Deck 39: Customer Attraction, Satisfaction, and Retention Strategies

Question 1

By understanding customer needs, ACE Hardware has been able to increase value to customers without

A) increasing service.
B) increasing the size of its staff.
C) increasing advertising spending.
D) increasing costs.
E) increasing hours of service.

Answer 1

D

Question 2

An American Customer Satisfaction Index (ACSI) study shows a clear correlation between higher levels of customer satisfaction and

A) higher stock prices.
B) market volatility.
C) advertising spending.
D) increased distribution.
E) personal selling.

Answer 2

A

Question 3

A typical way to measure customer satisfaction is to

A) track bloggers.
B) survey customers.
C) analyze sales.
D) analyze store traffic.
E) assess after-sales service and complaints.

Answer 3

B

Question 4

In a typical customer satisfaction survey, the best indicator of business performance is

A) the percentage of customers who are willing to recommend the firm.
B) the percentage of customers who plan to repurchase from the firm.
C) the number of customers who scored a 5 (very satisfied).
D) the number of customers who scored a 1 (very dissatisfied).
E) the average satisfaction score.

Question 5

Intention to repurchase or willingness to recommend a firm is usually measured through

A) social media.
B) marketing communications research.
C) complaint forms.
D) customer satisfaction surveys.
E) advertising recall.

Question 6

Building customer retention is very important because loyal customers are

A) not as willing to forgive after a negative experience.
B) more willing to listen to inducements from competitors.
C) less willing to try new offerings by the business.
D) generally more price-sensitive.
E) more profitable.

Question 7

Over time the impact of advertising

A) diminishes.
B) builds brand equity.
C) builds brand awareness.
D) creates brand preference.
E) encourages product trial.

Question 8

In order to build brand awareness and attract customers, many companies spend a lot of money on

A) market research.
B) customer service.
C) advertising.
D) product development.
E) event marketing.

Question 9

On a customer satisfaction survey, different levels of satisfaction have a tremendous impact on

A) brand awareness.
B) product trial.
C) customer loyalty.
D) brand associations.
E) understanding customer needs.

Question 10

By enabling customers to rate its products on its own website, Dell is

A) creating customer value.
B) reviewing customer segments.
C) using social media to its advantage.
D) researching brand perceptions.
E) thwarting competitive threats.

Question 11

Shareholder value is created by

A) investment in employee training.
B) increasing staffing at the point of sale/service.
C) satisfied customers who spend more.
D) employing profit-sharing plans.
E) return on investment.

Question 12

Customer satisfaction leads to

A) switching behaviour.
B) product trial.
C) customer feedback.
D) upselling.
E) customer loyalty.

Question 13

One of the ways that Dell uses social media to its advantage is by

A) disputing customer complaints.
B) only posting high product ratings on its own website.
C) tracking bloggers and posts to assist in marketing communications planning.
D) responding to customer suggestions through public relations strategies.
E) reaching out to bloggers to fix their problems.

Question 14

Customer demographic information is a usually a section of a

A) customer satisfaction survey.
B) complaint form.
C) blog.
D) company website.
E) product registration.

Question 15

On a customer satisfaction survey, customers who give you a score of 5 (very satisfied) are ____ times more likely to repurchase from you compared to customers who give you a score of 4 (satisfied)

A) 2
B) 3
C) 4
D) 5
E) 6

Question 16

By creating the role of a customer quarterback (an employee who greets customers when the store is busy, assesses their shopping needs, and then instructs other employees), ACE Hardware has successfully

A) increased product sales.
B) downsized the number of employees.
C) focused customer attention on specific brands.
D) converted mission shoppers to competitive loyals.
E) improved customer satisfaction.

Question 17

A customer with no time who is looking for a specific item is referred to as a

A) browser.
B) window shopper.
C) mission shopper.
D) brand-loyal shopper.
E) brand-specific shopper.

Question 18

While advertising creates only a short-term gain, _________ creates twice as much long-term value for a firm.

