Question 1

There is no way to calculate the lifetime value of a customer.

Accepted Answer

A) True 
 B)False

Question 2

Marlon Johnson is a government auditor and works for Taylor & Litford firm. He is the one who checks to see that city and county governments have complied with accounting principles. As an auditor, Johnson sometimes will spend six weeks in one office while he checks its accounting records. The closeness of the relationship that Johnson builds with the government employees he works with was realized by Taylor & Litford when Johnson left the firm, went to work for another one and took his clients with him. This is an example of how _____ benefits can be both helpful and harmful.

Accepted Answer

A)   Confidence
B)   Reliability
C)   Social
D)   Transactional
E)   EconomicF) C) and D)
G) A) and E)

Question 3

A theater that was once very popular is having decreased attendance at its movies even though its owner is providing his audience with the kind of movies they have enjoyed in the past. He is thinking about offering a program where customers earn free snacks with the purchase of a set number of tickets. Why might it be inappropriate for a movie theater to implement a financial rewards loyalty program?

Accepted Answer

First, these programs are easily imitate...

Question 4

At the partnership stage of the customer relationship, the firm is most concerned with:

Accepted Answer

A)   Creating a competitive advantage
B)   Customer satisfaction
C)   The enhancement of its relationship with the customer
D)   Creating service loyalty
E)   Customer retentionF) D) and E)
G) All of the above

Question 5

According to the 80/20 rule:

Accepted Answer

A)   Only 80 percent of a company's customers deserve good service
B)   20 percent of a company's customers produce 80 percent of the company's profit
C)   20 percent of a company's customers should be classified as defect-prone
D)   Only 80 percent of a company's customers will be affected by service encounters
E)   20 percent of a company's customers will require little or no serviceF) B) and E)
G) A) and B)

Question 6

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

Accepted Answer

A)   Bucket theory
B)   Iceberg principle
C)   80/20 principle
D)   Service paradigm
E)   Echo principle of marketingF) A) and B)
G) None of the above

Question 7

Miller & Sons Funeral Home has handled all of the funeral needs for the Atwater family since 1957. The family believes that Miller & Sons offers them good value for their dollar and the Miller sons and the Atwater boys played on the same high school football team. Miller & Sons Funeral Home is using _____ to implement its customer retention strategy.

Accepted Answer

A)   Economic bonds
B)   Social bonds
C)   Customization bonds
D)   Structural bonds
E)   Security bondsF) A) and B)
G) A) and C)

Question 8

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

Accepted Answer

A) True 
 B)False

Question 9

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Accepted Answer

A) True 
 B)False

Question 10

The 80/20 two-tier scheme:

Accepted Answer

A)   Is used to justify the philosophy that all customers deserve the same level of service
B)   Assumes profitability does not determine who the best customers are
C)   Assumes all customers within each tier are homogeneous
D)   Is totally unrelated to marketing segmentation
E)   Is accurately described by all of the aboveF) D) and E)
G) B) and E)

Question 11

The best customers are the ones that generate the most profit.

Accepted Answer

A) True 
 B)False

Question 12

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

Accepted Answer

A)   Current and/or future profitability
B)   Behavior
C)   Usage
D)   Volume
E)   User characteristicsF) All of the above
G) C) and E) A

Question 13

To be successful, a service provider must accept the fact that the customer is always right.

Accepted Answer

A) True 
 B)False  False

Question 14

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

Accepted Answer

A)   Non-existent because the company's primary goal is to induce trial
B)   Generally low with some variation on how the competition creates unique value
C)   High even though it depends on how unique the service offering is
D)   Medium because customer are heterogeneous
E)   Generally low because of the expense associated with mass customizationF) D) and E)
G) B) and D)

Question 15

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

Accepted Answer

A)   Financial bonds
B)   Social bonds
C)   Customization bonds
D)   Structural bonds
E)   Security bondsF) A) and C)
G) A) and B)

Question 16

Step-by-Step day care center offers parents several other services not normally offered by day by day care centers. A caterer is present every morning when the children are dropped off to take orders for supper. When the parents pick up their children in the evening, their supper is ready for them to take home, too. A hair stylist comes to the center once a week and cuts the hair of any child whose parents request this service. A photographer comes to the center every three months to take updated pictures of children whose parents don't have the time to take their children to the photography studio. In this way, Step-by-Step is using _____ to support its customer retention strategy.

