Question 1

Larger financial institutions now offer a wide range of services under one roof,from banking to stock trading.These institutions have moved away from increasing their market share to instead focus on increasing their:
A) share of market.
B) share of relationships.
C) share of customer.
D) relational share.
E) lifetime customer value.

Accepted Answer

C

Question 2

Assume a customer planning to purchase a Wii U gaming console made this statement: "Given the expense and all the hype about the new Wii U,it ought to be the best gaming console ever made." What type of expectation does this customer have about the Wii U?
A) an ideal expectation
B) a normative expectation
C) an experience-based expectation
D) a minimum tolerable expectation
E) a highly involved expectation

Accepted Answer

The customer has a normative expectation, meaning they believe the Wii U should meet a certain standard of quality based on the hype and price surrounding it.

Question 3

In which of the following situations would a customer become more tolerable of weak or poor product performance?
A) When the customer is in a hurry.
B) When the customer's personal needs are high.
C) When the purchase situation is highly involving.
D) When the customer has fewer product alternatives.
E) When the purchase is for a special occasion.

Accepted Answer

When the customer has fewer product alternatives, they may be more willing to tolerate weak or poor product performance because they have limited options available to them. This is especially true if the product is something they really need or want, and there aren't many other choices in the market. In other situations, such as when a customer is in a hurry or the purchase is for a special occasion, they may be less tolerant of weak product performance because they have specific expectations or time constraints.

Question 4

With respect to the different components of the total product offering,supplemental products play the important role of:
A) meeting basic customer needs.
B) delivering the main core benefits of the product offering.
C) adding symbolic benefits to the product offering.
D) delivering the minimum level of quality demanded by customers.
E) differentiating the product offering from competing products.

Accepted Answer

Supplemental products add value to the core product through additional features or services that differentiate the product offering from competing products. These can include warranties, free delivery, installation services, and customer support, among others, which enhance the overall product offering and make it more attractive to consumers compared to competitors' offerings.

Question 5

In the purchase of a product,time,effort,risk,and opportunity costs are all examples of:
A) nonmonetary costs.
B) soft costs.
C) intangible costs.
D) experiential costs.
E) monetary costs.

Accepted Answer

Time, effort, risk, and opportunity costs are all nonmonetary costs, meaning they cannot be measured in terms of dollars and cents. These costs are often considered in addition to monetary costs when making a purchasing decision.

Question 6

Meghan recently took her parents to a gourmet restaurant for their 25^th wedding anniversary.The evening was exceptional,with everyone receiving the utmost in terms of quality and value.However,when reflecting on the experience the next day,Meghan decided that she was not fully satisfied.Why might this happen? A) Because satisfaction has nothing to do with quality or value. B) Because satisfaction occurs over time,whereas perceptions about quality and value occur immediately. C) Because dissatisfaction is based on an entirely different set of factors than satisfaction. D) Because satisfaction can be based on factors that have nothing to do with quality or value. E) It cannot happen.By definition,customers who receive the best quality and value will be satisfied.

Accepted Answer

Satisfaction is not solely based on the quality or value of the experience. Other factors such as personal preferences, expectations, and emotions can also contribute to the level of satisfaction. Therefore, even though Meghan and her family received the utmost in terms of quality and value, she may still have been dissatisfied due to other factors.

Question 7

There are two types of monetary costs involved in the purchase of any product: transactional costs and life-cycle costs.Which of the following best exemplifies a life-cycle cost in the purchase of an automobile?
A) the actual purchase price
B) state or local taxes
C) anticipated repair expenses
D) registration fees
E) title fees

Accepted Answer

Anticipated repair expenses are an example of a life-cycle cost because they represent ongoing expenses associated with owning and maintaining the car over time, beyond the initial purchase price.

Question 8

The PTL Corporation provides long-distance telephone services to consumer and business markets.The company recently initiated a marketing strategy designed to promote customer knowledge and educate customers about the company and its products.The strategy is also designed to prospect for new customers.At what stage of the customer relationship development process does PTL find itself?
A) repeat purchase
B) community
C) awareness
D) advocacy
E) client

Accepted Answer

PTL is at the awareness stage of the customer relationship development process because they are trying to educate potential customers and promote their brand to increase customer knowledge.

