Question 1

In terms of socio-cultural traits that impact on buyer-seller relationships, which of the following statements is correct?

Accepted Answer

A) As compared to low-context cultures, high-context cultures put more emphasis on direct communication. 
B) As compared to high-context cultures, low-context cultures spend more time on discussing issues and non-task information. 
C) As compared to high-context cultures, low-context cultures tend to avoid confrontation and prefer harmony. 
D) As compared to low-context cultures, high-context cultures take a longer time to establish relationships. 
E) As compared to low-context cultures, high-context culture put less emphasis on face-to-face encounters. 
A) As compared to low-context cultures, high-context cultures put more emphasis on direct communication. 
B) As compared to high-context cultures, low-context cultures spend more time on discussing issues and non-task information. 
C) As compared to high-context cultures, low-context cultures tend to avoid confrontation and prefer harmony. 
D) As compared to low-context cultures, high-context cultures take a longer time to establish relationships. 
E) As compared to low-context cultures, high-context culture put less emphasis on face-to-face encounters.

Question 2

Banks are put in a difficult position when they wish to divest themselves of potentially unprofitable accounts.

Accepted Answer

A) True 
 B)False

Question 3

Assume you are the manager of an upscale hairdressing salon in an area of town where there are several other salons within walking distance.What could you do to create value for your customers, so that they see benefits of staying long-term with your business?

Accepted Answer

As the manager of an upscale hairdressin

Question 4

Short-term hard sell campaigns, managed for transactions not relationships, work best for ________ while partnership and preferred access programs work best for ________.

Accepted Answer

A) multibranders; switchers 
B) switchers; multibranders 
C) loyals; switchers 
D) habituals; loyals 
E) switchers; loyals 
A) multibranders; switchers 
B) switchers; multibranders 
C) loyals; switchers 
D) habituals; loyals 
E) switchers; loyals

Question 5

How important is it for a small business operating in a local area compared to a larger organisation operating nationally to develop good customer relationships?

Accepted Answer

It is extremely important for a small bu

Question 6

According to David Maister (1997), ________ is/are no measure of excellence, ________ or profitability.

Accepted Answer

A) repeat customers; cost structures 
B) volume; customer satisfaction 
C) volume; sustainability 
D) client lists; sustainability 
E) customer lifetime value; sustainability 
A) repeat customers; cost structures 
B) volume; customer satisfaction 
C) volume; sustainability 
D) client lists; sustainability 
E) customer lifetime value; sustainability

Question 7

A service business can grow in more than one way.Which one of the following is NOT dependent on relationship management?

Accepted Answer

A) Encouraging existing customers to purchase higher value services 
B) Terminating unprofitable customers 
C) Reducing the turnover of customers 
D) Attracting new customers 
E) Encouraging existing customers to purchase more units of service 
A) Encouraging existing customers to purchase higher value services 
B) Terminating unprofitable customers 
C) Reducing the turnover of customers 
D) Attracting new customers 
E) Encouraging existing customers to purchase more units of service

Question 8

________ ________ translates the business and customer strategies into specific value propositions for customers and the firm.

Accepted Answer

A) Value creation 
B) Strategy development 
C) Multichannel integration 
D) Information management 
E) Performance assessment 
A) Value creation 
B) Strategy development 
C) Multichannel integration 
D) Information management 
E) Performance assessment

Question 9

'All customers are valuable to a service firm and should be treated in the same manner.' Discuss.

Accepted Answer

While it is important for a service firm

Question 10

The term 'share of wallet' refers to:

Accepted Answer

A) total purchases a customer makes in the product category 
B) number of offered services a customer purchases from a single firm 
C) number of offered services a customer purchases from all firms 
D) number of offered services a customer purchases from the major competitor 
E) total purchases a customer makes from major competitors 
A) total purchases a customer makes in the product category 
B) number of offered services a customer purchases from a single firm 
C) number of offered services a customer purchases from all firms 
D) number of offered services a customer purchases from the major competitor 
E) total purchases a customer makes from major competitors

Question 11

Is it reasonable for a firm to concentrate on specific customers in their loyalty programs? Does this enhance the growth of the organisation or is it only concerned with profit?

