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Test Bank For Customer Service Skills for Success, 8th Edition by Robert Lucas Chapter 1-13

12) Instant messaging refers to a form of Internet communication where users can transmit text

messages or chat in real-time via the Internet to one or more people. ⊚ true ⊚ false

13) COVID-19 resulted in an increase in telecommuting that required companies to adjust to new

operational requirements. ⊚ true ⊚ false

14) ADP Research Institute determined that during the pandemic, companies with more

employees experienced larger declines in total employment than smaller employers. ⊚ true ⊚ false

15) When Maisey moved to Chicago to start a job in customer service, she joined a local group

of people with similar jobs who met monthly to share experiences and discuss the job market. This is an example of professional networking. ⊚ true ⊚ false

16) One result of the shift to home-based work during the pandemic was a potential increase in

mental health crisis situations. ⊚ true ⊚ false

17) The United Kingdom’s decision to leave the EU (BREXIT) is likely to result in lost revenue

and cuts in services and employment by companies in the UK as well as Europe. ⊚ true ⊚ false

18) Today’s workforce is expected to grow at a faster pace than in previous decades. ⊚ true ⊚ false

19) The development and increased sophistication of technology has led to an increase in

manufacturing and blue-collar jobs. ⊚ true ⊚ false

20) The U.S. government has not made any effort to upgrade and expand broadband access

nationwide since the late 1990s. ⊚ true ⊚ false

21) Offshoring refers to the practice of contracting with third-party companies outside the

organization. ⊚ true ⊚ false

22) By 2028, the manufacturing sector is expected to recover and account for more than half of

all wage and salary jobs in the U.S. economy and most of the job growth. ⊚ true ⊚ false

23) Customer service professionals need to be abreast of current organizational policies and

procedures. ⊚ true ⊚ false

24) Customer satisfaction refers to the feelings of a person whose needs have been met by an

organization. ⊚ true ⊚ false

25) External customers are the ones who actively seek out; research; and buy, rent or lease

products or services offered by the organization. ⊚ true ⊚ false

26) Organizational culture impacts employees, not customers. ⊚ true ⊚ false

27) The best way to approach a job interview is from a consumer mentality. ⊚ true ⊚ false

28) Learning organizations are businesses that work in education-related fields. ⊚ true ⊚ false

29) The term used to describe businesses and organizations that are engaged primarily in service

delivery is A) customer service. B) customer-focused organizations. C) service sector. D) service dealers.

30) A multinational software company works to satisfy its clients by identifying their needs and

establishing policies and procedures to support excellence in service delivery. This company could be described as a(n) A) customer-focused organization. B) offshoring organization. C) cottage industry. D) outsourcing organization.

31) According to the Census Bureau and the Bureau of Labor Statistics, wholesale trade, retail

trade, finance, insurance, and the federal government are examples of the________ sector. A) service B) primary C) public D) private

32) During the early days of business growth, many sold or bartered products from their homes

in what became known as A) insourcing organizations. B) cottage industries. C) service industries. D) customer-focused organizations.

33) ________ is the term applied to an ongoing trend of information, knowledge, and resource

sharing around the world. A) Networking B) Telecommuting C) Globalization D) Deregulation

34) Which of these jobs is expected to continue to grow at a rapid pace? A) assembly line worker B) healthcare worker C) federal government jobs D) transportation and warehousing

35) A company allows its employees to set up home offices and communicate electronically to

its corporate office. This is an example of A) downsizing. B) outsourcing. C) telecommuting. D) offshoring.

36) The term that applies to the situation in which employees are terminated or empty positions

are left unfilled once someone leaves an organization is A) offshoring. B) downsizing. C) networking. D) outsourcing.

37) Of these countries, which was the least impacted by the COVID-19 pandemic? A) New Zealand B) South Africa C) France D) Japan

38) In spite of all the problems that businesses encountered during the pandemic, there were a

few positive benefits, including A) employees’ mental health improved as a result of working from home. B) employees had more interpersonal contact with coworkers because of technology, such as teleconferencing. C) office expenses went down as less office space was needed. D) employees had less need for training in communicating with customers.

