Listening to Customers through Research Multiple Choice Questions

Chapter 06 - Listening to Customers through Research

Chapter 06 Listening to Customers through Research Multiple Choice Questions 1. (p. 141) In the first stage in the services marketing research process, the researcher: A. Implements the research program B. Reports his or her findings C. Defines the problem and research objectives D. Collects and tabulates data E. Develops a services measurement strategy

Difficulty: Moderate

2. (p. 141) Marine Midland Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The first task of the market researchers was to learn if the bank wanted to know how its customers perceived the bank as a service provider, if it were more interested in what customers thought was superior about its savings account, if the bank thought some customer expectations were not being met or if what the bank really wanted to know was how it could change its service to better meet customer expectations. The first thing the research company did was to: A. Help Marine Midlands Bank define the problem and establish research objectives B. Determine with the bank's help who should be surveyed C. Use data mining to see if there were any connections between customers who used all three services and those who used only one of the services the bank offered D. Determine what research methodology it would use E. Decide how data analysis techniques


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3. (p. 141) The most critical stage in the services marketing research process is when the marketing researcher: A. Implements the research program B. Reports his or her findings C. Defines the problem and research objectives D. Collects and tabulates data E. Develops a services measurement strategy


4. (p. 142) _____ research is conducted to clarify problem definition and prepare for more formal empirical research. A. Functional B. Quantitative C. Primary D. Secondary E. Qualitative

Difficulty: Easy

5. (p. 142) The health industry in the U.S. is an $840 trillion business. Adam.com is trying to cash in on some of that money by providing an Internet service that will answer health-related questions for consumers. After a year in operation, Adam.com did an informal survey of its customers. It used open-ended questions to determine what people like and dislike about its service. Adam.com was conducting _____ research. A. Qualitative B. Functional C. Inferential D. Secondary E. Quantitative

Difficulty: Easy

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6. (p. 143) Marine Midland Bank hired marketing researchers when it noticed many people who had savings accounts with the bank did not have checking accounts and credit cards with it. The researchers would conduct _____ research if it wanted to test the hypothesis that Marine Midland customers did not like the services the bank provided for its checking account and its credit card customers. A. Functional B. Exploratory C. Quantitative D. Secondary E. Qualitative

Difficulty: Easy

7. (p. 144) Which of the following is NOT a form of qualitative research? A. Complaint solicitation B. Critical incident studies C. Requirements research D. Trailer calls E. Customer panels

Difficulty: Easy

8. (p. 144) Which of the following types of research has a high monetary cost? A. Complaint solicitation B. Critical incident studies C. Mystery shopping D. Lost customer research E. Future expectations research


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9. (p. 144) Which of the following types of research is NOT done on a continuous basis? A. Complaint solicitation B. Relationship surveys C. Trailer calls D. Customer panels E. Lost customer research


10. (p. 145) If you own a small advertising agency and have limited funding and even less time to spend on services marketing research, which of the following types of research would you be LEAST likely to use? A. Process checkpoint evaluations B. Future expectations research C. Trailer calls D. Critical incidents studies E. Complaint solicitations

Difficulty: Challenging

11. (p. 146) The new owner of the St. Louis Rams football team wanted to know why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. When the researchers asked survey participants to prioritize their reasons for not attending the games, the researchers were gathering _____ importance measures. A. Direct B. Leading C. Primary D. Indirect E. Secondary


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12. (p. 146) While Smitty was shopping at The Home Depot, he was asked to complete a survey assessing his expectations and perceptions of The Home Depot's service quality. In one section of the survey, he was asked to allocate a total of 100 points across the five dimensions of service quality. The 100-point allocation question is a _____ importance measure. A. Direct B. Leading C. Primary D. Indirect E. Secondary


13. (p. 146) _____ importance measures are estimated using the statistical procedures of correlation and regression analysis, which show the relative contribution of questionnaire items to overall service quality. A. Direct B. Leading C. Primary D. Indirect E. Secondary

