Test Bank For Quality and Performance Excellence 8th Edition Evans

Test Bank for Quality and Performance Excellence, 8th Edition Evans
Test Bank for Quality and Performance Excellence,

8th Edition Evans
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8th-edition-evans/
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CHAPTER 06— Quality in CustomerSupplier Relationships
1. From the total quality (TQ) perspective, every company is part of a long chain of customers and suppliers.
a. True
b. False
ANSWER: True
DIFFICULTY: Difficulty: Easy
ACCREDITING STANDARDS: BUSPROG: Analytic
DISC: Operations Management
TOPICS: DESC.EVAL.17.06.01 Customer-Supplier Relationships and Performance
Excellence
KEYWORDS: Bloom's: Knowledge
2. Customers are more likely to switch because of perceived service problems than for product quality issues.
a. True
b. False
ANSWER: True
Excellence
3. The upstream portion of the supply chain has little impact on the quality of goods and services that downstream
customers receive.
a. True
b. False
ANSWER: False
Excellence
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4. Adhering strictly to job descriptions and performing only the listed duties is one of the governing principles that
describe customer-supplier relationships under total quality.
a. True
b. False
ANSWER: False
TOPICS: DESC.EVAL.17.06.02 Principles for Customer-Supplier Relationships
5. The goal of building partnerships with customers and suppliers can be seen as an extension of the teamwork
principle that applies to all TQ activities.
a. True
b. False
ANSWER: True
6. The foundation of trust which forms the basis of effective customer-supplier relationships is what Juran describes as
the “pattern of collaboration.”
a. True
b. False
ANSWER: True

7. Along with the obvious teamwork implications for relationships based on trust versus suspicion, monitoring supplier or
customer behavior adds value to the product.
a. True
b. False
ANSWER: False
8. Multiple levels of review and inspection incur substantial cost with the suppliers.
a. True
b. False
ANSWER: True
9. One of the challenges of monitoring the Internet for information is that unlike a focus group or telephone interview,
inaccurate perceptions or factual errors cannot be corrected.
a. True
b. False
ANSWER: True
TOPICS: DESC.EVAL.17.06.03 Practices for Dealing with Customers
10. “Implication” refers to the collection of associations and emotions unconsciously linked to a word, concept, or
experience.
a. True
b. False
ANSWER: False
11. Quality function deployment (QFD) allows people to see how aspects of their products and services relate to
customer satisfaction.
a. True
b. False
ANSWER: True
12. In the Baldrige criteria, one of the key questions is how a company collects and analyzes customer and market
needs, expectations, and opportunities, and relates them to the development of strategies.
a. True
b. False
ANSWER: True
13. In a product market transaction, customer satisfaction or dissatisfaction takes place during moments of truth.
a. True
b. False
ANSWER: False
TOPICS: DESC.EVAL.17.06.04 Managing Customer Relationships
14. Moments of truth may be direct contacts with customer representatives or service personnel, or when customers
read letters, invoices, or other company correspondence.
a. True
b. False
ANSWER: True
15. Service standards might include technical standards or behavioral standards.

a. True
b. False
ANSWER: True
16. Customer relationship management software is designed to help companies increase customer loyalty, target their
most profitable customers, and streamline customer communication processes.
a. True
b. False
ANSWER: True
17. The first and most obvious practice to achieve performance excellence is that purchasing decisions should be based
only on the product’s cost.
a. True
b. False
ANSWER: False
TOPICS: DESC.EVAL.17.06.05 Practices for Dealing with Suppliers
18. Firms pursuing TQ aim to reduce the number of suppliers they work with to the point of having only one supplier for
some components.
a. True
b. False
ANSWER: True
19. One of the benefits of reducing the number of suppliers is that there are fewer “special causes” of variation.
a. True
b. False
ANSWER: True
20. One common form that cooperation takes is the early involvement of suppliers in the design of new products.
a. True
b. False
ANSWER: True
21. Security concerns in customer-supplier relationships can be dealt with through nondisclosure agreements.
a. True
b. False
ANSWER: True
22. Deming recommends joint quality planning between customers and suppliers, featuring the exchange of quality-
related information.
a. True
b. False
ANSWER: False

