FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Building Customer Relationships

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

_____ arise(s) when the customer is required to pay a penalty to switch providers.

A) Fixed costs
B) Legal inertia
C) Financial inertia
D) Contractual costs
E) Opportunity costs

F) B) and D)
G) All of the above

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

When customers and firms reach the friend level of their customer relationship,firms generally focus on providing value comparable to the competition.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Every Thursday afternoon for almost twenty years,Jasmine and Tanya have gotten a manicure at the same location.The manicure salon has changed ownership three times and has had two different names during that same period,but Jasmine and Tanya still find it a convenient place to meet and share news about friends and relatives.Jasmine and Tanya's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy.

In many instances,customers develop loyalty to an organization in part because of costs involved in changing to and purchasing from a different firm.These costs are called:

_________ are created by providing services to the client that are designed right into the service delivery system.

Level 1 retention strategies are very useful in creating a long-term competitive advantage.

The term customer intimacy is most closely related to the establishment of _____ bonds.

Jade Taylor has run an advertising agency long enough to understand that the customer is not always right.He is interested in identifying his profitable customers.Define the four customer profitability tiers that might help Jade to analyze his customer base?

Well-implemented retention strategies will have long-term success even if there is no solid base of service quality and customer satisfaction to build on.

Which retention strategy relies primarily on financial incentives?

Every time Tom and Betty stay at a Marriott Hotel,they earn points that can be used at a later date for free rooms,meals,and other hotel amenities.Marriott is using _____ to implement its retention strategy.

There is no way to calculate the relationship value of a customer.

Moonlight Catering has increased the deposit it requires before agreeing to cater an event to $300.This amount is nonrefundable and must be paid when Moonlight Catering is hired for the job.This increase in deposit will help Moonlight Catering achieve its goal of:

The key to success in the _____ stage of the customer relationship is the firm's ability to use customer knowledge and information systems to deliver highly personalized and customized offerings.

The ability to segment customers narrowly based on profitability implications may raise questions of privacy for customers.

Regency Dry Cleaners operates in a medium-sized community.Its customers all live within a 20-mile radius of the cleaners.Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery.Regency's driver will pickup clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs.Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses.Regency has built its customer retention strategy around:

How would you describe the sustainability of competitive advantage in the acquaintance stage of the customer relationship evolution?

Since service companies have found that customers differ in their relationship value and that it may be neither practical nor profitable to meet or exceed all customers' expectations,they have divided their target markets according to:

The four-tiered system for measuring customer profitability uses usage segmentation.

Molly and Tom are getting married.Last month they hired a caterer for the wedding reception.This month they attended a wedding for which their chosen caterer had provided food,dishes,and flowers.Neither thought the food was good and Molly worried that the dishes looked cheap.However,they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job.Molly and Tom do not want to pay: