After Determining That Responsiveness Was a Major Concern of Customers,American

question 47

Multiple Choice

After determining that responsiveness was a major concern of customers,American Express conducted additional research to establish the exact number of days customers defined as responsive for the various company processes (e.g.,2 days for reissuing lost cards and 15 days for deciding on an application) .By conducting additional research,American Express was addressing which of the following steps in the process for developing customer-defined standards?

• A) Developing feedback mechanisms for measurement of standards
• B) Identifying existing or desired service encounter sequences
• C) Establishing measures and target levels for standards
• D) Deciding whether hard or soft standards are appropriate
• E) Translating customer expectations into behaviors and actions for each service

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Definitions:

Controllable Costs

Controllable costs are expenses that can be regulated or influenced by decisions made by managers or individuals within a company, allowing for adjustments based on operational needs.

Responsibility Accounting

A system of accounting that segments performance by areas of responsibility within the organization, allowing for better monitoring and accountability.

Activity Index

A measure used to allocate overhead costs, based on activities that drive costs such as machine hours or labor hours.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting.