Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.

Accepted Answer

A) True 
 B)False  False

Question 3

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 D

Question 4

Which of the following is NOT one of the four customer tiers discussed by Zeithaml,Rust,and Lemon?

Accepted Answer

A)  Platinum
B)  Gold
C)  Bronze
D)  Iron
E)  Lead

Question 5

DHL's less powerful accounts generate significantly lower profitability than their major accounts.

Accepted Answer

A) True 
 B)False

Question 6

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

The answer of Give an example of a firm discussed...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

Which of the following is NOT one of the key strategies used to reduce customer defections?

Accepted Answer

A)  Eliminate nuisance customers.
B)  Address key churn drivers.
C)  Implement effective complaint handling and service recovery procedures.
D)  Increase switching costs.
E)  Analyze customer defections and monitor declining accounts.

Question 10

What did DHL find out about its large and small accounts?

Accepted Answer

The answer of What did DHL find out about its...

Question 11

Good relationships start with a good fit between customer needs and company capabilities.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

The answer of Discuss how Vanguard Group's pricing is set...

Question 13

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

Question 14

Customers remain loyal to a firm because they experience relational benefits.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT an aspect of ING Direct's no-frills strategy?

Accepted Answer

A)  High interest rates
B)  Offers only a handful of basic products
C)  Lures low-maintenance customers
D)  Firing customers who don't fit the profile
E)  Increased contact with the bank

Question 16

Most people can think of dozens of service firms they truly like and where they are committed to going back to.

Accepted Answer

A) True 
 B)False

Question 17

Special treatment benefits include being known by name by the service provider.

Accepted Answer

A) True 
 B)False

Question 18

Explain what a "structural bond" means.

Accepted Answer

The answer of Explain what a "structural bond" means....

Question 19

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

Question 20

Firms should not assume that the "right customers" are always the ___________.

Accepted Answer

A)  ones that are easily delighted
B)  high spenders
C)  price sensitive customers
D)  average income earners
E)  least costly to acquire

Exam 12: Managing Relationships and Building Loyalty

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

Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.

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

Which of the following is NOT one of the four customer tiers discussed by Zeithaml,Rust,and Lemon?

DHL's less powerful accounts generate significantly lower profitability than their major accounts.

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 an example of common CRM applications?

Which of the following is NOT one of the key strategies used to reduce customer defections?

What did DHL find out about its large and small accounts?

Good relationships start with a good fit between customer needs and company capabilities.

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

Which of the following is NOT one of the strategies for developing loyalty bonds with customers?

Customers remain loyal to a firm because they experience relational benefits.

Which of the following is NOT an aspect of ING Direct's no-frills strategy?

Most people can think of dozens of service firms they truly like and where they are committed to going back to.

Special treatment benefits include being known by name by the service provider.

Explain what a "structural bond" means.

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

Firms should not assume that the "right customers" are always the ___________.