Question 9

Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?
A) Advances in technology and data collection techniques allow firms to profile customers in real time.
B) Twenty percent of customers provide 80 percent of business profits.
C) Some customers are too expensive to keep given the low level of profits that they generate.
D) The 80 percent of customers in the bottom tier should be fired so the firm can focus on its top customers.
E) The firm's top customers are the most obvious candidates for retention strategies.

Accepted Answer

The statement that 80 percent of customers in the bottom tier should be fired is false. The 80/20 rule suggests that a small portion of customers bring in the majority of profits, but it does not mean that the remaining customers should be ignored or dropped from the company's customer base. It is important to maintain positive relationships with all customers and identify opportunities to increase their value to the company.

Question 10

When a firm begins to charge high fees for additional services to non-profitable customers,it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.
A) client value
B) lifetime value
C) relational value
D) market share
E) 80/20 value

Accepted Answer

The concept being described is that of "lifetime value," which refers to the total value a customer represents over the course of their relationship with a firm. Non-profitable customers have a low lifetime value, meaning that the costs of maintaining a relationship with them outweigh the potential benefits. Therefore, the firm may choose to charge high fees for additional services as a way of recouping some of the costs associated with serving these customers.

Question 11

Which of the following IS NOT good advice with respect to leveraging customer satisfaction from a strategic point of view?
A) Understand what can go wrong in fulfilling customers' needs.
B) Offer a satisfaction guarantee.
C) Flesh out all uncontrollable issues and attempt to prevent them.
D) Make it easy for customers to complain.
E) Make customer satisfaction measurement an ongoing priority.

Accepted Answer

The answer of Which of the following IS NOT good...

Question 12

__________ refers to the degree of superiority of a firm's goods or services.It is a relative term because it can only be judged in comparison to competing products or when compared to an internal standard of excellence.
A) Value
B) Durability
C) Quality
D) Satisfaction
E) Sustainability

Accepted Answer

Quality refers to the degree of superiority of a firm's goods or services compared to competing products or an internal standard of excellence. Value refers to the perceived benefits of a product in relation to its cost, durability refers to the ability of a product to withstand wear and tear, satisfaction refers to the level of contentment or happiness a customer has with a product, and sustainability refers to the ability of a product or process to be maintained at a certain level or rate without depleting natural resources.

Question 13

In service offerings,the core product is typically composed of three interrelated dimensions.What are these dimensions?
A) people,technology,and facilities
B) people,processes,and physical evidence
C) processes,employees,and facilities
D) customers,employees,and processes
E) reputation,operations,and quality

Accepted Answer

The three interrelated dimensions of the core product in service offerings are people, processes, and physical evidence. These dimensions refer to the people who provide the service, the processes involved in delivering the service, and the physical evidence that supports the service. This includes the facilities, equipment, and other tangible elements that contribute to the overall service experience.

Question 14

Which of the following statements about value is FALSE?
A) Value includes the concept of quality,but it is broader in scope.
B) Value takes into account every marketing program element.
C) Value,unlike quality,means the same thing to all customers.
D) Value is critical to maintaining long-term customer relationships.
E) Value allows for the necessary balance among the five types of utility.

Accepted Answer

This statement is false because value is subjective and means different things to different customers. While quality is a component of value, it is not the only factor that contributes to customer perceptions of value. Value also encompasses factors such as price, convenience, and customer service.

Question 15

With respect to customer expectations,which of the following best describes the zone of tolerance?
A) It explains situations where customer expectations will be higher than normal.
B) It represents the degree to which customers recognize and are willing to accept variability in performance.
C) It explains situations where customer satisfaction will be exceptionally low.
D) It explains why customers tolerate weak performance when performance is beyond the control of the firm.
E) It explains situations where customers will hold lower than normal expectations.

Accepted Answer

The zone of tolerance represents the range or degree to which customers are willing to accept variability in performance. It is the area between the desired level of service and the minimum acceptable level of service. Customers may have certain expectations, but they understand that there may be some degree of variance in the actual performance. Thus, the zone of tolerance is the area where customers are still satisfied even if the service is not perfect.

