Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Which of the following is NOT an aspect of Capital One 360'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 4

Capital One 360 could be called the fast-food model of consumer banking because it is about as no-frills as it gets.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT one of the key strategies used to reduce customer defections?

Accepted Answer

A) Eliminate nuisance customers. 
B) Address key churn drivers. 
C) Implement effective complaint handling and service recovery procedures. 
D) Increase switching costs. 
E) Analyze customer defections and monitor declining accounts. 
A) Eliminate nuisance customers. 
B) Address key churn drivers. 
C) Implement effective complaint handling and service recovery procedures. 
D) Increase switching costs. 
E) Analyze customer defections and monitor declining accounts.

Question 6

Common failures in CRM implementation include all of the following EXCEPT _____________.

Accepted Answer

A) employee enthusiasm about CRM 
B) inadequate support from top management. 
C) inadequate understanding of customer lifetime value 
D) lack of coordination 
E) failure to reengineer business processes 
A) employee enthusiasm about CRM 
B) inadequate support from top management. 
C) inadequate understanding of customer lifetime value 
D) lack of coordination 
E) failure to reengineer business processes

Question 7

The common objective of a CRM system is to offer a unified customer interface that delivers customization and personalization.

Accepted Answer

A) True 
 B)False

Question 8

"Right" customers are always big spenders.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

New customers often benefit fr

Question 10

What are the three clusters of benefits that customers derive from relationships with the firm?

Accepted Answer

Confidence benefits,

Question 11

Enterprise Rent-A-Car targets customers who need a temporary replacement car.

Accepted Answer

A) True 
 B)False

Question 12

Rather than transforming the entire business, service firms should focus on clearly defined problems within their customer relationship cycle.

Accepted Answer

A) True 
 B)False

Question 13

Analysis to assess the gap between the actual and potential value of the customers involves _____________.

Accepted Answer

A) Analysis of current purchase behaviour 
B) Analysis of how long do customers remain with the firm 
C) Analysis of management's loyalty programs 
D) All of the above 
E) Only a, b & c 
A) Analysis of current purchase behaviour 
B) Analysis of how long do customers remain with the firm 
C) Analysis of management's loyalty programs 
D) All of the above 
E) Only a, b & c

Question 14

How can firms reduce customer churn, and what proactive and reactive measures can they take?

Accepted Answer

Firms can regularly run churn diagnostic

Question 15

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

Accepted Answer

Vanguard focuses on index fund

Question 16

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

Accepted Answer

The first key process is strategy develo

Question 17

The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT _____________.

Accepted Answer

A) What is the increase in profit from increase the share-of-wallet with our current customers? 
B) How much customization or one-to-one marketing and service delivery is suitable and profitable? 
C) How will top management feel about our strategy? 
D) How should our value proposition change to increase customer loyalty? 
E) How much time and resources can we provide to CRM right now? 
A) What is the increase in profit from increase the share-of-wallet with our current customers? 
B) How much customization or one-to-one marketing and service delivery is suitable and profitable? 
C) How will top management feel about our strategy? 
D) How should our value proposition change to increase customer loyalty? 
E) How much time and resources can we provide to CRM right now?

Question 18

It is critical for service firms to understand the needs of customers within different profitability tiers and adjust their service levels accordingly.

Accepted Answer

A) True 
 B)False

Question 19

Picking the "right" customers can enhance _____________.

Accepted Answer

A) Long-term revenues 
B) Growth from referrals, 
C) Employee satisfaction 
D) All of the above. 
A) Long-term revenues 
B) Growth from referrals, 
C) Employee satisfaction 
D) All of the above.

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Which of the following is NOT an aspect of Capital One 360's no-frills strategy?

Capital One 360 could be called the fast-food model of consumer banking because it is about as no-frills as it gets.

Which of the following is NOT one of the key strategies used to reduce customer defections?

Common failures in CRM implementation include all of the following EXCEPT _____________.

The common objective of a CRM system is to offer a unified customer interface that delivers customization and personalization.

"Right" customers are always big spenders.

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

What are the three clusters of benefits that customers derive from relationships with the firm?

Enterprise Rent-A-Car targets customers who need a temporary replacement car.

Rather than transforming the entire business, service firms should focus on clearly defined problems within their customer relationship cycle.

Analysis to assess the gap between the actual and potential value of the customers involves _____________.

How can firms reduce customer churn, and what proactive and reactive measures can they take?

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

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

The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT _____________.

It is critical for service firms to understand the needs of customers within different profitability tiers and adjust their service levels accordingly.

Picking the "right" customers can enhance _____________.

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

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

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

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

Which of the following is NOT an aspect of Capital One 360's no-frills strategy?

Capital One 360 could be called the fast-food model of consumer banking because it is about as no-frills as it gets.

Which of the following is NOT one of the key strategies used to reduce customer defections?

Common failures in CRM implementation include all of the following EXCEPT _____________.

The common objective of a CRM system is to offer a unified customer interface that delivers customization and personalization.

"Right" customers are always big spenders.

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

What are the three clusters of benefits that customers derive from relationships with the firm?

Enterprise Rent-A-Car targets customers who need a temporary replacement car.

Rather than transforming the entire business, service firms should focus on clearly defined problems within their customer relationship cycle.

Analysis to assess the gap between the actual and potential value of the customers involves _____________.

How can firms reduce customer churn, and what proactive and reactive measures can they take?

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

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

The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT _____________.

It is critical for service firms to understand the needs of customers within different profitability tiers and adjust their service levels accordingly.

Picking the "right" customers can enhance _____________.

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

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