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

Question 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

The four-tiered system for measuring customer profitability uses usage segmentation.

Accepted Answer

A) True 
 B)False

Question 5

The term customer intimacy is most closely related to the establishment of _____ bonds.

Accepted Answer

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

Question 6

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 7

Social bonds alone may not tie the customer permanently to the firm,but they are much more difficult to imitate than financial incentives.

Accepted Answer

A) True 
 B)False

Question 8

The ability to segment customers narrowly based on profitability implications may raise questions of privacy for customers.

Accepted Answer

A) True 
 B)False

Question 9

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 because these customers are:

Accepted Answer

A)  In the wrong segment 
B)  Not divisible 
C)  Not profitable in the long run 
D)  Known as difficult customers 
E)  None of the above 
A)  In the wrong segment 
B)  Not divisible 
C)  Not profitable in the long run 
D)  Known as difficult customers 
E)  None of the above

Question 10

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 11

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:

Accepted Answer

A)  She is in the wrong segment 
B)  She and others like her are compatible 
C)  Her needs are homogeneous with many others 
D)  She would be a difficult customer 
E)  She would not be profitable in the short-run 
A)  She is in the wrong segment 
B)  She and others like her are compatible 
C)  Her needs are homogeneous with many others 
D)  She would be a difficult customer 
E)  She would not be profitable in the short-run

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

A primary goal of firms at the friendship stage of the relationship is:

Accepted Answer

A)  Customer retention 
B)  The creation of a unique product 
C)  Creating a competitive advantage through their marketing mix 
D)  Gaining a familiarity of how the customer creates its service offerings 
E)  The enhancement of customer relationships 
A)  Customer retention 
B)  The creation of a unique product 
C)  Creating a competitive advantage through their marketing mix 
D)  Gaining a familiarity of how the customer creates its service offerings 
E)  The enhancement of customer relationships

Question 15

Beyond the specific inherent benefits of receiving service value,customers also benefit in other ways from long-term associations with firms.The three types of relational benefits for customers are:

Accepted Answer

A)  Confidence benefits; economic benefits; behavior benefits 
B)  Management benefits; confidence benefits; economic benefits 
C)  Confidence benefits; social benefits; special treatment benefits 
D)  Confidence benefits; special treatment benefits; economic benefits 
E)  Social benefits; management benefits; behavior benefits 
A)  Confidence benefits; economic benefits; behavior benefits 
B)  Management benefits; confidence benefits; economic benefits 
C)  Confidence benefits; social benefits; special treatment benefits 
D)  Confidence benefits; special treatment benefits; economic benefits 
E)  Social benefits; management benefits; behavior benefits

Question 16

Retention strategies based on social bonds:

Accepted Answer

A)  Build long-term relationships through social and interpersonal as well as financial bonds 
B)  Use a strategy of mass customization 
C)  Are concerned about maintaining customer intimacy 
D)  Are the most difficult of the retention strategies to initiate 
E)  Create high opportunity costs 
A)  Build long-term relationships through social and interpersonal as well as financial bonds 
B)  Use a strategy of mass customization 
C)  Are concerned about maintaining customer intimacy 
D)  Are the most difficult of the retention strategies to initiate 
E)  Create high opportunity costs

Question 17

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

Accepted Answer

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

Question 18

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300.This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job.This increase in deposit will help Moonlight Catering achieve its goal of:

Accepted Answer

A)  Customer enhancement 
B)  Prospecting 
C)  Increasing its value-added service 
D)  Customer satisfaction 
E)  Customer retention 
A)  Customer enhancement 
B)  Prospecting 
C)  Increasing its value-added service 
D)  Customer satisfaction 
E)  Customer retention

Question 19

Often,_____ are created by providing customized services to the client that are technology based and make the customer more productive.

Accepted Answer

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

Question 20

In acquaintance relationships,firms generally focus on:

Accepted Answer

A)  Creating service offering awareness 
B)  Inducing product trial and adoption 
C)  Gaining specific knowledge of customer's needs 
D)  Providing value comparable to the competition 
E)  Creating clear and easily comprehended communications 
A)  Creating service offering awareness 
B)  Inducing product trial and adoption 
C)  Gaining specific knowledge of customer's needs 
D)  Providing value comparable to the competition 
E)  Creating clear and easily comprehended communications

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

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

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

The four-tiered system for measuring customer profitability uses usage segmentation.

The term customer intimacy is most closely related to the establishment of _____ bonds.

Social bonds alone may not tie the customer permanently to the firm,but they are much more difficult to imitate than financial incentives.

The ability to segment customers narrowly based on profitability implications may raise questions of privacy for customers.

Retention strategies built around financial bonds:

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

A primary goal of firms at the friendship stage of the relationship is:

Beyond the specific inherent benefits of receiving service value,customers also benefit in other ways from long-term associations with firms.The three types of relational benefits for customers are:

Retention strategies based on social bonds:

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300.This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job.This increase in deposit will help Moonlight Catering achieve its goal of:

Often,_____ are created by providing customized services to the client that are technology based and make the customer more productive.

In acquaintance relationships,firms generally focus on:

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

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

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

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

The four-tiered system for measuring customer profitability uses usage segmentation.

The term customer intimacy is most closely related to the establishment of _____ bonds.

Social bonds alone may not tie the customer permanently to the firm,but they are much more difficult to imitate than financial incentives.

The ability to segment customers narrowly based on profitability implications may raise questions of privacy for customers.

Retention strategies built around financial bonds:

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

A primary goal of firms at the friendship stage of the relationship is:

Beyond the specific inherent benefits of receiving service value,customers also benefit in other ways from long-term associations with firms.The three types of relational benefits for customers are:

Retention strategies based on social bonds:

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300.This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job.This increase in deposit will help Moonlight Catering achieve its goal of:

Often,_____ are created by providing customized services to the client that are technology based and make the customer more productive.

In acquaintance relationships,firms generally focus on:

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