Businesses that are committed to delivering customer

29 Jun Businesses that are committed to delivering customer

Question
Businesses that are committed to delivering customer value are focused on:

Select one:

a. Technology, product features, communication, immediate revenue

b. Processes, communication, technology, and the people they employ

c. Identifying the 20 per cent of customers who account for the majority of customer sales

d. Product features, customer retention, short time scales, and quality processes

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Question textLongevity of the customer relationship has been said to include the following EXCEPT:

Select one:

a. Referral income

b. Revenue growth over time

c. Cost savings over time

d. Expansion of the firm into new markets

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Question textCustomer inertia means they:

Select one:

a. Are likely to be dissatisfied

b. Can’t be bothered seeking alternative products or services

c. They feel physically sick when they realise they have made a bad buying decision

d. Are likely to change their purchasing habits

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Question textIn examining the link between customer satisfaction and loyalty, Gummesson discovered that the most loyal customers are not always the most satisfied or the most profitable. He described this phenomenon as the:

Select one:

a. Service paradox

b. Inertia paradox

c. Fractious paradox

d. Irrationality paradox

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Question textLifestyle analysis is useful in customer relationship marketing because it:

Select one:

a. Will identify the lifestyle aspirations of consumers

b. Focuses on transactions between buyer and seller

c. Can cultivate purchases from clients as their needs change over their lifespan

d. A seller will understand how to develop a hard-sell campaign

Probity, equity, reliability, and satisfaction are foundations for:

Select one:

a. building financial commitments with suppliers

b. establishing a profitable business

c. appraisal of products and services offered through mass marketing channels

d. establishing trust

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Question textAt the heart of a relationship-based company, relationship marketing relies on the following EXCEPT:

Select one:

a. Quality of the organisational culture

b. Empowering employees to take decisions without referring back to management

c. Financial capacity of the organisation

d. Policies and practices that characterise the organisation

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Question textLoyalty cards have been created to reward customers for their repeat purchases from organisations. Why is this form of customer commitment regarded by some commentators as unsustainable?

Select one:

a. The financial risk to the purchaser is high with Fast Moving Consumer Goods (FMCG)

b. Customers who buy household consumables are mainly focused on low price and convenience

c. This type of advertising program just gets more expensive over time

d. Customers get tired of buying the same store

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Question textCustomer service, in RM literature, is regarded as a separate though related concept to service marketing. This is because:

Select one:

a. Customer service is seen to be directly and indirectly connected to the customer satisfaction process

b. Both customers and the selling organisation benefit from the arrangement

c. Services marketing is an Australian technique for deterring competitor intrusion in the customer relationship

d. Customers will eventually come back even if customer service has been terrible

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Question textRelationship marketing can add value in many modes of buyer-seller exchanges. Situations where it is not relevant or valuable include:

Select one:

a. When the seller wants to reduce reliance on a buyer or group of buyers

b. When the product is a commodity

c. When the product is hard to obtain

d. When dealing with savvy consumers such as millennials

Not every customer wants to develop a relationship with an organisation selling a product or service. Some of the main reasons include the following EXCEPT:

Select one:

a. They purchase the products infrequently

b. They want to maintain a transactional arrangement

c. The Trade Practices Act prevents a situation where the seller can establish a monopoly in the market

d. Alternative supply arrangements are available that reduce the risk of contracting with one supplier only

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Question textWhat effect do switching costs have on a customer relationship:

Select one:

a. There is no reason to change

b. None of the above

c. Relationships where customers feel locked-in may justify the search and learning costs to break the relationship

d. They encourage people to consider leaving the supplier because the costs are too high

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Question textIn developing RM, the marketing mix has now evolved to include which of the following components:

Select one:

a. Cost to consumer, convenience, customer needs and wants, and communication

b. Politics, processes, and physical evidence

c. The importance of all relationships

d. Convenience, communication, processes, and people

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Question textA trusted relationship develops in the following circumstances EXCEPT where/when:

Select one:

a. there is a positive expectation based on recommendation by others whose opinions they trust

b. the service provider adopts an obsequious (flattering) approach to the relationship

c. it evolves through assessment over time

d. the client acknowledges that they are in a vulnerable situation

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Question textBusiness customer retention strategies emphasise:

Select one:

a. Building relationships with staff in customer organisations is a short-term strategy because the relationship is extinguished when staff leave

b. That higher profitability can be gained from existing customers

c. Making it difficult for business customers to break supply arrangements

d. Focusing on acquiring new customers as a first priority

Jan Carlsson, the legendary CEO of SAS (Scandinavian Airline Systems), spoke of ‘moments of truth’ when clients assessed the quality of service they received. Researchers in the field of Relationship Marketing have extended this by arguing that customer dissatisfaction is influenced by:

Select one:

a. The trust relationship will be affected by cultural expectations in each country

b. The behavioural traits of customers

c. The increasing incidence of narcissistic behaviour in society

d. Changes in customer perception of the level of service from being a ‘routine episode’ to being perceived as a ‘critical episode’

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Question textHow might customer loyalty develop between organisations and their customers?

