Question 1

Once a company has entered into a relationship with a customer,that relationship should never end.

Accepted Answer

A) True 
 B)False  False

Question 2

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.

Accepted Answer

A)   Customers as acquaintances; customers as friends
B)   Customers as strangers; Customers as acquaintances
C)   Customers as partners; customers as acquaintances
D)   Customers as acquaintances; customers as strangers
E)   Customers as friends; customers as strangers A

Question 3

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

Accepted Answer

A) True 
 B)False  True

Question 4

At the partnership stage of the customer relationship,the firm is most concerned with:

Accepted Answer

A)   Creating a competitive advantage
B)   Customer satisfaction
C)   The enhancement of its relationship with the customer
D)   Creating service loyalty
E)   Customer retention

Question 5

What are four customer goals for organizations that engage in relationship marketing?

Accepted Answer

The answer of What are four customer goals for organizations...

Question 6

Gracie gets her haircut at a salon almost twenty miles from her house because the price is low and because Gracie went to school with the woman who owns the salon.What kind of retention strategy is being used in this example?

Accepted Answer

The answer of Gracie gets her haircut at a salon...

Question 7

What are the three types of benefits firms enjoy through relationship marketing?

Accepted Answer

The answer of What are the three types of benefits...

Question 8

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

Question 9

Which of the following is NOT a reason why a service firm may avoid a customer relationship with a particular customer?

Accepted Answer

A)   Customer is in the wrong segment
B)   Customer is not divisible
C)   Customer is not always right
D)   Customer is not profitable in the long run
E)   Customer is difficult

Question 10

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 since 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

Question 11

According to the text,the relationship value of a customer is not influenced by:

Accepted Answer

A)   The average revenues generated per relevant time period over the lifetime
B)   Sales of additional products and services over time
C)   Referrals generated by the customer over time
D)   The length of the average customer "lifetime"
E)   The communication strategy

Question 12

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Accepted Answer

A)   Economic benefits; customer behavior benefits; human resource management benefits
B)   Economic benefits; confidence benefits; social benefits
C)   Customer behavior benefits; human resource management benefits; social benefits
D)   Special treatment benefits; economic benefits; customer behavior benefits
E)   Confidence benefits; social benefits; customer behavior benefits

Question 13

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

Question 14

Customer retention strategies based on customization bonds:

Accepted Answer

A)   Do not exist in business-to-business marketing
B)   Create tying contracts,refusals to deal,exclusive dealing,and areas of gray marketing
C)   Are not concerned with the pricing element of the marketing mix
D)   May include the customer intimacy approach
E)   Support transactional marketing as well as relationship marketing

Question 15

With relationship marketing,customers receive the specific inherent benefits of receiving service value and nothing more.

Accepted Answer

A) True 
 B)False

Question 16

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known a central figure in the neighborhood network.

Accepted Answer

A)   Esteem benefits
B)   Self-actualization
C)   Social support system
D)   Utility transfer
E)   Assurance group

Question 17

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

Question 18

What are three types of customer relationships that may not be beneficial to the firm?

Accepted Answer

The answer of What are three types of customer relationships...

Question 19

Kayla has been having her haircut by Duncan,a hairstylist at Studio 21 Salon,for five years.She has continued to use the same hairstylist even though the price of a haircut at Studio 21 Salon is $10 higher than at competing hair salons.Duncan stays up to date on the latest hairstyles and hair care products and Kayla always leaves the salon with a haircut she loves.Kayla realizes _____ benefits from her relationship with Duncan.

Accepted Answer

A)   Reliability
B)   Confidence
C)   Transactional
D)   Self-actualization
E)   Transformational

Question 20

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

Accepted Answer

A)   Relationship value
B)   Attractiveness index
C)   Profit performance quotient
D)   Calculated risk
E)   Loyalty factor

Exam 6: Building Customer Relationships