Question 1

Technology is used to do all of the following EXCEPT ____________ in relational marketing.

Accepted Answer

A)  identify and build a database of current and potential customers 
B)  handle discrepancies between order requests 
C)  deliver differentiated messages based on consumers' characteristics and preferences 
D)  track each relationship to monitor the cost of acquiring the consumer and the lifetime value of the resulting purchases 
E)  all of the above are ways technology is used in relational marketing 
A)  identify and build a database of current and potential customers 
B)  handle discrepancies between order requests 
C)  deliver differentiated messages based on consumers' characteristics and preferences 
D)  track each relationship to monitor the cost of acquiring the consumer and the lifetime value of the resulting purchases 
E)  all of the above are ways technology is used in relational marketing

Question 2

Why do firms benefit from a price premium with loyal customers?

Accepted Answer

New customers often benefit fr

Question 3

Network marketing occurs mainly in a business-to-business context, where firms commit resources to develop positions in a network of relationships.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT one of the advantages to incremental profits of a loyal customer?

Accepted Answer

A)  Profit from increased purchases. 
B)  Profit from decreased advertising. 
C)  Profit from reduced operating costs. 
D)  Profit from referrals to other customers. 
E)  Profit from price premiums. 
A)  Profit from increased purchases. 
B)  Profit from decreased advertising. 
C)  Profit from reduced operating costs. 
D)  Profit from referrals to other customers. 
E)  Profit from price premiums.

Question 5

Explain what a "structural bond" means.

Accepted Answer

Structural bonds are mostly se

Question 6

Give an example of a firm discussed in the chapter that successfully built a strategy on serving customer segments that were neglected by established players that didn't perceive them as sufficiently "valuable."

Accepted Answer

Enterprise

Question 7

Customer satisfaction (based on the ACSI) is highly related to the stock price of individual firms.

Accepted Answer

A) True 
 B)False

Question 8

The advantage to the service organization of having membership relationships is that it knows who its future customers are and, usually, what they think of the services offered.

Accepted Answer

A) True 
 B)False

Question 9

Vanguard's success is measured by which of the following?

Accepted Answer

A)  Low redemption rates 
B)  High redemption rates 
C)  Low customer turnover 
D)  High customer turnover 
E)  Portfolio stability 
A)  Low redemption rates 
B)  High redemption rates 
C)  Low customer turnover 
D)  High customer turnover 
E)  Portfolio stability

Question 10

Most people can think of dozens of service firms they truly like and where they are committed to going back to.

Accepted Answer

A) True 
 B)False

Question 11

Describe the difference between miles and points on British Airways.

Accepted Answer

Miles refer to distance flown

Question 12

What three psychological effects do Dowling and Uncles argue that marketers need to examine?

Accepted Answer

A)  Make versus buy decision; where buyers shop; how much buyers spend 
B)  Brand loyalty versus deal loyalty; where buyers shop; how much buyers spend 
C)  Brand loyalty versus deal loyalty; how buyers value rewards; timing 
D)  Make versus buy decision; how buyers value rewards; timing 
E)  Make versus buy decision; how buyers value rewards; how much buyers spend 
A)  Make versus buy decision; where buyers shop; how much buyers spend 
B)  Brand loyalty versus deal loyalty; where buyers shop; how much buyers spend 
C)  Brand loyalty versus deal loyalty; how buyers value rewards; timing 
D)  Make versus buy decision; how buyers value rewards; timing 
E)  Make versus buy decision; how buyers value rewards; how much buyers spend

Question 13

Successful customer relationships cannot be built if a firm is selective about the segments they target.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT an aspect of ING Direct's no-frills strategy?

Accepted Answer

A)  High interest rates 
B)  Offers only a handful of basic products 
C)  Lures low-maintenance customers 
D)  Firing customers who don't fit the profile 
E)  Increased contact with the bank 
A)  High interest rates 
B)  Offers only a handful of basic products 
C)  Lures low-maintenance customers 
D)  Firing customers who don't fit the profile 
E)  Increased contact with the bank

Question 15

Vanguard Group is very careful about acquiring the right type of customer.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an example of a service that involves discrete transactions within a membership context?

