Question 1

In many instances,customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm.These costs are called:

Accepted Answer

A)   Financial inertia
B)   Opportunity costs
C)   Switching costs
D)   Fixed costs
E)   Retained costsF) A) and B)
G) B) and E)

Question 2

Sometimes firms have service encounters that fail because of ___________,who intentionally or unintentionally act in a way that is disruptive,rude,or aggressive.

Accepted Answer

A)   Profitable customers
B)   Dysfunctional customers
C)   Friends
D)   Strangers
E)   Heterogeneous customersF) A) and D)
G) C) and E)

Question 3

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

Accepted Answer

A)   Employee retention
B)   Customers' increasing expectations of more personalized service
C)   A reactive market-growth strategy
D)   The ability to engage in guerilla marketing
E)   Competitor entrenchmentF) A) and B)
G) B) and E)

Question 4

Regency Dry Cleaners operates in a medium-sized community.Its customers all live within a 20-mile radius of the cleaners.Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery.Regency's driver will pick up clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs.Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses.Regency has built its customer retention strategy around:

Accepted Answer

A)   Customization bonds
B)   Social bonds
C)   Niche marketing
D)   Focused marketing
E)   Structural bondsF) A) and B)
G) B) and D)

Question 5

Salespeople for college texts call on college instructors to sell them on using a particular text for their classes.Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges.It is a much better use of the sales force's time to call on schools with large classes and big adoption rates.From the customer's point of view,this application of the profitability tier:

Accepted Answer

A)   Could cause resentment
B)   Will not cause any problems
C)   Simply increases the importance of word-of-mouth communication
D)   Is not profitable
E)   Creates across-the-board customer enhancementF) A) and C)
G) B) and E)

Question 6

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known as a central figure in the neighborhood network.

Accepted Answer

A)   Esteem benefits
B)   Self-actualization
C)   Social support system
D)   Utility transfer
E)   Assurance groupF) B) and D)
G) C) and E)

Question 7

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.

Accepted Answer

A)   Customers as acquaintances; customers as friends
B)   Customers as strangers; Customers as acquaintances
C)   Customers as partners; customers as acquaintances
D)   Customers as acquaintances; customers as strangers
E)   Customers as friends; customers as strangersF) A) and C)
G) All of the above

Question 8

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) B) and D)
G) A) and B)

Question 9

_________ are created by providing services to the client that are designed right into the service delivery system.

Accepted Answer

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

Question 10

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Accepted Answer

A)   Economic benefits; customer behavior benefits; human resource management benefits
B)   Economic benefits; confidence benefits; social benefits
C)   Customer behavior benefits; human resource management benefits; social benefits
D)   Special treatment benefits; economic benefits; customer behavior benefits
E)   Confidence benefits; social benefits; customer behavior benefitsF) All of the above
G) C) and E)

Question 11

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction,retention and customer enhancement.

Accepted Answer

A) True 
 B)False

Question 12

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 D)
G) B) and D)

Question 13

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) All of the above
G) None of the above

Question 14

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

Accepted Answer

A)   Create financial bonds
B)   Develop a long-lasting relational time horizon
C)   Qualify the prospect as a customer
D)   Initiate communications in order to attract them
E)   Engage in problem-solving salesF) A) and B)
G) C) and E)

Question 15

According to the text,the relationship value of a customer is not influenced by:

Accepted Answer

A)   The average revenues generated per relevant time period over the lifetime
B)   Sales of additional products and services over time
C)   Referrals generated by the customer over time
D)   The length of the average customer "lifetime"
E)   The communication strategyF) C) and D)
G) B) and E)

Question 16

_____ arise(s) when the customer is required to pay a penalty to switch providers.

Accepted Answer

A)   Fixed costs
B)   Legal inertia
C)   Financial inertia
D)   Contractual costs
E)   Opportunity costsF) C) and D)
G) A) and D)

