Question 1

The standards for preferred supplier are the same for all firms and often include quality programs,employee safety and training efforts and delivery specifications.

Accepted Answer

A) True 
 B)False  False

Question 2

In _____ the buyer cannot easily switch to another supplier because personnel might have to be retrained,downstream customers would be let down or some aspect of setup would be costly.

Accepted Answer

A)   Always-a-share accounts
B)   Lost-for-good accounts
C)   Never-a-share accounts
D)   Marginal accounts
E)   Average accounts B

Question 3

Assets whose value is sharply reduced outside a particular relationship are called:

Accepted Answer

A)   Specific investments
B)   Fixed investments
C)   Variable investments
D)   Fixed costs
E)   Variable costs A

Question 4

On a holiday to Tahiti,Chelsea goes a hotel where she has a reservation.On her arrival,the receptionist tells her that "Sorry,but we have no record of your reservation and we are full." This instance is an example of:

Accepted Answer

A)   Service quality breakdown
B)   Network breakdown
C)   Market penetration
D)   Technical disability
E)   Functional conflict

Question 5

In order for quality and service to play a major role in building/maintaining business relationships they must be:

Accepted Answer

A)   Made available at extremely low prices
B)   Meet expectations at least 75 percent of the time
C)   Made available as soon as it is possible to spare the requisite staff
D)   Consistently delivered at high levels
E)   Made available only upon request

Question 6

Relationships cemented by switching costs are called:

Accepted Answer

A)   Costly relationships
B)   Lost-for-good relationships
C)   Grudging relationships
D)   Troubled relationships
E)   Always-a-share relationships

Question 7

Contracts in business relationships should:

Accepted Answer

A)   Emphasize severe legal threats to ensure performance
B)   Take all risks out of the arrangement
C)   Provide for alternatives to litigation
D)   Specifically cover all possible contingencies
E)   Not be legally enforceable

Question 8

This means the system is composed of distinct subsystems or components.

Accepted Answer

A)   Modularity
B)   Divisibility
C)   Integration
D)   Switching
E)   Compatibility

Question 9

Relationship facet performance score,obtained by calculating the average performance score for the attributes of each relationships facet can be used as independent variables in:

Accepted Answer

A)   A regression analysis
B)   Input analysis
C)   Performance analysis
D)   Product analysis
E)   Output analysis

Question 10

Satisfaction surveys add value to the system of relationship communication only when used in isolation.

Accepted Answer

A) True 
 B)False

Question 11

Warehouse rackings and franchises are examples of:

Accepted Answer

A)   Sensors
B)   Interchangeable suppliers
C)   Never-a-share customers
D)   Lost-for-good customers
E)   Always-a-share customers

Question 12

Traditionally,firms have placed greater emphasis upon gaining customers than keeping them.

Accepted Answer

A) True 
 B)False

Question 13

Cranes Inc.gives its printing orders to multiple suppliers.These suppliers may have a share of the business in either the current period or future periods.However,one of these suppliers,Paramount Inc.,receives a considerable percent of Cranes' printing orders,though the orders taper or augment periodically.Paramount can be best classified as a(n):

Accepted Answer

A)   Lost-for-good customer
B)   Always-a-share customer
C)   Never a share supplier
D)   New supplier
E)   Prospective customer

Question 14

Identify the INCORRECT statement pertaining to modularity.

Accepted Answer

A)   It refers to a system composed of indistinct subsystems or components
B)   It is a factor to consider for account retention
C)   The double-edged character of systems demands that firms give careful attention to the modularity of their system
D)   If a module can be tested to "sample" the performance of the full system, market penetration possibilities are enhanced
E)   It facilitates future upgrading

Question 15

Firms have to stay in a relationship when there are no alternatives or when technical features of the exchange bind the parties for extended periods.

Accepted Answer

A) True 
 B)False

Question 16

Due to a linear relationship between retention and net present value,efforts to boost retention yield the same incremental profits at various retention levels for:

Accepted Answer

A)   Always-a-share customers
B)   Lost-for good customers
C)   Never-a share customers
D)   Marginal customers
E)   Average customers

Question 17

Accounts can be retained in the face of extreme contingencies if:

Accepted Answer

A)   Every possible event is anticipated
B)   The contract gives guidelines for joint action and adjustment
C)   Obligations are only imposed upon one party
D)   If the contract is a non-verbal one
E)   It makes specific investments in people

Question 18

What are the hallmarks of a strong,continuing business relationship?

Accepted Answer

The answer of What are the hallmarks of a strong,continuing...

Question 19

Good service often has an "exponential" impact upon the customer's perception of:

Accepted Answer

A)   Price
B)   Convenience
C)   Quality
D)   Quantity
E)   Procurement

Question 20

Satisfaction,by definition,is impossible to accurately measure and is,therefore,of little/no use for practical decision-making.

Accepted Answer

A) True 
 B)False

Exam 16: Customer Retention and Maximization

The standards for preferred supplier are the same for all firms and often include quality programs,employee safety and training efforts and delivery specifications.

In _____ the buyer cannot easily switch to another supplier because personnel might have to be retrained,downstream customers would be let down or some aspect of setup would be costly.

Assets whose value is sharply reduced outside a particular relationship are called:

On a holiday to Tahiti,Chelsea goes a hotel where she has a reservation.On her arrival,the receptionist tells her that "Sorry,but we have no record of your reservation and we are full." This instance is an example of:

In order for quality and service to play a major role in building/maintaining business relationships they must be:

Relationships cemented by switching costs are called:

Contracts in business relationships should:

This means the system is composed of distinct subsystems or components.

Relationship facet performance score,obtained by calculating the average performance score for the attributes of each relationships facet can be used as independent variables in:

Satisfaction surveys add value to the system of relationship communication only when used in isolation.

Warehouse rackings and franchises are examples of:

Traditionally,firms have placed greater emphasis upon gaining customers than keeping them.

Identify the INCORRECT statement pertaining to modularity.

Firms have to stay in a relationship when there are no alternatives or when technical features of the exchange bind the parties for extended periods.

Due to a linear relationship between retention and net present value,efforts to boost retention yield the same incremental profits at various retention levels for:

Accounts can be retained in the face of extreme contingencies if:

What are the hallmarks of a strong,continuing business relationship?

Good service often has an "exponential" impact upon the customer's perception of:

Satisfaction,by definition,is impossible to accurately measure and is,therefore,of little/no use for practical decision-making.