Accepted Answer

A)   Financial bonds
B)   Social bonds
C)   Customization bonds
D)   Structural bonds
E)   Security bondsF) B) and D)
G) All of the above

Question 17

Customer retention strategies based on customization bonds:

Accepted Answer

A)   Do not exist in business-to-business marketing
B)   Create tying contracts, refusals to deal, exclusive dealing and areas of gray marketing
C)   Are not concerned with the pricing element of the marketing mix
D)   May include the customer intimacy approach
E)   Support transactional marketing as well as relationship marketingF) A) and B)
G) None of the above

Question 18

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

Accepted Answer

A) True 
 B)False  False

Question 19

What is the primary goal of relationship marketing?

Accepted Answer

To build and maintai...

Question 20

Retention strategies built around financial bonds:

Accepted Answer

A)   Provide long-term profit increases
B)   Use price as the primary marketing mix element
C)   Are difficult to initiate
D)   Provide long-term competitive advantage
E)   Have a high degree of service customizationF) A) and B)
G) A) and D)

Exam 7: Building Customer Relationships

There is no way to calculate the lifetime value of a customer.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
First, these programs are easily imitate...
View Answer

At the partnership stage of the customer relationship, the firm is most concerned with:

Correct Answer
verified

According to the 80/20 rule:

Correct Answer
verified

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

Correct Answer
verified

Correct Answer
verified

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

Correct Answer
verified

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Correct Answer
verified

The 80/20 two-tier scheme:

Correct Answer
verified

The best customers are the ones that generate the most profit.

Correct Answer
verified

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

Correct Answer
verified
A

To be successful, a service provider must accept the fact that the customer is always right.

Correct Answer
verified
False

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

Correct Answer
verified

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

Correct Answer
verified

Correct Answer
verified

Customer retention strategies based on customization bonds:

Correct Answer
verified

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

Correct Answer
verified
False

What is the primary goal of relationship marketing?

Correct Answer
verified
To build and maintai...
View Answer

Retention strategies built around financial bonds:

Correct Answer
verified

Exam 7: Building Customer Relationships

There is no way to calculate the lifetime value of a customer.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedFirst, these programs are easily imitate...View AnswerShow Answer

At the partnership stage of the customer relationship, the firm is most concerned with:

Correct AnswerverifiedShow Answer

According to the 80/20 rule:

Correct AnswerverifiedShow Answer

According to the _____, while advertising, sales and promotions pour profits into your company, there will always be some customer defection, which has the potential to grow larger.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Bundling and cross-selling are ways to implement a Level 1 retention strategy.

Correct AnswerverifiedShow Answer

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Correct AnswerverifiedShow Answer

The 80/20 two-tier scheme:

Correct AnswerverifiedShow Answer

The best customers are the ones that generate the most profit.

Correct AnswerverifiedShow Answer

Since service companies have determined they need not serve all customers equally well, they have divided their target markets according to:

Correct AnswerverifiedA

To be successful, a service provider must accept the fact that the customer is always right.

Correct AnswerverifiedFalse

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

Correct AnswerverifiedShow Answer

Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Customer retention strategies based on customization bonds:

Correct AnswerverifiedShow Answer

When customers and firms reach the friend level of their customer relationship, firms generally focus on providing value comparable to the competition.

Correct AnswerverifiedFalse

What is the primary goal of relationship marketing?

Correct AnswerverifiedTo build and maintai...View AnswerShow Answer

Retention strategies built around financial bonds:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
First, these programs are easily imitate...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
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False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified
To build and maintai...
View Answer

Correct Answer
verified