23. Other than the four identified by Gersuny and Rosengren, a fifth role for customers is to be a key outcome, or
product, of value-creating transformation activities.
a. True
b. False
ANSWER: True
TOPICS: DESC.EVAL.17.06.07 Customer-Supplier Relationship in Organization Theory
24. The Resource Dependence Perspective deals with how organizations manage to get the resources they need from
their environment.
a. True
b. False
ANSWER: True
25. According to the Resource Dependence Perspective, the effectiveness of an organization should be understood in
terms of how well it meets the demands of internal groups and organizations that are concerned with its actions and
products.
a. True
b. False
ANSWER: False

26. Unlike Resource Dependence Perspective, the total quality perspective recognizes that organizations must satisfy the
demands of not only customers, but also other entities in the environment including various government agencies,
interest groups, shareholders, and—to some extent —society as a whole.
a. True
b. False
ANSWER: False
27. Quality customer-supplier relationships are seen from the total quality (TQ) perspective as consisting of mutually
beneficial partnerships.
a. True
b. False
ANSWER: True
28. One similarity between TQ and the RDP is that they both believe that managing interdependencies with other
organizations is a key to success.
a. True
b. False
ANSWER: True

29. One of the key ideas of integrative bargaining—invent options for mutual gain—refers to the fact that it is difficult to
make decisions in the presence of an adversary.
a. True
b. False
ANSWER: True
TOPICS: DESC.EVAL.17.06.07 Customer-Supplier Relations in Organization Theory
30. One of the key principles of integrative bargaining says that fair solutions result from the personalities of the
negotiators rather than deciding on the criteria on which to evaluate the result.
a. True
b. False
ANSWER: False
31. In Japanese, the word _____ means both “customer” and “honorable guest.”
a. seiketsu
b. shitsuke
c. kaizen
d. okyakusama
ANSWER: d
Excellence

32. Customer _____ refers to customers’ investment in or commitment to a brand and product offerings.
a. perception
b. support
c. engagement
d. service
ANSWER: c
Excellence
33. Characteristics of customer _____ include customer retention and loyalty, customers’ willingness to make an effort
to do business with the organization, and customers’ willingness to actively advocate for and recommend the brand
and product offerings.
a. service
b. engagement
c. support
d. perception
ANSWER: b
Excellence
34. _____ are those companies that provide the organization with goods and services that help them to satisfy the needs
of their own customers.
a. Delighters
b. Suppliers
c. Retailers
d. Satisfiers
ANSWER: b
Excellence

35. A _____ includes the materials and other inputs purchased from suppliers and their use in the production of goods
and services.
a. supply chain
b. consumption chain
c. semantic network
d. associative network
ANSWER: a
Excellence
36. _____ developed a useful framework to distinguish between adversarial and teamwork relationships with suppliers.
a. Joseph Juran
b. W. Edwards Deming
c. Philip B. Crosby
d. Jeffrey Pfeffer
ANSWER: a
37. Which of the following terms refer to meeting customer needs rather than simply trying to conform to specifications?
a. Policy deployment
b. Benchmarking
c. Least cost benefit
d. Fitness for use
ANSWER: d

38. The third principle of effective customer-supplier relationship which states that the relationship must be based on
trust rather than suspicion was described as pattern of collaboration by _____.
a. Joseph Juran
b. Edwards Deming
c. Philip B. Crosby
d. Frederick Taylor
ANSWER: a
39. Both RDP and TQ share the idea that:

a. organizations must exclusively focus on satisfying the demands of the customers.
b. interdependence should be managed by gaining total control over the other organization.
c. the sources of an organization's success lie within its boundaries.
d. managing interdependencies with other organizations is a key to success.
ANSWER: d
40. Executives of Credit Suisse practice _____, by which they watch customers, perform typical customer tasks, such
as exchanging foreign currency or navigating the firm’s own website, and even spend a day in a wheelchair to
understand the challenges that disabled customers face.
a. experience illusion
b. experience immersion
c. quality function deployment
d. pattern of collaboration
ANSWER: b

41. A formal approach to getting into customers’ minds that involves looking deeply into people’s past experiences for
events and experiences that generated strong emotions at an early age is called:
a. imprint analysis.
b. subliminal decoding.
c. dream analysis.
d. suggestion mapping.
ANSWER: a
42. In relation to an approach to get into customers’ minds, _____ refers to the collection of associations and emotions
unconsciously linked to a word, concept, or experience.
a. implication
b. imprint
c. moments of truth
d. illusion
ANSWER: b
43. In relation to the practices for dealing with customers, _____ is the next step after people in the organization have
gathered information about customer needs.
a. broadcasting the information collected within the organization
b. measuring customers’ levels of loyalty and engagement
c. measuring customers’ perceptions of satisfaction
d. using the information to create process variance
ANSWER: a