Accepted Answer

A)  Repair under warranty 
B)  Insurance 
C)  Radio station 
D)  Car rental 
E)  Pay phone 
A)  Repair under warranty 
B)  Insurance 
C)  Radio station 
D)  Car rental 
E)  Pay phone

Question 17

The lead customer tier tends to generate moderate revenue, but only a small amount of business.

Accepted Answer

A) True 
 B)False

Question 18

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.

Accepted Answer

A) True 
 B)False

Question 19

Define total relationship marketing.

Accepted Answer

Marketing based on relationships, networ

Question 20

The term ____________ has been widely used to describe repeated transactions that form a relationship between the buyer and the supplier.

Accepted Answer

A)  relational services 
B)  relationship renewal 
C)  relationship justification 
D)  relationship management 
E)  relationship marketing 
A)  relational services 
B)  relationship renewal 
C)  relationship justification 
D)  relationship management 
E)  relationship marketing

Technology is used to do all of the following EXCEPT ____________ in relational marketing.

Why do firms benefit from a price premium with loyal customers?

Network marketing occurs mainly in a business-to-business context, where firms commit resources to develop positions in a network of relationships.

Which of the following is NOT one of the advantages to incremental profits of a loyal customer?

Explain what a "structural bond" means.

Give an example of a firm discussed in the chapter that successfully built a strategy on serving customer segments that were neglected by established players that didn't perceive them as sufficiently "valuable."

Customer satisfaction (based on the ACSI) is highly related to the stock price of individual firms.

The advantage to the service organization of having membership relationships is that it knows who its future customers are and, usually, what they think of the services offered.

Vanguard's success is measured by which of the following?

Most people can think of dozens of service firms they truly like and where they are committed to going back to.

Describe the difference between miles and points on British Airways.

What three psychological effects do Dowling and Uncles argue that marketers need to examine?

Successful customer relationships cannot be built if a firm is selective about the segments they target.

Which of the following is NOT an aspect of ING Direct's no-frills strategy?

Vanguard Group is very careful about acquiring the right type of customer.

Which of the following is an example of a service that involves discrete transactions within a membership context?

The lead customer tier tends to generate moderate revenue, but only a small amount of business.

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.

Define total relationship marketing.

The term ____________ has been widely used to describe repeated transactions that form a relationship between the buyer and the supplier.

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

Technology is used to do all of the following EXCEPT ____________ in relational marketing.

Why do firms benefit from a price premium with loyal customers?

Network marketing occurs mainly in a business-to-business context, where firms commit resources to develop positions in a network of relationships.

Which of the following is NOT one of the advantages to incremental profits of a loyal customer?

Explain what a "structural bond" means.

Give an example of a firm discussed in the chapter that successfully built a strategy on serving customer segments that were neglected by established players that didn't perceive them as sufficiently "valuable."

Customer satisfaction (based on the ACSI) is highly related to the stock price of individual firms.

The advantage to the service organization of having membership relationships is that it knows who its future customers are and, usually, what they think of the services offered.

Vanguard's success is measured by which of the following?

Most people can think of dozens of service firms they truly like and where they are committed to going back to.

Describe the difference between miles and points on British Airways.

What three psychological effects do Dowling and Uncles argue that marketers need to examine?

Successful customer relationships cannot be built if a firm is selective about the segments they target.

Which of the following is NOT an aspect of ING Direct's no-frills strategy?

Vanguard Group is very careful about acquiring the right type of customer.

Which of the following is an example of a service that involves discrete transactions within a membership context?

The lead customer tier tends to generate moderate revenue, but only a small amount of business.

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.

Define total relationship marketing.

The term ____________ has been widely used to describe repeated transactions that form a relationship between the buyer and the supplier.

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