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INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS
 
Managing Quality Integrating The Supply Chain 6th Edition by S. Thomas Foster – Test Bank
Sample  Questions

 

Managing Quality: Integrating the Supply Chain, 6e (Foster)

Chapter 3   Global Supply Chain Quality and International Quality Standards

 

1) ________ allows foreign firms to sell in restricted markets while using the design of the original designer.

  1. A) Exporting
  2. B) Franchising
  3. C) Licensing
  4. D) Importing
  5. E) Partnering

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

2) By changing their ________ environment, firms locate themselves near to or far away from natural resources.

  1. A) economic
  2. B) task
  3. C) physical
  4. D) global
  5. E) social

Answer:  C

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

3) The portion of a firm’s environment that has to do with the operating structure the firm encounters when globalizing is called the ________ environment.

  1. A) global
  2. B) physical
  3. C) social
  4. D) task
  5. E) economic

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

4) The ________ environment facing globalizing corporations refers to cultural factors such as language, business customs, customer preferences, and patterns of communication.

  1. A) task
  2. B) social
  3. C) physical
  4. D) global
  5. E) economic

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

5) ________ produce their products and ship them internationally.

  1. A) Exporters
  2. B) Licensors
  3. C) Franchisors
  4. D) Importers
  5. E) Retailers

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

6) By licensing, a U.S. firm can allow foreign firms to sell in restricted markets while using the design of the original designer.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

 

7) Through licensing, firms are able to reach international markets without having to establish international supply chains or marketing arms.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

8) The benefits of licensing and partnering are that the exporting firm does not have to globalize to make sales in international markets.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

9) With growing economies in many parts of the world, firms need to globalize to participate in these markets.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

10) The social environment of the firm has to do with the operating structure that the firm encounters when globalizing.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

 

11) The physical environment facing globalizing corporations refers to cultural factors such as language and business customs.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

12) Market diversity drives the need for culture-specific research and development.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

13) Importers produce their products and ship them internationally.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

14) What is globalization?

Answer:  Globalization means that a firm fundamentally changes the nature of its business by establishing production and marketing facilities in foreign countries. We refer to these firms as multinational corporations. With growing economies in many parts of the world, such as Mexico, India, Brazil, Eastern Europe, China, and Russia, firms need to globalize to participate in these markets. However, there are effects of globalization that firms often overlook. By globalizing, firms significantly change the physical environment, the task environment, and the social environment in which they operate.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

 

15) Describe the differences between the task environment and the social environment of a firm.

Answer:  The task environment of the firm has to do with the operating structure that the firm encounters when globalizing. In contrast, the social environment facing globalizing corporations refers to cultural factors such as language, business customs, customer preferences, and patterns of communication.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

 

16) Explain the role of exporters in international markets. What are the difficulties they face?

Answer:  Exporters produce their products and ship them internationally, incurring high shipping costs but avoiding many of the problems, such as loss of control associated with globalization. However, success on a multinational scale may be more difficult to attain for exporters because they never develop the marketing expertise and logistical capabilities associated with entering foreign markets. Many times pure exporters are subject to limitations that resident companies do not have in terms of import tariffs and import restrictions.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.1 Understand the importance of quality in global economics.

AACSB:  Application of Knowledge

Type:  Concept

17) Which of the following approaches to quality is influenced by a culture of waste reduction due to limited natural resources and high importing costs?

  1. A) the Japanese approach
  2. B) the European approach
  3. C) the Chinese approach
  4. D) the American approach
  5. E) the Russian approach

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

 

 

18) Which of the following quality approaches is influenced by a culture of results and focuses on the benefits quality provides to the bottom-line?

  1. A) the Japanese approach
  2. B) the European approach
  3. C) the Chinese approach
  4. D) the American approach
  5. E) the Russian approach

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

 

19) The ________ approach to quality is most sensitive to employees and employee satisfaction as a result of strong unions.

  1. A) Japanese
  2. B) European
  3. C) Chinese
  4. D) American
  5. E) Russian

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

20) Group technology is utilized among which of the following cultures as a quality method?

  1. A) Japanese
  2. B) European
  3. C) Chinese
  4. D) American
  5. E) Russian

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

 

 

21) The European cultural approach to quality is based in waste elimination and an ethic of consistency.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

 

22) Americans have a command-and-control approach to quality based upon a culture of political and military business management practices.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

 

23) How does culture influence the Japanese approach to quality management?

Answer:  With the limited natural resources in Japan due to the small size of its landmass, many raw materials are imported in to the country at a premium cost. This creates a cultural ethic that appreciates precious resources and is determined to reduce waste. Additionally, the culture values consistency and awards those who conform to quality standards with the Deming Prize, which is focused on process improvement and quality business practices.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Concept

 

24) How do the Japanese and American approaches to quality management differ? What factors have shaped those differences and what evidences the differences in quality values?

Answer:  The American approach to quality management is results-oriented while the Japanese approach is process-oriented. The differences are apparent in evaluating criteria of the American Baldrige Award as opposed to the Japanese Deming prize as well. Economic factors such as high export costs and the physical environment also play a role in Japan’s focus on eliminating waste and valuing resources. Americans also have a social environment that is customer-focused and that is reflected in its approach to quality. Global, cultural, and environmental factors have shaped the differences in approaches to quality management in Japan and America.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.2 Explain the role of culture in quality approaches.

AACSB:  Application of Knowledge

Type:  Synthesis

 

25) The ________ for quality was established in 1951 by the Japanese Union of Scientists and Engineers.