44. Which of the following is a key idea of integrative bargaining?

a. Integrate people and the problem
b. Focus more on positions than interests
c. Invent options for self-gain
d. Insist on using objective criteria
ANSWER: d
45. Translating customer needs into product features can be done in a structured manner using:
a. the Delphi method.
b. competitive intelligence.
c. flowcharting.
d. quality function deployment.
ANSWER: d
46. With respect to customer satisfaction attributes, _____ is a product attribute.

a. price
b. usability
c. exception handling
d. on-time delivery
ANSWER: b

47. With respect to customer satisfaction attributes, _____ is a service attribute.

a. process variance
b. accountability
c. usability
d. price
ANSWER: b
48. With respect to customer satisfaction attributes, _____ is an image attribute.

a. exception handling
b. reliability
c. on-time delivery
d. usability
ANSWER: b
49. Integrative bargaining is also called what type of negotiation?

a. Distributive
b. Principled
c. Positional
d. Hard-bargaining
ANSWER: b

50. The metric net promoter score was developed by _____.

a. Edwards Deming
b. Frederick Taylor
c. Joseph Juran
d. Fred Reichheld
ANSWER: d
51. As per the net promoter score, scores of 9 and 10 are usually associated with _____.
a. promoters
b. passives
c. detractors
d. dissatisfiers
ANSWER: a
52. As per the net promoter score, scores of 7 and 8 are usually associated with _____.
a. detractors
b. promoters
c. passives
d. dissatisfiers
ANSWER: c
DISC: Operational Management

53. As per the net promoter score, _____ is the term used for customers who are satisfied but may switch to
competitors.
a. executors
b. passives
c. detractors
d. promoters
ANSWER: b
DISC: Operational Management
54. As per the net promoter score, scores of 6 or below represent _____.
a. passives
b. promoters
c. satisfiers
d. detractors
ANSWER: d
55. In the context of integrative bargaining, fair solutions result from deciding on the:
a. feasibility of the solution.
b. personalities of the negotiators.
c. criteria on which to evaluate the result.
d. degree of compromise the adversary is willing to make.
ANSWER: c

56. In services, customer satisfaction or dissatisfaction takes place during instances in which a customer comes in
contact with an employee of the company. These instances are called:
a. moments of truth.
b. critical to quality moments.
c. turning points.
d. focal points.
ANSWER: a
57. Customer relationship management helps firms gain and maintain competitive advantage by:
a. integrating markets irrespective of demography or behavioral characteristics.
b. streamlining processes around traditional functions rather than customers.
c. continuing to make products that better meet customers’ needs and provide increased value.
d. forecasting customer retention and defection rates.
ANSWER: d
58. _____ are measurable performance levels or expectations that define the quality of customer contact.
a. Satisfaction standards
b. Features and benefits
c. Contact quality measures
d. Service standards
ANSWER: d

59. Customer _____ software is designed to help organizations increase customer loyalty, target their most profitable
customers, and streamline customer communication processes.
a. imprint
b. relationship management
c. service support
d. interrelationship
ANSWER: b
60. While dealing with suppliers, it is important to:

a. base purchasing decisions on cost; not quality.
b. increase the number of suppliers.
c. establish short-term contracts.
d. measure and certify supplier performance.
ANSWER: d
61. Many firms use a metric called the _____ to measure customer loyalty and engagement.
a. collaboration spectrum
b. core competency score
c. imprint scale
d. net promoter score
ANSWER: d

62. The _____ is the difference in the percentage of promoters and detractors.
a. collaboration spectrum
b. net promoter score
c. imprint scale
d. core competency score
ANSWER: b
63. According to Gersuny and Rosengren, customers have four distinct roles. Which of the following is one of them?
a. Distributor
b. Supplier
c. Coworker
d. Employer
ANSWER: c
64. The Resource Dependence Perspective was developed by:

a. Philip B. Crosby and Jeffrey Pfeffer.
b. Jeffrey Pfeffer and Gerald Salancik.
c. Joseph Juran and Philip B. Crosby.
d. Edwards Deming and Joseph Juran.
ANSWER: b

