers of a company's work.

27) A guarantee outlines the customer's rights.

28) Guarantees should be designed prior to beginning business.

32) The enhancement phase of customer-relationship management involves improving service to

35) Explain the reactive customer-driven quality (RCDQ) model.

55) The SERVQUAL instrument was developed by ________.

61) Which of the following determinants of service quality involves trustworthiness,

68) To segment markets means to distinguish customers or markets according to common

69) What is gap analysis?

73) ________ includes all supplier-initiated contact with customers.

79) What is the first step in performing a focus group session?

80) A(n) ________ consists of a series of items designed to capture perceptions.

94) Focus groups draw individuals with similar characteristics or demographics.

98) Differentiate between soft data and hard data.

99) What is the function of a focus group?

100) Differentiate between construct validity and content validity.

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