Deck 14: Customer Satisfaction and Customer Relationships

Question 1

Sara wants to buy a new bike.She evaluates the bike on color, size, price, number of gears, and other features.The bike is an example of a credence good.

Answer 1

False

Question 2

If purchase experiences are judged relative to expectations, it is important to understand the mechanism of expectations.

Answer 2

True

Question 3

Expectations generated from the marketing mix are usually trusted the most since the information comes from an unbiased source.

Answer 3

False

Question 4

Jonathan just bought his usual brand of chips from the grocery store without thinking much about it.The fact that he normally doesn't evaluate his chips purchase means that it is a higher-involvement purchase.

Question 5

Third-party communications help consumers form expectations based on objective ratings on issues such as quality and value.

Question 6

Marketers are interested in customer satisfaction, perceptions of quality, customers' intentions to repurchase the same brand or purchase something else from the same provider, and the likelihood that a customer will generate positive word-of-mouth.

Question 7

There are three possible outcomes of customer evaluations: (1) satisfaction, (2) delight, or (3) dissatisfaction.

Question 8

During a credence purchase, the customer will evaluate the purchase based on personal expertise.

Question 9

Experiences are always direct; they cannot be indirect.

Question 10

Satisfied customers contribute to the bottom line.

Question 11

Social media is slowing and is likely to exert less influence on customer behavior in the future.

Question 12

If a consumer has little personal expertise on which to make a brand choice, a logical and trusted source of information is friends.

Question 13

Movie Palace is a local cinema and its management team is debating whether or not it should begin tracking customer loyalty.Deborah is a manager who supports tracking loyalty.She should argue that Movie Palace should track loyalty because truly loyal customers love the brand, are zealous in telling others about the brand, and are even willing to pay more for the brand and all it means to them.

Question 14

For higher-involvement purchases, the comparison process is typically quite deliberative and conscious.

Question 15

The marketer has direct and indirect control of third-party rating services.

Question 16

Both core components and the peripheral, value-added supplemental components contribute to customer satisfaction and dissatisfaction.

Question 17

Maria is going on vacation, and she used a travel agent to purchase her tickets and hotel room.This is an example of an experiential purchase.

Question 18

The comparison of a purchase to expectations is thought to occur whether the item purchased is comprised primarily of search, experience, or credence characteristics.

Question 19

Chewing Gum Co.is curious about whether or not the comparative evaluation process occurs despite the fact that purchases of its chewing gum products are typically a routine, low involvement, repurchase.In this scenario, the comparative evaluation process is deliberative and conscious.

Question 20

In marketing, the abbreviation CRM represents customer relationship modeling.

Question 21

The most desirable customers have low recency, high frequency, and high monetary values.

Question 22

Most customer segments' expectations of quality are not unrealistic.

Question 23

When creating a customer satisfaction survey, questions about demographics should be located at the beginning of the survey.

Question 24

A customer's perception of quality and satisfaction can't be measured with precision.

Question 25

In calculating customer lifetime value (CLV), time inputs include: (1) a decent guesstimate at the likely retention rate from year to year and (2) a sense of the average lifespan duration for the particular product or brand.

Question 26

Hygiene and motivating factors are analogous to core and value-added.

Question 27

Verizon is running two TV ads to attract new customers.Ad A is run once a week, and it costs $20 per showing.Ad B is run once a month and costs $100 per showing.The total annual acquisition cost is $2,240.

Question 28

Discount Clothing Store is concerned that it is not satisfying its customers.The firm should consider mapping the shopping experience in order to fully understand its employees' perspective of how to best serve customers.

Question 29

In terms of customer dissatisfaction, when things go wrong, research suggests that the primary means to regaining the customer is through an empowered frontline employee.

Question 30

Core components don't affect a customer's satisfaction much if the core component is good.

Question 31

Surveys are ideal instruments to obtain customers' perceptions.

Question 32

Recently, companies are charging their loyal customers more, figuring that the loyals like the brand so much that they're price insensitive.

Question 33

CRM databases contain demographics, lifestyle data, and Internet info, but they should not contain contact information because of privacy laws.

Question 34

When calculating the acquisition cost for a new customer, a company can use the amount redeemed on coupons from past customers.

Question 35

If marketers want to be listened to by the top executives, they need to translate marketing metrics into finance metrics.

Question 36

Taco Bell uses the RFM matrix to determine its most valuable customers.Recency is weighted at a 5, frequency is weighted at a 4, and monetary is valued at a 3.Customer A has a score of R=2, F=9, M=1.Customer A's RFM score is 49.