Difficulty: Easy

14. (p. 147) Which of the following statements about complaint solicitation is true? A. Customer complaints provide an adequate source of information about customers' perceptions and expectations of services B. The technique of soliciting customer complaints is only used for services C. Research on customer complaints is one of the most difficult research techniques to use D. Research on customer complaints allows companies to improve failure points and to improve or correct the performance of contact personnel E. No major companies would depend on customer complaints as its only source of information on its customers' perceptions and expectations of its services


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15. (p. 147) To be effective, complaint solicitations requires: A. The same complaint be mentioned at least ten times before any action is taken B. An individual complainer to have no more than one complaint C. The company to treat the complaint as a snapshot of its service D. Valid and reliable service questions E. Rigorous recording of numbers and types of complaints through many channels


16. (p. 149-150) Clark participated in a research study conducted by Red Lobster restaurants in which he was asked to provide a verbatim story about a satisfying and dissatisfying service encounter he had at Red Lobster. Which of the following types of research studies did Clark participate in? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Customer panels


17. (p. 149-150) The new owner of the Atlanta Falcons football team wanted to know why game attendance was low. Former purchasers of season tickets were asked to provide an anecdote about a satisfying and a dissatisfying experience at a Falcon game. The researchers used: A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Customer panels


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18. (p. 150) Which of the following statements describes a benefit of critical incident studies? A. The method provides abstract data B. The method provides data that is readily quantifiable C. The research method is especially useful when the service is new D. The research method is especially useful for services in the maturity stage of their product life cycle E. All of the above statements describe a benefit of critical incident studies


19. (p. 149-150) In 2000, SwissAir made some unwise investments to pay for a planned expansion. As a result, the company had to make some cost-cutting moves that alienated its customers. Eventually the company declared bankruptcy, regrouped and found itself able to resume business. Its board of directors announced the company would resume flying in the Spring of 2002 if it could prove the airline could regain at least 75 percent of its lost customers. It decided to allot $50,000 to determine the probability that its former customers would fly on the airline again and what methods requiring little or no money could be used to increase that probability. Which of the following two methods are low-cost research methods SwissAir could use to reach its research objectives? A. Critical incident studies and lost customer research B. Future expectations research and lost customer research C. Complaint solicitation and service expectation meetings and reviews D. Database marketing research and customer panels E. Customer panels and complaint solicitation


20. (p. 150) Structured brainstorming is an example of which of the following types of research? A. Complaint solicitation B. Requirements research C. Relationship surveys D. Key client studies E. Customer panels


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21. (p. 150) _____ involves identifying the benefits and the attributes that customers expect in a service. A. Complaint solicitation B. Requirements research C. A relationship survey D. A key client study E. A customer panel

Difficulty: Easy

22. (p. 150) Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. In other words, the research agency conducted a: A. Complaint solicitation B. Requirements research C. Relationship surveys D. Trailer call E. Process checkpoint evaluation

Difficulty: Easy

23. (p. 151) Which of the following statements about relationship surveys is true? A. Relationship surveys are not statistically valid even though they are very useful to service providers B. Relationship surveys should be conducted weekly C. SERVQUAL is a type of relationship survey D. With relationship surveys, the same respondents should be used each time the survey is administered E. To be reliable and valid, the relationship survey should be administered to all of the service provider's customers


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24. (p. 151) The Learning Academy provides tutoring for children who are having trouble mastering some skill in school-whether it is math, reading, studying or something else. It wants to monitor and determine the strengths and weaknesses of The Learning Academy's curriculum. Which of the following types of research should The Learning Academy use to realize this objective? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Key client studies E. Trailer calls


25. (p. 151) PSE&G, a utility company located in New Jersey is conducting a services marketing research study to assess its service performance. It will measure the gaps between customer expectations and perceptions along the five dimensions of service quality. Which of the following types of research should PSE&G use? A. Critical incident studies B. Requirements research C. SERVQUAL surveys D. Trailer calls E. Customer panels


