Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

The wallet allocation rule takes into account both _________ and the number of brands in the set the consumer uses.

Accepted Answer

A)  Size 
B)  Rank 
C)  Revenue 
D)  Spending 
E)  None of the above. 
A)  Size 
B)  Rank 
C)  Revenue 
D)  Spending 
E)  None of the above. B

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

_______________ is the percentage of a customer's spending within a category that is captured by a given service.

Accepted Answer

A)  Share of spending 
B)  Share of market 
C)  Share of customer 
D)  Share of wallet 
E)  Share of budget 
A)  Share of spending 
B)  Share of market 
C)  Share of customer 
D)  Share of wallet 
E)  Share of budget

Question 5

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

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 _____________ metric is based on the idea that word-of-mouth communication,rather than any other metric,is the best predictor of firm growth and financial performance.

Accepted Answer

A)  Net Promoter Score 
B)  Net Satisfaction Score 
C)  Customer Loyalty Score 
D)  Share of Wallet 
E)  Share of Mouth 
A)  Net Promoter Score 
B)  Net Satisfaction Score 
C)  Customer Loyalty Score 
D)  Share of Wallet 
E)  Share of Mouth

Question 8

Which of the following statements about providing customers with service quality is true?

Accepted Answer

A)  All customers must be provided the same superior quality of service 
B)  All customers are worth attracting and keeping through the use of service quality 
C)  The same services marketing strategy should be used with all customers 
D)  All customers will be profitable in the long run; therefore,each is deserving of quality service 
E)  Links exist among customer satisfaction,service quality and increased purchases 
A)  All customers must be provided the same superior quality of service 
B)  All customers are worth attracting and keeping through the use of service quality 
C)  The same services marketing strategy should be used with all customers 
D)  All customers will be profitable in the long run; therefore,each is deserving of quality service 
E)  Links exist among customer satisfaction,service quality and increased purchases

Question 9

Service encounters are among the key drivers of service quality.

Accepted Answer

A) True 
 B)False

Question 10

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 many of its regular customers are now buying flowers at the newly opened Kroger supermarket.It would be appropriate for the owner to institute _____ marketing.

Accepted Answer

A)  Guerrilla 
B)  Flanking-movement 
C)  Vertical integration 
D)  Defensive 
E)  Offensive 
A)  Guerrilla 
B)  Flanking-movement 
C)  Vertical integration 
D)  Defensive 
E)  Offensive

Question 11

In the early 1990s when the US.General Accounting Office (GAO)studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award,it determined that these elite quality firms benefited in all of the following ways EXCEPT:

Accepted Answer

A)  Increased market share 
B)  Improved return on sales 
C)  Improved sales per employees 
D)  Increased return on assets 
E)  Increased advertising 
A)  Increased market share 
B)  Improved return on sales 
C)  Improved sales per employees 
D)  Increased return on assets 
E)  Increased advertising

Question 12

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

Question 13

All of the following are strategic issues that the wallet allocation rule addresses EXCEPT:

Accepted Answer

A)  Managers cannot evaluate their firms without taking competition into account. 
B)  The rank that consumers assign to a service relative to the others in the same category matters. 
C)  Parity among brands the customer uses is unfavorable 
D)  The more brands a customer uses,the lower the potential for everyone. 
E)  All of the above are strategic issues that the wallet allocation rule addresses. 
A)  Managers cannot evaluate their firms without taking competition into account. 
B)  The rank that consumers assign to a service relative to the others in the same category matters. 
C)  Parity among brands the customer uses is unfavorable 
D)  The more brands a customer uses,the lower the potential for everyone. 
E)  All of the above are strategic issues that the wallet allocation rule addresses.

Question 14

Consumers believe that advertisements in publications like Newsweek,Time and similar magazines have the highest level of credibility.

Accepted Answer

A) True 
 B)False

Question 15

Many companies do not identify and act on the correct non-financial measures.One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Accepted Answer

A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard 
A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard

Question 16

The Net Promoter Score is embraced by virtually all executives,researchers and loyalty experts as the "single most reliable indicator of a company's ability to grow."