  1. A) Deming Prize
  2. B) Juran Prize
  3. C) Ishikawa Prize
  4. D) Taguchi Prize
  5. E) Baldrige Prize

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

26) The Deming Prize is awarded to individuals and groups who have contributed to the field of ________.

  1. A) lean manufacturing
  2. B) quality control
  3. C) sales management
  4. D) just-in-time production
  5. E) strategic planning

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

27) Which of the following is a category of the Deming Prize?

  1. A) information analysis
  2. B) workforce focus
  3. C) strategic planning
  4. D) partnerships and resources
  5. E) customer results

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

28) Which of the following is a category of the European Quality Award?

  1. A) policy deployment
  2. B) operations focus
  3. C) information analysis
  4. D) partnerships and resources
  5. E) human resources development

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

29) The Deming Prize is awarded to individuals and groups who have contributed to the field of quality control.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

 

30) Customer focus and workforce focus are categories of the Deming Prize.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

31) Leadership and strategy are categories of the European Quality Award.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

32) The highest level of the European Quality Award is the award for the most accomplished applicant in a given year.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

33) The European Quality Award focuses on those things that lead to customer service and improved products, whereas the Baldrige criterion focuses on employee satisfaction as an outcome of the quality system.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.3 Compare and contrast American, European, and Japanese approaches to quality management.

AACSB:  Application of Knowledge

Type:  Concept

 

 

34) The model for the Baldrige consists of ________ interrelated categories that compose the organizational system for performance.

  1. A) four
  2. B) five
  3. C) six
  4. D) seven
  5. E) eight

Answer:  D

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

35) The basis of the Baldrige model is ________.

  1. A) operations management
  2. B) information and analysis
  3. C) accounting and finance
  4. D) statistical process control
  5. E) Six Sigma

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

36) Which of the following categories is not a criterion for the Malcolm Baldrige Award?

  1. A) Internet competencies
  2. B) operations focus
  3. C) strategic planning
  4. D) business results
  5. E) leadership

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

37) Which of the following Baldrige criteria is used to evaluate the extent to which top management is personally involved in creating and reinforcing goals, values, directions, and customer involvement?

  1. A) workforce focus
  2. B) leadership
  3. C) strategic planning
  4. D) operations focus
  5. E) business results

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

38) Which of the following Baldrige criteria requires the applicant to outline what the firm is doing to fulfill its responsibility as a corporate citizen?

  1. A) business results
  2. B) operations focus
  3. C) strategic planning
  4. D) leadership
  5. E) customer focus

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

39) Which of the following Baldrige criteria focuses on how a firm assesses the relative importance of product or service features to the customer?

  1. A) operations focus
  2. B) business results
  3. C) customer focus
  4. D) leadership
  5. E) strategic planning

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

40) Which of the following Baldrige criteria involves developing an internal environment conducive to full participation and personal growth, including human resources development?

  1. A) workforce focus
  2. B) strategic planning
  3. C) measurement, analysis, and knowledge management
  4. D) customer focus
  5. E) leadership

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

41) Which of the following Baldrige criteria examines key aspects such as customer focus in design, work system, design for services and products, support processes, and processes relating to partners?

  1. A) workforce focus
  2. B) strategic planning
  3. C) measurement, analysis, and knowledge management
  4. D) business results
  5. E) operations focus

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

42) What is the first step for a firm applying for the Baldrige award?

  1. A) a review of financial statements
  2. B) quality assessment
  3. C) a site-visit by examiners
  4. D) eligibility determination
  5. E) consensus review

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

43) What is the main purpose of a Baldrige site visit?

  1. A) to introduce the selection committee to the top management team of the contending firm
  2. B) to formally congratulate an award winner
  3. C) to verify and clarify those portions of the Baldrige application having the greatest impact on the judges’ scores
  4. D) to discuss the outcome of the evaluation process
  5. E) to collect additional information on each of the seven evaluation criteria

Answer:  C

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

44) What is the major reason for the decrease in the number of applicants for the Malcolm Baldrige Award?

  1. A) decline in the prestige associated with the award
  2. B) high application fee
  3. C) difficulty associated with winning the award
  4. D) lack of legitimacy of the award criteria
  5. E) low focus on quality

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

45) In the ________ approach, the scores required to win the state awards are lower than those for the national awards.

  1. A) multilevel
  2. B) Baldrige quality
  3. C) Baldrige-lite
  4. D) full-Baldrige
  5. E) consensus

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

46) The ________ approach uses the Baldrige criteria but with a simplified process or application.

  1. A) Baldrige quality
  2. B) consensus
  3. C) full-Baldrige
  4. D) Baldrige-lite
  5. E) multilevel

Answer:  D

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

47) In the multilevel approach, the top level includes the ________ approach.

  1. A) consensus
  2. B) full-Baldrige
  3. C) strategic
  4. D) Baldrige quality
  5. E) Baldrige-lite

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

48) In the multilevel approach, the second level includes the ________ approach.

  1. A) consensus
  2. B) full-Baldrige
  3. C) strategic
  4. D) Baldrige quality
  5. E) Baldrige-lite

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

49) Which of the following is a category of the Baldrige Award?