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26. (p. 154-155) When Tom and Ruth checked out of the Marriott Hilton Head Resort, they were each given a brief postage paid survey to complete and return through the mail. The survey asked 15 questions about their stay at the Marriott Resort. It covered such attributes as overall satisfaction, check-in speed/efficiency, cleanliness, decor and comfort of their room, friendliness and efficiency of the staff, quality of dining experience, quality of merchandise/gift shop, intention to return and willingness to recommend to friends. Which of the following types of research did Marriott conduct? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Trailer calls E. Lost customer research


27. (p. 154) Trailer calls are also called: A. Prospecting calls B. Post transaction surveys C. Buyers' intentions surveys D. Lost customer calls E. Follow-up surveys

Difficulty: Easy

28. (p. 154, 155) The new owner of the Atlanta Falcons football team had research conducted to learn why game attendance was low. The research revealed several reasons, including shortage of toilet paper and straws, high prices for bad seats and inadequate parking. Once all the problems were fixed, the team owner did not want to have any future attendance problems. He set up kiosks in the football stadium where attendees could give the team and the arena a "report card". This would be an example of: A. A trailer call B. A critical incident study C. Market-oriented ethnography D. Requirements research E. A SERVQUAL survey


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29. (p. 156) The Canfields want to landscape their 15-acre yard. The couple plans an herb garden in back that will lead to an English cottage garden. In the west side yard, they are planning on a Japanese garden and a rose garden will be located in the east side yard. They have hired a landscaper to draw the design and to do the actual planning. The Canfields want input on the landscaping. They have asked the landscaper to set up several points where they can give their inputs, correct anything they do not like and make changes before the plan is finalized. Most landscapers would be bothered with this seeming interference, but the landscaper the Canfields chose has used this method for years as a way to measure his company's customer service performance. The landscaper is using a method of gathering customer information most similar to which of the following methods? A. Trailer calls B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Critical incidents studies


30. (p. 155) Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. The company conducted an hour long interview with four of its largest customers. Only 25 questions were asked and much probing was done to find out exactly what the participants meant. This is an example of a: A. Research requirement survey B. Ethnographic survey C. Critical incident study D. Trailer call E. Service expectation meeting and review


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31. (p. 156) In early 2002, the University of Leeds in the U.K. released findings of its study of television viewing behaviors. Seventeen families have given permission for cameras with sound to be placed in the main living areas of their homes for two three-week periods over two years to watch them watch television. The University of Leeds used _____ to determine that people who have specifically chosen to watch a program are more likely to remain present for the commercial breaks within it. A. Multicultural surveys B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Diversity studies


32. (p. 156) One significant difference between the U.S. and Japanese culture is the love and respect the Japanese give their elders. A service provider who is trying to cater to the needs of the elderly might talk to some Japanese-Americans to gather some ideas on how to improve service quality. The cultural difference should make the service provider view providing service to the elderly from a different perspective. This sort of service research is called: A. Multicultural surveys B. Market-oriented ethnography C. Process checkpoint evaluations D. Requirements research E. Diversity studies


33. (p. 157) Which of the following types of research is unique to services? A. Trailer calls B. Market-oriented ethnography C. Mystery shopping D. Database marketing research E. Critical incident studies


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34. (p. 157) Sunoco is readying a chain-wide set of marketing initiatives designed to improve its image with women drivers and win more return business to its service station outlets throughout Ontario. It refurbished all of its restrooms and tried to hire friendly personalities and real customer service skills instead of "just who was available". It hired an outside research organization to send people to Sunoco service stations twice monthly to grade staff on their customer interaction skills. What research method did Sunoco use to make sure that each station was implementing the new service strategy? A. Market-oriented ethnography B. Trailer calls C. Mystery shoppers D. Requirements research E. Customer panels


35. (p. 157) The Limited recognizes sales associates who provide excellent customer service by rewarding them with a "Hero Award", which is displayed in the store where the sales associate is employed. To measure a sales associate's service performance, which type of research should The Limited use? A. Complaint solicitation B. Critical incidents studies C. Relationship surveys D. Mystery shopping E. Lost customer research


