Question 1

The most difficult type of defectors to bring back once they leave are the _____ defectors.

Accepted Answer

A) price 
B) product 
C) service 
D) market 
E) technological 
A) price 
B) product 
C) service 
D) market 
E) technological

Question 2

Businesses commonly lose ____ percent of their customers each year.

Accepted Answer

A) 5 to 10 
B) 15 to 20 
C) 25 to 30 
D) 35 to 40 
E) 45 to 50 
A) 5 to 10 
B) 15 to 20 
C) 25 to 30 
D) 35 to 40 
E) 45 to 50

Question 3

Although appropriate within the manufacturing sector,which of the following does NOT work well within the service sector?

Accepted Answer

A) implicit guarantees 
B) defection management 
C) zero defects model 
D) zero defections model 
E) conquest marketing 
A) implicit guarantees 
B) defection management 
C) zero defects model 
D) zero defections model 
E) conquest marketing

Question 4

All of the following are customer-directed benefits associated with unconditional guarantees except:

Accepted Answer

A) guarantees that are invoked provide a measurable means of tracking poor service. 
B) customers perceive they are getting a better value. 
C) the perceived risk associated with the purchase is lower. 
D) the consumer perceives the firm to be more reliable. 
E) the guarantee helps consumers decide when comparing competing alternatives. 
A) guarantees that are invoked provide a measurable means of tracking poor service. 
B) customers perceive they are getting a better value. 
C) the perceived risk associated with the purchase is lower. 
D) the consumer perceives the firm to be more reliable. 
E) the guarantee helps consumers decide when comparing competing alternatives.

Question 5

While other defector types are primarily externally driven,these defectors leave as a result of problems with the internal operations of the firm.

Accepted Answer

A) price defectors 
B) product defectors 
C) service defectors 
D) market defectors 
E) technological defectors 
A) price defectors 
B) product defectors 
C) service defectors 
D) market defectors 
E) technological defectors

Question 6

The strategy for cultivating customer loyalty that promotes the idea that the company exists to meet the needs and wants of its consumers is:

Accepted Answer

A) developing a proper perspective. 
B) providing discretionary effort. 
C) providing incentives. 
D) building trust through reliability. 
E) staying in touch. 
A) developing a proper perspective. 
B) providing discretionary effort. 
C) providing incentives. 
D) building trust through reliability. 
E) staying in touch.

Question 7

Bob defected to another service provider due to a friendship that developed through a civic club.Bob is an example of a(n) _____ defector.

Accepted Answer

A) price 
B) organizational 
C) service 
D) market 
E) technological 
A) price 
B) organizational 
C) service 
D) market 
E) technological

Question 8

The most powerful of all guarantees that promises complete customer satisfaction is the _____ guarantee.

Accepted Answer

A) conditional 
B) implicit 
C) specific result 
D) unconditional 
E) unsolicited 
A) conditional 
B) implicit 
C) specific result 
D) unconditional 
E) unsolicited

Question 9

All of the following statements related to customer retention are true except:

Accepted Answer

A) One of the key benefits of customer retention is repeat sales. 
B) Existing customers are willing to pay more for a firm's services. 
C) It costs 3 to 5 times more to keep a customer than to get a new one. 
D) Long-term customers tend to have lower maintenance costs. 
E) Customer retention often leads to positive referrals. 
A) One of the key benefits of customer retention is repeat sales. 
B) Existing customers are willing to pay more for a firm's services. 
C) It costs 3 to 5 times more to keep a customer than to get a new one. 
D) Long-term customers tend to have lower maintenance costs. 
E) Customer retention often leads to positive referrals.

Question 10

The defection management process includes all of the following steps except:

Accepted Answer

A) Communicate to employees the importance of retaining current customers and the benefitsobtained by reducing defections. 
B) Minimize service guarantee payouts. 
C) Train employees in defection management. 
D) Tie incentives to defection rates. 
E) Create switching barriers that discourage defections. 
A) Communicate to employees the importance of retaining current customers and the benefitsobtained by reducing defections. 
B) Minimize service guarantee payouts. 
C) Train employees in defection management. 
D) Tie incentives to defection rates. 
E) Create switching barriers that discourage defections.