Accepted Answer

It is reasonable for a firm to concentra

Question 12

Targeting, acquiring and retaining the 'right' customers are central to successful service firms.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a reason why CRM programs may fail?

Accepted Answer

A) Viewing CRM as a technology initiative 
B) Insufficient appreciation of customer lifetime value 
C) Inadequate support from top management 
D) Failing to re-engineer business processes 
E) All are reasons why CRM programs may fail 
A) Viewing CRM as a technology initiative 
B) Insufficient appreciation of customer lifetime value 
C) Inadequate support from top management 
D) Failing to re-engineer business processes 
E) All are reasons why CRM programs may fail

Question 14

CRM strategy involves all of the following imperatives EXCEPT:

Accepted Answer

A) implementing the best processes 
B) acquiring the right customer 
C) developing the right value proposition 
D) minimising the role and importance of employees 
E) learning to retain customers 
A) implementing the best processes 
B) acquiring the right customer 
C) developing the right value proposition 
D) minimising the role and importance of employees 
E) learning to retain customers

Question 15

What strategies could a service marketer adopt for customers in the lead tier?

Accepted Answer

A) Impose a minimum fee that is waived when a certain level of revenue is generated. 
B) Cut service costs. 
C) Create an attractively priced, low-cost platform. 
D) Terminate these customers. 
E) All of the above 
A) Impose a minimum fee that is waived when a certain level of revenue is generated. 
B) Cut service costs. 
C) Create an attractively priced, low-cost platform. 
D) Terminate these customers. 
E) All of the above

Question 16

Establishing a relationship with a customer consists of two parts, first acquiring the customer and then building an ongoing relationship.

Accepted Answer

A) True 
 B)False

Question 17

Recent research has found a number of specific types of relational benefits that motivate customers to become regular customers of one service provider.Which category of benefits has been found by research to be the least important to customers in terms of value?

Accepted Answer

A) Social benefits 
B) Special-treatment benefits 
C) Relationship benefits 
D) Loyalty benefits 
E) Confidence benefits 
A) Social benefits 
B) Special-treatment benefits 
C) Relationship benefits 
D) Loyalty benefits 
E) Confidence benefits

Question 18

Customers are 'loyal to value', which means they are more likely to stay in a service relationship when the:

Accepted Answer

A) structural bonds with the seller exceed the social bonds 
B) social bonds with the seller exceed the structural bonds 
C) initial cost of a service is less than later costs 
D) sum of service benefits exceeds the costs 
E) sum of service costs equals the benefits 
A) structural bonds with the seller exceed the social bonds 
B) social bonds with the seller exceed the structural bonds 
C) initial cost of a service is less than later costs 
D) sum of service benefits exceeds the costs 
E) sum of service costs equals the benefits

Question 19

Good customer relationships begin with a good fit between ________ and ________.

Accepted Answer

A) profit expectations; revenue generated 
B) customer needs; service expectations 
C) customer needs; service offerings 
D) business objectives; profitability 
E) customer expectations; business needs 
A) profit expectations; revenue generated 
B) customer needs; service expectations 
C) customer needs; service offerings 
D) business objectives; profitability 
E) customer expectations; business needs

Question 20

Which of the following is NOT an example of common CRM applications?

Accepted Answer

A) Data collection 
B) Data analysis 
C) Market reinvestment 
D) Sales force automation 
E) Call centre automation 
A) Data collection 
B) Data analysis 
C) Market reinvestment 
D) Sales force automation 
E) Call centre automation

In terms of socio-cultural traits that impact on buyer-seller relationships, which of the following statements is correct?

Banks are put in a difficult position when they wish to divest themselves of potentially unprofitable accounts.

Assume you are the manager of an upscale hairdressing salon in an area of town where there are several other salons within walking distance.What could you do to create value for your customers, so that they see benefits of staying long-term with your business?

Short-term hard sell campaigns, managed for transactions not relationships, work best for while partnership and preferred access programs work best for .

How important is it for a small business operating in a local area compared to a larger organisation operating nationally to develop good customer relationships?

