Question 1

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 2

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

Accepted Answer

Vanguard focuses on index fund

Question 3

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 4

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 5

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 int

Question 6

Describe the wheel of loyalty.

Accepted Answer

According to the wheel of loyalty, custo

Question 7

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 8

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

Accepted Answer

AOL rewarded its call center employees w

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

ING Direct 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 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

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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 18

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 19

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 20

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

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

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

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

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

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

Describe the wheel of loyalty.

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

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

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."

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?

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

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

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

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

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

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

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

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.

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

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 C

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

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

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

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

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

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

Describe the wheel of loyalty.

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

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

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."

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?

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

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

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

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

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

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

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

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.

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

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 C

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