Question 1

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

Accepted Answer

A) True 
 B)False  False

Question 2

To be successful, a service provider must accept the fact that the customer is always right.

Accepted Answer

A) True 
 B)False  False

Question 3

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

Accepted Answer

A)  Current and/or future profitability 
B)  Behavior 
C)  Usage 
D)  Volume 
E)  User characteristics 
A)  Current and/or future profitability 
B)  Behavior 
C)  Usage 
D)  Volume 
E)  User characteristics A

Question 4

What is the primary goal of relationship marketing?

Accepted Answer

To build and maintai

Question 5

There is no way to calculate the lifetime value of a customer.

Accepted Answer

A) True 
 B)False

Question 6

The best customers are the ones that generate the most profit.

Accepted Answer

A) True 
 B)False

Question 7

According to the 80/20 rule:

Accepted Answer

A)  Only 80 percent of a company's customers deserve good service 
B)  20 percent of a company's customers produce 80 percent of the company's profit 
C)  20 percent of a company's customers should be classified as defect-prone 
D)  Only 80 percent of a company's customers will be affected by service encounters 
E)  20 percent of a company's customers will require little or no service 
A)  Only 80 percent of a company's customers deserve good service 
B)  20 percent of a company's customers produce 80 percent of the company's profit 
C)  20 percent of a company's customers should be classified as defect-prone 
D)  Only 80 percent of a company's customers will be affected by service encounters 
E)  20 percent of a company's customers will require little or no service

Question 8

Marlon Johnson is a government auditor and works for Taylor & Litford firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Johnson sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Johnson builds with the government employees he works with was realized by Taylor & Litford when Johnson left the firm, went to work for another one and took his clients with him. This is an example of how _____ benefits can be both helpful and harmful.

Accepted Answer

A)  Confidence 
B)  Reliability 
C)  Social 
D)  Transactional 
E)  Economic 
A)  Confidence 
B)  Reliability 
C)  Social 
D)  Transactional 
E)  Economic

Question 9

Miller & Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller & Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller & Sons Funeral Home is using _____ to implement its customer retention strategy.

Accepted Answer

A)  Economic bonds 
B)  Social bonds 
C)  Customization bonds 
D)  Structural bonds 
E)  Security bonds 
A)  Economic bonds 
B)  Social bonds 
C)  Customization bonds 
D)  Structural bonds 
E)  Security bonds

Question 10

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

Accepted Answer

A) True 
 B)False

Question 11

A theater that was once very popular is having decreased attendance at its movies even though its owner is providing his audience with the kind of movies they have enjoyed in the past. He is thinking about offering a program where customers earn free snacks with the purchase of a set number of tickets. Why might it be inappropriate for a movie theater to implement a financial rewards loyalty program?

Accepted Answer

First, these programs are easily imitate

Question 12

Customer retention strategies based on customization bonds:

Accepted Answer

A)  Do not exist in business-to-business marketing 
B)  Create tying contracts, refusals to deal, exclusive dealing and areas of gray marketing 
C)  Are not concerned with the pricing element of the marketing mix 
D)  May include the customer intimacy approach 
E)  Support transactional marketing as well as relationship marketing 
A)  Do not exist in business-to-business marketing 
B)  Create tying contracts, refusals to deal, exclusive dealing and areas of gray marketing 
C)  Are not concerned with the pricing element of the marketing mix 
D)  May include the customer intimacy approach 
E)  Support transactional marketing as well as relationship marketing

Question 13

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Accepted Answer

A) True 
 B)False

Question 14

Retention strategies built around financial bonds:

Accepted Answer

A)  Provide long-term profit increases 
B)  Use price as the primary marketing mix element 
C)  Are difficult to initiate 
D)  Provide long-term competitive advantage 
E)  Have a high degree of service customization 
A)  Provide long-term profit increases 
B)  Use price as the primary marketing mix element 
C)  Are difficult to initiate 
D)  Provide long-term competitive advantage 
E)  Have a high degree of service customization

