Managing Relationships And Building Loyalty

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Question 1
Free
Multiple Choice

Factors that work to increase the profit growth from loyal customers include _____________ .

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A

Profit from increased purchases

B

Profit from reduced customer service costs

C

Profit from referrals to others

D

Acquisition costs can be amortized over a longer period

E

All of the above

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Question 2
Free
Multiple Choice

Analysis to assess the gap between the actual and potential value of the customers involves _____________ .

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A

Analysis of current purchase behaviour

B

Analysis of how long do customers remain with the firm

C

Analysis of management's loyalty programs

D

All of the above

E

Only a, b & c

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Question 3
Free
Multiple Choice

The wheel of loyalty is composed of which of the following three main components?

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A

Create loyalty bonds; deliver quality service; segment the market

B

Create loyalty bonds; build higher level bonds; deliver quality service

C

Build a foundation for loyalty; create bundling; build higher level bonds

D

Build a foundation for loyalty; create loyalty bonds; reduce churn drivers

E

Create loyalty bonds; understand customer value; understand service value

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Question 4
Free
Multiple Choice

Picking the "right" customers can enhance _____________ .

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A

Long-term revenues

B

Growth from referrals,

C

Employee satisfaction

D

All of the above.

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Question 5
Free
Multiple Choice

The segment that sees high value in firm's offer, spends more over time while costing less to maintain, and spreads positive WOM is called ___________ .

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A

Gold

B

Platinum

C

Iron

D

Lead

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Question 6
Multiple Choice

Which of the following is an example of a financial reward for loyal customers?

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A
Priority program
B
Frequent-flyer miles
C
Special recognition and appreciation
D
Free gifts
E
Structural bonds
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Question 7
Multiple Choice

Which of the following is NOT one of the strategies for developing loyalty bonds with customers?

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A
Deepening the relationship
B
Lag-based bonds
C
Social bonds
D
Customization bonds
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Question 8
Multiple Choice

Which of the following is NOT one of the key strategies used to reduce customer defections?

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A
Eliminate nuisance customers.
B
Address key churn drivers.
C
Implement effective complaint handling and service recovery procedures.
D
Increase switching costs.
E
Analyze customer defections and monitor declining accounts.
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Question 9
Multiple Choice

The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT _____________ .

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A
What is the increase in profit from increase the share-of-wallet with our current customers?
B
How much customization or one-to-one marketing and service delivery is suitable and profitable?
C
How will top management feel about our strategy?
D
How should our value proposition change to increase customer loyalty?
E
How much time and resources can we provide to CRM right now?
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Question 10
Multiple Choice

Marketing activity designed to create extended relationships with customers is called _____________ .

Choose correct answer/s
A
relationship marketing
B
loyalty programs
C
transactional marketing
D
customer service marketing
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Question 11
True/False

The longer customers stay with a firm, the more profitable they become.

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True
False
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Question 12
True/False

Zero defection refers to when a company can retain all customers it can serve, profitably or not profitably.

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True
False
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Question 13
True/False

Customers derive benefits of greater confidence, social benefits and special treatment from loyal relationships with firms.

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True
False
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Question 14
True/False

Loyalty management begins with segmenting the market to match customer needs and firm profitability.

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True
False
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Question 15
True/False

"Right" customers are always big spenders.

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True
False
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Question 16
True/False

It is critical for service firms to understand the needs of customers within different profitability tiers and adjust their service levels accordingly.

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True
False
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Question 17
True/False

True loyalty refers to a high "share of heart" where customers have a true liking of the brand/service.

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True
False
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Question 18
True/False

The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle.

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True
False
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Question 19
True/False

The common objective of a CRM system is to offer a unified customer interface that delivers customization and personalization.

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True
False
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Question 20
True/False

Rather than transforming the entire business, service firms should focus on clearly defined problems within their customer relationship cycle.

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True
False
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