Question 1

_____ arise(s)when the customer is required to pay a penalty to switch providers.

Accepted Answer

A)  Fixed costs 
B)  Legal inertia 
C)  Financial inertia 
D)  Contractual costs 
E)  Opportunity costs 
A)  Fixed costs 
B)  Legal inertia 
C)  Financial inertia 
D)  Contractual costs 
E)  Opportunity costs

Question 2

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

Accepted Answer

A) True 
 B)False

Question 3

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

Accepted Answer

A)  Create financial bonds 
B)  Develop a long-lasting relational time horizon 
C)  Qualify the prospect as a customer 
D)  Initiate communications in order to attract them 
E)  Engage in problem-solving sales 
A)  Create financial bonds 
B)  Develop a long-lasting relational time horizon 
C)  Qualify the prospect as a customer 
D)  Initiate communications in order to attract them 
E)  Engage in problem-solving sales

Question 4

_________ are created by providing services to the client that are designed right into the service delivery system.

Accepted Answer

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

Question 5

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction,retention and customer enhancement.

Accepted Answer

A) True 
 B)False

Question 6

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:

Accepted Answer

A)  Financial inertia 
B)  Opportunity costs 
C)  Switching costs 
D)  Fixed costs 
E)  Retained costs 
A)  Financial inertia 
B)  Opportunity costs 
C)  Switching costs 
D)  Fixed costs 
E)  Retained costs

Question 7

According to the text,the relationships between businesses and their customers have the ability to evolve.In the first step of this evolution process,customers are identified as:

Accepted Answer

A)  Acquaintances 
B)  Prospects 
C)  Strangers 
D)  Friends 
E)  Allies 
A)  Acquaintances 
B)  Prospects 
C)  Strangers 
D)  Friends 
E)  Allies

Question 8

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

Accepted Answer

A)  Employee retention 
B)  Customers' increasing expectations of more personalized service 
C)  A reactive market-growth strategy 
D)  The ability to engage in guerilla marketing 
E)  Competitor entrenchment 
A)  Employee retention 
B)  Customers' increasing expectations of more personalized service 
C)  A reactive market-growth strategy 
D)  The ability to engage in guerilla marketing 
E)  Competitor entrenchment

Question 9

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.

Accepted Answer

A)  Customers as acquaintances; customers as friends 
B)  Customers as strangers; Customers as acquaintances 
C)  Customers as partners; customers as acquaintances 
D)  Customers as acquaintances; customers as strangers 
E)  Customers as friends; customers as strangers 
A)  Customers as acquaintances; customers as friends 
B)  Customers as strangers; Customers as acquaintances 
C)  Customers as partners; customers as acquaintances 
D)  Customers as acquaintances; customers as strangers 
E)  Customers as friends; customers as strangers

Question 10

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 11

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Accepted Answer

A)  Economic benefits; customer behavior benefits; human resource management benefits 
B)  Economic benefits; confidence benefits; social benefits 
C)  Customer behavior benefits; human resource management benefits; social benefits 
D)  Special treatment benefits; economic benefits; customer behavior benefits 
E)  Confidence benefits; social benefits; customer behavior benefits 
A)  Economic benefits; customer behavior benefits; human resource management benefits 
B)  Economic benefits; confidence benefits; social benefits 
C)  Customer behavior benefits; human resource management benefits; social benefits 
D)  Special treatment benefits; economic benefits; customer behavior benefits 
E)  Confidence benefits; social benefits; customer behavior benefits

Question 12

Sometimes firms have service encounters that fail because of ___________,who intentionally or unintentionally act in a way that is disruptive,rude,or aggressive.

