Deck 5: Services and Relationship Marketing

Question 1

The customer relationship lifecycle has been compared by some authors to the product lifecycle with well-defined phases. How many stages exist in the customer relationship lifecycle?

A) Five
B) Six
C) Four
D) Three

Answer 1

C

Question 2

Using this GAPS approach five different dimensions of service quality have been established. These are:

A) Reliability, Responsiveness, Assurance, Tangibles, Intangibility.
B) Reliability, Responsiveness, Assurance, Empathy, Tangibles
C) Reliability, Responsiveness, Empathy, Tangibles, Lack of ownership.
D) Perishability, Reliability, Responsiveness, Empathy, Tangibles.

Answer 2

B

Question 3

__________ is based on the principle that there is a history of exchanges and an expectation that there will be exchanges in the future. The perspective is long-term, envisioning a form of loyalty or continued attachment by the buyer to the seller.

A) Market exchange
B) Market interaction
C) Relationship marketing
D) Service marketing

Answer 3

C

Question 4

A natural outcome of building trust and developing commitment is the establishment of ________________.

A) customer satisfaction
B) experience quality
C) service quality
D) customer engagement

Question 5

___________ is based on the idea that customer expectations of the service they will receive shape their perception of the actual service encounter.

A) Service action
B) Service quality
C) Service recovery
D) Service satisfaction

Question 6

This is a true form of loyalty and is driven by personal identification with real or perceived values and benefits. This is referred to as:_____

A) incentivized loyalty.
B) emotional loyalty.
C) price loyalty.
D) monopoly loyalty.

Question 7

People have to physically present themselves so that they become immersed within the service process. This type of service process is referred to as:_____________

A) People processing
B) Possession processing
C) Information processing
D) Mental stimulus processing

Question 8

_______________ are those elements that help customers to evaluate an offering prior to purchase. Physical products tend to have a high number of these attributes that serve to reduce customer risk and increase purchase confidence.

A) Credence properties
B) Experience properties
C) Tangible properties
D) Search properties

Question 9

The following is a disconfirmation model designed to measure service quality. It is based on the difference between the expected service and the actual perceived service:

A) SERVQUAL.
B) SERVPERF.
C) QUAL.
D) SWOT.

Question 10

Train service operators may think that customers want places to store bags whereas they actually want a seat in a comfortable, safe environment. This is a good example of:

A) GAP 3: the gap between service-quality specifications and service delivery.
B) GAP 1: the gap between the customer's expectations and management perception.
C) GAP 4: the gap between service delivery and external communications.
D) GAP 2: the gap between management perception and service-quality specification.

Question 11

Relationships can become destabilized and uncertainty between partners can develop. There are many reasons for this including purchasing agreements and loyalty programmes that are not sufficiently attractive to lock in customers, to changes in the wider environment such as legislative, climatic, or economic developments. Customer recovery strategies are required at the first sign that a relationship is waning.

Question 12

Monopoly loyalty arises where a consumer has no purchase choice owing to a national monopoly. This, therefore, is not a true form of loyalty.

Question 13

Price loyalty is driven by rational economic behaviour and the main motivations are cautious management of money or financial necessity.

Question 14

The proliferation of loyalty programmes in most mature markets
Many members have little interest in them other than the functionality of points collection. This is referred to as imagination loyalty trend.

Question 15

The three major outcomes from the development of relationship trust are satisfaction, reduced perceived risk, and collaboration.

Question 16

Pansari and Kumar (2017) define 'loyalty' as the level of customers' contribution to the company through both direct and indirect activities.

Question 17

Service expectations are a measure of the extent to which a service experience exceeds customers' expectations.

Question 18

Although SERVQUAL has many benefits and is used extensively, it is not suitable for measuring experience quality.

Question 19

The aesthetic realm occurs when an individual passively appreciates an event or environment, but leaves without affecting or altering the nature of that environment.

Question 20

The variability of services does not mean that planning is a worthless activity. By anticipating situations in which service breakdown might occur, service managers can mitigate the potential for harm.

Question 21

This refers to promiscuous buyers, those with no one favourite brand, who demonstrate through repeat experience the value of becoming loyal. It is called:__________

A) price loyalty.
B) incentivized loyalty.
C) emotional loyalty.
D) supply loyalty.

Question 22

Chahal and Dutta (2014) suggest that there are five dimensions associated with outstanding customer experience. Which of the following is NOT associated with outstanding experience?

A) CRM systems
B) sensory experience
C) affective experience.
D) creative cognitive experience

Question 23

The ____________ realm occurs when an individual views a performance, listens to music, or reads for pleasure. The experience is absorbed passively (Pine and Gilmore, 1999).

A) Enthusiastic
B) Entertainment
C) Esthetic
D) Educational

Question 24

This approach to service quality measurement is based on the difference between what is expected from a service and what is delivered, as perceived by the customer. SERVPERF is the standard measurement technique.This is called:_______________.

A) importance performance
B) disconfirmation
C) service level
D) performance measure

Question 25

Which of the following is best understood as a period of time during which a customer interacts directly with a service?

A) Good usage.
B) Service encounters.
C) Servicescape.
D) Service mix.

Question 26

Once a train pulls out of a station, or an aeroplane takes off, or a film starts, those seats are lost and can never be sold. These are examples of:

A) Inseparability.
B) Intangibility.
C) Tangibility.
D) perishability

Question 27

In _____________, customers visit the service facility, so that they are personally involved throughout the service delivery process, for example in retail branch banking and higher education._______________.

A) Encounter.
B) Low-contact services.
C) medium-contact services.
D) high-contact services.

Question 28

_______________ properties relate to those service characteristics that customers find difficult to evaluate even after purchase and consumption.

A) Credence properties
B) Experience properties
C) Tangible properties
D) Search properties

Question 29

External marketing relates to the offering that makes the restaurant attractive to customers: a nice and enticing menu, reasonable prices, and a good location.