Exam 7: Building Customer Relationships

Gracie gets her haircut at a salon almost twenty miles from her house because the price is low and because Gracie went to school with the woman who owns the salon. What kind of retention strategy is being used in this example?

Moran Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Moran provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. It will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Moran has found the increase in its total number of customers because of this service more than pays its additional operation expenses. This pickup and delivery system is an example of:

What are four customer goals for organizations that engage in relationship marketing?

List the four stages in the evolution of customer relationships.

WedSafe is the name of a company that provides wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to make engaged couples aware of its services, it is in which stage of the customer relationship evolution?

New Bedford College has a two-year masters degree program designed for special education teachers. Thirty-five students enter the program each fall. The education department requires that the 35 students take the same classes. Classes are made available in sequence. If Beth wanted to take only one special education class to get her a teaching certificate in learning disabilities (LD), she would be unable to because she would not be able to participate in any carry-over projects from previous classes (This is a common teaching tool for the New Bedford education department faculty.). New Bedford College will avoid setting up a relationship with Beth because:

Customers never have any reservations about embracing a Level 4 retention strategy.

What are the two types of switching barriers that oftentimes prevent dissatisfied customers from switching providers?

Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer?

United Jersey Bank offers customers, who have a combined balance of $3000 or more in a United Jersey Checking Account and Preferred Money Market Account, a service called United Jersey Preferred Banking. This service is designed to make banking more convenient and profitable for customers. United Jersey Preferred Banking eliminates monthly maintenance fees, provides unlimited free transactions at ATMs, preferred rates on personal loans, higher interest rates on savings with higher balances and a consolidated monthly statement. United Jersey Bank does not offer United Jersey Preferred banking to customers with a combined balance of less than $3000 in a United Jersey Checking Account and Preferred Money Market Account since these customers are:

Discuss mass customization.

In acquaintance relationships, firms generally focus on:

Retention strategies based on social bonds:

In many instances, customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm. These costs are called:

A company that uses a four-tiered system to rank the profitability of its customers is:

Which retention strategy relies primarily on financial incentives?

Molly and Tom are getting married. Last month they hired a caterer for the wedding reception. This month they attended a wedding for which their chosen caterer had provided food, dishes and flowers. Neither thought the food was good and Molly worried that the dishes looked cheap. However, they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job. Molly and Tom do not want to pay:

According to the text, the lifetime value of a customer is not influenced by:

WedSafe is the name of one of several companies that provide wedding insurance. For example, in the event that the wedding is called off, the couple can insure themselves against lose of their nonrefundable deposits. When its primary marketing effort is to satisfying its customers, it is in which stage of the customer relationship evolution?

_____ marketing focuses on keeping and improving current customers, rather than concentrating on acquiring new customers.