Question 1

Marriott Rewards customers earn points whenever they stay at any Marriott property. Louis is in this program, and he travels quite a bit because he works in sales. He usually stays at a Courtyard by Marriott, and when he walks into the lobby, there is a sign by the desk welcoming him by name as well as other Marriott Rewards customers who might be staying there. This ongoing relationship between Louis and Marriott is an example of _____.
A) relationship marketing
B) internal marketing
C) personal marketing
D) formal marketing
E) acquisition marketing

Accepted Answer

Relationship marketing is an attempt to develop an ongoing, expanding exchange relationship with a firm's customers.

Question 2

The costs of finding, evaluating, and adopting another solution are known as _____.
A) incurred costs
B) switching costs
C) effort costs
D) balancing costs
E) committed costs

Accepted Answer

Some dissatisfied customers may become or remain repeat purchasers if they perceive switching costs to be too high.

Question 3

Which of the following is a source of increased customer profitability over time?
A) increased sales volume
B) lower costs
C) referrals
D) price premium
E) all of the above

Accepted Answer

Increased sales volume, lower costs, referrals, and price premium are all sources of increased customer profitability over time.

Question 4

Kevin buys the same brand of clothing all the time. He continues to buy it because it fits him well and the price is right, but he does not have an emotional attachment to it. Kevin is an example of a(n) _____.
A) trapped purchaser
B) committed customer
C) repeat purchaser
D) nonsatisfied customer
E) indifferent purchaser

Accepted Answer

Repeat purchasers may do so out of habit or because they don't see viable options to their current choice.

Question 5

Which of the following is FALSE regarding committed customers?
A) They are unlikely to consider additional information when making a purchase.
B) They are resistant to competitors' marketing efforts.
C) They are less likely to forgive an occasional product or service failure.
D) They are likely to be a source of positive word-of-mouth.
E) They are more profitable to the firm than mere repeat purchasers.

Accepted Answer

Committed customers are more likely to forgive an occasional product or service failure.

Question 6

Sandy uses online banking, and her bank charges her $4.99 per month. However, she has seen ads for a competing bank offering free online banking services. She'd like to switch, but she realized that it might be difficult to do because she has several of her bill payments set up as automatic debits. The cost of changing to another bank represents Sandy's _____.
A) incurred costs
B) switching costs
C) effort costs
D) balancing costs
E) committed costs

Accepted Answer

The costs of finding, evaluating, and adopting another solution are known as switching costs.

Question 7

Every time Hannah buys a sandwich at Super Subs, she gets a stamp on a card. Once she has 10 stamps, she'll get a free sandwich. This is an example of a(n) _____.
A) food stamp program
B) acquisition program
C) customer loyalty program
D) tie-in program
E) overlay program

Accepted Answer

Customer loyalty programs are designed to generate repeat purchases.

Question 8

Which of the following is NOT a key element of relationship marketing?
A) developing a core service or product around which to build a customer relationship
B) pricing in a manner to encourage loyalty
C) augmenting the core service or product with extra benefits
D) marketing to employees so that they will perform well for customers
E) standardizing the relationship across customers

Accepted Answer

Relationship marketing customizes the relationship to the individual customer.

Question 9

For which type of firm has research shown that reducing the number of customers who leave by 5 percent resulted in the highest percentage increase in average profits per customer?
A) auto services
B) branch banks
C) insurance brokerage
D) industrial laundry
E) credit insurance

Accepted Answer

Research shows that for branch banks (compared to other industries) the link between reduced churn and profits is the highest.

Question 10

Which of the following is a key element of relationship marketing?
A) customizing the relationship to the individual customer
B) pricing in a manner to encourage loyalty
C) augmenting the core service or product with extra benefits
D) marketing to employees so that they will perform well for customers
E) all of the above

Accepted Answer

These elements make it clear that relationship marketing is centered on understanding consumer needs at the individual consumer level.

Question 11

Which of the following is NOT a source of increased customer profitability over time?
A) increased sales volume
B) lower costs
C) referrals
D) increased churn
E) price premium

Accepted Answer

Churn is a source of decreased customer profitability over time.

Question 12

Which type of customer has an emotional attachment to the brand or firm?
A) repeat purchaser
B) satisfied buyer
C) total buyer
D) committed customer
E) affective customer

Accepted Answer

A committed customer has an emotional attachment to the brand or firm, something like friendship.

