Services Can Be Judged on Customer Importance and Company Performance

question 109

Multiple Choice

Services can be judged on customer importance and company performance. ________ is used to rate the various elements of the service bundle and identify what actions are required.

• A) Reliability-service indices analysis
• B) Consumer-quality analysis
• C) Key-service indices analysis
• D) SERVQAL
• E) Importance-performance analysis

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Definitions:

Prevention Cost

Expenditures incurred to avoid defects in products or services, including costs associated with quality planning and assurance.

Rework Costs

Rework costs are expenses associated with fixing defective products or correcting service delivery errors to meet customer specifications or quality standards.

Scrap Costs

The costs associated with the disposal or recycling of materials that are not part of finished products.

Product-Level Activity

This refers to costs and activities associated with specific products, separate from the overall operation of a company.