39) Zach is an economist whose job it is to predict trends or shifts in consumer needs and

expectations. He is likely to use a graphical representation of data called a A) dashboard. B) supply chart. C) consumer behavior graph. D) demand curve.

40) What two recent events caused the most economic challenges globally? A) the pandemic and BREXIT B) the recession of 2008 and the war in Afghanistan C) the attack on the World Trade Center and the war in Iraq D) the fires and floods caused by climate change and the 2016 presidential election

41) In what way has the consumer mindset changed in the past few years? A) Consumers are spending less time shopping online and more time in brick-and-mortar

stores. B) Older consumers have increased their use of restaurants and retailers. C) Restaurants and retail stores have lowered expectations of cleanliness and disinfecting. D) Online browsing has resulted in better informed customers.

42) The U.S. Labor Department released projections on labor force makeup from 2019 to 2029,

including A) the median age of the population will lower due to better health care and immigration. B) population growth is expected to slow, in part because of slowed growth of the Hispanic population. C) changing consumer preferences will lead to improvements in employment in the agriculture sector. D) the manufacturing sector is expected to rebound by the end of the decade.

43) B2B stands for A) back-to-business. B) brand-to-brand. C) brokering-to-business. D) business-to-business.

44) A company needed to lower its expenses, so it decided to move its manufacturing facility

from the U.S. to the Philippines where labor is cheaper. This is an example of A) offshoring. B) insourcing. C) deregulation. D) outsourcing.

45) ________ occurs when organizations decide to have their own employees assume functions

and perform work instead of contracting out to third parties. A) Insourcing B) Deregulation C) Outsourcing D) Offshoring

46) Which country is a part of the USMCA trade agreement? A) Mexico B) Costa Rica C) the UK D) China

47) _______ are basic and fundamental beliefs that help motivate or guide the actions and

attitudes that people have about many given things. A) Attitudes B) Emotions C) Values D) Ethics

48) How have changing consumer values impacted the automobile industry? A) Consumers have become less cost-conscious, so the market for luxury vehicles has

grown. B) Many auto manufacturers have needed to develop vehicles that are more energy efficient. C) Service has become less of an issue with more reliable technology. D) As more consumers choose alternate forms of transportation, vehicle sales have slowed.

49) Which statement best describes the term "e-commerce?" A) It refers to an entire spectrum of companies that market products and services on the

Internet and through other technology. B) It is a trade agreement entered into by the United States, Canada, and Mexico to help eliminate barriers to trade. C) It is a process by which employees are terminated or empty positions are left unfilled once someone leaves an organization. D) It refers to the group of companies operated by the federal government that sells products free of cost.

50) Service providers invest large amounts of money in training employees because A) they lose business and revenue if they do not meet the service expectations of

customers. B) they are unaffected by the economic recession and massive job losses. C) a larger number of consumers are opting to buy rather than rent homes and cars. D) consumers act on impulse and purchase any product or service that they desire to buy.

51) Those who actively seek out, research, and buy, rent, or lease products or services offered by

a business are its A) external customers. B) internal customers. C) investors. D) suppliers.

52) Which of these is an example of external customers? A) subordinates B) suppliers C) coworkers D) security personnel

53) Employees of other departments or branches, coworkers, and other people who work within

the same organization are________ customers. A) external B) internal C) salaried D) current

54) Which of these is an example of internal customers? A) vendors B) suppliers C) potential clients D) subordinates

55) The________ includes any element of an organization that a customer experiences. A) service sector B) organizational culture C) service environment D) service recovery

56) An organization undertakes activities such as recruiting, selecting, training, and retaining

qualified people, otherwise known as A) human resources. B) customer relationship management. C) service recovery. D) organizational culture.

57) There are three potential areas of customer satisfaction or dissatisfaction when a company

provides products or services: quality, quantity, and A) price. B) service effectiveness. C) prompt feedback. D) delivery.