A) event marketing
B) direct marketing
C) public relations
D) social media
E) word of mouth

Question 19

Compared to customer satisfaction, customer complaints have a greater impact on

A) the customer satisfaction measurement.
B) the stock value gap.
C) marketing communications planning.
D) future business performance.
E) future product development.

Question 20

Customers can instantly communicate with the world about problems with a brand using

A) word of mouth.
B) letters to the editor.
C) customer feedback forms.
D) social media.
E) Better Business Bureau forums.

Question 21

Once customers have been classified on a loyalty index, customer classifications should be communicated to

A) marketing.
B) customer service departments.
C) the sales force.
D) senior management.
E) all employees.

Question 22

The first step to building customer loyalty is to

A) classify customers on a loyalty index.
B) communicate customer classifications to all employees.
C) focus on opportunities.
D) take action and sustain improvement.
E) listen to customers.

Question 23

Traditional segmentation methods do not work on the internet because they make use of

A) customer characteristics.
B) marketing goals.
C) usage information.
D) sites visited.
E) marketing tactics.

Question 24

One of the ways that Air Products and Chemicals Inc. focuses on opportunities through its customer loyalty process is to

A) identify areas of weakness among its sales force.
B) segment customers based on a loyalty index.
C) prioritize sales strategies with business objectives.
D) identify and foster organizational buy-in on critical customer requirements.
E) place an emphasis on external communications.

Question 25

Instead of thinking about how to convert dissatisfied or indifferent customers into satisfied customers, businesses need to focus on converting

A) non-buyers into buyers.
B) competitive loyals into brand loyals.
C) switchers into loyal customers.
D) non-users into satisfied customers.
E) satisfied customers into very satisfied customers.

Question 26

Customers classified as at risk represent

A) loyal customers who have been swayed by competitors.
B) low-margin customers, therefore unattractive customers.
C) high-cost, price-sensitive customers.
D) an opportunity to bring immediate payback.
E) customers at the last stage of the product life cycle.

Question 27

Even with data from customer satisfaction surveys, customer complaints, and sales reports, many businesses do a poor job of listening to customers because they are

A) internally focused.
B) externally focused.
C) focused on customer needs.
D) focused on the potential customer.
E) focused on dissatisfied customers.

Question 28

An internet session that lasts less than a minute, such as checking a site for the weather forecast, is known as a

A) "just the facts" session.
B) "single mission" session.
C) "loitering" session.
D) "quickie" session.
E) "surfing" session.

Question 29

Building customer loyalty is

A) tantamount to conducting a survey.
B) a one-time project.
C) an ongoing process.
D) a marketing communications function.
E) a sales function.

Question 30

In terms of revenue growth and profitability, a business is more successful if it has

A) an extensive product portfolio.
B) sales representatives in the field.
C) loyal customers.
D) price-sensitive customers.
E) satisfied customers.

Question 31

When classifying customers on a loyalty index, "at risk" customers should not be thought of as

A) a priority.
B) having little value.
C) price-sensitive.
D) price-insensitive.
E) disloyal.

Question 32

Although an advertiser can easily send different banner ads to different types of internet customers, if the content and placement of the ads are not appropriate to the __________, the ads will fail to deliver on their objectives.

A) type of usage session.
B) market segment.
C) internet site.
D) marketing tactic.
E) medium.

Question 33

Based on the customer satisfaction data collected, customers should be

A) added to a mailing list.
B) informed of the business' other product offerings.
C) classified into loyalty categories.
D) contacted by a sales representative.
E) contacted by a technical service representative.

Question 34

One of the ways that Air Products and Chemicals Inc. listens to its customers is through

A) call reports.
B) advertising recall studies.
C) the stock market gap.
D) social media.
E) blogs.

Question 35

Quickies, loitering, surfing, and single mission describe

A) types of marketing tactics.
B) types of customer segments.
C) types of customer loyalty classifications.
D) types of survey categories.
E) types of internet usage occasions.