Accepted Answer

A) True 
 B)False

Question 17

Many companies do not identify and act on the correct non-financial measures.One four major mistakes that companies make is _______.In other words,they do not verify that the non-financial measures lead to financial performance.

Accepted Answer

A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard 
A)  Not linking measures to strategy 
B)  Not validating the links 
C)  Not setting the right performance targets 
D)  Measuring incorrectly 
E)  Not creating a balanced scorecard

Question 18

Companies sometimes aim too high in setting improvement targets for nonfinancial measures of performance.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 19

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 20

The Net Promoter Score is based on the idea that word-of-mouth communication,rather than any of the other metric,is the best predictor of growth and financial performance.

Accepted Answer

A) True 
 B)False

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

The wallet allocation rule takes into account both _________ and the number of brands in the set the consumer uses.

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

_______________ is the percentage of a customer's spending within a category that is captured by a given service.

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

The _____________ metric is based on the idea that word-of-mouth communication,rather than any other metric,is the best predictor of firm growth and financial performance.

Which of the following statements about providing customers with service quality is true?

Service encounters are among the key drivers of service quality.

In the early 1990s when the US.General Accounting Office (GAO)studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award,it determined that these elite quality firms benefited in all of the following ways EXCEPT:

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.

All of the following are strategic issues that the wallet allocation rule addresses EXCEPT:

Consumers believe that advertisements in publications like Newsweek,Time and similar magazines have the highest level of credibility.

Many companies do not identify and act on the correct non-financial measures.One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

The Net Promoter Score is embraced by virtually all executives,researchers and loyalty experts as the "single most reliable indicator of a company's ability to grow."

Many companies do not identify and act on the correct non-financial measures.One four major mistakes that companies make is _______.In other words,they do not verify that the non-financial measures lead to financial performance.

Companies sometimes aim too high in setting improvement targets for nonfinancial measures of performance.Managers tend to make mistakes in this area by assuming:

PIMS (profit impact of marketing strategy)research:

The Net Promoter Score is based on the idea that word-of-mouth communication,rather than any of the other metric,is the best predictor of growth and financial performance.

Introduction to Services

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

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

Customers Roles in Service

Managing Demand and Capacity

Integrated Service Marketing Communications

Pricing of Services

Filters

Exam 16: The Financial and Economic Impact of Service

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

The wallet allocation rule takes into account both _________ and the number of brands in the set the consumer uses.

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

_______________ is the percentage of a customer's spending within a category that is captured by a given service.

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

The _____________ metric is based on the idea that word-of-mouth communication,rather than any other metric,is the best predictor of firm growth and financial performance.

Which of the following statements about providing customers with service quality is true?

Service encounters are among the key drivers of service quality.

In the early 1990s when the US.General Accounting Office (GAO)studied the financial effect of service quality on companies that had won the Malcolm Baldrige National Quality Award,it determined that these elite quality firms benefited in all of the following ways EXCEPT:

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.

All of the following are strategic issues that the wallet allocation rule addresses EXCEPT:

Consumers believe that advertisements in publications like Newsweek,Time and similar magazines have the highest level of credibility.

Many companies do not identify and act on the correct non-financial measures.One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

The Net Promoter Score is embraced by virtually all executives,researchers and loyalty experts as the "single most reliable indicator of a company's ability to grow."

Many companies do not identify and act on the correct non-financial measures.One four major mistakes that companies make is _______.In other words,they do not verify that the non-financial measures lead to financial performance.

Companies sometimes aim too high in setting improvement targets for nonfinancial measures of performance.Managers tend to make mistakes in this area by assuming:

PIMS (profit impact of marketing strategy)research:

The Net Promoter Score is based on the idea that word-of-mouth communication,rather than any of the other metric,is the best predictor of growth and financial performance.

Introduction to Services

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

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

Customers Roles in Service

Managing Demand and Capacity

Integrated Service Marketing Communications

Pricing of Services

Filters