Costs Of Quality/Service Quality

Question 1

Consequences of poor quality

Answer 1

Loss of business
Liability
Productivity
Cost to remedy

Question 2

Prevention appraisal failure (PAF) model

Answer 2

Prevention costs
Appraisal costs
Failure costs

Question 3

Purposes of collecting quality related costs

Answer 3

To display the importance of quality related activities to management
To show the impact of quality related activities to key business criteria
To assist in identifying projects and opportunities for improvement
To enable comparisons of performance
To establish basis for budgets
To provide cost information for motivational purposes

Question 4

Service quality dimensions

Answer 4

Intangible
Production and consumption is simultaneous
Heterogeneity – variability often exist in services as a function of labour and parts and non-standardisation of delivery
Many services cannot be stored to meet fluctuations in demand

Question 5

Benefits of good service

Answer 5

Enhancing customer loyalty
Increased opportunities for cross selling
Increased employee job satisfaction
Enhance corporate image

Question 6

Service quality gaps

Answer 6

Consumer expectations – management perceptions of consumer expectations
Management perceptions of consumer expectations – service quality specification
Service quality specification – actual service delivery
Actual service delivery – external communications about the service
Gaps 1 to 4 contribute to consumers expectations and perceptions of actual service being different

Question 7

Hygiene factors

Answer 7

Those that are expected by the customer, failure to deliver it will cause dissatisfaction

Question 8

Enhancing factors

Answer 8

Lead to customer satisfaction, failure to deliver will not necessarily cause dissatisfaction

Question 9

Dual threshold factors

Answer 9

Those for which failure to deliver will cause dissatisfaction, and delivery above a certain level will enhance customers perceptions of service and lead to satisfaction

Question 10

Why do dissatisfied people keep quiet?

Answer 10

Fear of hassle or too much trouble to complain
No one is available to complain to
No one cares
Don’t know where to complain
Customers see themselves as a source of service problem by their failure to perform in the creation of the service