Deck 3: Customer Relationships: Building Blocks of IDIC and Trust

Question 1

The primary objective of the IDIC process is:

A) building customer value through experiences and relationships
B) building a customer's trust
C) an economic transaction between the customer and the company
D) The IDIC process is the primary goal of an enterprise, not a means to a goal.

Answer 1

building customer value through experiences and relationships

Question 2

Which of the following best expresses the role of emotion in business relationships, as described by the authors?

A) A relationship always has an emotional connection, and an emotional connection always indicates a relationship.
B) A relationship always has an emotional connection, but an emotional connection does not always indicate a relationship.
C) A relationship does not always have an emotional connection, but an emotional connection always indicates a relationship.
D) A relationship does not always have an emotional connection, and an emotional connection does not always indicate a relationship.

Answer 2

A relationship does not always have an emotional connection, and an emotional connection does not always indicate a relationship.

Question 3

____________ allows companies to treat different customers differently.

A) the trust equation
B) the Age of Transparency
C) the feedback loop
D) self-orientation

Answer 3

the feedback loop

Question 4

One primary economic asset of an enterprise is:

A) IDIC
B) customer information
C) social networks
D) interactive strategy

Question 5

The fourth implementation task in the IDIC implementation model is:

A) customize
B) communicate
C) create
D) connect

Question 6

The "action" or "experience" aspect of the IDIC model includes:

A) differentiate and customize
B) identify and differentiate
C) interact and customize
D) identify, differentiate, interact, and customize

Question 7

According to Stephen M. R. Covey, trust includes:

A) communication and confidence
B) confidence and character
C) customization and confidence
D) character and competence

Question 8

Which of the following is not a "trust myth" described by Charles Green?

A) People like to be listened to.
B) More customized contact is better.
C) Trust takes time.
D) Intimate customer relationships require time and proximity.

Question 9

In Charles Green's trust equation, the element that outweighs all the others is:

A) credibility
B) reliability
C) self-orientation
D) intimacy

Question 10

Which of the following would be a reliability enhancer?

A) providing a highly informative, easy-to-navigate Web site
B) never asking a customer to input an ID number if he will be asked for it again later in the call
C) using customer information during a service call to speed up the service process, not to accuse the customer of making a mistake
D) referring a customer to a competitor's product if it clearly best meets the customer's needs
E) all of the above

Question 11

Which of the following conditions have not contributed to more companies seeking to become trusted agents for their customers?

A) commoditization
B) a focus on customer needs, not products
C) personalization
D) increased transparency made possible by the Internet and other interactive technologies

Question 12

A trusted agent does all of the following except:

A) always prioritizes customer's interest-even if it means referring a competitor's product-because such a transaction builds trust
B) improves the customer's ability to make choices that best manage his life or business
C) is confident that knowledge of customer's needs and preferences will be monetized at a higher value in the long term than a product-based model
D) understands that customer information is a primary economic asset and will use that information to ensure maximum profitability for the company

Question 13

Relationships require customers' information, but information only comes when they have ___________.

A) coupons
B) emotional loyalty
C) "likes"
D) trust

Question 14

Describe the role that trust has in a Learning Relationship. Why do the authors characterize it as "the currency of all commerce"?

Question 15

List and define the elements of the IDIC implementation process as outlined by the authors. How does this process compare with "analytical CRM" and "operational CRM" as described in Chapter 1?

Question 16

Describe the trust equation and each of its elements, as presented by Charles Green. What element has the greatest weight and why?

Question 17

Describe a scenario in which your company has lost the trust of a customer because of mishandling of sensitive customer information. As the CEO of the company, how would you address the problem? (Hint: Remember the key elements of an effective apology.)

Question 18

Apply the three basic principles of twenty-first-century trustability to one of the following three kinds of companies:
a. financial services
b. cellular phone service
c. enterprise software