36. (p. 158) Customer panels: A. Are conducted on an annual basis B. Have moderate time costs C. Have high monetary costs D. Are statistically valid E. Cannot be used to monitor changing customer expectations


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37. (p. 158) Boston Symphony Orchestra realized the classic music market was generally becoming older and needed to learn how to appeal to younger concert-goers. It hired a research agency to identify the positive and negative attributes of going to concerts. One type of research conducted by the agency was to interview former symphony season ticket holders who were not longer attending the concerts. In other words, the agency used: A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Trailer calls E. Lost customer research


38. (p. 158) A week after Kim cancelled her First USA MasterCard, she received a survey in the mail asking questions about First USA's service quality, its performance versus other credit card companies, her level of satisfaction with different dimensions of First USA's service and her reasons for canceling her account. Which of the following types of research did First USA conduct? A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Trailer calls E. Lost customer research


39. (p. 158) Which type of research is most reminiscent of an exit interview that would ask a question such as, "What exactly could we have done to keep you from leaving the company?" and "Is there anything we can do to keep you from resigning from your position"? A. Complaint solicitation B. Critical incidents studies C. Relationship survey D. Post transaction survey E. Lost customer research


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40. (p. 158) One benefit of _____ is that it identifies failure points and common problems in the service and can help establish an early-warning system for future defectors. A. Failure ethnography B. A survey of buyers' intentions C. Focus groups D. Lost customer research E. Future expectations research


41. (p. 158-159) The synectics approach, features research and lead user research are all categorized as forms of: A. Post transaction surveys B. Database marketing research C. Process checkpoint surveys D. Future expectations research E. Relationship surveys


42. (p. 164) _____ are used to report the findings from a services marketing research study that collected data on the two levels of customer expectations-desired service and adequate service-along with customer perceptions of company performance. A. Zone of tolerance charts B. Salience of dimensions and attributes graphs C. Gap scores tracking graphs D. Importance/performance matrices E. Customer satisfaction indices


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43. (p. 164) A(n) _____ is a composite of the perceptual satisfaction or service quality measures collected in an organization. A. Zone of tolerance chart B. Salience of dimensions and attributes graph C. Gap scores tracking tool D. Importance/performance matrix E. Customer satisfaction index


44. (p. 164) One of the most useful forms of analysis in marketing research is the _____, which combines information about customer perceptions and importance ratings. A. Zone of tolerance chart B. Hierarchical needs matrix C. Importance/performance matrix D. Perception/expectation hierarchy E. Quality/satisfaction chart


45. (p. 166-167) Key Energy was a company that provided quality oilfield construction, drilling and other services. The company's top management felt stakeholders did not have a clear image of the company and were considering changing the name to clarify the organization's position in the market. Senior management interviewed the company's salespeople to learn how they felt about selling Key Energy's services. As part of examining the corporate image, the company used: A. Upward communication B. Synetics research C. Lead user research D. SERVQUAL surveys E. Relationship surveys


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46. (p. 166) Which of the following is NOT a research objective for improving upward communication in a service organization? A. Gain first-hand knowledge about customers B. Improve internal service quality C. Gain first-hand knowledge of employees D. Obtain ideas for service improvement E. Gain first-hand knowledge about competitors


47. (p. 167) Which of the following types of interaction activities in a service organization is used to obtain ideas for service improvement? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers


48. (p. 167) Century Business Systems, Inc. offers all of the non-technical support a business would need to operate successfully-everything from auditing to management consultant to financing to marketing advice. Which of the following types of interaction activities is it likely to use to gain information about its business customers and still be able to have only a minimal investment of time and money in the research? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers


