chapter 11-12

1.

1 point

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

True

False

2.

1 point

Successful customer relationships cannot be built if a firm is selective about the segments they target.

True

False

3.

1 point

Southwest's fundamental hiring princple is--------

maintain a tight knit group

hire people with the right attitude

''training, training, training''

customer service is first

new hires lead the way

4.

1 point

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

Direction; institution; affluence

Defection; indifference; affection

Detection; elimination; subversion

Detection; affluence; rejection

Direction; intention; rejection

5.

1 point

Vanguard’s success is measured by which of the following?

Low redemption rates

High redemption rates

Low customer turnover

High customer turnover

Portfolio stability

6.

1 point

Which of the following is an example of a service that involves continuous delivery without a formal relationship?

Police protection

Movie theater

Restaurant

Banking

Insurance

7.

1 point

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

True

False

8.

1 point

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

Eliminate nuisance customers

Address key churn drivers.

Implement effective complaint handling and service recovery procedures.

Increase switching costs.

Analyze customer defections and monitor declining accounts.

9.

1 point

Which of the following is an example of a service that involves discrete transactions within a membership context?

Repair under warranty

Insurance

Radio station

Car rental

Pay phone

10.

1 point

The term-------has been widely used to describe repeated transactions that form a relationship between the buyer and the supplier.

relational services

relationship renawal

relationship justification

relationship management

relationship marketing

11.

1 point

What three psychological effects do Dowling and Uncles argue that marketers need to examine?

Make versus buy decision; where buyers shop; how much buyers spend

Brand loyalty versus deal loyalty; where buyers shop; how much buyers spend

Brand loyalty versus deal loyalty; how buyers value rewards; timing

Make versus buy decision; how buyers value rewards; timing

Make versus buy decision; how buyers value rewards; how much buyers spend

12.

1 point

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

True

False

13.

1 point

The Ritz- Carlton uses personality profiles to select the best applicants

True

False

14.

1 point

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

True

False

15.

1 point

Well managed unionized organizations

may still be quite successful

will be replaced by non-unionized organizations

will still fall short of success goals

use unions as excuses for poor performance

all of above

16.

1 point

Soutwest Airlines illustrates a high-involment company.

True

False

17.

1 point

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

High interest rates

Offers only a handful of basic products

Lures low-maintenance customers

Firing customers who don’t fit the profile

Increased contact with the bank

18.

1 point

The Nordstrom sales associate replacing shirts at no cost to the client is an example of-------

centralized decion-making

service theft

employee empowerment

service sabotage

rule setting

19.

1 point

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

True

False

20.

1 point

All employees are eager to be empowered.

True

False

21.

1 point

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

Deepening the relationship

Lag-based bonds

Social bonds

Customization bonds

Structural bonds

22.

1 point

The advantage to the service organizations of having memberships relationships is that it knows who its future customers are and, usually, what they think of the services offered.

True

False

23.

1 point

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

True

False

24.

1 point

A membership relationship is a formalized relationship between the firm and an identifiable customer that may offer special benefits to both parties

True

False

25.

1 point

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

True

False

26.

1 point

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

Create loyalty bonds; deliver quality service; segment the market

Create loyalty bonds; build higher level bonds; deliver quality service

Build a foundation for loyalty; create bundling; build higher level bonds

Build a foundation for loyalty; create loyalty bonds; reduce churn drivers

Create loyalty bonds; understand customer value; understand service value

27.

1 point

Technology is used to do all of the following EXCEPT ____________ in relational marketing.

identify and build a database of current and potential customers

handle discrepancies between order requests

deliver differentiated messages based on consumers’ characteristics and preferences

track each relationship to monitor the cost of acquiring the consumer and the lifetime value of the resulting purchases

all of the above are ways technology is used in relational marketing

28.

1 point

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

Profit from increased purchases

Profit from decrased advertising

Profit from reduced operating cost

Profit from referrals to other customers

Profit from price premiums

29.

1 point

Emplooyee satisfaction is both neccessary and sufficient for having high performing staff.

True

False

30.

1 point

Hiring at Soutwest Airlines is best summarized by the word ''humor''

True

False

31.

1 point

As a service companies grow larger and make increasing use of tecnologies such as interactive Web sites and self-service equipment,maintaning meaningful relationships with customers becomes less significant of marketing challenge.

True

False

32.

1 point

Excellent service firms use all of the following to identify the best job candidates EXCEPT---------

observing behavior

conducting personality tests

interviewing applicants

viewing transcripts

providing applicants with realistic job previews

33.

1 point

Which of the following is NOT an example of common CRM applications?

Data collection

Data analysis

Market reinvestment

Sales force automation

Call center automation

34.

1 point

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

True

False

35.

1 point

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

Platinum

Gold

Bronze

Iron

Lead

36.

1 point

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

True

False

37.

1 point

Network marketing occurs mainly in a business-to business context, where firms commit resources to develop positions in a network of realtionships.

True

False

38.

1 point

Which of the following is one of the types of relational marketing?

Database marketing

Transactional marketing

Corporate marketing

B2B marketing

B2C marketing

39.

1 point

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

True

False

40.

1 point

Dial-A Matress uses what technique to train and develop staff?

empowerment

coercion

coaching

humor

behavioral modification