Deck 6: Relational and Sustainability Strategies

Question 1

According to Umayr Ismail there are five key pillars to bear in mind when building long-term, sustainable customer relationships. Which of the following is not one of them?

A) People-centred
B) Trust
C) Respect
D) Coopetition

Answer 1

Coopetition

Question 2

________is the present value of future profits that will accrue from customers' lifetime purchase.

A) ABCD
B) CLV
C) CTLV
D) CVLT

Answer 2

CLV

Question 3

Which of the following is not one of Schoder's (2007) steps in the process for making CLV calculations?

A) Calculate costs per customer per period.
B) Estimate the probability of purchase and dollar amounts expected to be spent using RFM (reach, frequency, and monetary value).
C) Estimate the probability of purchase and dollar amounts expected to be spent using RFM (recency, frequency, and monetary value).
D) Estimate the profit contribution for each customer.

Answer 3

Estimate the probability of purchase and dollar amounts expected to be spent using RFM (reach, frequency, and monetary value).

Question 4

The development of long-term and intimate relationships between buyers and sellers is called ________

A) relationship marketing.
B) long-term marketing.
C) strategic marketing.
D) continuous marketing.

Question 5

In the loyalty ladder, what are Suspects?

A) This is warm lead.
B) He is one who has actually bought your product/service.
C) Are not yet interested in your products or services
D) They are regular customers.

Question 6

What all needs to be considered while determining customer equity test?

A) Each customer's expected contribution to offset the company's fixed costs over their expected lifetime
B) Expected contributions to net present value are discounted.
C) Add together all of the discounted expected contributions across all of the company's current customers.
D) All of the options given are correct.

Question 7

In the loyalty ladder, what are prospects?

A) This is warm lead.
B) He is one who has actually bought your product/service.
C) Are not yet interested in your products or services
D) They are regular customers.

Question 8

What is not necessarily a defining characteristic of a customer, from the perspective of the company?

A) That the customer is one who has actually bought the product/service.
B) That the company must aim to enhance that individual's (or company's) purchase frequency and volume over time.
C) That the customer is always good and beneficial for the company.
D) All of the options given are correct.

Question 9

Some companies adjust for different customers by using different pricing and venues; this is called _________

A) compatibility management.
B) consumer management.
C) franchise management.
D) marketing management.

Question 10

Zeithaml et al (2001) proposed __________ based upon profitability for firms trying to improve long-term firm performance.

A) customer profitability pyramid
B) customer pyramid of needs
C) customer predictability pyramid
D) customer pyramid of influence

Question 11

What are the four levels of the Customer Profitability Pyramid?

A) Lead, Iron, Silver, Gold
B) Lead, Steel, Silver, Gold
C) Lead, Iron, Gold, Platinum
D) Lead, Iron, Silver, Platinum

Question 12

________ tier in the customer profitability pyramid may have high volume but profits may be limited due to desire for price discounts.

A) Silver
B) Iron
C) Gold
D) Platinum

Question 13

What is not a characteristic of a client?

A) They are regular customers.
B) They have some level of trust in the seller.
C) Some clients may be 'mercenaries'.
D) None of the options given are correct.

Question 14

The type of client which only appears to have loyalty to the relationship but may hold the tenuousness of that relationship over the seller's head to maintain some kind of leverage over the seller is known as a ___________

A) hostage.
B) mercenary.
C) terrorist.
D) guerilla.

Question 15

A strategy aimed at identifying the best customers, keeping them, and increasing their expenditures through the development of intimate long-term relationships is called _______ marketing.

A) frequency
B) pull
C) intimate
D) guerilla

Question 16

______ are the most valuable of all customers.

A) Supporters
B) Clients
C) Advocates
D) Bohemians

Question 17

Which of the following is NOT true?

A) You can convert a client into a supporter through great service.
B) Advocates buy the products and services and actively recruit others to do the same.
C) Some clients may feel that they are hostages to the seller.
D) Supporters are the most valuable to a firm.