  1. A) policy development
  2. B) information analysis
  3. C) workforce focus
  4. D) partnerships and resources
  5. E) management system

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

50) The Baldrige criteria are nonprescriptive and adaptable.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

51) The Baldrige criteria specify which tools, techniques, or organization a company should use to improve.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

52) The Baldrige criterion that evaluates the extent to which top management is personally involved in creating and reinforcing goals is the leadership category.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

53) Customer focus involves developing an internal environment conducive to full participation and personal growth, including human resources development.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

54) The main purpose of a Baldrige site visit is to collect additional information on each of the seven evaluation criteria.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

55) The scoring summary in the feedback report is a synthesis of the most important strengths and areas for improvement for each of the seven Baldrige categories.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

56) The examiners for the Baldrige Award demonstrate their commitment to its core values by being willing to give up approximately 10% of their year to serve on the board with no compensation.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

 

57) In the full-Baldrige approach, the scores required to win the state awards are higher than those for the national awards.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

58) The Baldrige-lite approach uses the Baldrige criteria but with a simplified process or application.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

59) Information analysis is a category of the Baldrige Award.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

60) Describe the key characteristics of the Malcolm Baldrige Award.

Answer:  The criteria focus on business results. Companies must show outstanding results in areas such as financial performance, customer satisfaction, customer retention, product performance, service performance, productivity, supplier performance, and public citizenship. The Baldrige criteria are nonprescriptive and adaptable. Although the focus of the Baldrige is on results, the means for obtaining these results are not prescribed. The criteria support company-wide alignment of goals and processes, and permit goal-based diagnosis.

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

61) Explain the seven interrelated categories of the Baldrige Award that compose the organizational system for performance.

Answer:  Category 1 provides the award criteria for leadership. This category is used to evaluate the extent to which top management is personally involved in creating and reinforcing goals, values, directions, customer involvement, and a variety of other issues.

Category 2 focuses on how the company establishes strategic directions and how it sets its tactical action plans to implement the strategic plans.

Category 3 addresses customer focus. To be successful in serving the customer, firms must understand the product and service attributes that are important to the customer.

Category 4, measurement, analysis, and knowledge management, relates to the firm’s selection, management, and use of information to support company processes and to improve firm performance.

Category 5 deals with the workforce focus. The workforce is to be enabled to develop and use its full potential, aligned with company objectives.

Category 6 examines key aspects of operations focus. These aspects include customer focus in design, work system, design for services and products, support processes, and processes relating to partners.

Category 7 documents the results of the other categories and requires a series of tables and graphs that demonstrate the operational and business results of the firm.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

62) Explain the term “Baldrige-qualified.”

Answer:  For the firm applying for the Baldrige award, the first step is eligibility determination. Once eligibility is established, the applicant sends the completed application to NIST. The application is then subjected to first-round review by Baldrige examiners. During this review, examiners read and score the applications. Judges then review the scoring to determine which applicants will continue to consensus. During the consensus phase, between five and eight examiners who have scored the application participate in a conference call to determine a consensus score for each of the scoring items.

Once consensus is reached, judges receive a consensus report from the senior examiner leading the examiner team. Judges then make a site-visit determination. At this point, applicants scoring sufficiently high are granted a site visit. In the past, simply the granting of a Baldrige site visit has been cited as evidence of high-quality processes. These firms sometimes refer to themselves as “Baldrige qualified.”

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

63) Differentiate between the full-Baldrige approach and the Baldrige-lite approach.

Answer:  A review of the different state award programs reveals three categories of approaches to state awards. The first approach is the full-Baldrige approach. In these states, the Baldrige criteria have been adopted, and firms apply using the Baldrige criteria. In these cases, the criteria are used, but the scores required to win the state awards are lower than those for the national awards.

An approach that some other states have taken is the Baldrige-lite approach. This approach uses the Baldrige criteria but with a simplified process and/or application.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.4 Explain the Baldrige award process.

AACSB:  Application of Knowledge

Type:  Concept

 

64) The first view of lean manufacturing is a philosophical view of ________.

  1. A) strategic planning
  2. B) waste reduction
  3. C) inventory control
  4. D) product development
  5. E) reengineering

Answer:  B

Diff: 2

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

65) A productive system whose focus is on optimizing processes through the philosophy of continual improvement is called ________.

  1. A) lean manufacturing
  2. B) reengineering
  3. C) benchmarking
  4. D) just-in-time production
  5. E) statistical process control

Answer:  A

Diff: 2

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

66) ________ was fundamental in helping Toyota reduce waste.

  1. A) Genichi Taguchi
  2. B) Kaoru Ishikawa
  3. C) Shigeo Shingo
  4. D) Armand Feigenbaum
  5. E) Philip Crosby

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

67) Which of the following is not one of Shingo’s seven wastes?

  1. A) waste of stocks
  2. B) waste of funds
  3. C) waste of motion
  4. D) waste of transportation
  5. E) waste of waiting

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

68) With ________ inspection, all work is inspected at each stage of the manufacturing process, and the workers inspect their own work.

  1. A) in-process
  2. B) multilevel
  3. C) dynamic
  4. D) continuous
  5. E) line-stop

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

69) The N=2 technique is an alternative to ________.

  1. A) in-process inspection
  2. B) acceptance sampling
  3. C) statistical process control
  4. D) benchmarking
  5. E) quality control

Answer:  B

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

70) ________ means that all departments are involved in quality.

  1. A) Vertical deployment
  2. B) Cross-functional deployment
  3. C) Horizontal deployment
  4. D) Multilevel deployment
  5. E) Parallel deployment

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

71) ________ means that all levels of management and workers are actively involved in quality.