65. The most important similarity between the Resource Dependence Perspective and Total Quality is their mutual
emphasis on the idea:
a. of internal customers as a key quality perspective.
b. that human resources are the key competitive edge for any organization.
c. of constituencies of quality at different levels of the organization.
d. that the sources of an organization's success lie outside its boundaries.
ANSWER: d
66. Which of the following ideas of integrative bargaining deals with eliminating emotions from issues, forcing
participants to work together to attack the problem and not each other?
a. Separating the people from the problem
b. Inventing options for mutual gain
c. Focusing on interest, not positions
d. Insisting on using objective criteria
ANSWER: a
67. What is the TQ view on customer-supplier relationships?

ANSWER: From the TQ perspective, every company is part of a long chain of customers and
suppliers. Each company is a customer to its suppliers and a supplier to its
customers, so it does not make sense to think of a company as only one or the
other. One implication of this concept is that your customer’s customers are your
customers as well.
Excellence

68. Describe the role of customer engagement in performance excellence.

ANSWER: Customer engagement refers to customers’ investment in or commitment to a
brand and product offerings. Customer engagement goes beyond loyalty and is an
important outcome of a customerfocused culture and the organization’s listening,
learning, and performance excellence strategy. Characteristics of customer
engagement include customer retention and loyalty, customers’ willingness to make
an effort to do business with the organization, and customers’ willingness to
actively advocate for and recommend the brand and product offerings.
DIFFICULTY: Difficulty: Moderate
Excellence
69. What is the impact of suppliers on performance excellence?

ANSWER: The quality of goods and services received from suppliers has a significant effect
on the quality of goods and services that downstream customers receive. If a
supplier’s performance is of consistently high quality, its customer can decrease or
eliminate costly incoming inspections that add no value to the product. The
importance of suppliers is at least as great when they provide training, software, or
other goods or services that do not physically become part of the final product;
they will influence its quality nevertheless by shaping the quality of the processes
used to produce it.
DIFFICULTY: Difficulty: Moderate
Excellence
70. What are the key principles for effective customer-supplier relationships?
ANSWER: Three governing principles describe CSRs under total quality:
1) recognition of the strategic importance of customers and suppliers,
2) development of win-win relationships between customers and suppliers, and
3) establishing relationships based on trust.

71. What is the benefit of the teamwork approach in customer-supplier relationships?

ANSWER: The goal of building partnerships with customers and suppliers can be seen as an
extension of the teamwork principle that applies to all TQ activities. Traditionally,
customers have used many different suppliers for the same purchased item, and
they typically have been awarded short-term contracts. This practice fosters a
competitive situation in which suppliers strive to outbid each other and may
sacrifice quality for cost. A teamwork relationship results in the need for fewer
suppliers, with many items being single-sourced. With few suppliers, companies do
not have to rely on annual bidding, and can award longer-term contracts. This
enhances the motivation to work together for mutual benefits.
72. List the practices used to improve customer-supplier relationships.

ANSWER: The most basic practices for dealing with customers are: (1) collect information
constantly on customer expectations; (2) disseminate this information widely within
the organization; (3) use the information to design, produce, and deliver the
organization’s products and services; and (4) measure customers’ perceptions of
satisfaction and their levels of loyalty and engagement.
73. List some of the most popular ways of collecting information about customers.
ANSWER: Some of the most popular ways to collect information about customers are surveys,
service evaluation cards, focus groups, and listening to what customers say during
business transactions, especially when they complain. Having top managers of a
company act as customers of their own organizations is another way to better
understand customer needs. A more recent approach to collecting customer
information is to monitor the Internet and social media.

