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?

Accepted Answer

C

Question 2

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

Accepted Answer

The GAPS model of service quality identifies five key dimensions: Reliability, Responsiveness, Assurance, Empathy, and Tangibles. These dimensions are used to evaluate and improve service quality.

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.

Accepted Answer

Relationship marketing is based on the idea of building long-term relationships with customers, where there is an ongoing history of interactions and an expectation of future exchanges. This approach focuses on customer loyalty and long-term engagement rather than on one-time transactions.

Question 4

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

Accepted Answer

The answer of A natural outcome of building trust and...

Question 5

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

Accepted Answer

Service quality is the concept that revolves around the idea that customer expectations prior to a service encounter significantly influence their perception of the actual service they receive. It emphasizes the importance of meeting or exceeding these expectations to achieve high customer 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:_____

Accepted Answer

Emotional loyalty is driven by a personal connection and identification with the values and benefits of a brand, beyond just incentives or prices.

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:_____________

Accepted Answer

People processing involves services where customers must be physically present to receive the service, such as in healthcare or hairdressing.

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.

Accepted Answer

Search properties are attributes that can be evaluated before purchase, helping customers assess the offering and reduce risk.

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:

Accepted Answer

SERVQUAL is a model that measures service quality by comparing the expected service with the perceived service, focusing on the gap between the two.

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:

Accepted Answer

This scenario illustrates GAP 1, where there is a discrepancy between what customers expect (a comfortable, safe environment) and what management perceives they want (places to store bags).

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.

Accepted Answer

Relationships, including customer relationships, can become destabilized due to various factors such as unattractive loyalty programs or external changes like legislation or economic shifts. Recognizing and addressing these signs early through customer recovery strategies is essential to maintain the relationship.

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.

Accepted Answer

Monopoly loyalty occurs because consumers lack alternatives, not because of genuine preference or satisfaction, making it not a true form of loyalty based on positive consumer experiences or brand affinity.

Question 13

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

Accepted Answer

Price loyalty occurs when consumers repeatedly purchase a product or service because they perceive it offers the best value or price relative to alternatives. This behavior is rooted in rational economic behavior, where the main motivations include cautious management of money or financial necessity, especially in contexts where consumers aim to maximize utility or satisfaction within their budget constraints.

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.

Accepted Answer

This is referred to as transactional loyalty, where the focus is on the functional aspect of collecting points or rewards rather than an emotional or imaginative connection with the brand.

Question 15

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

Accepted Answer

The answer of The three major outcomes from the development...

Question 16

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

Accepted Answer

The answer of Pansari and Kumar (2017) define 'loyalty' as...

Question 17

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

Accepted Answer

Service expectations refer to what customers anticipate or believe they will receive from a service, not the measure of how much the service experience exceeds those expectations.

Question 18

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

Accepted Answer

SERVQUAL is designed to measure service quality based on expectations and perceptions, not the actual 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.

Accepted Answer

The aesthetic realm is characterized by passive appreciation of beauty or experiences without the intention to change or impact the environment or event being appreciated.

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.

Accepted Answer

Planning helps service managers anticipate and address potential issues, reducing the impact of service variability.

Quiz 5: Services and Relationship Marketing