Question 13

Expenses associated with advertising, establishing a new account, and mailing catalogs are examples of _____.
A) churn
B) opportunity costs
C) switching costs
D) contribution costs
E) acquisition costs

Accepted Answer

It costs more to obtain a new customer than to retain an existing one.

Question 14

An attempt to develop an ongoing, expanding exchange relationship with a firm's customers is called _____.
A) relationship marketing
B) internal marketing
C) personal marketing
D) formal marketing
E) acquisition marketing

Accepted Answer

Relationship marketing is an attempt to develop an ongoing, expanding exchange relationship with a firm's customers.

Question 15

Marketing efforts focused on a firm's current customers are generally termed _____.
A) relationship marketing
B) internal marketing
C) personal marketing
D) formal marketing
E) acquisition marketing

Accepted Answer

Relationship marketing is an attempt to develop an ongoing, expanding exchange relationship with a firm's customers.

Question 16

_____ refers to the fact that repeat and particularly committed customers tend to buy the brand consistently rather than waiting for a sale or continually negotiating price.
A) Acquisition cost
B) Referral
C) Price premium
D) Price indifferent
E) Price insensitive

Accepted Answer

Price premium customers are a source of increased customer profitability over time.

Question 17

George has used the same company for his car and home insurance for more than 20 years. Any claim he has made has been handled fairly and quickly. A major hurricane came through his area causing many individuals, including George, and business owners to lose everything. While he was hearing about so many insurance claim nightmares, he knew his company would come through because he trusts this company. George is an example of a(n) _____.
A) repeat purchaser
B) satisfied buyer
C) total buyer
D) committed customer
E) affective customer

Accepted Answer

A committed customer has an emotional attachment to the brand or firm, something like friendship.

Question 18

The term used to refer to turnover in a firm's customer base is _____.
A) turnover
B) churn
C) attrition rate
D) turn ratio
E) defection rate

Accepted Answer

Reducing churn is a major objective of many firms today because it costs more to obtain a new customer than to retain an existing one.

Question 19

Joyce will only drink Pepsi, and she feels an emotional attachment to it. That is the brand she was brought up on and is the one she continues to drink every day. Joyce is exhibiting _____.
A) brand loyalty
B) brand leverage
C) brand image
D) brand equity
E) brand bias

Accepted Answer

Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting brand loyalty.

Question 20

Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting _____.
A) brand loyalty
B) brand leverage
C) brand image
D) brand equity
E) brand bias

Accepted Answer

When customers are committed to a brand it is known as brand loyalty.

Quiz 18: Post-Purchase Processes, Customer Satisfaction, and Customer Commitment

The costs of finding, evaluating, and adopting another solution are known as _____.

Which of the following is a source of increased customer profitability over time?

Kevin buys the same brand of clothing all the time. He continues to buy it because it fits him well and the price is right, but he does not have an emotional attachment to it. Kevin is an example of a(n) _____.

Which of the following is FALSE regarding committed customers?

Every time Hannah buys a sandwich at Super Subs, she gets a stamp on a card. Once she has 10 stamps, she'll get a free sandwich. This is an example of a(n) _____.

Which of the following is NOT a key element of relationship marketing?

For which type of firm has research shown that reducing the number of customers who leave by 5 percent resulted in the highest percentage increase in average profits per customer?

Which of the following is a key element of relationship marketing?

Which of the following is NOT a source of increased customer profitability over time?

Which type of customer has an emotional attachment to the brand or firm?

Expenses associated with advertising, establishing a new account, and mailing catalogs are examples of _____.

An attempt to develop an ongoing, expanding exchange relationship with a firm's customers is called _____.

Marketing efforts focused on a firm's current customers are generally termed _____.

_____ refers to the fact that repeat and particularly committed customers tend to buy the brand consistently rather than waiting for a sale or continually negotiating price.

The term used to refer to turnover in a firm's customer base is _____.

Joyce will only drink Pepsi, and she feels an emotional attachment to it. That is the brand she was brought up on and is the one she continues to drink every day. Joyce is exhibiting _____.

Consumers who exhibit a positively biased behavior toward a specific brand are exhibiting _____.