Question 1

The Diamond of Loyalty is made up of four different segments which consist of:

Accepted Answer

A) loyals, habitual, multibranders, switchers 
B) loyals, value creators, multibranders, switchers 
C) loyals, habitual, value diluters, switchers 
D) loyals, habitual, multibranders, value diluters 
E) value creators, habitual, multibranders, switchers 
A) loyals, habitual, multibranders, switchers 
B) loyals, value creators, multibranders, switchers 
C) loyals, habitual, value diluters, switchers 
D) loyals, habitual, multibranders, value diluters 
E) value creators, habitual, multibranders, switchers

Question 2

Personal sources of information are less important to services due to their intangibility.

Accepted Answer

A) True 
 B)False

Question 3

Profitable revenue streams are more likely to be profitable when long-term customers are involved.Which of the following is not a significant value in assessing this?

Accepted Answer

A) High marketing expenses are required to obtain new customers 
B) High administration expenses are needed to enter a new customer 
C) Servicing costs are relatively low 
D) There are reasonable margins on sales 
E) None of the above 
A) High marketing expenses are required to obtain new customers 
B) High administration expenses are needed to enter a new customer 
C) Servicing costs are relatively low 
D) There are reasonable margins on sales 
E) None of the above

Question 4

Which of the following points has research found to be key determinants in a successful customer relationship?

Accepted Answer

A) Customer engagement 
B) Value 
C) Customer satisfaction 
D) Loyalty motives 
E) All of the above 
A) Customer engagement 
B) Value 
C) Customer satisfaction 
D) Loyalty motives 
E) All of the above

Question 5

Using the customer-value approach to segmentation, develop a plan for a new store in a traditional shopping centre that sells only organic products.

Accepted Answer

The customer-value approach to segmentat

Question 6

There is more than just the financial cost involved when switching from one firm to another.

Accepted Answer

A) True 
 B)False

Question 7

Recent research by Fornell and his colleagues found an association between a firm's score in the American Customer Satisfaction Index and which of the following?

Accepted Answer

A) Higher prices for the firm's services 
B) Higher prices for the firm's stock 
C) Lower profits for the firm 
D) More word of mouth for the firm's brand 
E) Stronger customer loyalty 
A) Higher prices for the firm's services 
B) Higher prices for the firm's stock 
C) Lower profits for the firm 
D) More word of mouth for the firm's brand 
E) Stronger customer loyalty

Question 8

Kevin Gwinner's research shows that confidence benefits are the most important to customers in terms of value.

Accepted Answer

A) True 
 B)False

Question 9

Reichheld and Sasser (1990) have suggested that annual profits per customer increase every year over seven years because of various factors.Which of the following is NOT one of the factors that they discovered created incremental profits?

Accepted Answer

A) Increased sales through price discounts to customers 
B) Profit from referrals to other customers 
C) Opportunities to cross-sell other services 
D) Profit from increased purchases 
E) Profit from reduced operating costs 
A) Increased sales through price discounts to customers 
B) Profit from referrals to other customers 
C) Opportunities to cross-sell other services 
D) Profit from increased purchases 
E) Profit from reduced operating costs

Question 10

Loyal long-term customers are not always more profitable than customers making one-time purchases for which of the following reasons?

Accepted Answer

A) Not all services have heavy customer acquisition costs. 
B) They do not necessarily spend more than one-off purchasers. 
C) They may expect price discounts. 
D) Larger customers such as B2B may have significant bargaining power and negotiate lower prices. 
E) All of the above 
A) Not all services have heavy customer acquisition costs. 
B) They do not necessarily spend more than one-off purchasers. 
C) They may expect price discounts. 
D) Larger customers such as B2B may have significant bargaining power and negotiate lower prices. 
E) All of the above

Question 11

Which of the following is NOT a good example of an organisation deciding to fire a customer?

Accepted Answer

A) Students who are caught cheating 
B) Club members who behave inappropriately 
C) Banks that no longer want to offer specific services to customers 
D) a and b only 
E) All of the above 
A) Students who are caught cheating 
B) Club members who behave inappropriately 
C) Banks that no longer want to offer specific services to customers 
D) a and b only 
E) All of the above

Question 12

The Diamond of Loyalty suggests that loyals may be the most profitable segment but represent only 10-20 per cent of your customer base.

Accepted Answer

A) True 
 B)False

Question 13

CRM systems only provide value to the service firm and none to the customer.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following strategies could be used to retain customers?

Accepted Answer

A) Reduce churn drivers 
B) Build in switching barriers 
C) Offer lower prices 
D) Create loyalty bonds 
E) a, b and d 
A) Reduce churn drivers 
B) Build in switching barriers 
C) Offer lower prices 
D) Create loyalty bonds 
E) a, b and d

Question 15

Are loyalty and profitability inextricably linked or are there other methods that could be used more effectively?

Accepted Answer

Loyalty and profitability are often link

The Diamond of Loyalty is made up of four different segments which consist of:

Personal sources of information are less important to services due to their intangibility.

Profitable revenue streams are more likely to be profitable when long-term customers are involved.Which of the following is not a significant value in assessing this?

Which of the following points has research found to be key determinants in a successful customer relationship?

Using the customer-value approach to segmentation, develop a plan for a new store in a traditional shopping centre that sells only organic products.

There is more than just the financial cost involved when switching from one firm to another.

Recent research by Fornell and his colleagues found an association between a firm's score in the American Customer Satisfaction Index and which of the following?

Kevin Gwinner's research shows that confidence benefits are the most important to customers in terms of value.

Reichheld and Sasser (1990) have suggested that annual profits per customer increase every year over seven years because of various factors.Which of the following is NOT one of the factors that they discovered created incremental profits?

Loyal long-term customers are not always more profitable than customers making one-time purchases for which of the following reasons?

Which of the following is NOT a good example of an organisation deciding to fire a customer?

The Diamond of Loyalty suggests that loyals may be the most profitable segment but represent only 10-20 per cent of your customer base.

CRM systems only provide value to the service firm and none to the customer.

Which of the following strategies could be used to retain customers?

Are loyalty and profitability inextricably linked or are there other methods that could be used more effectively?

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

The Diamond of Loyalty is made up of four different segments which consist of:

Personal sources of information are less important to services due to their intangibility.

Profitable revenue streams are more likely to be profitable when long-term customers are involved.Which of the following is not a significant value in assessing this?

Which of the following points has research found to be key determinants in a successful customer relationship?

Using the customer-value approach to segmentation, develop a plan for a new store in a traditional shopping centre that sells only organic products.

There is more than just the financial cost involved when switching from one firm to another.

Recent research by Fornell and his colleagues found an association between a firm's score in the American Customer Satisfaction Index and which of the following?

Kevin Gwinner's research shows that confidence benefits are the most important to customers in terms of value.

Reichheld and Sasser (1990) have suggested that annual profits per customer increase every year over seven years because of various factors.Which of the following is NOT one of the factors that they discovered created incremental profits?

Loyal long-term customers are not always more profitable than customers making one-time purchases for which of the following reasons?

Which of the following is NOT a good example of an organisation deciding to fire a customer?

The Diamond of Loyalty suggests that loyals may be the most profitable segment but represent only 10-20 per cent of your customer base.

CRM systems only provide value to the service firm and none to the customer.

Which of the following strategies could be used to retain customers?

Are loyalty and profitability inextricably linked or are there other methods that could be used more effectively?

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