Question 1

A continuing problem for most Minor League Baseball (MiLB) teams is low attendance. Event and venue sponsors want to see fans in the stadiums, and the players appreciate fan support. Given this information, which pricing strategy would you recommend MiLB teams use?

Accepted Answer

Patronage oriented pricing focuses on maximizing the number of attendees, which aligns with the goal of increasing fan attendance at MiLB games. This strategy can help attract more fans by making games more affordable or offering promotions, which in turn can satisfy sponsors and players.

Question 2

Hyatt Regency's Platinum Card Program allows members to bypass any line at the check-in desk and get immediate check-in service. In this example, what are developed by offering value-added services that are not readily available from other hotel chains?

Accepted Answer

By offering unique value-added services like immediate check-in for Platinum Card Program members, Hyatt Regency develops structural bonds. These bonds are based on providing services or benefits that create a structure making customers more likely to stay loyal to the brand, as these offerings are not easily replicated by competitors.

Question 3

One of the main responsibilities of sport marketers is to keep their loyal customers as heavy users and escalate lower-level users into loyal customers. Which type of marketing would be an effective tool for accomplishing this goal?

Accepted Answer

Relationship marketing focuses on building and maintaining long-term relationships with customers, which is exactly what sport marketers need to do to keep their loyal customers as heavy users and escalate lower-level users into loyal customers. By focusing on building strong relationships with customers, sport marketers can increase customer retention, loyalty, and advocacy, which can ultimately lead to increased revenue and profitability. Interactive marketing (A) focuses on engaging customers in two-way communication and can be effective for creating brand awareness and generating interest. Patronage marketing (C) focuses on rewarding customers for their loyalty and can be effective for retaining existing customers, but it may not be as effective for escalating lower-level users into loyal customers. Affiliation marketing (D) focuses on partnering with other brands or organizations to reach new audiences, but it may not be as effective for retaining or escalating existing customers.

Question 4

A management consulting business stays in touch with its business customers with phone calls and greeting cards. It periodically sends out needs-assessment questionnaires and designs new services to meet the needs revealed in these surveys. What is this relationship marketing based on?

Accepted Answer

This relationship marketing is based on social bonds, which are formed by building long-term relationships and focusing on satisfying customers' needs and preferences. By regularly reaching out and communicating with customers through phone calls, greeting cards, and surveys, the business is building these social bonds and creating stronger connections with its customers.

Question 5

Often, once graduated, a former university student is thought of only as an alumnus or alumna, not as someone who can again benefit from further education. Which type of marketing would be useful in retaining this long-term custom?

Accepted Answer

Relationship marketing focuses on building long-term relationships with customers, which would be beneficial in retaining former university students as customers for further education. By maintaining a relationship with these individuals, the institution can keep them engaged and interested, and provide them with ongoing educational opportunities. This can help to increase loyalty and keep them coming back for more.

Question 6

Mountain Express provides a grocery delivery service to several small communities. The company gives a 2 percent discount on all food orders to customers after they have used the service 10 times. What is the relationship marketing strategy used by Mountain Express based on?

Accepted Answer

The strategy of providing a discount after a certain number of uses is aimed at building financial bonds with customers, encouraging loyalty through economic incentives.

Question 7

Relationship marketing programs that have the strongest potential for sustaining long-term relationships with customers are based on which type of bonds?

Accepted Answer

Relationship marketing programs that have the strongest potential for sustaining long-term relationships with customers are based on financial, social, and structural bonds. Financial bonds involve economic incentives, such as discounts or rewards for loyalty. Social bonds refer to emotional connections and shared values between the customer and the brand. Structural bonds are based on mutual investment in the relationship, such as personalized service and ongoing communication. Together, these three types of bonds create a strong foundation for long-term customer-brand relationships.

Question 8

Boutique hotels not only call their employees cast members, but also compete for their talent, provide them with all the training needed, stress teamwork, and give employees freedom to make decisions. In order to provide the level of service guests require, which type of marketing do boutique hotels need to engage in?

Accepted Answer

Boutique hotels focus on providing a high level of service by training employees, emphasizing teamwork, and empowering them to make decisions. This approach is a part of internal marketing, which involves engaging employees to effectively serve customers and enhance the customer experience.

Question 9

Determining costs can be extremely difficult for a service provider that has adopted this type of pricing objective and may limit the usefulness of the objective. What is the pricing objective?

Accepted Answer

The answer of Determining costs can be extremely difficult for...

Question 10

Sally has recently opened a daycare business. She realizes that this shall involve a process of continuous interaction between the daycare, children, and parents. Bearing this in mind, which type of marketing is an important strategy for her?