Question 36

In the final step of sustaining improvement, Air Products and Chemicals Inc.

A) listens to customers.
B) drives more customer-segment-based information and actions.
C) classifies customers on a loyalty index.
D) focuses on opportunities.
E) communicates customer classifications to employees.

Question 37

Being more price-insensitive is a characteristic of a

A) browser.
B) mission shopper.
C) loyal customer.
D) competitors' customer.
E) dissatisfied customer.

Question 38

The most important step in developing customer loyalty is

A) listening to customers.
B) classifying customers on a loyalty index.
C) communicating customer classifications to employees.
D) focusing on opportunities.
E) taking action and sustaining improvement.

Question 39

A new form of segmentation that is very useful to segment and build loyalty with customers is called

A) social marketing.
B) the Values and Lifestyles (VALS) program.
C) ethnographies.
D) occasionalization.
E) psychographics.

Question 40

Who in a company designs and delivers customer value propositions?

A) senior management
B) the marketing function
C) the sales function
D) customer service and technical support departments
E) employees

Question 41

Once customers have been classified on a loyalty index, these customer classifications should be communicated to the front-line sales force.

Question 42

Employees are satisfied when the organization is successful in

A) satisfying its customers.
B) increasing profitability.
C) achieving revenue growth.
D) creating value for them.
E) providing training.

Question 43

In its Service Profit Chain, Arbol advocates that superior customer value is delivered by

A) a well-trained sales force.
B) satisfied employees.
C) the marketing function.
D) a well-designed product.
E) after-sales service.

Question 44

Loyal customers are more profitable and cost less to serve.

Question 45

The final step of sustaining improvement is the most important step in developing customer loyalty.

Question 46

Using social media, customers can instantly communicate with the world about problems with a brand.

Question 47

Over time, the impact of advertising increases.

Question 48

The first step in building customer loyalty is to truly listen to customers.

Question 49

The lowest box score (percentage of customers who scored a 1) is the best indicator of business performance.

Question 50

Companies are powerless against customer-generated content on social media networks.

Question 51

Satisfied customers spend more, and this creates shareholder value.

Question 52

A customer's intention to recommend a firm to others has a big impact on predicting future business performance.

Question 53

A typical customer satisfaction survey measures a customer's intention to repurchase from the firm.

Question 54

Loyal customers are more willing to listen to inducements from competitors.

Question 55

In a customer satisfaction survey, customers who give a score of 5 (very satisfied) are two times more likely to repurchase as customers who give a score of 4 (satisfied).

Question 56

Loyal customers are the least likely to forgive a business for a negative experience because, once lost, brand loyalty is gone forever.

Question 57

Negative critical incidents, if handed properly, can enhance customer satisfaction and loyalty.

Question 58

Companies with higher customer satisfaction scores experience volatile stock values and cash flows.

Question 59

Different levels of customer satisfaction have tremendous impact on customer loyalty.

Question 60

Dell uses social media to its advantage by reaching out to bloggers to fix their problems.

Question 61

What positive impacts does a high level of customer satisfaction have on a firm?

Question 62

Describe three different types of usage occasions on the web.

Question 63

Explain how a business can use the occasionalization segmentation approach to attract, satisfy, and keep customers. Provide an example.

Question 64

Describe the four steps in developing customer loyalty.

Question 65

What type of feedback is typically measured on a customer satisfaction survey?

Question 66

Describe the Service Profit Chain framework that Arbol Industries adopted to satisfy and keep customers.

Question 67

Even if a customized banner ad is sent to a specific user (such as a 54-year-old CEO visiting a business site), if the content and placement of the ad is not appropriate to the type of usage session, the ad will be ineffective.

Question 68

Traditional segmentation methods do not work on the internet.

Question 69

Provide an example of a company that uses social media to its advantage.

Question 70

What is the relationship between customer satisfaction and customer loyalty?

Question 71

Describe the segmentation approach required for customers on the web.

Question 72

List three characteristics of loyal customers that make them vitally important to a business.