  1. A) Vertical deployment
  2. B) Cross-functional deployment
  3. C) Horizontal deployment
  4. D) Multilevel deployment
  5. E) Parallel deployment

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

72) With respect to the five S’s, organizing by getting rid of the unnecessary files, forms, and other materials is called ________.

  1. A) seiri
  2. B) seiton
  3. C) seiso
  4. D) seiketsu
  5. E) shetsuke

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

73) With respect to the five S’s, neatness that is achieved by straightening offices and work areas is called ________.

  1. A) seiri
  2. B) seiton
  3. C) seiso
  4. D) seiketsu
  5. E) shetsuke

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

74) With respect to the five S’s, cleaning plant and equipment to eliminate dirtiness that can hide or obscure problems is called ________.

  1. A) seiri
  2. B) seiton
  3. C) seiso
  4. D) seiketsu
  5. E) shetsuke

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

75) With respect to the five S’s, standardizing locations for tools, files, equipment, and all other materials is called ________.

  1. A) seiri
  2. B) seiton
  3. C) seiso
  4. D) seiketsu
  5. E) shetsuke

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

76) With respect to the five S’s, discipline in maintaining the prior four S’s is called ________.

  1. A) seiri
  2. B) seiton
  3. C) seiso
  4. D) seiketsu
  5. E) shetsuke

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

77) ________ are natural work teams made up of workers who are empowered to improve work processes and are used by Japanese companies to involve employees in improving processes and process capability.

  1. A) Empowerment task forces
  2. B) Cross-functional teams
  3. C) Horizontal task forces
  4. D) Vertical task forces
  5. E) Quality circles

Answer:  E

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

78) The idea behind ________ is that the worst condition a machine should ever be in is on the day you purchase the machine.

  1. A) quality circles
  2. B) vertical deployment
  3. C) line-stop authority
  4. D) horizontal deployment
  5. E) preventive maintenance

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

79) The first view of lean manufacturing is a philosophical view of waste reduction.

Answer:  TRUE

Diff: 2

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

80) Lean manufacturing is a productive system whose focus is on optimizing processes through the philosophy of continual improvement.

Answer:  TRUE

Diff: 2

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

81) Kaoru Ishikawa was fundamental in helping Toyota to reduce waste.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

 

82) The Japanese approach follows the policy that when problems exist in business, the first reflex is to hide the problems as though they do not exist.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

83) The visibility technique used by the Japanese is called andon, or warning lights.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

84) With in-process inspection, all work is inspected at each stage of the process, and the workers inspect their own work.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

85) The N=2 technique is an alternative to acceptance sampling.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

86) Horizontal deployment means that all levels of management and workers are actively involved in quality.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

87) The idea behind preventive maintenance is that the worst condition a machine should ever be in is on the day it is purchased.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

88) Organizing by getting rid of the unnecessary materials is called seiri.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

89) Cleaning plant and equipment to eliminate dirtiness that can hide or obscure problems is called seiso.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

90) Standardizing locations for tools, files, equipment, and other materials is called shetsuke.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

 

91) Quality circles are natural work teams made up of workers who are empowered to improve work processes.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

92) Explain the concept of lean manufacturing.

Answer:  Lean manufacturing is a productive system whose focus is on optimizing processes through the philosophy of continual improvement. The first view of lean is a philosophical view of waste reduction. This view asserts that anything in the process that does not add value for the customer should be eliminated. Given this view, quality problems cause scrap and rework and are wasteful. The second view of lean is a systems view stating that lean is a group of techniques or systems focused on optimizing quality processes. An example of this view is the lean production system refined by the Toyota Motor Company and spread to the rest of the world.

Diff: 2

Learning Outcome:  Describe the advantages and disadvantages of various production strategies such as lean, Theory of Constraints, JIT, and Six Sigma

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

93) Explain the five S’s adopted by Japanese firms in an effort to improve operations.

Answer:  The five S’s are a sequential process that companies follow to literally “clean up their acts.” The S’s are:

Seiri: Organizing by getting rid of the unnecessary. This may include old files, forms, tools, or other materials that have not been used within the past two or three years.

Seiton: Neatness that is achieved by straightening offices and work areas.

Seiso: Cleaning plant and equipment to eliminate dirtiness that can hide or obscure problems.

Seiketsu: Standardizing locations for tools, files, equipment, and all other materials. This often involves color coding and labeling areas so that materials are always found in a standard location.

Shetsuke: Discipline in maintaining the prior four S’s.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

 

94) Describe quality circles. How does the use of quality circles improve quality?

Answer:  Quality circles are natural work teams made up of workers who are empowered to improve processes that they use and are used by Japanese companies to involve employees in improving processes and process capability. Using quality circles, Japanese employees brainstorm quality improvement methods and identify causes of quality problems.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

 

95) Explain the concept of preventive maintenance used by Japanese manufacturers.

Answer:  Japanese manufacturers are known for their approach to maintenance of equipment and machines. The maintenance technique taught by the Japanese is preventive maintenance. The idea behind preventive maintenance is that the worst condition a machine should ever be in is on the day you purchase the machine. By maintaining scheduled maintenance and improvement to equipment, machinery actually can improve with age. With preventive maintenance, heavy unscheduled maintenance is still performed by shop engineers and maintenance specialists.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.5 Communicate the Japanese approach to lean and total quality control.

AACSB:  Application of Knowledge

Type:  Concept

96) ________ is the European standard for quality that has been expanded worldwide.