Question 16

What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?
A) They take a long time to work.
B) Customers may resist the use of financial incentives.
C) They can be expensive to use.
D) They can promote continual brand switching.
E) All of the above.

Accepted Answer

Financial incentives can promote continual brand switching as customers may only be loyal to the brand offering the best financial incentive, and switch to another brand once the incentive is no longer available. This can result in a lack of long-term customer relationships and potential revenue loss for the brand.

Question 17

__________ is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.
A) Lifetime value management
B) Customer orientation
C) Market orientation
D) Customer relationship management
E) Retention management

Accepted Answer

Customer relationship management (CRM) is a business philosophy that focuses on building long-term and profitable relationships with customers by identifying their needs and providing personalized solutions. CRM strategies aim to increase customer loyalty and retention by delivering value-added services and creating a positive customer experience.

Question 18

In times past,developing and implementing the "right" marketing strategy was all about __________.In today's economy,however,that emphasis has shifted to developing strategies that attract and retain customers over the long term.
A) aggressive selling in order to maximize sales volume
B) creating a large number of transactions in order to maximize the firm's market share
C) conducting extensive research to discover customer needs
D) making the highest quality product
E) making products of moderate quality that could be sold at the lowest possible price

Accepted Answer

The answer of In times past,developing and implementing the "right"...

Question 19

With respect to competitive advantages,many see __________ as the most important asset that an organization can possess,as it stems from the value generated by the trust,commitment,cooperation,and interdependence among relationship partners.
A) partnership capital
B) integrity
C) relationship capital
D) relational collaboration
E) professionalism

Accepted Answer

Relationship capital refers to the value that is created through strong relationships with partners, customers, and other stakeholders. This can include factors such as trust, commitment, and cooperation, which can ultimately lead to a competitive advantage for the organization. While integrity, professionalism, and relational collaboration are important, they are all aspects that can contribute to building strong relationship capital within an organization.

Question 20

Which of the following relationship strategies is most likely to be used by a health club as it tries to create social bonds with its clientele?
A) membership programs
B) coupons
C) personalized training
D) customer reminder notifications
E) family discount programs

Accepted Answer

The answer of Which of the following relationship strategies is...

Quiz 10: Developing and Maintaining Long-Term Customer Relationships

Larger financial institutions now offer a wide range of services under one roof,from banking to stock trading.These institutions have moved away from increasing their market share to instead focus on increasing their:

Assume a customer planning to purchase a Wii U gaming console made this statement: "Given the expense and all the hype about the new Wii U,it ought to be the best gaming console ever made." What type of expectation does this customer have about the Wii U?

In which of the following situations would a customer become more tolerable of weak or poor product performance?

With respect to the different components of the total product offering,supplemental products play the important role of:

In the purchase of a product,time,effort,risk,and opportunity costs are all examples of:

There are two types of monetary costs involved in the purchase of any product: transactional costs and life-cycle costs.Which of the following best exemplifies a life-cycle cost in the purchase of an automobile?

Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?

When a firm begins to charge high fees for additional services to non-profitable customers,it has determined that the __________ of those customers is too low to warrant added efforts at maintaining a relationship with them.

Which of the following IS NOT good advice with respect to leveraging customer satisfaction from a strategic point of view?

__________ refers to the degree of superiority of a firm's goods or services.It is a relative term because it can only be judged in comparison to competing products or when compared to an internal standard of excellence.

In service offerings,the core product is typically composed of three interrelated dimensions.What are these dimensions?

Which of the following statements about value is FALSE?

With respect to customer expectations,which of the following best describes the zone of tolerance?

What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?

__________ is defined as a business philosophy aimed at defining and increasing customer value in ways that motivate customers to remain loyal.

In times past,developing and implementing the "right" marketing strategy was all about __________.In today's economy,however,that emphasis has shifted to developing strategies that attract and retain customers over the long term.

With respect to competitive advantages,many see __________ as the most important asset that an organization can possess,as it stems from the value generated by the trust,commitment,cooperation,and interdependence among relationship partners.

Which of the following relationship strategies is most likely to be used by a health club as it tries to create social bonds with its clientele?