Question 17

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

Accepted Answer

A)   The children would benefit from socialization skills
B)   The parents wouldn't have to go looking for a new facility to keep their children
C)   The parents would ask for a reduced monthly rate
D)   The parents would get to socialize with the other parents of children at their center
E)   The parents would spread the word about their happiness with the services provided by the day care centerF) D) and E)
G) C) and E)

Question 18

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

Accepted Answer

A) True 
 B)False

Question 19

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

Accepted Answer

A)   Relationship value
B)   Attractiveness index
C)   Profit performance quotient
D)   Calculated risk
E)   Loyalty factorF) A) and B)
G) A) and C)

Question 20

According to the text,the relationships between businesses and their customers have the ability to evolve.In the first step of this evolution process,customers are identified as:

Accepted Answer

A)   Acquaintances
B)   Prospects
C)   Strangers
D)   Friends
E)   AlliesF) C) and D)
G) B) and E)

Exam 6: Building Customer Relationships

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

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

Sometimes firms have service encounters that fail because of ___________,who intentionally or unintentionally act in a way that is disruptive,rude,or aggressive.

Correct Answer
verified

Correct Answer
verified

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Correct Answer
verified

According to the text,the relationship value of a customer is not influenced by:

Correct Answer
verified

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known as a central figure in the neighborhood network.

Correct Answer
verified

The transition from the _ stage to the _ stage of the customer relationship requires the development of trust.

Correct Answer
verified

_____ arise(s) when the customer is required to pay a penalty to switch providers.

Correct Answer
verified

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

Correct Answer
verified

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

Correct Answer
verified

According to the text,the relationships between businesses and their customers have the ability to evolve.In the first step of this evolution process,customers are identified as:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

_________ are created by providing services to the client that are designed right into the service delivery system.

Correct Answer
verified

Customer retention strategies based on customization bonds:

Correct Answer
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The primary goal of businesses that are in the first stage of their relationship with a customer is to:

Correct Answer
verified

In many instances,customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm.These costs are called:

Correct Answer
verified

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

Correct Answer
verified

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction,retention and customer enhancement.

Correct Answer
verified

Exam 6: Building Customer Relationships

With relationship marketing,customers can develop social relationships with their service providers,which makes it less likely that they will switch to a competitor.

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

Sometimes firms have service encounters that fail because of ___________,who intentionally or unintentionally act in a way that is disruptive,rude,or aggressive.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The three types of benefits to organizations of maintaining and developing a loyal customer base are:

Correct AnswerverifiedShow Answer

According to the text,the relationship value of a customer is not influenced by:

Correct AnswerverifiedShow Answer

In some long-term customer-firm relationships,a service provider may become part of a customer's __________ ,such as when a hairdresser serves as a personal confidant,or a proprietor of a local retail store is known as a central figure in the neighborhood network.

Correct AnswerverifiedShow Answer

The transition from the _____ stage to the _____ stage of the customer relationship requires the development of trust.

Correct AnswerverifiedShow Answer

_____ arise(s) when the customer is required to pay a penalty to switch providers.

Correct AnswerverifiedShow Answer

Which of the following is one of the ways an organization benefits from maintaining and developing a loyal customer base?

Correct AnswerverifiedShow Answer

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

Correct AnswerverifiedShow Answer

According to the text,the relationships between businesses and their customers have the ability to evolve.In the first step of this evolution process,customers are identified as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

_________ are created by providing services to the client that are designed right into the service delivery system.

Correct AnswerverifiedShow Answer

Customer retention strategies based on customization bonds:

Correct AnswerverifiedShow Answer

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

Correct AnswerverifiedShow Answer

In many instances,customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm.These costs are called:

Correct AnswerverifiedShow Answer

The _____ of a customer is a concept that looks at customers from the perspective of their lifetime revenue or profit contributions to a company.

Correct AnswerverifiedShow Answer

The primary goal of relationship marketing is to build and maintain a base of profitable and committed customers through attraction,retention and customer enhancement.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

The transition from the _ stage to the _ stage of the customer relationship requires the development of trust.

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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