Question 18

_______is when the buyer and seller enter into a joint position of commitment and the buyer often has to modify the ways in which he/she works to accommodate the seller.

A) Advocacy
B) Partnership
C) Co-marketing
D) Support

Question 19

Programmes that are established by companies to provide added value to the regular purchaser as opposed to the irregular customer are known as _____________

A) loyalty schemes.
B) customer love.
C) friendship packages.
D) partnership clubs.

Question 20

According to Narayandas (2005), those B2B customers which tend to be prestigious accounts that were acquired to build credibility by luring them with very low cost or even free services are known as______________

A) partners.
B) commodity buyers.
C) underperformers.
D) most valuable customers.

Question 21

What are the four dimensions of customer relationship quality in B2B relationships according to Zhang, Watson, and Palmatier (2018)?

A) Confidence, commitment, interdependence, and normality
B) Trust, commercialization, interdependence, and norms
C) Tradability, commitment, dependence, and normality
D) Trust, commitment, dependence, and norms

Question 22

To move gold customers to platinum customers (as per the customer profitability pyramid) which of the following are not the suggested strategies?

A) Become a full service provider
B) Provide outsourcing
C) Decrease brand impact
D) Create structural bonds

Question 23

A process by which a firm gathers information about the wants and needs of its customers to enable it to adjust its offerings to better fit those wants and needs is called

A) customer database management.
B) customer management.
C) customer retention management.
D) customer relationship management.

Question 24

As per Kotler (2003) the two ways to strengthen customer retention are

A) switching barriers, increase satisfaction.
B) switching barriers, increase spends.
C) entry barriers, increase satisfaction.
D) exit barriers, increase satisfaction.

Question 25

The analysis of consumer databases to look for possible new relationships that can provide direction for innovative customer relationship strategies is called _______

A) data searching.
B) data analysis.
C) data surfing.
D) data mining.

Question 26

The key issue with CRM is that customers would feel______ rather than being _____

A) wooed, stalked.
B) booed, stalked.
C) stalked, wooed.
D) stalked, booed.

Question 27

Companies that are building databases to focus on customers' transactions are missing what important information?

A) Consumer purchases
B) Interactions with the industry
C) Demographics
D) Historical information

Question 28

What is the best strategy in terms of data collection?

A) Relying on raw data rather than really observing and getting to know the customers
B) Asking customers for information
C) Combining both transaction data with human data
D) Data for the sake of data

Question 29

What does BDAI stand for?

A) Big data analysis interaction
B) Big database analytical inflation
C) Best data analytical intelligence
D) Big data analytical intelligence

Question 30

Bell (2002) argues that it is no longer sufficient to just have a relationship with you customer. You need to develop _____

A) affection.
B) passion.
C) direction.
D) love.

Question 31

Which is not an important step in building customer love?

A) Enlistment
B) Engagement
C) Enlightenment
D) Transcendence

Question 32

What is customer empowerment?

A) Affirming the covenant
B) Customer control through consistency
C) Making the process magical
D) Giving without a price

Question 33

Kotler (2003) explains that there are two ways to strengthen customer retention. Which of the following is one those ways?

A) Lowering switching barriers
B) Keeping the same customer satisfaction level
C) Customer reality management
D) Delivering ever-increasing levels of customer satisfaction

Question 34

Loyalty schemes can reasonably be expected to do several things for the companies that use them (Nunes and Dreze, 2006). Which of the following is not one of the benefits of loyalty schemes?

A) Keep customers from defecting.
B) Win a greater share of the wallet.
C) Create competition.
D) Prompt customers to make additional purchases.

Question 35

Which of following are NOT the benefits from achieving customer love?

A) Customers who love you take care of you.
B) Customers not only recommend you; they insist.
C) Customers forgive our mistakes.
D) They will pay less for what you offer.