Question 1

Which of the following concerning loyalty programs is NOT true?

Accepted Answer

A) More than half of all American adults participate in at least one loyalty program. 
B) Loyalty programs are usually used as a defensive measure to prevent customer defection. 
C) Loyalty programs can serve as the nexus for marketing alliances between companies who otherwise may be competitors. 
D) Loyalty programs are sometimes called "frequency," "points," or "rewards" programs. 
E) all of the above are true 
A) More than half of all American adults participate in at least one loyalty program. 
B) Loyalty programs are usually used as a defensive measure to prevent customer defection. 
C) Loyalty programs can serve as the nexus for marketing alliances between companies who otherwise may be competitors. 
D) Loyalty programs are sometimes called "frequency," "points," or "rewards" programs. 
E) all of the above are true

Question 2

As one would expect, most heavy users are not multi-brand loyal.

Accepted Answer

A) True 
 B)False

Question 3

Multi-channel strategies

Accepted Answer

A) must integrate manufacturers, wholesalers, and retailers. 
B) are best exemplified by vertically aligned networks (VANs) 
C) can be the basis of establishing a value added partnership (VAP) 
D) always have a channel captain. 
E) all of the above are false 
A) must integrate manufacturers, wholesalers, and retailers. 
B) are best exemplified by vertically aligned networks (VANs) 
C) can be the basis of establishing a value added partnership (VAP) 
D) always have a channel captain. 
E) all of the above are false

Question 4

Companies prefer

Accepted Answer

A) to use the minimum number of channels necessary to satisfy their customers. 
B) to serve their high value customers directly. 
C) to serve their marginal customers over the Internet. 
D) to provide "clicks" and avoid "bricks" whenever possible. 
E) none of the above 
A) to use the minimum number of channels necessary to satisfy their customers. 
B) to serve their high value customers directly. 
C) to serve their marginal customers over the Internet. 
D) to provide "clicks" and avoid "bricks" whenever possible. 
E) none of the above

Question 5

Each year, the University of Michigan conducts a survey of customers that examines customer perceptions of hundreds of companies in a variety of industries. Which measures are felt to be so important to American businesses that this survey is done?

Accepted Answer

A) GNP 
B) economic indicators 
C) service quality and customer satisfaction 
D) foreign vs. domestic product quality 
E) index of counterfeit products 
A) GNP 
B) economic indicators 
C) service quality and customer satisfaction 
D) foreign vs. domestic product quality 
E) index of counterfeit products

Question 6

Many consumers are committed to a brand because it represents the lifestyle that they want to be associated with.

Accepted Answer

A) True 
 B)False

Question 7

Charging differing amounts for different levels of servicing is called

Accepted Answer

A) differential servicing. 
B) discriminatory servicing. 
C) tiered servicing. 
D) staged servicing. 
E) none of the above 
A) differential servicing. 
B) discriminatory servicing. 
C) tiered servicing. 
D) staged servicing. 
E) none of the above

Question 8

The two types of satisfaction measures are

Accepted Answer

A) transaction specific and cumulative. 
B) short vs. long term. 
C) holistic vs. experiential. 
D) trust vs. commitment based. 
E) inductive vs. deductive. 
A) transaction specific and cumulative. 
B) short vs. long term. 
C) holistic vs. experiential. 
D) trust vs. commitment based. 
E) inductive vs. deductive.

Question 9

Which type of loyalty recognizes that a person may forgo purchasing a brand that they like or prefer?

Accepted Answer

A) inertial loyalty 
B) spurious loyalty 
C) situation specific loyalty 
D) behavioral loyalty 
E) repeat purchase loyalty 
A) inertial loyalty 
B) spurious loyalty 
C) situation specific loyalty 
D) behavioral loyalty 
E) repeat purchase loyalty

Question 10

More than seventy-five percent of all Americans participate in at least one loyalty program.

Accepted Answer

A) True 
 B)False

Question 11

Consumers may buy a brand because of its benefits. Which of the following is not a typical brand benefit?

Accepted Answer

A) an internal feeling that the right thing was done 
B) an emotional relationship with the brand 
C) a brand's functional benefits, such as its features 
D) a feeling of group acceptance 
E) all are brand benefits 
A) an internal feeling that the right thing was done 
B) an emotional relationship with the brand 
C) a brand's functional benefits, such as its features 
D) a feeling of group acceptance 
E) all are brand benefits

Question 12

The most visible form of customer relationship management is probably the loyalty/rewards/frequency program.

Accepted Answer

A) True 
 B)False

Question 13

One hundred percent loyal buyers tend to be light buyers of the product or service.

Accepted Answer

A) True 
 B)False

Question 14

Which is most true about loyalty programs?

Accepted Answer

A) They are basically offensive in nature; i.e., they attract new customers. 
B) Over 85% of members are active in the loyalty programs they belong to. 
C) They are basically defensive in nature; i.e., they won't attract many new customers but rather prevent current ones from defecting. 
D) Restaurants are the number one sector for loyalty program members. 
E) Most loyalty programs are profitable. 
A) They are basically offensive in nature; i.e., they attract new customers. 
B) Over 85% of members are active in the loyalty programs they belong to. 
C) They are basically defensive in nature; i.e., they won't attract many new customers but rather prevent current ones from defecting. 
D) Restaurants are the number one sector for loyalty program members. 
E) Most loyalty programs are profitable.

