Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Define loyalty in a service context.

Accepted Answer

Loyalty is a customer's willingness to continue patronizing a firm over the long-term, preferably exclusively, and recommending the firm's products to others.

Question 3

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

Question 4

Marketing activity designed to create extended relationships with customers is called _____________.

Accepted Answer

A) relationship marketing 
B) loyalty programs 
C) transactional marketing 
D) customer service marketing 
A) relationship marketing 
B) loyalty programs 
C) transactional marketing 
D) customer service marketing

Question 5

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

Accepted Answer

Gold tier members at British Airways rec

Question 6

The longer customers stay with a firm, the more profitable they become.

Accepted Answer

A) True 
 B)False

Question 7

What benefits do customers derive from relationships in service industries?

Accepted Answer

Customers derive three categor

Question 8

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 9

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 10

Describe the difference between miles and points on British Airways.

Accepted Answer

Miles refer to distance flown

Question 11

Describe the wheel of loyalty.

Accepted Answer

According to the wheel of loyalty, custo

Question 12

Zero defection refers to when a company can retain all customers it can serve, profitably or not profitably.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an example of a financial reward for loyal customers?

Accepted Answer

A) Priority program 
B) Frequent-flyer miles 
C) Special recognition and appreciation 
D) Free gifts 
E) Structural bonds 
A) Priority program 
B) Frequent-flyer miles 
C) Special recognition and appreciation 
D) Free gifts 
E) Structural bonds

Question 16

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 17

Loyalty management begins with segmenting the market to match customer needs and firm profitability.

Accepted Answer

A) True 
 B)False

Question 18

The segment that sees high value in firm's offer, spends more over time while costing less to maintain, and spreads positive WOM is called ___________.

Accepted Answer

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

Question 19

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 20

Customers derive benefits of greater confidence, social benefits and special treatment from loyal relationships with firms.

Accepted Answer

A) True 
 B)False

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

Define loyalty in a service context.

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

Marketing activity designed to create extended relationships with customers is called _____________.

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

The longer customers stay with a firm, the more profitable they become.

What benefits do customers derive from relationships in service industries?

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

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

Describe the difference between miles and points on British Airways.

Describe the wheel of loyalty.

Zero defection refers to when a company can retain all customers it can serve, profitably or not profitably.

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

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

Which of the following is an example of a financial reward for loyal customers?

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

Loyalty management begins with segmenting the market to match customer needs and firm profitability.

The segment that sees high value in firm's offer, spends more over time while costing less to maintain, and spreads positive WOM is called ___________.

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."

Customers derive benefits of greater confidence, social benefits and special treatment from loyal relationships with firms.

Introduction to Services Marketing

Customer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products Core and Supplementary Elements

Distributing Service through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand against Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Building a World-Class Service Organization

Filters

Exam 12: Managing Relationships and Building Loyalty

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

Define loyalty in a service context.

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

Marketing activity designed to create extended relationships with customers is called _____________.

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

The longer customers stay with a firm, the more profitable they become.

What benefits do customers derive from relationships in service industries?

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

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

Describe the difference between miles and points on British Airways.

Describe the wheel of loyalty.

Zero defection refers to when a company can retain all customers it can serve, profitably or not profitably.

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

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

Which of the following is an example of a financial reward for loyal customers?

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

Loyalty management begins with segmenting the market to match customer needs and firm profitability.

The segment that sees high value in firm's offer, spends more over time while costing less to maintain, and spreads positive WOM is called ___________.

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."

Customers derive benefits of greater confidence, social benefits and special treatment from loyal relationships with firms.

Introduction to Services Marketing

Customer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing Service Products Core and Supplementary Elements

Distributing Service through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Designing and Managing Service Processes

Balancing Demand against Productive Capacity

Crafting the Service Environment

Managing People for Service Advantage

Complaint Handling and Service Recovery

Improving Service Quality and Productivity

Building a World-Class Service Organization

Filters