A Company That Wanted to Measure Its Customers' Levels of Satisfaction

question 4

Multiple Choice

A company that wanted to measure its customers' levels of satisfaction should:

• A)Not bother with determining why some customers are no longer buying its products
• B)Rely solely on customer satisfaction measures as determined through survey and personal interview techniques
• C)Not be concerned with how much a customer is buying from distributors of similar products
• D)Look at customer satisfaction measures,annual retention rates as well as the frequency and size of customer purchases to determine customer satisfaction
• E)Use an external market research company to determine customer satisfaction in order to make sure that the collected data are not biased

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Definitions:

Cost of Conformance

The costs incurred to ensure that a product or service meets the quality standards and requirements, including prevention and testing costs.

Cost of Appraisal

The expenses associated with the activities to measure, evaluate, or audit products or services to ensure conformance with quality standards.

Group Involvement

The participation and collaboration of multiple individuals or teams in the pursuit of a common goal or project.

68-95-99.7 Rule

A statistical rule stating that in a normal distribution, about 68% of observed values fall within one standard deviation, 95% within two, and 99.7% within three standard deviations of the mean.