Question 1

A review of two decades of studies examining the links among customer satisfaction,service quality and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Accepted Answer

A)   A significant and positive
B)   Absolutely no
C)   A small negative
D)   An undetermined
E)   A large negativeF) B) and E)
G) A) and B)

Question 2

Research by TARP Worldwide,Inc.found that only 7 percent of customers who are "neutral or very dissatisfied" say they will "definitely repurchase" from the same company.

Accepted Answer

A) True 
 B)False

Question 3

The ________ metric is obtained by summing up the customer lifetime values of the firm's customers.

Accepted Answer

A)   The customer equilibrium
B)   Customer equity
C)   Customer empowerment
D)   Fiscal value
E)   Service blueprint valueF) A) and D)
G) A) and E)

Question 4

There are several auto repair shops in a three-block area on King Street.One of the shop owners decided to extend her shop's operating hours until 10 p.m.Monday-Thursday and provide a pick-up and delivery service with bonded drivers as well as guarantee all repairs for six months.This job owner is engaged in _____ marketing.

Accepted Answer

A)   Defensive
B)   Churn
C)   Guerilla
D)   Flank-movement
E)   OffensiveF) C) and D)
G) A) and C)

Question 5

Service quality,like advertising,has a cumulative effect on a company's profit.

Accepted Answer

A) True 
 B)False

Question 6

Defensive marketing can be used to reduce customer defection.

Accepted Answer

A) True 
 B)False

Question 7

Many companies do not identify and act on the correct non-financial measures.One of the four major mistakes that companies make is _______.In other words,companies attempt to measure complex phenomenon with one or two simple measures or use quantitative metrics to capture qualitative results for factors such as leadership.

Accepted Answer

A)   Not linking measures to strategy
B)   Not validating the links
C)   Not setting the right performance targets
D)   Measuring incorrectly
E)   Not creating a balanced scorecardF) C) and E)
G) B) and E)

Question 8

The benefits of offensive marketing have been documented through the use of:

Accepted Answer

A)   PIMS (profit impact of marketing strategy) 
B)   Multiple regression analysis
C)   Return on investment (ROI) analysis
D)   Financial ratios
E)   All of the aboveF) C) and D)
G) B) and D)

Question 9

Share of wallet is the percentage of a customer's spending within a category that is captured by a given service.

Accepted Answer

A) True 
 B)False

Question 10

The customer equity model illustrates how:

Accepted Answer

A)   Customer equity is influenced by value equity,brand equity and relationship equity
B)   Interactive marketing,external marketing and internal marketing are interrelated
C)   To identify unexpected service encounters
D)   Customer equity leads to more efficient defensive marketing
E)   Organizations can more effectively monitor customer churnF) A) and E)
G) B) and C)

Question 11

From the inception of service quality,managers had highly sophisticated tools to measure the impact of improved service on profits.

Accepted Answer

A) True 
 B)False

Question 12

Service quality can help companies attract more and better customers to the business through _____ marketing.

Accepted Answer

A)   Insurgent
B)   Offensive
C)   Flank-movement
D)   Defensive
E)   GuerillaF) C) and D)
G) B) and C)

Question 13

According to field research conducted with senior executives in 60 companies,many firms do not identify and act on the correct nonfinancial measures.All of the following are among the major mistakes made by companies with respect to nonfinancial measures EXCEPT:

Accepted Answer

A)   Not linking measures to strategy
B)   Not validating
C)   Not setting the right performance targets
D)   Measuring incorrectly
E)   All of the above are major mistakes made by companies with respect to nonfinancial measuresF) B) and D)
G) B) and E)

Question 14

Toyota found that intent to purchase a Toyota automobile increased from 37 percent to _____ percent with both positive sales and service experiences.

Accepted Answer

A)   97
B)   91
C)   80
D)   75
E)   68F) C) and D)
G) None of the above

Question 15

The Net Promoter Score is based on just one survey question.

Accepted Answer

A) True 
 B)False

Question 16

The _______________ states that the rank that consumers assign to a service relative to the others in the category predicts share of wallet.

Accepted Answer

A)   Share of customer formula
B)   Budget allocation rule
C)   Market allocation rule
D)   Wallet allocation rule
E)   Share of spending formulaF) D) and E)
G) C) and D)

Question 17

Evidence shows that customer perceptions of quality do not affect consumer intentions.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are questions that managers want answered about defensive marketing EXCEPT:

Accepted Answer

A)   What is a loyal customer?
B)   What is the role of service in defensive marketing?
C)   What levels of word of mouth are needed to retain customers?
D)   What specific aspects of service are most important for customer retention?
E)   How can defection-prone customers be identified?F) A) and E)
G) A) and D)

Question 19

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Accepted Answer

A)   What is a loyal customer?
B)   How can defection-prone customers be identified?
C)   What is the role of service in defensive marketing?
D)   What aspects of service are most important for customer retention?
E)   What aspects of service are most important for increasing market share?F) A) and D)
G) A) and E)

Question 20

When calculating share of wallet,a brand's ___________ is the relative position that a customer assigns to the brand in comparison to other brands also used by the customer in the category.