Question 37

The wiggle room between the low, adequate level of expectations and somewhere slightly above the middle, predicted level of expectations is referred to as a "zone of tolerance," which is a range of performance that the customer would deem acceptable.

Question 38

Some marketers say that firms should seek to enhance not customer satisfaction but rather customers' perceptions of value.

Question 39

Computing customer lifetime value (CLV) involves three kinds of components: (1) numbers about money, (2) numbers about time, and (3) a financing finesse.

Question 40

Jody wants to launch a CRM program as a tool that her company can use to track spending, and she tells her boss that a CRM program does not need to segment customers into different levels of loyalty nor does it need to reward certain customers.Jody is correct.

Question 41

The hierarchy of customer behavior is

A) trial, repeat, awareness, loyalty.
B) loyalty, awareness, repeat, trial.
C) trial, repeat, awareness, loyalty.
D) awareness, trial, repeat, loyalty.

Question 42

When a consumer does not have much personal experience with a realtor (e.g., a first-time home buyer), he will form expectations from

A) an extrapolation of past experiences with professional service providers.
B) newspaper articles.
C) his last visit with his doctor.
D) an extrapolation of past experiences with service industry staff.

Question 43

For __________ purchases, the comparative evaluation process is typically quite deliberative and conscious.

A) high-involvement
B) quick
C) low-involvement
D) B2B

Question 44

When we have a situation where we do not have much experience with a brand, we seek people

A) who are brand ambassadors.
B) who are smart.
C) who we are related to.
D) who we trust.

Question 45

For __________ purchases, the comparative evaluation process may be nearly instantaneous and quickly forgotten.

A) high-involvement
B) quick
C) low-involvement
D) B2B

Question 46

The most trusted source of expectations is

A) word-of-mouth.
B) a consumer's own experience.
C) friends.
D) family.

Question 47

Marketers don't track customer evaluations because

A) they know that satisfied customers contribute to the bottom line.
B) they're interesting.
C) new customers become loyal.
D) truly loyal customers purchase frequently.

Question 48

What do customers evaluate when making a purchase?

A) core
B) service
C) core and service
D) core, service, and motivation

Question 49

Susan visits the office of a local attorney to have a will drawn up.She has never hired an attorney before, but thinks that this particular attorney is doing a good job based on his professional demeanor and fancy office.Susan's hiring of the attorney is best described as a __________ purchase.

A) qualitative
B) search
C) experience
D) credence

Question 50

__________ factors are actions that go above and beyond customer expectations.

A) Motivating
B) Hygiene
C) Extra
D) Bonus

Question 51

The VP of Customer Experience at an international hotel chain is constantly looking for ways to improve customer service, whether it be at check-in, room service, concierge services, check-out, etc.This is important because customers generally evaluate companies and brands based on

A) time components.
B) search effort.
C) points of interaction.
D) value-added supplemental components.

Question 52

As Quentin checks out of a hotel, he recalls the expectations of quality and service he had upon arriving at the hotel and realizes that based on those expectations he is not thrilled with his experience.The type of purchase by Quentin is best described as

A) quality
B) credence
C) search
D) experiential

Question 53

Comparing a purchase to expectations occurs when the item purchased is comprised primarily of __________ characteristics.

A) customer lifetime value
B) search, experience, or credence
C) quality
D) value, price, or quality

Question 54

Information originating from the marketing mix of a company that contributes to a consumer's expectations may include

A) positioning claims made in advertising.
B) suggestions of quality based on the price of a product.
C) trust worthy data on product quality.
D) positioning claims made in advertising and suggestions of quality based on the price of a product.

Question 55

Which of the following is a higher-involvement purchase?

A) athletic shoes
B) toothpaste
C) oatmeal
D) comb

Question 56

If the core part of the purchase is

A) good it decreases satisfaction.
B) good it increases satisfaction.
C) bad it does not affect satisfaction.
D) bad it increases dissatisfaction.

Question 57

The comparative evaluation process is thought to operate in which of the following types of purchases?

A) low-involvement
B) higher-involvement
C) both low- and higher-involvement
D) neither low- nor higher-involvement

Question 58

Evan visits a travel website to book a trip to Europe.While he is fairly certain he has selected good flights and exciting destinations, he cannot fully evaluate his trip until he actually arrives.The components of Evan's trip can best be described as __________ goods.

A) qualitative
B) search
C) experience
D) credence

Question 59

Mary visits her local shopping mall to purchase some much needed additions to her wardrobe.In selecting the items she wants to purchase, Mary is concerned primarily with factors such as color, size, style, and price.Clothing items can best be described as __________ goods.