  1. A) ISO 9000:2005
  2. B) ISO 9000:2015
  3. C) ISO 9001:2000
  4. D) ISO 9004:2009
  5. E) ISO 14001:2004

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

 

 

97) The focus of ISO 9000:2015 is to ________.

  1. A) encourage the adoption of total quality management in Europe
  2. B) reward European firms that embrace quality management techniques
  3. C) provide a standardized format for firms to document their quality systems in order to facilitate trade
  4. D) teach European firms the importance of quality management
  5. E) provide a framework for organizational improvement and change

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

 

98) What is the first step in the registration process for ISO 9000:2015?

  1. A) inquiry
  2. B) client contract
  3. C) phase 1 audit
  4. D) certification audit
  5. E) process audit

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

99) What is the most important and most difficult step of the ISO process?

  1. A) selecting a registrar
  2. B) contracting with the client
  3. C) phase 1 audit
  4. D) certification audit
  5. E) process audit

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

 

 

100) Which of the following is not a quality management principle underlying ISO 9000:2015?

  1. A) involvement of people
  2. B) improvement
  3. C) leadership
  4. D) dedication
  5. E) customer focus

Answer:  D

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

 

101) ISO 9004:2009 is the European standard for quality that has been expanded worldwide.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

 

102) The first step in the registration process for ISO 9000:2015 involves a phase 1 audit.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

 

103) How does the ISO 14000 series differ from ISO 9000:2015?

Answer:  ISO 9000:2015 is a set of standards that provides companies a format for documenting their quality systems in a series of manuals for the purpose of facilitating trade through supplier conformance. The standards originated in Europe. The ISO standard was developed so that an international standard for documentation of quality systems could be applied in different cultures. Given the success of ISO 9000:2015, ISO embarked on developing an international standard for environmental compliance named ISO 14000. ISO 14000 is a series of standards that provide guidelines and a compliance standard in the environmental area. ISO 14000 uses the same basic approach as ISO 9000:2015 with documentation control, management system auditing, operational control, and so on. In addition to these controls, ISO 14000 includes quantified targets, established objectives, emergency and disaster preparedness, and disclosure of environmental policy.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  3.6 Discuss ISO 9000:2015 and how it is used in firms.

AACSB:  Application of Knowledge

Type:  Concept

Managing Quality: Integrating the Supply Chain, 6e (Foster)

Chapter 5   The Voice of the Customer

 

1) ________ customers are employees receiving goods or services from within the same firm.

  1. A) Primary
  2. B) Capital
  3. C) External
  4. D) Secondary
  5. E) Internal

Answer:  E

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

2) ________ customers are the bill-paying receivers of a company’s work.

  1. A) External
  2. B) Internal
  3. C) Primary
  4. D) Secondary
  5. E) Capital

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

3) The ________ customers are the ultimate people the company is trying to satisfy with its work.

  1. A) capital
  2. B) internal
  3. C) primary
  4. D) external
  5. E) secondary

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

4) ________ customers are also known as end users.

  1. A) External
  2. B) Internal
  3. C) Capital
  4. D) Primary
  5. E) Secondary

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

5) The ________ model shows that a firm’s quality performance is increasing while customer’s expectations are also increasing.

  1. A) restructured customer-driven quality
  2. B) relative customer-driven quality
  3. C) redesigned customer-driven quality
  4. D) receptive customer-driven quality
  5. E) reactive customer-driven quality

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

6) The view of the customer that asserts that he or she is a valued asset to be managed is referred to as ________.

  1. A) customer response
  2. B) customer intelligence
  3. C) customer data management
  4. D) reactive customer-driven quality
  5. E) customer-relationship management

Answer:  E

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

7) Which of the following is not a design aspect to customer-relationship management?

  1. A) corrective action
  2. B) guarantees
  3. C) feedback
  4. D) cost
  5. E) complaint resolution

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

8) The ________ process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

  1. A) complaint-reaction
  2. B) complaint-restoration
  3. C) complaint-resolution
  4. D) complaint-response
  5. E) complaint-reversal

Answer:  C

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

9) The first component of a complaint-resolution process is ________.

  1. A) contrition
  2. B) correction
  3. C) compensation
  4. D) communication
  5. E) correlation

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

10) The second component of a complaint-resolution process is ________.

  1. A) contrition
  2. B) correction
  3. C) compensation
  4. D) communication
  5. E) correlation

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

11) The process associated with resolving complaints is called the ________ process.

  1. A) complaint-reversal
  2. B) complaint-restoration
  3. C) complaint-reaction
  4. D) complaint-recovery
  5. E) complaint-response

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

12) Which of the following is not a component of an effective guarantee?

  1. A) conditional
  2. B) meaningful
  3. C) understandable
  4. D) communicable
  5. E) painless to invoke

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

13) Customer ________ is measured as the percentage of customers who return for more service.

  1. A) approval
  2. B) feedback
  3. C) satisfaction
  4. D) retention
  5. E) response

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

14) What are the three phases of customer-relationship management?

  1. A) satisfaction, feedback, and retention
  2. B) satisfaction, acquisition, and transition
  3. C) response, feedback, and enhancement
  4. D) acquisition, retention, and enhancement
  5. E) response, transition, and acquisition

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

15) The ________ phase of customer-relationship management involves improving service to the customer through the use of information systems.

  1. A) acquisition
  2. B) retention
  3. C) enhancement
  4. D) transition
  5. E) response

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

 

16) Churn reduction involves the reduction in the loss of ________.

