Question 1

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

Accepted Answer

The first key process is strategy develo

Question 2

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

Accepted Answer

Confidence benefits,

Question 3

Describe the wheel of loyalty.

Accepted Answer

According to the wheel of loyalty,custom

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

Gold tier members at British Airways rec

Question 7

Defection describes customers who stop buying from a company and transfer their brand affinity to another supplier.

Accepted Answer

A) True 
 B)False

Question 8

Describe the "Iron" customer segment discussed by Zeithaml,Rust,and Lemon.

Accepted Answer

These are the bulk of the cust

Question 9

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 10

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

Accepted Answer

New customers often benefit fr

Question 11

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 12

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

Accepted Answer

AOL rewarded its call center employees w

Question 13

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 14

In the B2B context,the smaller firms as a group have a lot of bargaining power.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

Define loyalty in a service context.

Accepted Answer

Loyalty is a customer's willin

Question 18

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

Accepted Answer

Vanguard focuses on index fund

Question 19

Steps to building a foundation of loyalty include all EXCEPT _____________.

Accepted Answer

A) delivering customer satisfaction 
B) delivery service quality 
C) segmenting the market to match customer needs and firm capabilities 
D) acquiring customers who fit the core value proposition 
E) managing the customer base through effective tiering 
A) delivering customer satisfaction 
B) delivery service quality 
C) segmenting the market to match customer needs and firm capabilities 
D) acquiring customers who fit the core value proposition 
E) managing the customer base through effective tiering

Question 20

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

Accepted Answer

A) True 
 B)False

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

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

Describe the wheel of loyalty.

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

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

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

Defection describes customers who stop buying from a company and transfer their brand affinity to another supplier.

Describe the "Iron" customer segment discussed by Zeithaml,Rust,and Lemon.

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

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

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

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

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

In the B2B context,the smaller firms as a group have a lot of bargaining power.

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

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

Define loyalty in a service context.

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

Steps to building a foundation of loyalty include all EXCEPT _____________.

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

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

Organizing for Service Leadership

Filters

Exam 12: Managing Relationships and Building Loyalty

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

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

Describe the wheel of loyalty.

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

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

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

Defection describes customers who stop buying from a company and transfer their brand affinity to another supplier.

Describe the "Iron" customer segment discussed by Zeithaml,Rust,and Lemon.

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

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

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

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

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

In the B2B context,the smaller firms as a group have a lot of bargaining power.

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

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

Define loyalty in a service context.

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

Steps to building a foundation of loyalty include all EXCEPT _____________.

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

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

Organizing for Service Leadership

Filters