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49. (p. 166) US Franchise System (USFS) is the world's fastest growing hotel company. Among its hotel franchises are Microtel Inn & Suites, Hawthorn Suites and Best Inns & Suites. Every three months, employees from a different franchise overseen by USFS conduct customer satisfaction telephone surveys. Among the employees who regularly participate in the survey process are senior managers, who are trained and certified to conduct survey interviews. Which type of interaction activity is USFS using to improve upward communication? A. Employee suggestions B. Employee internal satisfaction surveys C. Research on intermediate customers D. Executive listening approaches E. Executive visits to customers


50. (p. 166) The University of Central Florida's Incentive/Efficiency Program encourages employees to submit tangible ideas or suggestions that will result in savings or generate additional revenue for the University of Central Florida. The person who suggests an adopted proposal receives a cash reward equal to 10 percent of the first year's net savings or generated revenues. The University of Central Florida's Incentive/Efficiency Program is designed to achieve which of the following research objectives? A. Gain first-hand knowledge about customers B. Improve internal service quality C. Gain first-hand knowledge of employees D. Obtain ideas for service improvement E. Gain first-hand knowledge about competitors


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True / False Questions 51. (p. 142) A services research program can be defined as the composite of separate research studies and types needed to address research objectives and execute an overall measurement strategy. TRUE

Difficulty: Easy

52. (p. 142) An effective services research program includes either quantitative or qualitative research, but never both. FALSE

Difficulty: Easy

53. (p. 142-143) Research done by a financial services company asked the respondents to describe the company using the brand name of an automobile. This is obviously an example of quantitative research. FALSE

Difficulty: Easy

54. (p. 145) Research used to track overall service quality that will be used for bonuses and salary increases of salespeople should have statistical validity. TRUE

Difficulty: Easy

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55. (p. 148) One of the benefits of conducting marketing research on the Internet is the composition of the survey samples. FALSE

Difficulty: Easy

56. (p. 150) Complaint solicitation research requires a substantial investment in both time and money. FALSE


57. (p. 146) An important trend in services research is to measure only the negative consequences of service quality and ignore the positive because it does not need improvement. FALSE

Difficulty: Easy

58. (p. 150) Requirements research is very basic and essential because it determines the type of questions that will be asked on surveys and ultimately the improvements that will be attempted by the firm. TRUE

Difficulty: Easy

59. (p. 151) SERVQUAL is a type of requirements research. FALSE

Difficulty: Easy

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60. (p. 155) In business-to-business situations in which large accounts are involved, senior members of the account team commonly conduct service expectation and reviews. TRUE

Difficulty: Easy

61. (p. 156) Process checkpoint evaluations are commonly used in service industries in which the services are provided quickly on a one-time only basis. FALSE

Difficulty: Easy

62. (p. 159) Lead user research brings in customers who are opinion leaders or innovators and asks them what requirements existing products or services are not currently meeting. TRUE

Difficulty: Easy

63. (p. 159) One of the biggest challenges facing a marketing researcher is converting a complex set of data into a form that can be read and understood quickly by executives, managers and other employees who will make decisions from the research. TRUE

Difficulty: Easy

64. (p. 164) When companies collect data on desired and adequate service levels along with performance data, they can convey the information concisely on zones of tolerance charts. TRUE

Difficulty: Easy

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65. (p. 164) Importance/performance matrices typically combine information about customer perceptions of service encounters with a company with how the company rates in each of the five service dimensions. FALSE

Difficulty: Easy

Short Answer Questions 66. (p. 141) What is the first step in designing services marketing research?

Defining the problem and research objectives.

Difficulty: Easy

67. (p. 142) What kind of research is being used when an insurance company representative sits down with people who have lost their homes to tornadoes and asks, "What could have been done to better handle your needs immediately after the storm"?

Qualitative.

Difficulty: Easy

68. (p. 142) George was asked by an employee of a local do-it-yourself store to describe in detail his experiences in the store as he bought house paint, caulk and brushes. He later learned several of his acquaintances had been asked to do the same thing. What research method was being used by the do-it-yourself store?

Critical incident studies.

Difficulty: Easy

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69. (p. 151) What kind of a research technique is SERVQUAL?

