Question 1

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 2

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

Accepted Answer

New customers often benefit fr

Question 3

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 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

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 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

DHL's less powerful accounts generate significantly lower profitability than their major accounts.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

Confidence benefits,

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Customers remain loyal to a firm because they experience relational benefits.

Accepted Answer

A) True 
 B)False

Question 12

Firms should not assume that the "right customers" are always the ___________.

Accepted Answer

A)  ones that are easily delighted 
B)  high spenders 
C)  price sensitive customers 
D)  average income earners 
E)  least costly to acquire 
A)  ones that are easily delighted 
B)  high spenders 
C)  price sensitive customers 
D)  average income earners 
E)  least costly to acquire

Question 13

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

Accepted Answer

Gold tier members at British Airways rec

Question 14

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 15

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 16

In the worksheet for calculating customer lifetime value, sources of annual revenues include all EXCEPT _____________.

Accepted Answer

A)  Annual account fee 
B)  sales 
C)  service fees 
D)  value of referrals 
E)  account management 
A)  Annual account fee 
B)  sales 
C)  service fees 
D)  value of referrals 
E)  account management

Question 17

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 18

Explain how AOL got itself into legal trouble with poor churn management.

Accepted Answer

AOL rewarded its call center employees w

Question 19

Explain what a "structural bond" means.

Accepted Answer

Structural bonds are mostly se

Question 20

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

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

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

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

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

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

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."

DHL's less powerful accounts generate significantly lower profitability than their major accounts.

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

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

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

Customers remain loyal to a firm because they experience relational benefits.

Firms should not assume that the "right customers" are always the ___________.

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

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

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

In the worksheet for calculating customer lifetime value, sources of annual revenues include all EXCEPT _____________.

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

Explain how AOL got itself into legal trouble with poor churn management.

Explain what a "structural bond" means.

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

Introduction to Services Marketing

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing the Service Concept: Core and Supplementary Elements

Distributing Service Through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Developing 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

Organizing for Change Management and Service Leadership

Filters

Exam 12: Managing Relationships and Building Loyalty

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

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

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

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

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

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."

DHL's less powerful accounts generate significantly lower profitability than their major accounts.

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

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

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

Customers remain loyal to a firm because they experience relational benefits.

Firms should not assume that the "right customers" are always the ___________.

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

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

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

In the worksheet for calculating customer lifetime value, sources of annual revenues include all EXCEPT _____________.

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

Explain how AOL got itself into legal trouble with poor churn management.

Explain what a "structural bond" means.

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

Introduction to Services Marketing

Consumer Behavior in a Services Context

Positioning Services in Competitive Markets

Developing the Service Concept: Core and Supplementary Elements

Distributing Service Through Physical and Electronic Channels

Setting Prices and Implementing Revenue Management

Promoting Services and Educating Customers

Developing 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

Organizing for Change Management and Service Leadership

Filters