Accepted Answer

Relationship marketing focuses on building long-term relationships with customers and involves ongoing interaction and communication. This is a crucial strategy for Sally's daycare business as she will need to establish trust with parents and maintain positive relationships with them to ensure continued patronage of her business. Interactive marketing is also important in engaging with customers, but it doesn't necessarily emphasize the long-term relationships aspect that is key to Sally's business. Patronage marketing and affiliation marketing are not as relevant to Sally's business model.

Question 11

The Royal Ontario Museum in Toronto offers discount ticket prices to students and senior citizens. Which type of pricing objective does this illustrate?

Accepted Answer

Offering discounts to students and senior citizens is an example of patronage-oriented pricing. The ROM is trying to attract and retain these groups as loyal customers by providing them with a lower price point. This pricing strategy is not focused on maximizing revenue or profitability, but rather on building relationships with customers.

Question 12

When a business builds into the delivery system, value-added services that are not readily available from other firms, its relationship marketing is based on the creation of which of the following?

Accepted Answer

Structural bonds are created when a business builds value-added services into their delivery system that are not easily replicated by other firms. This creates a unique advantage for the business and strengthens the relationship with customers. Financial bonds are based on monetary transactions, social channels are focused on social media presence, and personal communication channels relate to the interpersonal connections between customers and the business.

Question 13

Emmy award-winning actress Kirstie Alley became the spokesperson for Narconon International in 1990. Narconon International's goal is to provide treatment and rehabilitation to young people before they become hardened criminals. What would Narconon International be classified as?

Accepted Answer

Narconon International is a nonprofit organization, as its main goal is to provide treatment and rehabilitation services rather than generating profit.

Question 14

Dogs with Wings trains seeing-eye dogs. It seeks to achieve some goal other than the usual business goals of profit, market share, or return on investment? What else is this type of organization known as?

Accepted Answer

Dogs with Wings is referred to as a nonprofit organization because it exists to serve a charitable or social cause rather than to make a profit for shareholders or owners.

Question 15

Sally has recently opened a daycare business. Positive word-of-mouth will be important in helping the business to grow. Thus, what type of marketing should she use to attract, develop, and retain customers?

Accepted Answer

Relationship marketing focuses on building long-term relationships with customers to encourage loyalty and repeat business. This is especially important for a daycare business, as parents will want to feel confident and comfortable leaving their children in the care of someone they can trust. Sally should focus on developing relationships with the families she works with and keeping communication open to address any concerns they may have. Additionally, offering incentives or rewards for loyal customers can help retain business and encourage word-of-mouth referrals.

Question 16

The Container Store's CEO believes the company has a moral obligation to ensure employees are provided with an exciting and secure atmosphere to work in on a daily basis. What is he concerned about?

Accepted Answer

Internal marketing focuses on ensuring employees are motivated and satisfied, which aligns with the CEO's concern about providing an exciting and secure work atmosphere.

Question 17

Sizzlin' Shine is a company that uses trained detailing professionals to apply wax to automobiles by hand and utilize mechanical polishing equipment. The owner has just initiated a frequent-shine card for customers who purchase her shop's services at least once a quarter. What do frequency programs like this one use to implement relationship marketing?

Accepted Answer

Frequency programs like the frequent-shine card utilize financial bonds to implement relationship marketing. By offering a discount or free service after a certain number of purchases, the company is encouraging customers to continue coming back and building a financial bond with them.

Question 18

Raymond runs a social media consulting company. He is in the process of deciding on his competitive advantage. He has been advised that one of the following would NOT help to build a long-term advantage. Which one would NOT help?

Accepted Answer

While pricing incentives may attract customers in the short-term, they are not a reliable or sustainable way to build a long-term competitive advantage. Personal communications, social bonds, and structural bonds are all aspects that can help build long-term relationships with customers and differentiate a business from its competitors.

Question 19

Julio Orbison recently opened up a coffee shop. His main objective was to maximize the number of customers visiting the store. Which type of pricing objective should he use?

Accepted Answer

A patronage oriented pricing objective focuses on maximizing the number of customers visiting the store, which is Julio's main objective. A revenue oriented objective focuses on increasing sales or revenue, a profitability oriented objective focuses on maximizing profits, and an operations oriented objective focuses on controlling costs and improving efficiency.

Question 20

John has just taken over as CEO of TechSys, an Edmonton-based computer manufacturer. It is currently suffering from low employee morale. He has decided that he needs to treat employees as customers and must develop systems and that empower employees. What type of marketing is this?

Accepted Answer

Internal marketing focuses on treating employees as internal customers and developing systems that empower employees. John's approach of treating employees as customers and focusing on job satisfaction falls under the category of internal marketing.

Quiz 12: Services and Nonprofit Organization Marketing