Chapter 3

Question 1

Develop appropriate objectives through a proper framework that includes liaison with the customer, measure, monitor, and control the procedures that have been set up.

Answer 1

KEY TO ACHIEVING SUCCESSFUL CUSTOMER SERVICE

Question 2

THE IMPORTANCE OF CUSTOMER SERVICE

Answer 2

• Growth in competition
• Raising of customers’ expectations to the similarity of the basic products that are offered.

Question 3

concerns the item itself: the technical content, the product features, the ease of use, the style, and the quality.

Answer 3

The core product

Question 4

which can be called the ‘product surround’

Answer 4

The service elements

Question 5

The service elements, which can be called the

Answer 5

‘product surround’

Question 6

represent the product’s availability, the ease of ordering, the speed of delivery, and after-sales support.

Answer 6

The service elements

Question 7

The Pareto Rule or 80/20 rule, also known as the

Answer 7

Pareto principle

Question 8

This principle has profound implications across various domains, including business management, quality control, and personal productivity.

Answer 8

Pareto principle

Question 9

It’s also known as the “law of the vital few” or the “principle of factor sparsity”.

Answer 9

Pareto Rule

Question 10

Pareto Rule also known as the

Answer 10

“law of the vital few”
“principle of factor sparsity”

Question 11

refers to the Pareto Principle or 80/20 rule, which states that roughly 80% of outcomes come from 20% of causes, highlighting the importance of focusing on a small number of
key factors.

Answer 11

vital few

Question 12

originated from the observations of Vilfredo Pareto in the late 19th century

Answer 12

Pareto principle

Question 13

Who originated the Pareto principle?

Answer 13

Vilfredo Pareto

Question 14

He studying wealth distribution in Italy

Answer 14

Vilfredo Pareto

Question 15

He noted that a small number of people owned the majority of the land and wealth

Answer 15

Vilfredo Pareto

Question 16

This led him to formulate the principle that 80% of the effects come from 20% of the causes, a concept that has since been generalized and applied to numerous fields.

Answer 16

Vilfredo Pareto

Question 17

a pioneer in quality management, played a crucial role in popularizing the Pareto principle.

Answer 17

Dr. Joseph Juran

Question 18

He recognized its potential in improving business processes and quality control

Answer 18

Dr. Joseph Juran

Question 19

His contributions helped integrate the Pareto principle into Six Sigma and other quality management frameworks, emphasizing its importance in identifying the root cause of problems and focusing on high-impact solutions

Answer 19

Dr. Joseph Juran

Question 20

In business management, the ______ is a valuable tool for improving efficiency and effectiveness

Answer 20

80/20 rule

Question 21

It suggests that 80% of a company’s profits often come from 20% of its customers or products.

Answer 21

80/20 rule

Question 22

By identifying and focusing on these key areas, businesses can optimize their strategies and resources

Answer 22

Applying the 80/20 Rule in Business Management

Question 23

This principle also applies to problem-solving and decision-making, where addressing the critical 20% of issues can resolve 80% of the problems, enhancing the overall performance and profitability of the organization.

Answer 23

Applying the 80/20 Rule in Business Management

Question 24

SEVEN RIGHTS OF CUSTOMER SERVICE

Answer 24

1. Right Customer
2. Right Goods and Services
3. Right Price
4. Right Quality
5. Right Quantity
6. Right Time
7. Right Place

Question 25

Not all customers require the same level of service, and businesses must segment their customer base effectively to tailor services accordingly

Answer 25

Right Customer

Question 26

Companies need to ensure they are focusing their efforts on high-value customers who contribute most to the business.

Answer 26

Right Customer

Question 27

Customer service should ensure that the right goods or services are being provided to meet customer needs.

Answer 27

Right Goods and Services

Question 28

This requires efficient knowledge management and problem resolution systems to provide accurate information and guidance.

Answer 28

Right Goods and Services

Question 29

Customers expect fair pricing for the goods and services they purchase, and the customer service team must be empowered to address pricing concerns effectively

Answer 29

Right Price

Question 30

This right ensures that price-related queries or adjustments are handled swiftly and accurately.

Answer 30

Right Price

Question 31

Delivering goods and services of the right quality is fundamental to customer satisfaction.

Answer 31

Right Quality

Question 32

Customer service plays a pivotal role in identifying quality issues and ensuring swift resolutions.

Answer 32

Right Quality

Question 33

Right Quantity

Answer 33

Ensuring customers receive the correct quantity of goods or services is another vital aspect of customer service

Question 34

Over-delivering or under-delivering can cause dissatisfaction and operational inefficiencies.

Answer 34

Right Quantity

Question 35

Timeliness is a core element of excellent customer service.

Answer 35

Right Time

Question 36

The right service at the wrong time can lead to customer dissatisfaction, even if the quality is excellent.

Answer 36

Right Time

Question 37

Companies must ensure timely responses and resolutions.

Answer 37

Right Time

Question 38

Providing goods or services at the right place is critical, especially for businesses that rely on logistics and delivery.

Answer 38

Right Place

Question 39

Customer service teams must ensure that deliveries reach the correct location on time.

Answer 39

Right Place

Question 40

THE COMPONENTS OF CUSTOMER SERVICE

Answer 40

transaction-related elements functional attributes related

Question 41

where the emphasis is on the specific service provided, such as on-time delivery.

Answer 41

transaction-related elements

Question 42

to overall aspects of order fulfillment, such as ease of order taking.

Answer 42

functional attributes related

Question 43

are usually divided into three categories.

Answer 43

Transaction elements

Question 44

These reflect the nature and timing of the particular service requirements (before, during, and after delivery of the product)

Answer 44

Transaction elements

Question 45

three categories of Transaction Elements

Answer 45

1. Pre-transaction elements 2. Transaction elements 3. Post-transaction elements

Question 46

These are customer service factors that arise before the actual transaction taking place

Answer 46

Pre-transaction elements

Question 47

written customer service policy accessibility of order personnel single order contact point organizational structure method of ordering order size constraints system flexibility transaction elements

Answer 47

Pre-transaction elements

Question 48

These are the elements directly related to the physical transaction and are those that are most commonly concerned with distribution and logistics

Answer 48

Transaction elements

Question 49

order cycle time order preparation inventory availability delivery alternatives delivery time delivery reliability delivery of complete order condition of goods order status information

Answer 49

Transaction elements

Question 50

These involve those elements that occur after the delivery has taken place

Answer 50

Post-transaction elements

Question 51

availability of spares call-out time invoicing procedures invoicing accuracy product tracing/warranty returns policy customer complaints and procedures claims procedures

Answer 51

Post-transaction elements