Question 1

PIMS (profit impact of marketing strategy) research:

Accepted Answer

A)  Is used for determining the short-term effect of service quality on company profits 
B)  Shows that companies offering superior service achieve the same market share growth as those who offer average service 
C)  Demonstrates the advantages of offensive marketing 
D)  Relies on executives' opinions to predict how services will affect profit 
E)  Is accurately described by all of the above 
A)  Is used for determining the short-term effect of service quality on company profits 
B)  Shows that companies offering superior service achieve the same market share growth as those who offer average service 
C)  Demonstrates the advantages of offensive marketing 
D)  Relies on executives' opinions to predict how services will affect profit 
E)  Is accurately described by all of the above

Question 2

What research methodology has been used to determine the benefits of offensive marketing on a company's market share and profits?

Accepted Answer

PIMS (prof

Question 3

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Accepted Answer

A)  Higher market share 
B)  Increased price premium 
C)  Customer churn 
D)  Customer acquisition 
E)  Improved word-of-mouth communication 
A)  Higher market share 
B)  Increased price premium 
C)  Customer churn 
D)  Customer acquisition 
E)  Improved word-of-mouth communication

Question 4

Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect?

Accepted Answer

A)  Increased market share 
B)  Customer retention 
C)  Lower costs 
D)  Increased word-of-mouth communication 
E)  Increased price premium 
A)  Increased market share 
B)  Customer retention 
C)  Lower costs 
D)  Increased word-of-mouth communication 
E)  Increased price premium

Question 5

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

Accepted Answer

A)  Leading and lagging variables do not influence time utility 
B)  Qualitative metrics are more telling than quantitative metrics 
C)  100 percent customer satisfaction is the only important goal 
D)  Statistical reliability and statistical validity are always important 
E)  The improvement of non-financial measures leads to offensive marketing 
A)  Leading and lagging variables do not influence time utility 
B)  Qualitative metrics are more telling than quantitative metrics 
C)  100 percent customer satisfaction is the only important goal 
D)  Statistical reliability and statistical validity are always important 
E)  The improvement of non-financial measures leads to offensive marketing

Question 6

A Marriott hotel is able to charge four times as much as an Econo-Lodge for a room because of the amenities the Marriott offers. These amenities include a swimming pool, room service, exercise equipment, in-room iron, hair dryer and coffee maker and more. The Econo-Lodge provides guests with a clean room to sleep in and little else. Marriott's ability to charge a premium price is the result of its _____ strategy.

Accepted Answer

A)  Defensive 
B)  Price skimming 
C)  Neutral 
D)  Guerrilla 
E)  Flanking 
A)  Defensive 
B)  Price skimming 
C)  Neutral 
D)  Guerrilla 
E)  Flanking

Question 7

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community.

Accepted Answer

A)  Customer churn 
B)  Customer empowerment 
C)  An ethical dilemma 
D)  Customer autonomizing 
E)  Customerization 
A)  Customer churn 
B)  Customer empowerment 
C)  An ethical dilemma 
D)  Customer autonomizing 
E)  Customerization

Question 8

Return on service quality (ROSQ):

Accepted Answer

A)  Is based on the assumption that it is impossible to spend too much money on quality 
B)  Replaces intuition as a guide for service quality investments 
C)  Is an intuitive approach to determining whether a company should implement specific service quality strategies 
D)  Is based on the assumption that all quality expenditures are valid 
E)  Is accurately described by all of the above 
A)  Is based on the assumption that it is impossible to spend too much money on quality 
B)  Replaces intuition as a guide for service quality investments 
C)  Is an intuitive approach to determining whether a company should implement specific service quality strategies 
D)  Is based on the assumption that all quality expenditures are valid 
E)  Is accurately described by all of the above

Question 9

Traditionally, organizations have measured their performances almost completely on the basis of financial indicators.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Accepted Answer

A)  Process quality 
B)  Throughput time 
C)  Number of cross sales 
D)  Reduction in waste 
E)  Transaction time 
A)  Process quality 
B)  Throughput time 
C)  Number of cross sales 
D)  Reduction in waste 
E)  Transaction time

Question 11

Attracting a new customer is five times as costly as retaining an existing one.

Accepted Answer

A) True 
 B)False

Question 12

The key drivers of service quality, customer retention and profits are service encounters.

