Customer Value and Satisfaction MCQ Quiz - Objective Question with Answer for Customer Value and Satisfaction - Download Free PDF
Latest Customer Value and Satisfaction MCQ Objective Questions
Customer Value and Satisfaction Question 1:
The location focus for service firms should be determining customer and Revenue volume.
The major determinants of the volume of Customers and Revenue are:
(A) Service and image compatibility with demographics of the customer drawing area.
(B) Proximity to raw materials and suppliers.
(C) Quality of the competition.
(D) Uniqueness of the firm's and competitor's location.
(E) Operating Policies of the competitor
Choose the correct answer from the options given below:
- (A), (C) and (E) Only
- (C), (D) and (E) Only
- (A), (C) and (D) Only
- (B), (D) and (E) Only
Answer (Detailed Solution Below)
Option 3 : (A), (C) and (D) Only
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Customer Value and Satisfaction Question 1 Detailed Solution
The correct answer is (A), (C), and (D) Only.
Key Points
The major determinants of the volume of customers and revenue are:
- Service and image compatibility with demographics of the customer drawing area: The firm's service and its compatibility with the customer help determine the flow of customers in the service store and the volume of revenue generation.
- Quality of the competition: If the quality of the nearby competition is low, then the volume of customers and revenue in the service store will be high and vice versa. So, the quality of competition is also an important determinant of customers and revenue.
- Uniqueness of the firm's and competitor's location: The choice of the unique location of the service store also affects the customers. Customers choose the location of the service store based on their convenience.
Important Points
Service Location Strategy:
The main focus for setting the industrial location is on minimising cost and the main focus for setting a good service location is maximizing the revenue. The manufacturing firms find variations in cost upon changing locations and the service firms find that the firm's location impacts the revenue. Therefore, the service firms must focus on determining the impact on revenue and customers if the location changes.
There are eight major determinants of volume and revenue of a service firm:
- Purchasing power of customer- The purchasing power of customers is an important determinant of customers and revenue. If customers do not have good purchasing power, they will not visit any retail store.
- Quality of management- The quality of service staff like the sales team and customer service executive affects the volume of customers in a store.
- Operational policies of the service firm- Having good operating policies helps in the timely delivery of services. This will increase the volume of customers in a store.
- Local competitors- Having high competition in the market will also affect the volume of customers. Customers will have the choice to move to other stores.
- The uniqueness of the firm's products and services- If the firm's products and services are unique, customers will choose to visit that store only.
- Physical facilities of competitors' businesses- The physical facilities of the competitor will also affect the volume of customers because having good customer facilities will attract more demand for customers.
- Service and image compatibility with the demographics of the customer- The firm's service and its compatibility with the customer help determine the flow of customers in the service store and the volume of revenue generation.
- Quality of competition- If the quality of the nearby competition is low, then the volume of customers and revenue in the service store will be high and vice versa. So, the quality of competition is also an important determinant of customers and revenue.
Additional Information The following points will not come under the volume of customers and revenue:
- Proximity to raw materials and suppliers: Having proximity to raw materials and other suppliers is necessary in a manufacturing firm and not in service service. The customers visit service stores where they can get final products.
- Operating Policies of the competitor: The operating policies of the competitor will not affect the volume of customers and revenue in the service firm because it does not affect the demand for products and services.
