Deck 4: Relationship and Loyalty Marketing

Question 1

Relationship/loyalty marketing is applicable when there is an ongoing and periodic desire for service by the customer.

Answer 1

True

Question 2

A program that rewards guests with points, miles or stamps that can be redeemed or get discounts for products and services is known as:

A) A loyalty program
B) A frequency program
C) A marketing program
D) None of the above

Answer 2

B

Question 3

Relationship/loyalty marketing can include:

A) Requiring that a company define its organization to support the value that individual customers want
B) Recognizing the value of customers over their purchasing lifetimes
C) Seeking to create new value for customers and share in the value created
D) All of the above

Answer 3

D

Question 4

Which should you NOT do when handling a complaint?

A) Explain why you appreciate the complaint
B) Apologize for the mistake
C) Tell the customer it is not a big deal
D) Say thank you

Question 5

A frequency program focuses on the long- term business of customers.

Question 6

Value- added and value- recovery are two aspects of which part of the loyalty circle?

A) Value strategy
B) Value service
C) Value creation
D) Value competition

Question 7

Relationship marketing is also known as loyalty marketing.

Question 8

Frequency programs and loyalty programs are the same.

Question 9

CRM stands for Customer Rotation Management.

Question 10

Which of the following is part of the loyalty circle?

A) Value loyalty
B) Value creation
C) Value perception
D) Value

Question 11

Word of mouth marketing is attainable for services but not goods.

Question 12

is the net profit received from doing business with a given customer during the time that the customer continues to purchase from the firm.

A) Lifetime consumer value
B) The lifetime perception of the customer
C) The value of the customer
D) The lifetime value of a customer

Question 13

According to TARP, if complaints are resolved quickly, complainants are more likely to make repeat purchases.

Question 14

Repeat customers are important for the hospitality firm.

Question 15

Moving a customer from a state of awareness of your product to becoming an advocate who is loyal is known as:

A) The service model
B) The loyalty circle
C) The service relationship model
D) The loyalty ladder

Question 16

Each is part of the loyalty circle EXCEPT:

A) Process
B) Communication
C) Value
D) Repeat customer services

Question 17

Worksheets and formulas cannot be used to determine the lifetime value of a customer.

Question 18

Loyalty programs can quickly be added by any hospitality firm.

Question 19

The tip of the iceberg phenomenon is about:

A) Customer complaint behavior
B) Customer loyalty
C) Customer frequency
D) Tourism

Question 20

One form of non- traditional marketing is:

A) Relationship marketing
B) Service marketing
C) Loyalty marketing
D) Quality marketing