Accepted Answer

A) True 
 B)False

Question 13

The customer equity model illustrates how:

Accepted Answer

A)  Customer equity is influenced by value equity, brand equity and relationship equity 
B)  Interactive marketing, external marketing and internal marketing are interrelated 
C)  To identify unexpected service encounters 
D)  Customer equity leads to more efficient defensive marketing 
E)  Organizations can more effectively monitor customer churn 
A)  Customer equity is influenced by value equity, brand equity and relationship equity 
B)  Interactive marketing, external marketing and internal marketing are interrelated 
C)  To identify unexpected service encounters 
D)  Customer equity leads to more efficient defensive marketing 
E)  Organizations can more effectively monitor customer churn

Question 14

How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?

Accepted Answer

The balanced scorecard require

Question 15

What are the positive effects of implementing defensive marketing to reduce or eliminate customer churn?

Accepted Answer

In general, the longer a customer remain

Question 16

Offensive marketing effects involve market, reputation and:

Accepted Answer

A)  Word-of-mouth communication 
B)  Vertical integration 
C)  Price premiums 
D)  High purchase volumes 
E)  Geodemographic segmentation 
A)  Word-of-mouth communication 
B)  Vertical integration 
C)  Price premiums 
D)  High purchase volumes 
E)  Geodemographic segmentation

Question 17

Service quality can help companies attract more and better customers to the business through offensive marketing.

Accepted Answer

A) True 
 B)False

Question 18

Customer perceptual measures are leading indicators of financial performance.

Accepted Answer

A) True 
 B)False

Question 19

_____ marketing is used by companies to prevent customer defection.

Accepted Answer

A)  Vertical integration 
B)  Guerilla 
C)  Defensive 
D)  Flank-movement 
E)  Offensive 
A)  Vertical integration 
B)  Guerilla 
C)  Defensive 
D)  Flank-movement 
E)  Offensive

Question 20

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Accepted Answer

A)  Number of defections 
B)  Number of cross sales 
C)  Service perceptions 
D)  Long-term value of customer 
E)  Service expectations 
A)  Number of defections 
B)  Number of cross sales 
C)  Service perceptions 
D)  Long-term value of customer 
E)  Service expectations

PIMS (profit impact of marketing strategy) research:

What research methodology has been used to determine the benefits of offensive marketing on a company's market share and profits?

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect?

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community.

Return on service quality (ROSQ):

Traditionally, organizations have measured their performances almost completely on the basis of financial indicators.

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Attracting a new customer is five times as costly as retaining an existing one.

The key drivers of service quality, customer retention and profits are service encounters.

The customer equity model illustrates how:

How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?

What are the positive effects of implementing defensive marketing to reduce or eliminate customer churn?

Offensive marketing effects involve market, reputation and:

Service quality can help companies attract more and better customers to the business through offensive marketing.

Customer perceptual measures are leading indicators of financial performance.

_____ marketing is used by companies to prevent customer defection.

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Introduction to Services

Conceptual Framework of the Book: the Gaps Model of Service Quality

Consumer Behavior in Services

Customer Expectations of Service

Customer Perceptions of Service

Listening to Customers Through Research

Building Customer Relationships

Service Recovery

Service Innovation and Design

Customer-Defined Service Standards

Physical Evidence and the Servicescape

Employees Roles in Service Delivery

Customers Roles in Service Delivery

Delivering Service Through Intermediaries and Electronic Channels

Managing Demand and Capacity

Integrated Marketing Communications

Pricing of Services

Filters

Exam 18: The Financial and Economic Impact of Service

PIMS (profit impact of marketing strategy) research:

What research methodology has been used to determine the benefits of offensive marketing on a company's market share and profits?

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect?

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community.

Return on service quality (ROSQ):

Traditionally, organizations have measured their performances almost completely on the basis of financial indicators.

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Attracting a new customer is five times as costly as retaining an existing one.

The key drivers of service quality, customer retention and profits are service encounters.

The customer equity model illustrates how:

How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?

What are the positive effects of implementing defensive marketing to reduce or eliminate customer churn?

Offensive marketing effects involve market, reputation and:

Service quality can help companies attract more and better customers to the business through offensive marketing.

Customer perceptual measures are leading indicators of financial performance.

_____ marketing is used by companies to prevent customer defection.

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Introduction to Services

Conceptual Framework of the Book: the Gaps Model of Service Quality

Consumer Behavior in Services

Customer Expectations of Service

Customer Perceptions of Service

Listening to Customers Through Research

Building Customer Relationships

Service Recovery

Service Innovation and Design

Customer-Defined Service Standards

Physical Evidence and the Servicescape

Employees Roles in Service Delivery

Customers Roles in Service Delivery

Delivering Service Through Intermediaries and Electronic Channels

Managing Demand and Capacity

Integrated Marketing Communications

Pricing of Services

Filters