Question 15

What type of loyalty characterizes a consumer who feels very positive toward a brand but, for a variety of reasons, does not buy it?

Accepted Answer

A) situation specific loyalty 
B) latent loyalty 
C) inertial loyalty 
D) spurious loyalty 
E) no loyalty 
A) situation specific loyalty 
B) latent loyalty 
C) inertial loyalty 
D) spurious loyalty 
E) no loyalty

Question 16

Most customers who are dissatisfied complain directly to the company-they complain loudly.

Accepted Answer

A) True 
 B)False

Question 17

Customer satisfaction is not a very good measure predicting future purchase behavior.

Accepted Answer

A) True 
 B)False

Question 18

Multi-channel users are more profitable than single channel users.

Accepted Answer

A) True 
 B)False

Question 19

Long term customers are felt to be more profitable for all but which of the following reasons?

Accepted Answer

A) they buy more 
B) they buy more expensive items 
C) they become less price sensitive 
D) the price-quality relationship loses its impact 
E) they spread good opinions leading to friends' purchases 
A) they buy more 
B) they buy more expensive items 
C) they become less price sensitive 
D) the price-quality relationship loses its impact 
E) they spread good opinions leading to friends' purchases

Question 20

Situation specific loyalty recognizes that a person may forgo purchasing a brand that they like or prefer?

Accepted Answer

A) True 
 B)False

Which of the following concerning loyalty programs is NOT true?

As one would expect, most heavy users are not multi-brand loyal.

Multi-channel strategies

Companies prefer

Each year, the University of Michigan conducts a survey of customers that examines customer perceptions of hundreds of companies in a variety of industries. Which measures are felt to be so important to American businesses that this survey is done?

Many consumers are committed to a brand because it represents the lifestyle that they want to be associated with.

Charging differing amounts for different levels of servicing is called

The two types of satisfaction measures are

Which type of loyalty recognizes that a person may forgo purchasing a brand that they like or prefer?

More than seventy-five percent of all Americans participate in at least one loyalty program.

Consumers may buy a brand because of its benefits. Which of the following is not a typical brand benefit?

The most visible form of customer relationship management is probably the loyalty/rewards/frequency program.

One hundred percent loyal buyers tend to be light buyers of the product or service.

Which is most true about loyalty programs?

What type of loyalty characterizes a consumer who feels very positive toward a brand but, for a variety of reasons, does not buy it?

Most customers who are dissatisfied complain directly to the company-they complain loudly.

Customer satisfaction is not a very good measure predicting future purchase behavior.

Multi-channel users are more profitable than single channel users.

Long term customers are felt to be more profitable for all but which of the following reasons?

Situation specific loyalty recognizes that a person may forgo purchasing a brand that they like or prefer?

Introduction to Customer Relationship Management

The History and Development of CRM

Relationship Marketing and CRM

Organization and CRM

CRM and Data Management

Technology and Data Platforms

Database and Customer Data Development

Business-To-Business CRM

The CRM Strategy Cycle: Acquisition, Retention

Privacy and Ethics Considerations

CRM Program Measurement and Tools

Social Networking and CRM

CRM Trends, Challenges, and Opportunities

Filters

Exam 9: Understanding the Customercompany Profit Chain: Satisfaction, Loyalty, Retention, and Profits

Which of the following concerning loyalty programs is NOT true?

As one would expect, most heavy users are not multi-brand loyal.

Multi-channel strategies

Companies prefer

Each year, the University of Michigan conducts a survey of customers that examines customer perceptions of hundreds of companies in a variety of industries. Which measures are felt to be so important to American businesses that this survey is done?

Many consumers are committed to a brand because it represents the lifestyle that they want to be associated with.

Charging differing amounts for different levels of servicing is called

The two types of satisfaction measures are

Which type of loyalty recognizes that a person may forgo purchasing a brand that they like or prefer?

More than seventy-five percent of all Americans participate in at least one loyalty program.

Consumers may buy a brand because of its benefits. Which of the following is not a typical brand benefit?

The most visible form of customer relationship management is probably the loyalty/rewards/frequency program.

One hundred percent loyal buyers tend to be light buyers of the product or service.

Which is most true about loyalty programs?

What type of loyalty characterizes a consumer who feels very positive toward a brand but, for a variety of reasons, does not buy it?

Most customers who are dissatisfied complain directly to the company-they complain loudly.

Customer satisfaction is not a very good measure predicting future purchase behavior.

Multi-channel users are more profitable than single channel users.

Long term customers are felt to be more profitable for all but which of the following reasons?

Situation specific loyalty recognizes that a person may forgo purchasing a brand that they like or prefer?

Introduction to Customer Relationship Management

The History and Development of CRM

Relationship Marketing and CRM

Organization and CRM

CRM and Data Management

Technology and Data Platforms

Database and Customer Data Development

Business-To-Business CRM

The CRM Strategy Cycle: Acquisition, Retention

Privacy and Ethics Considerations

CRM Program Measurement and Tools

Social Networking and CRM

CRM Trends, Challenges, and Opportunities

Filters