Chapter 2

Question 1

Measurement

Answer 1

is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities.

Question 2

customer-satisfaction measurement system

Answer 2

A provides a company with customer ratings of specific goods and service features and indicates the relationship between those ratings and the customer’s likely future buying behavior.

Question 3

Quality

Answer 3

measures the degree to which the output of a process meets customer requirements.

Question 4

Goods quality

Answer 4

relates to the physical performance and characteristics of a good

Question 5

Service Quality

Answer 5

is consistently meeting or exceeding customer expectations (external focus) and service-delivery system performance (internal focus) for all service encounters.

Question 6

service failures/upsets

Answer 6

Errors in service creation and delivery are sometimes

Question 7

Processing time

Answer 7

is the time it takes to perform some task.

Question 8

Queue Time

Answer 8

is a fancy word for wait time—the time spent waiting.

Question 9

Flexibility

Answer 9

Is the ability to adapt quickly and effectively to changing requirements

Question 10

Goods and Service Design Flexibility

Answer 10

is the ability to develop a wide range of customized goods or services to meet different or changing customer needs.

Question 11

Volume flexibility

Answer 11

is the ability to respond quickly to changes in the volume and type of demand.

Question 12

Innovation

Answer 12

is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms.

Question 13

Learning

Answer 13

refers to creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change.

Question 14

Productivity

Answer 14

is the ratio of the output of a process to the input

Question 15

Operational efficiency

Answer 15

is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources.

Question 16

triple bottom line (TBL or 3BL)

Answer 16

refers to the measurement of environmental, social, and economic sustainability.

Question 17

Interlinking

Answer 17

The quantitative modeling of cause-andeffect relationships between external and internal performance criteria

Question 18

value of a loyal customer (VLC)

Answer 18

quantifies the total revenue or profit each target market customer generates over the buyer’s life cycle.

Question 19

Actionable measures

Answer 19

provide the basis for decisions at the level at which they are applied.