If a Customer Expects to Wait One Week for a Pair

question 122

Multiple Choice

If a customer expects to wait one week for a pair of shoes to be mended but is told that the shoes are ready to be picked up less than 24 hours after leaving them at the repair shop, the customer's evaluation of service quality will be high. However, a two-week wait would result in a lower evaluation. Which type of gap would be illustrated by the two-week wait?

• A)between the service customers receive and the service they want
• B)between what the company provides and what the customer is told it provides
• C)between what customers want and what management thinks customers want
• D)between what management thinks customers want and the quality specifications management develops to provide

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Definitions:

Time-Driven Activity-Based Costing

An accounting method that assigns costs to products based on the estimated amount of time activities take and the cost of performing those activities.

Customer Cost Analysis

The process of examining and evaluating the costs associated with acquiring and supporting customers to determine profitability.

Customer Support Department

A division within a company that deals with customer inquiries, issues, and assistance requirements.

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products or services based on the actual time taken to perform specific activities.