Accepted Answer

A)   Rank
B)   Return
C)   Spending allocation
D)   Revenue
E)   Spending ruleF) All of the above
G) A) and E)

Exam 16: The Financial and Economic Impact of Service

Correct Answer
verified

Toyota found that intent to purchase a Toyota automobile increased from 37 percent to _____ percent with both positive sales and service experiences.

Correct Answer
verified

Correct Answer
verified

When calculating share of wallet,a brand's ___________ is the relative position that a customer assigns to the brand in comparison to other brands also used by the customer in the category.

Correct Answer
verified

Share of wallet is the percentage of a customer's spending within a category that is captured by a given service.

Correct Answer
verified

From the inception of service quality,managers had highly sophisticated tools to measure the impact of improved service on profits.

Correct Answer
verified

The ________ metric is obtained by summing up the customer lifetime values of the firm's customers.

Correct Answer
verified

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Correct Answer
verified

All of the following are questions that managers want answered about defensive marketing EXCEPT:

Correct Answer
verified

Defensive marketing can be used to reduce customer defection.

Correct Answer
verified

A review of two decades of studies examining the links among customer satisfaction,service quality and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Correct Answer
verified

The benefits of offensive marketing have been documented through the use of:

Correct Answer
verified

According to field research conducted with senior executives in 60 companies,many firms do not identify and act on the correct nonfinancial measures.All of the following are among the major mistakes made by companies with respect to nonfinancial measures EXCEPT:

Correct Answer
verified

Service quality can help companies attract more and better customers to the business through _____ marketing.

Correct Answer
verified

The Net Promoter Score is based on just one survey question.

Correct Answer
verified

Research by TARP Worldwide,Inc.found that only 7 percent of customers who are "neutral or very dissatisfied" say they will "definitely repurchase" from the same company.

Correct Answer
verified

Service quality,like advertising,has a cumulative effect on a company's profit.

Correct Answer
verified

Evidence shows that customer perceptions of quality do not affect consumer intentions.

Correct Answer
verified

The _______________ states that the rank that consumers assign to a service relative to the others in the category predicts share of wallet.

Correct Answer
verified

The customer equity model illustrates how:

Correct Answer
verified

Exam 16: The Financial and Economic Impact of Service

Correct AnswerverifiedShow Answer

Toyota found that intent to purchase a Toyota automobile increased from 37 percent to _____ percent with both positive sales and service experiences.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When calculating share of wallet,a brand's ___________ is the relative position that a customer assigns to the brand in comparison to other brands also used by the customer in the category.

Correct AnswerverifiedShow Answer

Share of wallet is the percentage of a customer's spending within a category that is captured by a given service.

Correct AnswerverifiedShow Answer

From the inception of service quality,managers had highly sophisticated tools to measure the impact of improved service on profits.

Correct AnswerverifiedShow Answer

The ________ metric is obtained by summing up the customer lifetime values of the firm's customers.

Correct AnswerverifiedShow Answer

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Correct AnswerverifiedShow Answer

All of the following are questions that managers want answered about defensive marketing EXCEPT:

Correct AnswerverifiedShow Answer

Defensive marketing can be used to reduce customer defection.

Correct AnswerverifiedShow Answer

A review of two decades of studies examining the links among customer satisfaction,service quality and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Correct AnswerverifiedShow Answer

The benefits of offensive marketing have been documented through the use of:

Correct AnswerverifiedShow Answer

According to field research conducted with senior executives in 60 companies,many firms do not identify and act on the correct nonfinancial measures.All of the following are among the major mistakes made by companies with respect to nonfinancial measures EXCEPT:

Correct AnswerverifiedShow Answer

Service quality can help companies attract more and better customers to the business through _____ marketing.

Correct AnswerverifiedShow Answer

The Net Promoter Score is based on just one survey question.

Correct AnswerverifiedShow Answer

Research by TARP Worldwide,Inc.found that only 7 percent of customers who are "neutral or very dissatisfied" say they will "definitely repurchase" from the same company.

Correct AnswerverifiedShow Answer

Service quality,like advertising,has a cumulative effect on a company's profit.

Correct AnswerverifiedShow Answer

Evidence shows that customer perceptions of quality do not affect consumer intentions.

Correct AnswerverifiedShow Answer

The _______________ states that the rank that consumers assign to a service relative to the others in the category predicts share of wallet.

Correct AnswerverifiedShow Answer

The customer equity model illustrates how:

Correct AnswerverifiedShow Answer

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