Question 1

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 2

There are two types of monetary costs involved in the purchase of any product: transactional costs and life-cycle costs. Which of the following best exemplifies a life-cycle cost in the purchase of an automobile?

Accepted Answer

A)  the actual purchase price 
B)  state or local taxes 
C)  anticipated repair expenses 
D)  registration fees 
E)  title fees

Question 3

_____ refers to the degree of superiority of a firm's goods or services. It is a relative term because it can only be judged in comparison to competing products or when compared to an internal standard of excellence.

Accepted Answer

A)  Value 
B)  Durability 
C)  Quality 
D)  Satisfaction 
E)  Sustainability

Question 4

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 5

_____ 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

Exam 12: Developing and Maintaining Long Term Customer Relationships

There are two types of monetary costs involved in the purchase of any product: transactional costs and life-cycle costs. Which of the following best exemplifies a life-cycle cost in the purchase of an automobile?

_____ refers to the degree of superiority of a firm's goods or services. It is a relative term because it can only be judged in comparison to competing products or when compared to an internal standard of excellence.

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.

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