According to David Maister (1997), is/are no measure of excellence, or profitability.

A service business can grow in more than one way.Which one of the following is NOT dependent on relationship management?

translates the business and customer strategies into specific value propositions for customers and the firm.

'All customers are valuable to a service firm and should be treated in the same manner.' Discuss.

The term 'share of wallet' refers to:

Is it reasonable for a firm to concentrate on specific customers in their loyalty programs? Does this enhance the growth of the organisation or is it only concerned with profit?

Targeting, acquiring and retaining the 'right' customers are central to successful service firms.

Which of the following is NOT a reason why CRM programs may fail?

CRM strategy involves all of the following imperatives EXCEPT:

What strategies could a service marketer adopt for customers in the lead tier?

Establishing a relationship with a customer consists of two parts, first acquiring the customer and then building an ongoing relationship.

Recent research has found a number of specific types of relational benefits that motivate customers to become regular customers of one service provider.Which category of benefits has been found by research to be the least important to customers in terms of value?

Customers are 'loyal to value', which means they are more likely to stay in a service relationship when the:

Good customer relationships begin with a good fit between and .

Which of the following is NOT an example of common CRM applications?

Marketing in the service economy

Customer behaviour, culture and service encounters

Positioning services in competitive markets

Developing service products: core and supplementary service elements

Distributing services through physical and electronic channels

Understanding costs and developing pricing strategy

Balancing productive capacity and demand

Integrated services marketing communications

Managing people for service advantage

Crafting the service environment

Managing the customer service function

Customer satisfaction and service quality

Handling customer complaints and managing service recovery

Filters

Exam 13: Managing relationships and building loyalty

In terms of socio-cultural traits that impact on buyer-seller relationships, which of the following statements is correct?

Banks are put in a difficult position when they wish to divest themselves of potentially unprofitable accounts.

Assume you are the manager of an upscale hairdressing salon in an area of town where there are several other salons within walking distance.What could you do to create value for your customers, so that they see benefits of staying long-term with your business?

Short-term hard sell campaigns, managed for transactions not relationships, work best for ________ while partnership and preferred access programs work best for ________.

How important is it for a small business operating in a local area compared to a larger organisation operating nationally to develop good customer relationships?

According to David Maister (1997), ________ is/are no measure of excellence, ________ or profitability.

A service business can grow in more than one way.Which one of the following is NOT dependent on relationship management?

________ ________ translates the business and customer strategies into specific value propositions for customers and the firm.

'All customers are valuable to a service firm and should be treated in the same manner.' Discuss.

The term 'share of wallet' refers to:

Is it reasonable for a firm to concentrate on specific customers in their loyalty programs? Does this enhance the growth of the organisation or is it only concerned with profit?

Targeting, acquiring and retaining the 'right' customers are central to successful service firms.

Which of the following is NOT a reason why CRM programs may fail?

CRM strategy involves all of the following imperatives EXCEPT:

What strategies could a service marketer adopt for customers in the lead tier?

Establishing a relationship with a customer consists of two parts, first acquiring the customer and then building an ongoing relationship.

Recent research has found a number of specific types of relational benefits that motivate customers to become regular customers of one service provider.Which category of benefits has been found by research to be the least important to customers in terms of value?

Customers are 'loyal to value', which means they are more likely to stay in a service relationship when the:

Good customer relationships begin with a good fit between ________ and ________.

Which of the following is NOT an example of common CRM applications?

Marketing in the service economy

Customer behaviour, culture and service encounters

Positioning services in competitive markets

Developing service products: core and supplementary service elements

Distributing services through physical and electronic channels

Understanding costs and developing pricing strategy

Balancing productive capacity and demand

Integrated services marketing communications

Managing people for service advantage

Crafting the service environment

Managing the customer service function

Customer satisfaction and service quality

Handling customer complaints and managing service recovery

Filters

Short-term hard sell campaigns, managed for transactions not relationships, work best for while partnership and preferred access programs work best for .

According to David Maister (1997), is/are no measure of excellence, or profitability.

translates the business and customer strategies into specific value propositions for customers and the firm.

Good customer relationships begin with a good fit between and .