Question 11

____ refers to the average dollar amount per sale multiplied by the average number of times customers reorder.

Accepted Answer

A) Lifetime value of a customer 
B) Customer acquisition cost 
C) Lifetime profit of a customer 
D) Lifetime cost of a customer 
E) Customer retention cost 
A) Lifetime value of a customer 
B) Customer acquisition cost 
C) Lifetime profit of a customer 
D) Lifetime cost of a customer 
E) Customer retention cost

Question 12

An unwritten,unspoken guarantee that establishes an understanding between the firm and its customers is called a(n) _____ guarantee.

Accepted Answer

A) conditional 
B) implicit 
C) specific result 
D) unconditional 
E) unsolicited 
A) conditional 
B) implicit 
C) specific result 
D) unconditional 
E) unsolicited

Question 13

Studies have indicated that as much as ____ percent of profits come from long-term customers via profits derived from sales,referrals,and reduced operating costs.

Accepted Answer

A) 95 
B) 75 
C) 50 
D) 35 
E) 25 
A) 95 
B) 75 
C) 50 
D) 35 
E) 25

Question 14

The least loyal of any customer type are the _____ defectors.

Accepted Answer

A) price 
B) product 
C) service 
D) market 
E) technological 
A) price 
B) product 
C) service 
D) market 
E) technological

Question 15

All of the following are organization-directed benefits associated with offering unconditional guarantees except:

Accepted Answer

A) the guarantee forces the firm to focus on the customer's definition of good service. 
B) the guarantee states a clear performance goal that is communicated to employees. 
C) offering the guarantee forces the firm to examine its entire service delivery system for failure points. 
D) the guarantee provides a means to avoid bankruptcy. 
E) the guarantee can be a source of pride and provide a motive for team building within the firm. 
A) the guarantee forces the firm to focus on the customer's definition of good service. 
B) the guarantee states a clear performance goal that is communicated to employees. 
C) offering the guarantee forces the firm to examine its entire service delivery system for failure points. 
D) the guarantee provides a means to avoid bankruptcy. 
E) the guarantee can be a source of pride and provide a motive for team building within the firm.

Question 16

____ reflects an emotional attachment as well as a business attachment to the service firm.

Accepted Answer

A) Customer retention 
B) Frequency marketing 
C) Aftermarketing 
D) Relationship marketing 
E) Customer loyalty 
A) Customer retention 
B) Frequency marketing 
C) Aftermarketing 
D) Relationship marketing 
E) Customer loyalty

Question 17

The strategy for cultivating customer loyalty that assumes upper management's loyalty to employees will be passed on by employees to customers is:

Accepted Answer

A) developing a proper perspective. 
B) providing discretionary effort. 
C) leading through top-down loyalty. 
D) building trust through reliability. 
E) staying in touch. 
A) developing a proper perspective. 
B) providing discretionary effort. 
C) leading through top-down loyalty. 
D) building trust through reliability. 
E) staying in touch.

Question 18

A guarantee that applies only to specific steps or outputs in the service delivery process is called a(n) _____ guarantee.

Accepted Answer

A) conditional 
B) implicit 
C) specific result 
D) unconditional 
E) unsolicited 
A) conditional 
B) implicit 
C) specific result 
D) unconditional 
E) unsolicited

Question 19

Define the concepts and explain the relationship between customer loyalty and customer retention.

Accepted Answer

Although many business people may use th

Question 20

Discuss the concepts of frequency marketing,relationship marketing,and aftermarketing.

Accepted Answer

The primary goal of frequency marketing

The most difficult type of defectors to bring back once they leave are the _____ defectors.

Businesses commonly lose ____ percent of their customers each year.

Although appropriate within the manufacturing sector,which of the following does NOT work well within the service sector?

All of the following are customer-directed benefits associated with unconditional guarantees except:

While other defector types are primarily externally driven,these defectors leave as a result of problems with the internal operations of the firm.