Accepted Answer

A)  Profitable customers 
B)  Dysfunctional customers 
C)  Friends 
D)  Strangers 
E)  Heterogeneous customers 
A)  Profitable customers 
B)  Dysfunctional customers 
C)  Friends 
D)  Strangers 
E)  Heterogeneous customers

Question 13

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

Accepted Answer

A)  The children would benefit from socialization skills 
B)  The parents wouldn't have to go looking for a new facility to keep their children 
C)  The parents would ask for a reduced monthly rate 
D)  The parents would get to socialize with the other parents of children at their center 
E)  The parents would spread the word about their happiness with the services provided by the day care center 
A)  The children would benefit from socialization skills 
B)  The parents wouldn't have to go looking for a new facility to keep their children 
C)  The parents would ask for a reduced monthly rate 
D)  The parents would get to socialize with the other parents of children at their center 
E)  The parents would spread the word about their happiness with the services provided by the day care center

Question 14

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 15

Salespeople for college texts call on college instructors to sell them on using a particular text for their classes.Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges.It is a much better use of the sales force's time to call on schools with large classes and big adoption rates.From the customer's point of view,this application of the profitability tier:

Accepted Answer

A)  Could cause resentment 
B)  Will not cause any problems 
C)  Simply increases the importance of word-of-mouth communication 
D)  Is not profitable 
E)  Creates across-the-board customer enhancement 
A)  Could cause resentment 
B)  Will not cause any problems 
C)  Simply increases the importance of word-of-mouth communication 
D)  Is not profitable 
E)  Creates across-the-board customer enhancement

Question 16

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

Accepted Answer

A)  The average revenues generated per relevant time period over the lifetime 
B)  Sales of additional products and services over time 
C)  Referrals generated by the customer over time 
D)  The length of the average customer "lifetime" 
E)  The communication strategy 
A)  The average revenues generated per relevant time period over the lifetime 
B)  Sales of additional products and services over time 
C)  Referrals generated by the customer over time 
D)  The length of the average customer "lifetime" 
E)  The communication strategy

Question 17

Regency Dry Cleaners operates in a medium-sized community.Its customers all live within a 20-mile radius of the cleaners.Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery.Regency's driver will pick up clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs.Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses.Regency has built its customer retention strategy around:

Accepted Answer

A)  Customization bonds 
B)  Social bonds 
C)  Niche marketing 
D)  Focused marketing 
E)  Structural bonds 
A)  Customization bonds 
B)  Social bonds 
C)  Niche marketing 
D)  Focused marketing 
E)  Structural bonds

Question 18

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known as a central figure in the neighborhood network.

Accepted Answer

A)  Esteem benefits 
B)  Self-actualization 
C)  Social support system 
D)  Utility transfer 
E)  Assurance group 
A)  Esteem benefits 
B)  Self-actualization 
C)  Social support system 
D)  Utility transfer 
E)  Assurance group

Question 19

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 20

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

Accepted Answer

A)  Relationship value 
B)  Attractiveness index 
C)  Profit performance quotient 
D)  Calculated risk 
E)  Loyalty factor 
A)  Relationship value 
B)  Attractiveness index 
C)  Profit performance quotient 
D)  Calculated risk 
E)  Loyalty factor

_____ arise(s)when the customer is required to pay a penalty to switch providers.

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

_________ are created by providing services to the client that are designed right into the service delivery system.

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction,retention and customer enhancement.

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:

According to the text,the relationships between businesses and their customers have the ability to evolve.In the first step of this evolution process,customers are identified as:

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

The transition from the _ stage to the _ stage of the customer relationship requires the development of trust.

Customer retention strategies based on customization bonds:

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Sometimes firms have service encounters that fail because of ___________,who intentionally or unintentionally act in a way that is disruptive,rude,or aggressive.

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

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

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known as a central figure in the neighborhood network.

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.

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

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

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

The Financial and Economic Impact of Service

Filters

Exam 6: Building Customer Relationships

_____ arise(s)when the customer is required to pay a penalty to switch providers.

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

_________ are created by providing services to the client that are designed right into the service delivery system.

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction,retention and customer enhancement.

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:

According to the text,the relationships between businesses and their customers have the ability to evolve.In the first step of this evolution process,customers are identified as:

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.

Customer retention strategies based on customization bonds:

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Sometimes firms have service encounters that fail because of ___________,who intentionally or unintentionally act in a way that is disruptive,rude,or aggressive.

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

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

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known as a central figure in the neighborhood network.

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.

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

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

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

The Financial and Economic Impact of Service

Filters

The transition from the _ stage to the _ stage of the customer relationship requires the development of trust.