True/False
Indicate whether the sentence or statement is true or
false.
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1.
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The aim
of internal marketing is to get employees to buy and use the products and services of the
employer.
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2.
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Employee retention and performance improve when employees take on more
responsibility.
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3.
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Research has shown that companies can increase profits by up to 85% by retaining just
5% more of their customers.
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4.
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Satisfied customers are loyal customers.
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5.
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The
customer is always right.
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6.
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In
order to benefit from both predictive power and diagnostic potential, it is necessary to track
measures of service quality over time.
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Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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The
problem with internal marketing is that a. | few organizations actually apply the concept in
practice. | b. | few organizations
are willing to spend any money on internal marketing. | c. | it is often dismissed as “feel-good pseudo
science”. | d. | All of the
above. | | |
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2.
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An
internal marketing program can a. | have a positive effect on customer satisfaction and
loyalty. | b. | increase
discounted sales to employees. | c. | lead to increased employee
turnover. | d. | adversely affect
company profits. | | |
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3.
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Establishing a service culture in an organization a. | usually proceeds from the bottom
up. | b. | will help to
ensure that management is involved in resolving all disputes with
customers. | c. | requires written
policies and guidelines in order to be successful. | d. | requires managers to have a positive attitude towards
employees. | | |
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4.
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Empowerment a. | refers to the notion that the customer is always
right. | b. | requires
decentralizing decision-making. | c. | works best in traditional hierarchical
organizations. | d. | should be absolute
and should not vary from task to task or employee to employee. | | |
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5.
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Internal marketing can be applied to human resource management, and can be very
useful a. | in developing
employee markets for internal sales. | b. | as a tool to keep employee turnover at a high enough level
to always ensure that there are new ideas being put forward. | c. | because changing employee attitudes and behaviours is more
difficult and costly once the employees have been recruited. | d. | in a manufacturing setting, but not in a hospitality and
tourism organization. | | |
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6.
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Employee recognition and reward systems a. | should be managed separately from performance feedback
mechanisms. | b. | are unnecessary if
employees know that they are well-paid compared to those working for other similar
employers. | c. | work best when the
company understands that different employees are motivated by different
rewards. | d. | should not take
into account differences in employee ages and genders. | | |
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7.
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Service
quality and customer satisfaction are related concepts, however, a. | customer service represents a global judgment rather than a
transaction-specific measure. | b. | service quality is easier to measure due to its objective
nature. | c. | it is not possible
to measure either of these concepts. | d. | while service quality and customer satisfaction can be
applied in restaurants, where the food is the product, they cannot be applied in
hotels. | | |
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8.
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The
GAPS model of service quality provides a structured thought process for evaluating customer
service. This model a. | is based solely on customer expectations and perceptions,
not managements’. | b. | is concerned with customer and employee interaction, but
not with issues such as advertising. | c. | does not take into account any service or product provided
by an intermediary. | d. | is based on five gaps that include views of customers and
managers, and deals with the notion of educating customers on what to
expect. | | |
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9.
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IPA,
SERVQUAL, and SERVPERF are all useful management tools for measuring a. | employee performance. | b. | service quality. | c. | customers’ views of the relative importance of various
product or service attributes. | d. | customers’ expectations of various products or
services offered. | | |
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10.
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Research has demonstrated empirical support for the notion that improving service
quality can “increase favourable behavioural intentions, and decrease unfavourable
intentions.” The best strategy(ies) to help steer behavioural intentions in the right
direction is (are): a. | offer customer comment cards and toll-free phone numbers so
that customers can make their views known. | b. | offer a cash payback to any customer who encounters a
service problem. | c. | aim to provide “desired” rather than
“adequate” service; try to prevent service problems; effectively resolve problems that do
occur. | d. | call customers by
their name, and ask for their opinion on how they like the product. | | |
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11.
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The
premise behind relationship marketing is that a. | financial bonds between the company and the customer will
keep the customer coming back. | b. | a good loyalty program is worth every
penny. | c. | it is less
expensive to attract repeat customers than to create new ones. | d. | a customer data base must be kept current and
accurate. | | |
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12.
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Relationship marketing a. | requires that the company focus on the right
customers. | b. | can offer
significant benefits to the company, but is of no value to the customer, so it is best to not let
customers know that you have a relationship marketing strategy. | c. | requires that the company calculate a lifetime value for
each customer. | d. | is based on the
80:20 rule: that 80% of the time, 20% of the customers will be
disappointed. | | |
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13.
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Service
recovery a. | should focus only
on making things right for the customer. | b. | requires that you make it easy for customers to complain
and that you tackle the underlying problem that caused the complaint. | c. | even when done well, has been shown to boost customer
retention rates by only 20%. | d. | must be handled by supervisory staff or management in order
to ensure that it is done properly. | | |
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14.
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A
satisfied customer is not the same thing as a loyal customer. Which of the following statements
is also true. a. | A satisfied
customer who does not return, is of less value to the company than a loyal
customer. | b. | A satisfied
customer will eventually become a loyal customer. | c. | In the tourism industry, most customers will become loyal
customers if you satisfy them. | d. | Loyal customers tend to be very demanding
customers. | | |
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Matching
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a. | customer loyalty | g. | relationship marketing | b. | customer satisfaction | h. | service culture | c. | empowerment | i. | service recovery | d. | internal marketing | j. | service quality | e. | importance–performance analysis
(IPA) | k. | SERVQUAL | f. | lifetime value of a customer | | | | |
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1.
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marketing aimed internally, at a company’s own employees
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2.
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a
culture that supports customer service through policies, procedures, reward systems, and
actions
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3.
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the act
of giving employees the authority to identify and solve guest problems or complaints on the spot, and
to make improvements in the work processes when necessary
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4.
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customers’ perceptions of the service component of a product
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5.
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the
difference between the service that a customer expects and the perceived quality of what is actually
delivered
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6.
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a
procedure that shows both the relative importance of various attributes and the performance of
the company, product, or destination under study in providing these attributes
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7.
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an
instrument used to measure the difference between consumers’ expectations and perceptions of
service quality
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8.
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a
measure of how likely customers are to return to an organization, and of their willingness to build
relationships with the organization
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9.
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marketing that attracts customers, retains them, and enhances their
satisfaction
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10.
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a
calculation that considers customers from the point of view of their potential lifetime revenue and
profitability contributions to a company
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