A) qualitative
B) search
C) experience
D) credence

Question 60

Jim and Denise are executives at Jetsetters, Inc., a plane-sharing business.As they review the results of their recent customer satisfaction survey, Jim generally notices that responses fall into three outcomes.Which of the following outcomes is NOT one of the three outcomes on Jim's mind?

A) Customer expectations may be confirmed, leading to judgments of satisfaction.
B) Expectations may be disconfirmed in a negative manner if the purchase fell short of expectations, leading to feelings of dissatisfaction.
C) Expectations may be disconfirmed in a positive manner, if the purchase experience surpassed the expectations, leading to feelings of delight.
D) Expectations are not in line with the company's goals

Question 61

When customers become dissatisfied, what is the primary means of regaining the customer?

A) through an empowered frontline employee
B) a free sample
C) a discount
D) through interviews

Question 62

__________ cultures are more likely to be satisfied when the quality of reliability and service provider responsiveness are strong.

A) Collectivistic
B) Individualistic
C) Optimistic
D) Pessimistic

Question 63

The money inputs we need for CLV include all of the following EXCEPT

A) estimates of retention costs.
B) estimates of acquisition costs.
C) estimates of company.
D) average contributions for the segment(s) under consideration.

Question 64

Chase and Nathan are in charge of tracking customer evaluations for their employer.They are considering which measure to employ to track customer evaluation data.There are many measures that capture customer evaluations.Which of the following is one of the measures?

A) price
B) purchase intentions
C) time spent on research
D) quality

Question 65

Verizon uses the RFM matrix to determine its most valuable customers.Recency is weighted at a 3, frequency is weighted at a 9, and monetary is valued at a 7.Customer A has a score of R=1, F=5, M=6.What is Customer A's RFM score?

A) 15
B) 31
C) 90
D) 100

Question 66

Customer lifetime value assessments involve which three types of components?

A) segmentation, targeting, and positioning
B) numbers about money, time, and financing finesse
C) targeting, retention, and money
D) acquisition, retention, and add-on selling

Question 67

The time inputs we need for CLV include

A) estimates of retention rate and average lifespan of particular product.
B) estimates of retention rate.
C) average lifespan of particular product.
D) average age for the segment under consideration.

Question 68

Scoring models are traditionally comprised of three factors.Which of the following is NOT one of them?

A) high frequency
B) high recency
C) high monetary value
D) high purchase intention

Question 69

Honda offers a line of cars from less expensive to more expensive.What is Honda's goal with regard to this line?

A) the line will extend the customer's lifetime with Honda
B) sales will increase
C) the line will get Honda into new markets
D) the line will create market buzz

Question 70

Bic Inc.has a new ad to attract new customers.This ad is categorized as a(n)

A) retention cost.
B) discount rate.
C) average contribution.
D) acquisition cost.

Question 71

Marketers talk of three kinds of expectations.Which of the following is NOT one of them?

A) predicted
B) adequate
C) real
D) ideal

Question 72

Quality and satisfaction are

A) not important for a company to be successful.
B) opposites.
C) not the same thing.
D) the same.

Question 73

Marketers are interested in customers' perceptions and conduct surveys in order to understand those perceptions.Although these surveys may result in imperfect measures, the numbers do allow marketers to gauge their performance relative to certain __________, such as past or competitive performance.

A) ideals
B) credence
C) statistics
D) benchmarks

Question 74

Retention rates __________ over time.

A) always increase
B) always drop
C) always remain the same
D) can change or remain the same

Question 75

__________ cultures appreciate the relational aspects of front-line employees more.

A) Collectivistic
B) Pessimistic
C) Individualistic
D) Optimistic

Question 76

CRM programs are tools used by companies to track spending by collecting information, such as customer identification and contact information, and some form of information on the RFM of the customers' purchase history.What does RFM represent?

A) recency, frequency, monetary
B) recency, financial, monetary
C) retention, frequency, memory
D) retention, financial, memory

Question 77

__________ is defined as the trade-off of the quality of the purchase received compared with the price paid and other costs incurred.

A) Recovery
B) Marketing
C) Value
D) Expectations

Question 78

Which of the following is NOT typically in a CRM database?

A) complaints
B) market share data
C) rate of response to marketing offers
D) contact information

Question 79

Research shows that satisfied customers result in

A) a better bottom line.
B) a more diverse company.
C) happier employees.
D) word-of-mouth sales.

Question 80

When can marketing become operational?

A) when production is tied to marketing
B) when sales-people go on call
C) when implementing plans to create CRM databases
D) when computing CLV