Question 1

The room service at the Waldorf Astoria is an example of a symbolic or experiential attribute.​

Accepted Answer

A) True 
 B)False

Question 2

In terms of managing customer expectations, what are the three possible outcomes that may occur when expectations are compared to actual product performance? What should marketers do to manage expectations effectively, especially when customers' expectations are unrealistic? Should a firm attempt to delight its customers by constantly exceeding their highest expectations?

Accepted Answer

The answer of In terms of managing customer expectations, what...

Question 3

Why is relationship development in business markets riskier and more involving than relationship development in consumer markets? ​

Accepted Answer

A)  ​There is less of an opportunity to develop profitable business relationships than individual consumer relationships. 
B)  ​Business customers do not move through the same sequence of stages in relationship development as consumers do. 
C)  ​Customers are less likely to switch brands, and businesses are likely to be price-sensitive. 
D)  ​Business buyers typically have fewer options to choose from, and financial risks are higher. 
E)  ​Business buyers have too many options, whereas consumers only have a few.

Question 4

With respect to customer expectations, which of the following best describes the zone of tolerance?

Accepted Answer

A)  It explains situations where customer expectations will be higher than normal. 
B)  It represents the degree to which customers recognize and are willing to accept variability in performance. 
C)  It explains situations where customer satisfaction will be exceptionally low. 
D)  It explains why customers tolerate weak performance when performance is beyond the control of the firm. 
E)  It explains situations where customers will hold lower than normal expectations.

Question 5

Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?

Accepted Answer

A)  Advances in technology and data collection techniques allow firms to profile customers in real time. 
B)  Twenty percent of customers provide 80 percent of business profits. 
C)  Some customers are too expensive to keep given the low level of profits that they generate. 
D)  The 20 percent of customers in the bottom tier should be fired so the firm can focus on its top customers. 
E)  The firm's top customers are the most obvious candidates for retention strategies.

Question 6

Companies should strive to delight their customers all the time.

Accepted Answer

A) True 
 B)False

Question 7

In the purchase of a product, time, effort, risk, and opportunity costs are all examples of:

Accepted Answer

A)  nonmonetary costs. 
B)  soft costs. 
C)  tangible costs. 
D)  experiential costs. 
E)  monetary costs.

Question 8

Customer satisfaction occurs when actual performance exceeds the desired performance expectation.

Accepted Answer

A) True 
 B)False

Question 9

Customers do not usually make independent judgments about satisfaction.

Accepted Answer

A) True 
 B)False

Question 10

In service offerings, the core product is typically composed of three interrelated dimensions. What are these dimensions?

Accepted Answer

A)  people, technology, and facilities 
B)  people, processes, and physical evidence 
C)  processes, employees, and facilities 
D)  customers, employees, and processes 
E)  reputation, operations, and quality

Question 11

When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.

Accepted Answer

A)  client value 
B)  lifetime value 
C)  relational value 
D)  market share 
E)  80/20 value

Question 12

What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?

Accepted Answer

A)  They take a long time to work. 
B)  Customers may resist the use of financial incentives. 
C)  They are highly expensive. 
D)  They can be easily imitated. 
E)  Customer trust is usually lacking.

Question 13

Sales tax is an example of a transactional cost.

Accepted Answer

A) True 
 B)False

Question 14

Advocacy involves creating social bonds that prevent product or supplier switching.​

Accepted Answer

A) True 
 B)False

Question 15

__________ focuses on more fully serving the needs of current customers.

Accepted Answer

A)  ​Market share 
B)  ​Perceived value 
C)  ​Relationship capital 
D)  ​Lifetime value 
E)  ​Share of customer

Question 16

Discuss the relationship between customer expectations and customer satisfaction. What might cause expectations to be higher or lower? How is the zone of tolerance a useful diagnostic tool in terms of developing strategies aimed at improving customer satisfaction?

Accepted Answer

The answer of Discuss the relationship between customer expectations and...

Question 17

__________ is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.

Accepted Answer

A)  Lifetime value management 
B)  Customer orientation 
C)  Market orientation 
D)  Customer relationship management 
E)  Retention management

Question 18

With respect to the different components of the total product offering, supplemental products play the important role of:

Accepted Answer

A)  meeting basic customer needs. 
B)  delivering the main core benefits of the product offering. 
C)  adding symbolic benefits to the product offering. 
D)  delivering the minimum level of quality demanded by customers. 
E)  differentiating the product offering from competing products.

Question 19

___________ include the immediate financial outlay or commitment that must be made to purchase a product.

Accepted Answer

A)  ​Transactional costs 
B)  ​Life cycle costs 
C)  ​Nonmonetary costs 
D)  ​Opportunity costs 
E)  ​Experiential costs

Exam 10: Developing and Maintaining Long-Term Customer Relationships

The room service at the Waldorf Astoria is an example of a symbolic or experiential attribute.​

Why is relationship development in business markets riskier and more involving than relationship development in consumer markets? ​

With respect to customer expectations, which of the following best describes the zone of tolerance?

Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?

Companies should strive to delight their customers all the time.

In the purchase of a product, time, effort, risk, and opportunity costs are all examples of:

Customer satisfaction occurs when actual performance exceeds the desired performance expectation.

Customers do not usually make independent judgments about satisfaction.

In service offerings, the core product is typically composed of three interrelated dimensions. What are these dimensions?

When a firm begins to charge high fees for additional services to non-profitable customers, it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.

What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?

Sales tax is an example of a transactional cost.

Advocacy involves creating social bonds that prevent product or supplier switching.​

__________ focuses on more fully serving the needs of current customers.

Discuss the relationship between customer expectations and customer satisfaction. What might cause expectations to be higher or lower? How is the zone of tolerance a useful diagnostic tool in terms of developing strategies aimed at improving customer satisfaction?

__________ is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.

With respect to the different components of the total product offering, supplemental products play the important role of:

___________ include the immediate financial outlay or commitment that must be made to purchase a product.

The room service at the Waldorf Astoria is an example of a symbolic or experiential attribute.

Why is relationship development in business markets riskier and more involving than relationship development in consumer markets?

Advocacy involves creating social bonds that prevent product or supplier switching.