The strategy for cultivating customer loyalty that promotes the idea that the company exists to meet the needs and wants of its consumers is:

Bob defected to another service provider due to a friendship that developed through a civic club.Bob is an example of a(n) _____ defector.

The most powerful of all guarantees that promises complete customer satisfaction is the _____ guarantee.

All of the following statements related to customer retention are true except:

The defection management process includes all of the following steps except:

____ refers to the average dollar amount per sale multiplied by the average number of times customers reorder.

An unwritten,unspoken guarantee that establishes an understanding between the firm and its customers is called a(n) _____ guarantee.

Studies have indicated that as much as ____ percent of profits come from long-term customers via profits derived from sales,referrals,and reduced operating costs.

The least loyal of any customer type are the _____ defectors.

All of the following are organization-directed benefits associated with offering unconditional guarantees except:

____ reflects an emotional attachment as well as a business attachment to the service firm.

The strategy for cultivating customer loyalty that assumes upper management's loyalty to employees will be passed on by employees to customers is:

A guarantee that applies only to specific steps or outputs in the service delivery process is called a(n) _____ guarantee.

Define the concepts and explain the relationship between customer loyalty and customer retention.

Discuss the concepts of frequency marketing,relationship marketing,and aftermarketing.

An Introduction to Services

The Services Sector: Supersectors and Ethical Considerations

Fundamental Differences Between Goods and Services

Serviced Consumer Behavior

The Service Delivery Process

The Pricing of Services

Developing the Service Communication Strategy

Managing the Firms Physical Evidence

People As Strategy: Managing Service Employees

People As Strategy: Managing Service Customers

Defining and Measuring Customer Satisfaction

Defining and Measuring Service Quality

Complaint and Service Recovery Management

Pulling the Pieces Together: Creating a World Class Service Culture

Filters

Exam 14: Customer Loyalty and Retention

The most difficult type of defectors to bring back once they leave are the _____ defectors.

Businesses commonly lose ____ percent of their customers each year.

Although appropriate within the manufacturing sector,which of the following does NOT work well within the service sector?

All of the following are customer-directed benefits associated with unconditional guarantees except:

While other defector types are primarily externally driven,these defectors leave as a result of problems with the internal operations of the firm.

The strategy for cultivating customer loyalty that promotes the idea that the company exists to meet the needs and wants of its consumers is:

Bob defected to another service provider due to a friendship that developed through a civic club.Bob is an example of a(n) _____ defector.

The most powerful of all guarantees that promises complete customer satisfaction is the _____ guarantee.

All of the following statements related to customer retention are true except:

The defection management process includes all of the following steps except:

____ refers to the average dollar amount per sale multiplied by the average number of times customers reorder.

An unwritten,unspoken guarantee that establishes an understanding between the firm and its customers is called a(n) _____ guarantee.

Studies have indicated that as much as ____ percent of profits come from long-term customers via profits derived from sales,referrals,and reduced operating costs.

The least loyal of any customer type are the _____ defectors.

All of the following are organization-directed benefits associated with offering unconditional guarantees except:

____ reflects an emotional attachment as well as a business attachment to the service firm.

The strategy for cultivating customer loyalty that assumes upper management's loyalty to employees will be passed on by employees to customers is:

A guarantee that applies only to specific steps or outputs in the service delivery process is called a(n) _____ guarantee.

Define the concepts and explain the relationship between customer loyalty and customer retention.

Discuss the concepts of frequency marketing,relationship marketing,and aftermarketing.

An Introduction to Services

The Services Sector: Supersectors and Ethical Considerations

Fundamental Differences Between Goods and Services

Serviced Consumer Behavior

The Service Delivery Process

The Pricing of Services

Developing the Service Communication Strategy

Managing the Firms Physical Evidence

People As Strategy: Managing Service Employees

People As Strategy: Managing Service Customers

Defining and Measuring Customer Satisfaction

Defining and Measuring Service Quality

Complaint and Service Recovery Management

Pulling the Pieces Together: Creating a World Class Service Culture

Filters