Question 1

Which of the following is NOT a good example of an organisation deciding to fire a customer?

Accepted Answer

All of the above are good examples of organisations deciding to fire a customer. Students who are caught cheating and club members who behave inappropriately are in violation of rules or codes of conduct, while banks have the right to decide which services they want to offer and to whom.

Question 2

In the ladder of loyalty, ________ have the lowest relationship commitment while ________ have the highest.

Accepted Answer

In the ladder of loyalty, prospects are at the lowest level because they are potential customers who have not yet made a purchase or committed to the brand. Evangelists are at the highest level because they are highly satisfied customers who actively promote the brand to others, showing the highest level of relationship commitment.

Question 3

Not all customer relationships are worth keeping.Which of the following is NOT a good reason to terminate the relationship?

Accepted Answer

While a change in production focus may affect the nature of the relationship, it is not necessarily a good reason to terminate it. The other options (A-D) are all valid reasons for terminating a customer relationship.

Question 4

________ ________ translates the business and customer strategies into specific value propositions for customers and the firm.

Accepted Answer

Value creation is the process of translating the business and customer strategies into specific value propositions for customers and the firm. This involves identifying the customer's needs and wants and then designing products, services, and experiences that meet those needs while also creating value for the business. Strategy development, multichannel integration, information management, and performance assessment are all important components of value creation, but they do not specifically address the process of translating strategies into value propositions.

Question 5

The CRM program's value to developing strategy is best described as:

Accepted Answer

The CRM program can collect and analyze data on customers, allowing companies to identify patterns and preferences. This information can then be used to drive the overall strategy of the company, helping to tailor products and services to customer needs and preferences.

Question 6

In terms of socio-cultural traits that impact on buyer-seller relationships, which of the following statements is correct?

Accepted Answer

High-context cultures, which rely heavily on non-verbal cues and the overall context of communication, typically require more time to build trust and establish relationships compared to low-context cultures, which prioritize direct and explicit communication.

Question 7

Good customer relationships begin with a good fit between ________ and ________.

Accepted Answer

Good customer relationships are built on meeting the customer's needs and providing appropriate service offerings. Options A, D and E are in part valid but do not fully capture the essence of the importance of understanding customer needs and offering appropriate services.

Question 8

Which of the following points has research found to be key determinants in a successful customer relationship?

Accepted Answer

Research has found that all of these factors (customer engagement, value, customer satisfaction, and loyalty motives) are key determinants in a successful customer relationship. Customer engagement ensures that the customer is actively involved with the company and its products/services. Value refers to the perception of the benefits received in relation to the cost. Customer satisfaction measures how well the company meets the expectations of the customer. Loyalty motives encompass the reasons why a customer chooses to remain loyal to a company or product.

Question 9

High net-worth customers should be protected because:

Accepted Answer

High net-worth customers often make fewer demands relative to the revenue they generate and typically cost less to service because they may require less support or use more efficient, premium channels.

Question 10

________ ________ must address three critical questions.

Accepted Answer

The answer of ________ ________ must address three critical questions.
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Question 11

In Zeithaml, Rust and Lemon's customer pyramid, which of the following describes a platinum customer?

Accepted Answer

A platinum customer is described as a heavy user that is less price sensitive but expects the highest service levels. They are highly profitable and require personalized attention to maintain their loyalty.

Question 12

Customers can be arranged in tiers according to:

Accepted Answer

Customers can be arranged in tiers based on different factors: their level of profit contribution, their needs, their identifiable personal profiles such as demographics, and their price sensitivity. Therefore, Option E ("all of the above") is the most appropriate choice.

Question 13

CRM strategy involves all of the following imperatives EXCEPT:

Accepted Answer

The CRM strategy involves all of the following imperatives except minimizing the role and importance of employees. In fact, employees play a crucial role in the successful implementation of a CRM strategy as they are often the ones who interact with customers directly.

Question 14

Recent research has found a number of specific types of relational benefits that motivate customers to become regular customers of one service provider.Which category of benefits has been found by research to be the least important to customers in terms of value?

Accepted Answer

Special-treatment benefits are often considered the least important because customers typically value more consistent and reliable benefits such as confidence and social benefits over occasional perks or discounts.

Question 15

Which of the following is NOT a reason why CRM programs may fail?

Accepted Answer

All of the options listed are potential reasons why CRM programs may fail, so none of them can be excluded as the incorrect option.

Question 16

If a firm has an emphasis on relationship marketing they are concerned with:

Accepted Answer

Relationship marketing emphasizes building long-term relationships with customers by focusing on customer retention, loyalty, and satisfaction. Regaining lost customers, implementing effective service-recovery, and complaint-handling are all important strategies that fall under relationship marketing. Offering reduced prices may be a short-term tactic but does not necessarily focus on building relationships with customers. Therefore, choice E, which includes options a, c, and d, is the best answer.

Question 17

What strategies could a service marketer adopt for customers in the lead tier?

Accepted Answer

Strategies for managing customers in the lead tier include imposing a minimum fee that can be waived if revenue thresholds are met, cutting service costs to maintain profitability, creating a low-cost platform to serve these customers efficiently, and in some cases, terminating relationships with customers who consistently drain resources without providing sufficient value. These strategies aim to either make these customers profitable or minimize the losses they cause.

Question 18

A person who continually visits a hairdresser salon because of the relationship they have built up with one particular person who works in that salon, highlights which important facet of relationships?

Accepted Answer

The person's continued visits to the hairdresser salon is driven by the relationship they have built up with one particular person who works in the salon, highlighting the important facet of social bonds. The individual values the connection they have with the hairdresser, leading to customer satisfaction and potentially length of patronage as well. However, convenience or value may not be the primary drivers in this scenario.

Question 19

In Zeithaml, Rust and Lemon's customer pyramid, which of the following describes a gold customer?

Accepted Answer

Gold customers are typically somewhat price sensitive and less committed compared to platinum customers, who are the most profitable and loyal.

Question 20

Which of the following strategies could be used to retain customers?

Accepted Answer

Reducing churn drivers, building in switching barriers, and creating loyalty bonds are all effective strategies for retaining customers. Offering lower prices may attract new customers, but it is not a sustainable long-term solution for retaining existing customers. Therefore, option E, which includes options a, b, and d, is the best choice.

Quiz 13: Managing relationships and building loyalty