  1. A) raw materials
  2. B) suppliers
  3. C) funds
  4. D) products
  5. E) customers

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

17) ________ management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.

  1. A) Knowledge
  2. B) Order
  3. C) Sales
  4. D) Campaign
  5. E) Channel

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

18) Internal customers are the bill-paying receivers of a company’s work.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

19) External customers are employees receiving goods or services from within the same firm.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

20) The external customers are the ultimate people the company is trying to satisfy with its work.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

21) Customer-driven quality represents a proactive approach to satisfying customer needs that is based on gathering data about the customers to learn their needs and preferences.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

22) Due to constantly changing customer needs, the reactive approach to customer-driven quality could lead to problems if customer requirements increase at a faster rate than quality and service improvement.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

23) Customer relationship management involves viewing the customer as a valued asset to be managed.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

 

24) The complaint-resolution process involves the transformation of a negative situation into one in which the complainant is restored to the state existing prior to the occurrence of a problem.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

25) Improving services such as customer service policies, sales processes, and after-sales services according to customer preferences is referred to as transactional analysis.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

26) The process associated with resolving complaints is called the complaint-response process.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

27) A guarantee outlines the customer’s rights.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

28) Guarantees should be designed prior to beginning business.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

29) To be effective, a guarantee should be unconditional.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

30) Customer retention is measured as the percentage of customers who return for more service.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

31) Amazon’s customized desktops with recommendations for products based on historical purchases is an example of the customer enhancement phase of CRM.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Application

 

32) The enhancement phase of customer-relationship management involves improving service to the customer through the use of information systems.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

 

33) Knowledge management involves managing the mountain of information generated by Web site usage in a way to improve marketing to key customers.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

 

34) Differentiate between internal and external customers.

Answer:  Internal customers are employees receiving goods or services from within the same firm. For example, management information systems (MIS) technicians and programmers view the users within their company as internal customers. In contrast, external customers or end users are the bill-paying receivers of a company’s work. A person that enters a restaurant and purchases a meal is an external customer.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

35) Explain the reactive customer-driven quality (RCDQ) model.

Answer:  This reactive customer-driven quality (RCDQ) model shows that a firm’s quality performance is increasing while customers’ expectations also are increasing. Problems occur when customer requirements increase at a faster rate than quality and service improvement. This places a firm in a reactive mode that may signal the need for major process and service redesign. The RCDQ model demonstrates conceptually and graphically the primary pitfalls and dangers of RCDQ.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

36) What are the components and activities associated with the complaint resolution process?

Answer:  The first component is to compensate people for their losses. This may be as small as an easy return policy with no questions asked. The second component is contrition. The firm should apologize to the customer for the mistakes made. Third, the complaint-recovery process must be designed to make it easy for complainants to reach resolution to simple complaints.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Application of Knowledge

Type:  Concept

 

 

37) What are customer-relationship management systems?

Answer:  With business information systems—especially over the Internet—companies are receiving volumes of customer-related data. These data include personal, Internet, process, and customer preference information. As a result, systems have been created to mine these data to improve customer service and retention. These systems are called customer-relationship management systems (CRMS). CRMS use data to manage the three phases of customer-relationship management. These three phases are acquisition, retention, and enhancement.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.1 Discuss the basics of customer relationship management.

AACSB:  Information Technology

Type:  Concept

38) The approach authorizing major suppliers to make purchases for their own accounts, resulting in suppliers providing only what is needed when it is needed, is referred to as ________.

  1. A) single-source managed inventory
  2. B) vendor managed inventory
  3. C) account managed inventory
  4. D) cost managed inventory
  5. E) time managed inventory

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

39) Which of the following is a diagram tool for managers that depicts a flowchart of interactions between service providers and customers?

  1. A) process-chain-network diagram
  2. B) precedence-network diagram
  3. C) relationship-network diagram
  4. D) activity-network diagram
  5. E) interaction-network diagram

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Application

 

 

40) ________ is a process for developing relationships with few suppliers for long-term contracts.

  1. A) Single sourcing
  2. B) Gap analysis
  3. C) Supplier rationalization
  4. D) Segmentation
  5. E) Source loyalty

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

41) ________ results in the suppliers becoming de facto subsidiaries to their major customers.

  1. A) Segmentation
  2. B) Gap analysis
  3. C) Strategic alliance
  4. D) Source loyalty
  5. E) Supplier rationalization

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

42) In ________, suppliers integrate information systems and quality systems that allow close integration at all levels.

  1. A) segmentation
  2. B) gap analysis
  3. C) annuity relationships
  4. D) strategic alliances
  5. E) supplier rationalization

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Information Technology

Type:  Concept

 

 

43) ________ results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

  1. A) Customer segmentation
  2. B) Customer-relationship management
  3. C) Reactive customer-driven quality
  4. D) Actively solicited customer-feedback
  5. E) Customer rationalization

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

44) A(n) ________ relationship is one in which the customer provides a long-term, steady income stream to the provider.

  1. A) perpetual
  2. B) annuity
  3. C) active
  4. D) rational
  5. E) passive

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

45) Customer-initiated contact such as filling out a restaurant complaint card, calling a toll-free complaint line, or submitting an inquiry via a company’s Web site, is considered ________.

