Question 1

What are the two questions that need to be asked when analyzing the nature of a current relationship?

Accepted Answer

1) Does the supplier enter into a formal "membership"? and 2) Is the service delivered on a continuous basis?

Question 2

Describe the wheel of loyalty.

Accepted Answer

According to the wheel of loyalty, customer loyalty is derived from three main components. The first is building a foundation for loyalty. Here, the market is segmented to match customer needs and firm capabilities, customers are selected to match the core value proposition, services are tiered, and quality service is delivered. The second component is creating customer loyalty bonds. This component involves building social, customization, and structural bonds. It also involves rewarding (financial, recognition, bonuses) and deepening the relationship through cross selling and bundling of services. The third component reduces churn drivers through effective complaint handling and increasing switching costs. All of these processes are enabled through frontline staff, account managers, membership programs, and CRM systems.

Question 3

A membership relationship is a formalized relationship between the firm and an identifiable customer that may offer special benefits to both parties.

Accepted Answer

A) True 
 B)False  True

Question 4

Part of British Airways' strategy is that customers can earn BA points and air miles on other airlines.

Accepted Answer

A) True 
 B)False

Question 5

Good relationships start with a good fit between customer needs and company capabilities.

Accepted Answer

A) True 
 B)False

Question 6

The wheel of loyalty is composed of which of the following three main components?

Accepted Answer

A)  Create loyalty bonds; deliver quality service; segment the market 
B)  Create loyalty bonds; build higher level bonds; deliver quality service 
C)  Build a foundation for loyalty; create bundling; build higher level bonds 
D)  Build a foundation for loyalty; create loyalty bonds; reduce churn drivers 
E)  Create loyalty bonds; understand customer value; understand service value 
A)  Create loyalty bonds; deliver quality service; segment the market 
B)  Create loyalty bonds; build higher level bonds; deliver quality service 
C)  Build a foundation for loyalty; create bundling; build higher level bonds 
D)  Build a foundation for loyalty; create loyalty bonds; reduce churn drivers 
E)  Create loyalty bonds; understand customer value; understand service value

Question 7

Discuss the benefits offered by British Airways to its Gold tier members.

Accepted Answer

Gold tier members at British Airways rec

Question 8

Discuss how tiering helps a leading U.S. market research agency better understand its customers.

Accepted Answer

This agency uses the four-tier pyramid s

Question 9

Define loyalty in a service context.

Accepted Answer

Loyalty is a customer's willin

Question 10

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

Question 11

Which of the following is one of the types of relational marketing?

Accepted Answer

A)  Database marketing 
B)  Transactional marketing 
C)  Corporate marketing 
D)  B2B marketing 
E)  B2C marketing 
A)  Database marketing 
B)  Transactional marketing 
C)  Corporate marketing 
D)  B2B marketing 
E)  B2C marketing

Question 12

The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT one of the strategies for developing loyalty bonds with customers?

Accepted Answer

A)  Deepening the relationship 
B)  Lag-based bonds 
C)  Social bonds 
D)  Customization bonds 
E)  Structural bonds 
A)  Deepening the relationship 
B)  Lag-based bonds 
C)  Social bonds 
D)  Customization bonds 
E)  Structural bonds

Question 14

Describe how Vanguard Group keeps its costs down to attract the right type of customer.

Accepted Answer

Vanguard focuses on index fund

Question 15

Discuss the framework of the five key processes involved in a CRM strategy.

Accepted Answer

The first key process is strategy develo

Question 16

Which of the following is an example of a service that involves continuous delivery without a formal relationship?

Accepted Answer

A)  Police protection 
B)  Movie theater 
C)  Restaurant 
D)  Banking 
E)  Insurance 
A)  Police protection 
B)  Movie theater 
C)  Restaurant 
D)  Banking 
E)  Insurance

Question 17

Which of the following is NOT one of the four customer tiers discussed by Zeithaml, Rust, and Lemon?

