Chapter 2

Question 1

What is the definition of customer service?

Answer 1

Customer service refers to the support and assistance provided to customers before, during, and after purchasing products or services.

Question 2

What are the benefits of prioritizing customer service?

Answer 2

• More loyal customers
• More positive reviews
• Increased revenue

Question 3

List the reasons why customer service is important.

Answer 3

• Retention of customers
• Building a good reputation for the company
• Solidifying customer loyalty
• Getting referrals
• Increase in sales
• Attracting more investors
• Retaining employees

Question 4

What does GDP per capita influence in the service sector?

Answer 4

As GDP per capita rises, demand for services increases due to their more income-elastic nature.

Question 5

What is Foreign Direct Investment (FDI)?

Answer 5

FDI occurs when a company or individual invests in another country by opening businesses or acquiring assets.

Question 6

How does trade openness affect the service sector?

Answer 6

Trade openness can enhance access to service markets but may also lead to increased demand for domestic goods over services.

Question 7

What role do innovations play in the service sector?

Answer 7

Innovations improve efficiency and productivity, driving growth in the service sector, especially in developing economies.

Question 8

What is the productivity gap?

Answer 8

The productivity gap refers to the difference in output per worker between sectors, such as manufacturing and services.

Question 9

How do cultural norms influence customer service?

Answer 9

Cultural norms shape expectations and behaviors in customer interactions, impacting service delivery.

Question 10

What societal factor includes personal experiences in customer service?

Answer 10

Personal experiences influence customer expectations and satisfaction with services.

Question 11

True or False: Social media has no impact on consumer purchasing decisions.

Answer 11

False

Question 12

What changes in consumer behavior emerged due to the COVID-19 pandemic?

Answer 12

• Increased focus on convenience
• Emphasis on safety
• Value for money

Question 13

Fill in the blank: Consumers expect _______ when shopping online.

Answer 13

[multiple payment options]

Question 14

What are the six major components of a customer-focused environment?

Answer 14

• The customer
• Organizational culture
• Human resources
• Products/Deliverables
• Delivery systems
• Service

Question 15

What is one element of a successful customer service culture?

Answer 15

• Understanding customer expectation

Question 16

What does effective communication in customer service involve?

Answer 16

Connecting with customers clearly and effectively.

Question 17

What is the importance of personalized customer interactions?

Answer 17

Personalization shows that the business cares about each customer as an individual.

Question 18

What role does employee training play in customer service?

Answer 18

Well-trained employees ensure knowledgeable and efficient assistance to customers.

Question 19

Why is feedback important in customer service?

Answer 19

Feedback helps businesses understand customer preferences, dislikes, and needs.