Question 15

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

Accepted Answer

A)  Non-existent because the company's primary goal is to induce trial 
B)  Generally low with some variation on how the competition creates unique value 
C)  High even though it depends on how unique the service offering is 
D)  Medium because customer are heterogeneous 
E)  Generally low because of the expense associated with mass customization 
A)  Non-existent because the company's primary goal is to induce trial 
B)  Generally low with some variation on how the competition creates unique value 
C)  High even though it depends on how unique the service offering is 
D)  Medium because customer are heterogeneous 
E)  Generally low because of the expense associated with mass customization

Question 16

Step-by-Step day care center offers parents several other services not normally offered by day by day care centers. A caterer is present every morning when the children are dropped off to take orders for supper. When the parents pick up their children in the evening, their supper is ready for them to take home, too. A hair stylist comes to the center once a week and cuts the hair of any child whose parents request this service. A photographer comes to the center every three months to take updated pictures of children whose parents don't have the time to take their children to the photography studio. In this way, Step-by-Step is using _____ to support its customer retention strategy.

Accepted Answer

A)  Financial bonds 
B)  Social bonds 
C)  Customization bonds 
D)  Structural bonds 
E)  Security bonds 
A)  Financial bonds 
B)  Social bonds 
C)  Customization bonds 
D)  Structural bonds 
E)  Security bonds

Question 17

The 80/20 two-tier scheme:

Accepted Answer

A)  Is used to justify the philosophy that all customers deserve the same level of service 
B)  Assumes profitability does not determine who the best customers are 
C)  Assumes all customers within each tier are homogeneous 
D)  Is totally unrelated to marketing segmentation 
E)  Is accurately described by all of the above 
A)  Is used to justify the philosophy that all customers deserve the same level of service 
B)  Assumes profitability does not determine who the best customers are 
C)  Assumes all customers within each tier are homogeneous 
D)  Is totally unrelated to marketing segmentation 
E)  Is accurately described by all of the above

Question 18

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

Accepted Answer

A)  Financial bonds 
B)  Social bonds 
C)  Customization bonds 
D)  Structural bonds 
E)  Security bonds 
A)  Financial bonds 
B)  Social bonds 
C)  Customization bonds 
D)  Structural bonds 
E)  Security bonds

Question 19

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

Accepted Answer

A)  Bucket theory 
B)  Iceberg principle 
C)  80/20 principle 
D)  Service paradigm 
E)  Echo principle of marketing 
A)  Bucket theory 
B)  Iceberg principle 
C)  80/20 principle 
D)  Service paradigm 
E)  Echo principle of marketing

Question 20

At the partnership stage of the customer relationship, the firm is most concerned with:

Accepted Answer

A)  Creating a competitive advantage 
B)  Customer satisfaction 
C)  The enhancement of its relationship with the customer 
D)  Creating service loyalty 
E)  Customer retention 
A)  Creating a competitive advantage 
B)  Customer satisfaction 
C)  The enhancement of its relationship with the customer 
D)  Creating service loyalty 
E)  Customer retention

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

To be successful, a service provider must accept the fact that the customer is always right.

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

What is the primary goal of relationship marketing?

There is no way to calculate the lifetime value of a customer.

The best customers are the ones that generate the most profit.

According to the 80/20 rule:

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

Customer retention strategies based on customization bonds:

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Retention strategies built around financial bonds:

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

The 80/20 two-tier scheme:

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

At the partnership stage of the customer relationship, the firm is most concerned with:

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

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

The Financial and Economic Impact of Service

Filters

Exam 7: Building Customer Relationships

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

To be successful, a service provider must accept the fact that the customer is always right.

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

What is the primary goal of relationship marketing?

There is no way to calculate the lifetime value of a customer.

The best customers are the ones that generate the most profit.

According to the 80/20 rule:

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

Customer retention strategies based on customization bonds:

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Retention strategies built around financial bonds:

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

The 80/20 two-tier scheme:

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

At the partnership stage of the customer relationship, the firm is most concerned with:

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

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

The Financial and Economic Impact of Service

Filters