Accepted Answer

A)  Platinum 
B)  Gold 
C)  Bronze 
D)  Iron 
E)  Lead 
A)  Platinum 
B)  Gold 
C)  Bronze 
D)  Iron 
E)  Lead

Question 18

Which of the following are the three main zones of the satisfaction-loyalty relationship?

Accepted Answer

A)  Direction; institution; affluence 
B)  Defection; indifference; affection 
C)  Detection; elimination; subversion 
D)  Detection; affluence; rejection 
E)  Direction; intention; rejection 
A)  Direction; institution; affluence 
B)  Defection; indifference; affection 
C)  Detection; elimination; subversion 
D)  Detection; affluence; rejection 
E)  Direction; intention; rejection

Question 19

Discuss how Vanguard Group's pricing is set up to reward the right kind of customers.

Accepted Answer

For many of Vanguard's investors, only a

Question 20

As service companies grow larger and make increasing use of technologies such as interactive Web sites and self-service equipment, maintaining meaningful relationships with customers becomes less significant of a marketing challenge.

Accepted Answer

A) True 
 B)False

What are the two questions that need to be asked when analyzing the nature of a current relationship?

Describe the wheel of loyalty.

A membership relationship is a formalized relationship between the firm and an identifiable customer that may offer special benefits to both parties.

Part of British Airways' strategy is that customers can earn BA points and air miles on other airlines.

Good relationships start with a good fit between customer needs and company capabilities.

The wheel of loyalty is composed of which of the following three main components?

Discuss the benefits offered by British Airways to its Gold tier members.

Discuss how tiering helps a leading U.S. market research agency better understand its customers.

Define loyalty in a service context.

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

Which of the following is one of the types of relational marketing?

The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle.

Which of the following is NOT one of the strategies for developing loyalty bonds with customers?

Describe how Vanguard Group keeps its costs down to attract the right type of customer.

Discuss the framework of the five key processes involved in a CRM strategy.

Which of the following is an example of a service that involves continuous delivery without a formal relationship?

Which of the following is NOT one of the four customer tiers discussed by Zeithaml, Rust, and Lemon?

Which of the following are the three main zones of the satisfaction-loyalty relationship?

Discuss how Vanguard Group's pricing is set up to reward the right kind of customers.

As service companies grow larger and make increasing use of technologies such as interactive Web sites and self-service equipment, maintaining meaningful relationships with customers becomes less significant of a marketing challenge.

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements

Distributing Services Through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand and Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Striving for Service Leadership

Filters

Exam 12: Managing Relationships and Building Loyalty

What are the two questions that need to be asked when analyzing the nature of a current relationship?

Describe the wheel of loyalty.

A membership relationship is a formalized relationship between the firm and an identifiable customer that may offer special benefits to both parties.

Part of British Airways' strategy is that customers can earn BA points and air miles on other airlines.

Good relationships start with a good fit between customer needs and company capabilities.

The wheel of loyalty is composed of which of the following three main components?

Discuss the benefits offered by British Airways to its Gold tier members.

Discuss how tiering helps a leading U.S. market research agency better understand its customers.

Define loyalty in a service context.

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

Which of the following is one of the types of relational marketing?

The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle.

Which of the following is NOT one of the strategies for developing loyalty bonds with customers?

Describe how Vanguard Group keeps its costs down to attract the right type of customer.

Discuss the framework of the five key processes involved in a CRM strategy.

Which of the following is an example of a service that involves continuous delivery without a formal relationship?

Which of the following is NOT one of the four customer tiers discussed by Zeithaml, Rust, and Lemon?

Which of the following are the three main zones of the satisfaction-loyalty relationship?

Discuss how Vanguard Group's pricing is set up to reward the right kind of customers.

As service companies grow larger and make increasing use of technologies such as interactive Web sites and self-service equipment, maintaining meaningful relationships with customers becomes less significant of a marketing challenge.

New Perspectives on Marketing in the Service Economy

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products: Core and Supplementary Elements

Distributing Services Through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand and Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Striving for Service Leadership

Filters