  1. A) customer rationalization
  2. B) passively solicited customer feedback
  3. C) actively solicited customer feedback
  4. D) reactive customer-driven quality
  5. E) customer segmentation

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Information Technology

Type:  Concept

 

 

46) A process-chain-network diagram is a flowchart tool for managers to use when designing service delivery systems.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

47) Many companies use single sourcing as a way to increase the number of suppliers.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

48) Single-sourcing arrangements are developing into strategic alliances where suppliers become de facto subsidiaries to their major customers.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

49) Customer rationalization results from agreement between marketing and operations as to which customers add the greatest advantage and profits over time.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

 

50) Annuity relationships result in the customer providing a short-term income stream to the provider.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

51) Customer-initiated contact, such as submitting an inquiry via a company’s Web site, is considered passively solicited customer feedback.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Information Technology

Type:  Concept

 

52) Active data collections tend to result in lower ratings of quality than passive data collections.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

53) Describe the concept of single sourcing. How is single sourcing related to strategic alliances?

Answer:  Many companies use single sourcing as a way to reduce the number of suppliers. Single sourcing is a process for developing relationships with few suppliers for long contract terms. Increasingly, single-sourcing arrangements are developing into strategic alliances where the suppliers become de facto subsidiaries to their major customers. In these arrangements, not only are suppliers single-source providers, but they also integrate information systems and quality systems that allow close interaction at all levels.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.2 Distinguish how managing quality in services is different from manufacturing.

AACSB:  Application of Knowledge

Type:  Concept

 

 

54) The gap refers to the differences between ________.

  1. A) corrective action and preventive action
  2. B) service quality and product quality
  3. C) empowered employees and employees managed by a hierarchy
  4. D) accurate quality projections and inaccurate quality projections
  5. E) desired levels of performance and actual levels of performance

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

55) The SERVQUAL instrument was developed by ________.

  1. A) Juran, Deming, and Shewhart
  2. B) Ishikawa and Taguchi
  3. C) Hammer and Champy
  4. D) Parasuraman, Zeithamel, and Berry
  5. E) Feigenbaum, Crosby, and Peters

Answer:  D

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

56) Which of the following determinants of service quality involves consistency of performance and dependability?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) access
  5. E) credibility

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

57) Which of the following determinants of service quality concerns the willingness or readiness of employees to provide service?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) credibility
  5. E) courtesy

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

58) Which of the following determinants of service quality means possession of the required skills and knowledge to perform the service?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) access
  5. E) credibility

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

59) Which of the following determinants of service quality involves approachability and ease of contact?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) access
  5. E) courtesy

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

60) Which of the following determinants of service quality involves politeness, respect, consideration, and friendliness of contact personnel?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) credibility
  5. E) courtesy

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

61) Which of the following determinants of service quality involves trustworthiness, believability, honesty, and having the customer’s best interests at heart?

  1. A) reliability
  2. B) responsiveness
  3. C) competence
  4. D) credibility
  5. E) courtesy

Answer:  D

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

62) Which of the following determinants include the physical evidence of the service?

  1. A) tangibles
  2. B) aesthetics
  3. C) features
  4. D) intangibles
  5. E) logistics

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

63) What does segmenting markets involve?

  1. A) distinguishing expected service and perceived service
  2. B) distinguishing customers according to common characteristics
  3. C) analyzing the management perceptions of consumer expectations
  4. D) distinguishing service quality specs and service delivery
  5. E) analyzing the external methods to communicate with customers

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

64) The Gap refers to the differences between desired levels of performance and actual levels of performance.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

65) The reliability determinant of service quality concerns the willingness or readiness of employees to provide service.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

66) The competence determinant of service quality means possession of the required skills and knowledge to perform the service.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

 

67) The determinant of service quality pertaining to tangibles encompasses the physical evidence of the service.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

68) To segment markets means to distinguish customers or markets according to common characteristics.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

69) What is gap analysis?

Answer:  Typically, the gap refers to the differences between desired levels of performance and actual levels of performance. This could be something like the difference between the desired conformance level versus the existing conformance level in a manufacturing environment. In services, this is the difference between the expected and the actual level of service provided. Gaps are important in that once a gap is identified, it is a candidate for corrective action and process improvement. The formal means for identifying and correcting these gaps is called gap analysis. One of the differences studied by gap analysis identifies the difference between managerial and customer perceptions of what the customer wants.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

70) Explain the ten determinants of service quality contributed by Parasuraman, Zeithamel, and Berry.

Answer:  In addition to the gaps model, Parasuraman, Zeithamel, and Berry contributed a number of important concepts to managing service quality. These include 10 determinants of service quality:

  • Reliability involves consistency of performance and dependability.
  • Responsiveness concerns the willingness or readiness of employees to provide service.
  • Competence means possession of the required skills and knowledge to perform the service.
  • Access involves approachability and ease of contact.
  • Courtesy involves politeness, respect, consideration, and friendliness of contact personnel.
  • Communication means keeping customers informed in language they can understand and listening to them.
  • Credibility involves trustworthiness, believability, and honesty.
  • Security is the freedom from danger, risk, or doubt.
  • Understanding/knowing the customer involves making the effort to understand the customer’s needs.
  • Tangibles include the physical evidence of the service.

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.3 Implement gap analysis in a service firm using SERVQUAL.

AACSB:  Application of Knowledge

Type:  Concept

 

71) Gathering data through focus groups and surveys is an example of a(n) ________ data gathering.

  1. A) active
  2. B) open
  3. C) rational
  4. D) passive
  5. E) closed

Answer:  A

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

72) Gathering data through customer comment cards is an example of a(n) ________ data gathering.