A relationship survey.

Difficulty: Easy

70. (p. 151) Which type of qualitative research has as its primary objective to identify customer requirements as input for quantitative research?

Requirements research.


71. (p. 154) What is another name for post transaction surveys?

Trailer calls.

Difficulty: Easy

72. (p. 158) Even thought she was not moving, Katherine dropped her membership at a local church. She received a call from one of the church's representatives wanting to know why she had quit. She was asked to describe the moment in which she decided she no longer wanted to be a member of the church. What type of research is being conducted in this example?

Lost customer research.


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73. (p. 158) What type of qualitative research is used to monitor changes in customer expectations and to provide a forum for customers to suggest and evaluate new service ideas?

Customer panels.

Difficulty: Easy

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74. (p. 159) List the three types of future expectations research.

Lead user research, synetics research and features research.

Difficulty: Easy

75. (p. 162) The data have been gathered. It is now time to analyze these data and interpret them. What is the primary goal of this part of the marketing research process?

To communicate information clearly to the right people in a timely fashion.


76. (p. 165) What is a key way to close the gap between customer expectations and management perception of customer expectations?

To teach managers how to turn research information and insights into action and to recognize that the purpose of services research is to drive improvement and customer satisfaction.

Difficulty: Easy

77. (p. 166) What is the primary objective of research on intermediate customers?

To gain insight on end customers.

Difficulty: Easy

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78. (p. 139-170) Discuss conducting marketing research for a national car rental company.

Students should answer this question by describing how services marketing research is different from tangible products marketing research. Services research must continually monitor and track service performance because performance is subject to human variability and heterogeneity. Conducting performance research at a single point in time, as might be done for a tangible product, would be insufficient in services. In addition, services marketing research needs to consider and monitor the gap between expectations and perceptions. The gap is dynamic because both expectations and perceptions can fluctuate.


79. (p. 139-170) Imagine you have been hired to work an internship in a resort hotel in Hilton Head, South Carolina, for the summer. The manager learns you have had this services marketing class. In talking with you, she states that she feels the hotel is not always providing satisfactory service and may be performing in some areas below customer expectations. She stops talking and looks at you. Remember your future career may be riding on your answer. What do you tell her?

The better answer should begin with a discussion of how a services marketing research program would be more appropriate than any single type of research. The hotel will need a rich, multifaceted flow of information to close the gap between customer expectations and management perceptions of customer expectations. There should also be questions about how much time and money is available for the research project. The basic answer is to suggest the hotel, at a minimum, use complaint solicitation, critical incident studies and trailer calls to identify common service failure points. It will also need to look at its employees because they may believe the service provided is adequate when customers do not believe this to be true. The mystery shopper would be a good type of research to study employees. Some students may also mention relationship surveys. Finally there should be a brief discussion of how this research study is useless if it is not used to drive change or create improvements.


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80. (p. 165-167) Lemand, Inc., is a company that provides marketing and computer expertise to companies who want to set up their own Web sites. It has been in operation about five years. The owners of the company, two brothers from Madison, Wisconsin, believe they need to improve customers' perceptions of the service provided by Lemand. As a result, the brothers hired a services marketing research company to conduct research about its customers' expectations. The research was appropriately designed, executed and presented to the brothers. Discuss the two most likely occurrences at this point in the research process. What is the role of the services marketing research company in determining what the brothers will do next?

Only part of the research process is finished; Lemand must use the research findings in a meaningful way-to drive change or improvement in the way service is delivered. The other possibility is the misuse or nonuse of research data, which can lead to a large gap in understanding customer expectations. Understanding how to make the best use of research-to apply what has been learned to the business-is a key way to close the gap between customer expectations and management perceptions of customer expectations. To help the brothers put the research information and insights into action, the services marketing research company can make sure its plan specifies the mechanism by which customer data will be used. The research plan should be actionable: timely, specific and credible.


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Listening to Customers through Research Multiple Choice Questions

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