58) The________ is the method by which the product or service is provided to customers. A) distribution procedure B) transport method C) delivery system D) supply chain

59) ________ is a term that describes an organization that uses knowledge as a basis for

competitive advantage. A) Learning organization B) Customer-focused organization C) Service industry D) Cottage industry

60) William purchased a vacuum cleaner that stopped working after a month of use. He took it

back to the store and they honored the warranty and gave him a new vacuum. This act of remedying a problem is called A) service recovery. B) a problem/solution. C) customer satisfaction. D) de-escalation.

61) Define the service sector and list a few industries that it covers.

62) Distinguish between offshoring and outsourcing.

63) Define e-commerce. Give two examples of activities that would be considered e-commerce.

64) Discuss the term “organizational culture.”

Answer Key Test name: chapter 1 1) FALSE

There have been many attempts to define the term customer service, but depending on an organization’s focus—such as retailing, medical, dental, industry, manufacturing, or repair services—the goals of providing customer service may vary. 2) TRUE

Customer service is defined as the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately results in positive word-of-mouth publicity and return business. By doing these things, organizations can truly become customer-focused organizations. 3) TRUE

The concept of identifying customer needs, understanding and influencing customer behavior through ongoing communication strategies in an effort to acquire, retain, and satisfy the customer is known as customer relationship management. The ultimate goal is customer loyalty. 4) FALSE

Internet service providers, associations, banks and credit unions, and consulting firms are examples of organizations that specialize in providing only services. 5) FALSE

The term “service sector” as used by the Census Bureau and the Bureau of Labor Statistics in their reports and projections typically includes transportation companies, communication companies, utilities companies, federal government, and state and local governments. 6) FALSE

Cottage industry is the term adopted in the early days of customer service when many people started small businesses in their homes or cottages and bartered products or services with neighbors. Relocating a firm to a rural area is not an example of this. 7) TRUE

Today, businesses have changed dramatically as the economy has shifted from a dependence on manufacturing to a focus on providing timely quality service. Tied to this trend has been the development of international quality standards by which service effectiveness is measured in many multinational organizations. The International Council of Customer Service Organizations (ICCSO) has contributed to this by setting internationally acceptable standards and certifications to create a global atmosphere of service. 8) FALSE

Service-providing sectors will account for most of the jobs added by 2029. Of the 6.0 million jobs projected to be added to the economy, about half (3.1 million) are expected to be in the healthcare and social assistance sector. 9) FALSE

This trend means that more jobs are likely to develop in major metropolitan areas, where ease of interaction with peers and suppliers, high customer density, and access to the most current business practices exist. 10) TRUE

A trend seen that allows employees to set up home offices and from there electronically communicate and forward information to their corporate offices is called telecommuting. 11) TRUE

To reduce traffic and pollution and save resources (e.g., rent, telephone, and technology systems), many organizations allow employees to set up home offices and from there electronically communicate and forward information to their corporate offices. The practice of telecommuting does not include people who are self-employed. 12) TRUE

Instant messaging refers to a form of Internet communication where users can transmit text messages or chat in real-time via the Internet to one or more people. More advanced forms allow voice calling, video chat, and hyperlinks to various media. 13) TRUE

The importance and impact of working remotely by incorporating technology into the workplace formula was amplified tremendously due to the onset of the COVID-19 pandemic. Many companies, especially small businesses, were not prepared or equipped to adequately deal with the sudden changes in operational requirements that were thrust upon them. 14) FALSE

The organization’s data showed that during the pandemic, “smaller employers experienced larger declines. The largest decline for any size group was for employers with 20 to 49 employees, with a decline of 21.5 percent. The smallest decline was for employers with 1000 or more employees, with a decline of 13.3 percent.” 15) TRUE

Networking is the active experience of building relationships and sharing resources. 16) TRUE

Mental health professionals point out the long-term impact on the lack of socialization for employees and children outside of their home could have negative impacts on people over time. This may lead to some societal breakdowns and other issues, such as a spike in mental health crisis situations. 17) TRUE