74. Describe imprint analysis.

ANSWER: A more formal approach to getting into customers’ minds is called imprint analysis.
“Imprint” refers to the collection of associations and emotions unconsciously linked
to a word, concept, or experience. The stronger the emotion, the stronger is the
imprint. Events and experiences imprinted with strong emotions at an early age
usually last just below the level of consciousness for a person’s entire life. By
looking deeply into people’s past experiences, imprint analysis can help companies
understand what drives today’s behavior. Also, imprints of current experiences
reveal emerging needs; thus, imprint analysis can actually forecast customer
behavior.
75. What are the commonly used factors to measure customer loyalty and engagement?
ANSWER: Commonly used factors to measure customer loyalty and engagement are:
1) Overall satisfaction
2) Likelihood of a first-time purchaser to repurchase
3) Likelihood to recommend
4) Likelihood to continue purchasing the same products or services
5) Likelihood to purchase different products or services
6) Likelihood to increase frequency of purchasing
7) Likelihood to switch to a different provider

76. How does CRM help firms gain and maintain competitive advantage?
ANSWER: CRM helps firms gain and maintain competitive advantage by:
1) Segmenting markets based on demographic and behavioral characteristics.
2) Tracking sales trends and advertising effectiveness by customer and market
segment.
3) Identifying and eliminating non-value-adding products that would waste
resources as well as those products that better meet customers’ needs and provide
increased value.
4) Identifying which customers should be the focus of targeted marketing initiatives
with predicted high customer response rates.
5) Forecasting customer retention (and defection) rates and providing feedback as
to why customers leave a company.
6) Studying which goods and services are purchased together, leading to good
ways to bundle them.
7) Studying and predicting which Web characteristics are most attractive to
customers and how the website might be improved.
8) Streamlining processes around customers rather than traditional functions,
resulting in improved flow of information and cycle times.
77. List the three guiding principles upon which a strong customer/supplier relationship is based.
ANSWER: Strong customer/supplier relationships are based on three guiding principles:
1) recognizing the strategic importance of suppliers in accomplishing business
objectives, particularly minimizing the total cost of ownership,
2) developing win-win relationships through partnerships rather than as adversaries,
and
3) establishing trust through openness and honesty, thus leading to mutual
advantages.

Test Bank for Quality and Performance Excellence, 8th Edition Evans
78. What are the benefits of reducing the number of suppliers?

ANSWER: The first advantage of reducing the number of suppliers is that administrative costs
are greatly reduced. Also, cutting the number of suppliers reduces the variability in
the incoming products, making it much easier to control the quality of outgoing
products. This is because there are fewer “special causes” of variation.
79. Discuss the roles for customers identified by Gersuny and Rosengren.
ANSWER: Gersuny and Rosengren identified four distinct roles for customers:
1) resource,
2) worker (or coworker),
3) buyer, and
4) beneficiary (or user).
A fifth role has emerged from work in the human service area: Customers can be
a key outcome, or product, of value-creating transformation activities, such as
education and health delivery. In the first two roles, customers act as inputs to the
transformation process, while in the last three, they act as outputs. Each of these
roles is instrumental in creating competitive quality within a firm.
80. List the key ideas of integrative bargaining.

ANSWER: The key ideas of integrative bargaining (or principled negotiation) are:
1) separate the people from the problem;
2) focus on interests, not positions;
3) invent options for mutual gain; and
4) insist on using objective criteria.
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Test Bank for Quality and Performance Excellence, 8th Edition Evans

Test Bank for Quality and Performance Excellence,

To download the complete and accurate content document, go to:

Visit TestBankBell.com to get complete for all chapters

Cengage Learning Testing, Powered by Cognero Page 1

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15. Service standards might include technical standards or behavioral standards.

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39. Both RDP and TQ share the idea that:

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44. Which of the following is a key idea of integrative bargaining?

46. With respect to customer satisfaction attributes, _____ is a product attribute.

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47. With respect to customer satisfaction attributes, _____ is a service attribute.

48. With respect to customer satisfaction attributes, _____ is an image attribute.

49. Integrative bargaining is also called what type of negotiation?

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50. The metric net promoter score was developed by _____.

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60. While dealing with suppliers, it is important to:

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64. The Resource Dependence Perspective was developed by:

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67. What is the TQ view on customer-supplier relationships?

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68. Describe the role of customer engagement in performance excellence.

69. What is the impact of suppliers on performance excellence?

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71. What is the benefit of the teamwork approach in customer-supplier relationships?

72. List the practices used to improve customer-supplier relationships.

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74. Describe imprint analysis.

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CHAPTER 06— Quality in Customer­Supplier Relationships

78. What are the benefits of reducing the number of suppliers?

80. List the key ideas of integrative bargaining.

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CHAPTER 06— Quality in CustomerSupplier Relationships