  1. A) active
  2. B) open
  3. C) rational
  4. D) passive
  5. E) closed

Answer:  D

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

73) ________ includes all supplier-initiated contact with customers.

  1. A) Customer-relationship management
  2. B) Supplier rationalization
  3. C) Single sourcing
  4. D) Customer segmentation
  5. E) Actively solicited customer feedback

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

74) Phone contacts, focus groups, and survey results are referred to as ________ data.

  1. A) hard
  2. B) soft
  3. C) active
  4. D) passive
  5. E) rational

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

75) Measurement data such as height, weight, volume, and speed are referred to as ________ data.

  1. A) active
  2. B) passive
  3. C) rational
  4. D) soft
  5. E) hard

Answer:  E

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

76) ________ data are ranked so that one measure is higher than the next.

  1. A) Active
  2. B) Discrete
  3. C) Continuous
  4. D) Ordinal
  5. E) Passive

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

77) ________ data is used to compare employee and customer perceptions of quality.

  1. A) Hard
  2. B) Soft
  3. C) Active
  4. D) Passive
  5. E) Rational

Answer:  B

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

78) A(n) ________ group allows a supplier to gather feedback from a group of consumers at one time.

  1. A) access
  2. B) focus
  3. C) service
  4. D) ordinal
  5. E) discussion

Answer:  B

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

79) What is the first step in performing a focus group session?

  1. A) develop questions
  2. B) narrow scope of questions
  3. C) identify purpose
  4. D) select target population
  5. E) run multiple groups

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

 

80) A(n) ________ consists of a series of items designed to capture perceptions.

  1. A) survey
  2. B) focus group
  3. C) ordinal data system
  4. D) passive data gathering
  5. E) active data gathering

Answer:  A

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

81) The ________ approach involves obtaining information from customers about the process they use to receive goods and services.

  1. A) focus group
  2. B) vendor managed inventory
  3. C) knowledge management
  4. D) critical-incident
  5. E) customer-relationship management

Answer:  D

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

82) ________ validity refers to the use of certain terms and whether terms really measure what it is we want to measure.

  1. A) Criterion
  2. B) Conformance
  3. C) Content
  4. D) Control
  5. E) Construct

Answer:  E

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

83) ________ validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring.

  1. A) Criterion
  2. B) Conformance
  3. C) Content
  4. D) Control
  5. E) Construct

Answer:  A

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

84) ________ validity refers to whether the item really measures what we want to measure.

  1. A) Construct
  2. B) Control
  3. C) Criterion
  4. D) Conformance
  5. E) Content

Answer:  E

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

85) When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using ________ of the various categories of responses.

  1. A) means
  2. B) numerical responses
  3. C) bar charts
  4. D) simple correlations
  5. E) histograms

Answer:  C

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

86) If survey responses are consistent but they are not measuring the right thing, the instrument is reliable but it is not valid.

Answer:  TRUE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

 

 

87) A continuum of “strongly disagree-disagree-neutral-agree-strongly agree” on a five-point scale is an example of relatively ranked ordinal data points.

Answer:  TRUE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

88) Gathering data through focus groups and surveys are examples of passive data gathering.

Answer:  FALSE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

89) Actively solicited customer feedback includes all supplier-initiated contact with customers.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

90) Phone contacts and focus groups are referred to as hard data.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

91) Soft data are measurement data such as height, weight, volume, or speed that can be measured on a continuous scale.

Answer:  FALSE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

92) Ordinal data are ranked so one measure is higher than the next.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

93) A focus group allows a supplier to gather feedback from a group of consumers at one time.

Answer:  TRUE

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

94) Focus groups draw individuals with similar characteristics or demographics.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

95) Criterion validity refers to whether the item really measures what we want to measure.

Answer:  FALSE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

96) Construct validity indicates that your measuring instrument has the ability to predict or agree with constructs external to that which you are measuring.

Answer:  FALSE

Diff: 3

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

 

97) When analyzing the results of a survey, open-ended questions are analyzed with Pareto analysis using bar charts of the various categories of responses.

Answer:  TRUE

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Application

 

98) Differentiate between soft data and hard data.

Answer:  Phone contacts, focus groups, and survey results are referred to as soft data. As opposed to soft data, hard data are measurement data such as height, weight, volume, or speed that can be measured on a continuous scale. Soft data are not continuous and are, at best, ordinal.

Diff: 1

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

99) What is the function of a focus group?

Answer:  A focus group allows a supplier to gather feedback from a group of consumers at one time. The groups are focused in two ways: First, focus groups narrowly address a single topic or group of topics. Second, focus groups draw individuals with similar characteristics or demographics. This limits the discussion to subjects and market segments that are of particular interest to the firm.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept

 

100) Differentiate between construct validity and content validity.

Answer:  Construct validity refers to the use of certain terms and whether terms really measure what it is we want to measure. For example, self-reported measures or percentage growth in sales might not be a valid measure of success in customer satisfaction. Sales increases may instead reflect favorable market conditions. Content validity, in contrast, refers to whether the item really measures what we want to measure. Usually, this includes asking five or six “experts” to review the instrument and determine whether the instrument is valid.

Diff: 2

Learning Outcome:  Discuss the total cost of quality and compare the common methods of managing quality

LO:  5.4 Develop a customer service survey using specific examples and critical incidents.

AACSB:  Application of Knowledge

Type:  Concept