BREXIT has created numerous challenges for the United Kingdom, European countries, and trading partners and allies around the world. A likely outcome is that businesses will see lost revenue and impose cuts in inventory, services, and employment-related areas. 18) FALSE

Today’s labor force is expected to grow at a slightly slower rate than in previous decades due to the pandemic, an aging workforce, changing consumer preferences, and declines in the manufacturing sector. 19) FALSE

The development and increased sophistication of machines, telephones, service equipment, and computers have caused an increase in production and quality. One result of this trend has been a decrease in manufacturing and blue-collar jobs 20) FALSE

The U.S. government passed the Recovery Act in 2009 with money allocated for expanding nationwide Internet access to rural areas and into schools, libraries, public safety offices, and other community buildings. 21) FALSE

Offshoring refers to the relocation of business services by an organization from one country to another. In doing so, companies often save money on costs such as production, wages, and benefits. 22) FALSE

By 2028, the service-providing sectors are projected to account for more than 85 percent of all wage and salary jobs in the economy and most of the job growth. 23) TRUE

The expectation of quality service that most consumers have also creates a need for better-trained and better-educated customer service professionals. They need to be abreast of current organizational policies and procedures, what the competition offers, and the latest techniques in customer service and satisfaction. 24) TRUE

Customer satisfaction refers to the feeling of a person whose needs have been met by an organization. With consumers now on the defensive and ready to fight back, all business owners find that they have to continually prove the worth of their products and services. They must provide customer satisfaction or face losing customers to competitors. 25) TRUE

External customers are the ones who actively seek out; research; and buy, rent or lease products or services offered by the organization. This group includes vendors, suppliers, people on the telephone or Internet, and others not from the organization. 26) FALSE

Organizational culture is what the customer experiences. It is made up of a collection of subcomponents, each of which contributes to the overall service environment. 27) TRUE

By doing some advance research and being prepared for a job interview, candidates strengthen their potential employment and success opportunities. By approaching a job interview from a “consumer” mentality where the goal is to get the best from what you end up with, it often saves potential employees time and stress. 28) FALSE

Learning organizations are businesses that use knowledge as a basis for competitive advantage. This means providing ongoing training and development opportunities to employees so that they can gain and maintain cutting-edge skills and knowledge while projecting a positive can-do customer-focused attitude. 29) C

Service industry, or service sector, describes businesses and organizations that are engaged primarily in service delivery. 30) A 17

A customer-focused organization is a company that spends energy and effort on satisfying internal and external customers by first identifying customer needs, then establishing policies, procedures, and management and reward systems to support excellence in service delivery. 31) A

The term service sector as used by the Census Bureau and the Bureau of Labor Statistics in their reports and projections typically includes wholesale trade, retail trade, finance, insurance, and federal, state, and local governments. 32) B

In the past, many people made and sold or bartered products with their neighbors from their homes or cottages. These businesses came to be known as cottage industries. 33) C

Beginning in the 1960s, when worldwide trade barriers started to come down, a variety of factors have contributed to expanded international cooperation and competition. Globalization is the term applied to an ongoing trend of information, knowledge, and resource sharing around the world. 34) B

Telecommuting is a trend seen in many organizations that allows employees to set up home offices and from there electronically communicate and forward information to their corporate offices. 36) B

Downsizing is the term applied to the situation in which employees are terminated or empty positions are left unfilled once someone leaves an organization. 37) A

The countries least impacted by COVID-19 were New Zealand, South Korea, and Taiwan. 38) C

On the plus side for businesses, the need to maintain large office spaces with com-mon areas and parking spaces along with associated maintenance decreases. Additional business expenses (e.g., personal injury liability insurance, security, travel to meetings or training, and maintenance of shipping vehicles) are also reduced. 39) D

A demand curve is a graphic representation that economists use to predict trends or shifts in consumer behavior. 40) A

All of these things likely had an impact on the global economy, but the most recent and devastating ones are the pandemic and BREXIT. 41) D

With the proliferation of the Internet, large numbers of customers search websites and do their homework for products and services online before buying. 42) B

