Question

In: Operations Management

A single service problem will destroy customer confidence when ______________. a. the service is complex b.the...

A single service problem will destroy customer confidence when ______________.

a. the service is complex

b.the failure is totally outrageous

c. it involves a new customer

d. there is a good competitor available

Which of the following types of fairness involves being treated politely, with care and honesty?

a.procedural fairness

b. outcome fairness

c. emotional fairness

d. interaction fairness

Which of the following determines the procedure to be used for processing credit card payments?

a. Bank account type

b. Cashier preference

c. Type of POS system

d. Credit card company

Solutions

Expert Solution

1. The customer service is used to resolve customer’s queries and problems either from face to face interaction or telephonic conversation or by online communication.

A. when the service is complex then the customer may not able to understand the process and number of problems may arise within the process. It could lead to bad customer service. It also takes more time to process a single information. But it can be manageable by the customer if once they understand the process. Hence, this is incorrect option.

C. The involvement of new customer may not effect much to customer confidence as customer only needs service rather than to know whether company increasing the customer of not. Hence, this is incorrect option.

D. The competitor also does not have any direct impact on the customer’s confidence because again customer confidence is build based on effective reservation of his queries and problems. Hence, this option is incorrect.

B. The failure is totally outrageous and cannot resolved by the service provider. This could lead to destroy customer confidence in the service provide. Any act of dishonest by the service provider surely destroys the customer confidence. Hence the appropriate phrase to the blank is the failure is totally outrageous. The correct option is b.

2. The following types of fairness are as follows:

a. procedural fairness- This is the policies, rules and timeliness of process followed by the company. It involves working process of the company. Hence, it is incorrect option.

b. outcome fairness- This is a result comes from the set of procedural activities followed by the company or service provider on the customer queries. Hence, it also does not direct impact on the communication with the customer. Hence, it is incorrect.

c. emotional fairness – This fairness involves the emotional activities such as positive and negative behaviour during complaint handling. This is incorrect option.

d. interaction fairness – This involves the interpersonal skills used to treat the customer during complaint received by the customer. Hence it involves being treated politely, with care and honesty. So the correct option is d.

3. The procedure to be used for processing credit card payments online is by the help of Point of Sale option.

a. Bank account type – this is the type of account on which credit card is made. Hence it is not a procedure. So, this is incorrect option.

b. Cashier preference- The cashier preference is not involved in the credit card payment as the system is automated.

d. Credit card company- The Company generates the credit card and gives to customer on the basis of liability they bear as per value in their account.

c. Type of POS system- The type of POS (Point of Sale) is involved in the procedure of credit card payment on which the customer swipes its card. Hence, this is the correct option.


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