“Employment declines are expected in the goods-producing sectors, with the manufacturing sector leading the losses. Increasing automation, combined with international competition, will lead to employment declines in the manufacturing sector and in many of the production occupations concentrated in this sector. Changing consumer preferences and the increase in the use of technology will lead to declines in employment in the postal service, retail trade, agriculture, and several information-related industries.” Additionally, “compared with the prior decade, population growth is expected to slow from 2019 to 2029, in part, because of the slowed growth among the Hispanic population.” 43) D

B2B refers to business-to-business customer service. 44) A

Offshoring refers to the relocation of business services by a company or organization from one country to another. By offshoring, companies often save money on costs such as production, wages, and benefits. This is becoming more and more common in technology-oriented companies. 45) A

Insourcing occurs when organizations decide to have internal employees assume functions and perform work instead of contracting it out to third parties or outsourcing it. Insourcing is the opposite of outsourcing, and while this has not reversed the offshoring or outsourcing initiatives of some major companies, it does hold potential promise for some skilled unemployed workers seeking new opportunities in the production and service industries on a local level. 46) A

The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico. 47) C

Values are basic and fundamental beliefs that help motivate or guide the actions and attitudes that people have about many given things. They are internalized and a result of individual life experiences and societal norms. 48) B

Because many consumers are now cost-conscious, ecologically aware, and value sustainability, many automobile manufacturers are developing vehicles that are more energy efficient, use ecologically sensitive fuels and electric power systems, and cost less. 49) A

E-commerce refers to an entire spectrum of companies that market products and services on the Internet and through other technology, and the process of accessing them by consumers. 50) A

Companies recognize that if they do not meet the service expectations of customers, they lose business and revenue. Thus, the superior service providers invest large amounts of money in training employees. 51) A

External customers may be current or potential customers or clients. They are the ones who actively seek out, research, and buy, rent, or lease products or services offered by an organization. 52) B

External customers are the people outside the organization who purchase or lease products and services. This group includes vendors, suppliers, and others not from the organization. 53) B

Internal customers are coworkers, employees of other departments or branches, and other people who work within the same organization. 54) D

Internal customers include peers, coworkers, bosses, subordinates, and people from other areas of the organization. 55) B

Put simply, organizational culture is what the customer experiences. This culture is made up of a collection of subcomponents, each of which contributes to the overall service environment. 56) A

To make the culture work, an organization must take great care in recruiting, selecting, training, and retaining qualified people. The employees of an organization are its human resources. 57) B

There are three potential areas of customer satisfaction or dissatisfaction—quality, quantity, and service effectiveness. 58) C

The delivery system is the method used by an organization to provide services and products to its customers. 59) A

Basically, a learning organization is one that uses knowledge as a basis for competitive advantage. They learn from their competition, industry trends, and other sources, and they develop systems to support continued growth and development. 60) A

Service recovery is the process of righting a wrong or correcting something that has gone wrong involving provision of a product or service to a customer. 61) Short Answer

Service sector refers to organizations and individuals involved in delivering service as a primary product. The term service sector as used by the Census Bureau and the Bureau of Labor Statistics in their reports and projections typically includes: Transportation, communication, and utilities Wholesale trade Retail trade Finance, insurance, and real estate Federal government State and local governments In addition, there are people who are self-employed and provide various types of services to their customers and clients. 62) Short Answer

Offshoring refers to the relocation of business services by an organization from one country to another. The work may be kept in another entity of the organization that is located in another country or contracted to a third party. Typically, this is done to cut costs with cheaper worker salaries or tax savings. Outsourcing refers to the practice of contracting with third-party companies or vendors outside the organization to deliver products and services to customers or to produce products. 63) Short Answer

E-commerce refers to the entire spectrum of companies that market products and services on the Internet and through other technology, and the process of accessing them by consumers. Examples will vary. 64) Short Answer

Organizational culture is what the customer experiences. This culture is made up of a collection of subcomponents, each of which contributes to the overall service environment made up of factors including: the customer, organizational culture, human resources, products or deliverables, delivery systems, and service.