Select one:

a. Value for money, convenience, reliability, safety

b. It relies on the personal relationships developed between the CEO of the supplier and the CEO of the organisation it is supplying

c. In fast-moving consumer goods, developing customer loyalty doesn’t matter

d. Customer satisfaction, low switching costs, product functionality, people

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Question textEstablishing a customer relationship generally evolves over time, commencing with:

Select one:

a. Awareness, interest, desire, action, and satisfaction

b. Prospects, awareness, exploration, engagement, then partnering

c. Awareness, exploration, engagement, partnering, then dissolution

d. Awareness, exploration, expansion, commitment, dissolution

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Question textWhat does customer-centric mean?

Select one:

a. Ensuring that service contracts bind customers to their current provider, such as mobile phone companies

b. Focusing on making sure customers have a good experience when they shop in a store

c. Customer inertia

d. Understanding that loyal customers will spin-off over time

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Question textProfessional service firms in sectors such as accounting and business services have relied on cultivating long-term customer relationships to build long-term fee income. The exceptions to this ‘rule’ include:

Select one:

a. Preparing company tax returns

b. Responding to Federal Government tenders for business services

c. Personal tax returns prepared by mass-market franchisees

d. Providing audit services

The financial return on investing in customer relationships:

Select one:

a. Is high in industries such as insurance because the selling organisation has to pay high commissions to the selling agent

b. Is high in fast moving consumer goods markets

c. Is high when the costs of establishing the relationship can be recovered over a long period of time

d. Is low in long-tail markets

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Question textThe marketing discipline emerged from the traditions of economics and mathematics. Researchers in psychology, sociology and anthropology have also added their insights such that the tool-kit approach to marketing is being challenged to now incorporate the importance of complex human relationships. Which of the following statements about Relationship Marketing (RM) is CORRECT:

Select one:

a. RM applies equally to all markets

b. RM adds questionable value beyond the core product or service that is purchased

c. RM represents a conscious strategy to manipulate a purchase decision

d. RM can be vital in reducing buyer risk with technically complex products

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Question textCustomer dissatisfaction has often been regarded as the catalyst for dissolution of customer relationships. What situation does this assumption NOT hold true:

Select one:

a. When this is the first time there has been a service failure and the consequence, while irritating, has had minimal impact on the customer

b. When the service provider does not take sufficient action to help customers when one of their products fails

c. When there has not been a meaningful apology by the service provider

d. When the personal relationship between the buyer and seller is weak

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Question textTransactional marketing is still a viable strategy if:

Select one:

a. Clients are keen to establish a relationship with the selling organisation

b. It is a niche market, selling a unique product or service, so they don’t have to try to hard to succeed

c. a) The selling firm finds that it is not profitable to cultivate a relationship with their customers

d. There is a sufficiently large market

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Question textWhat would induce a customer to willingly seek to establish a long-term relationship with a supplier or service provider?

Select one:

a. When commissions are paid to the manager for contracting the services of the provider

b. The price is very competitive

c. Where the customer perceives there is high risk that can be reduced by engaging the same service provider

d. Where the quality of the service is similar to other providers

Towards the end of last century, the traditional approach to marketing was perceived to have a number of limitations. One of these included:

Select one:

a. Marketing was considered to be antiquated in a digital economy

b. Market segmentation was difficult to implement

c. The ‘marketing mix’ was proving restrictive for consumer, business, and services marketing

d. Marketing and selling were seen to be one and the same concept

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Question textThe lifetime value of a client is calculated by:

Select one:

a. (Adding the value of their annual purchases) X Consumer Price Index (CPI)

b. (Analysing the average length of time a client stays with the firm) X (annualising the value of their last purchase)

c. (Average Value of a Sale) X (Number of Repeat Transactions) X (Average Retention Time in Months or Years for a Typical Customer)

d. (Adding the annual purchases a customer makes) X (the actuarial estimate of lifespan for a woman or a man)

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Question textThe description ‘process services’ has been used to explain the nature of which type of buyer-seller exchange:

Select one:

a. Business-to-business marketing

b. Delivering legal subpoenas to appear in Court

c. Standardised, repetitive services

d. Professional services marketing

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Question textGrönroos has suggested that certain industry types or sectors may find relationship marketing more beneficial. These might include all of the following EXCEPT:

Select one:

a. Highly technical products such as aircraft manufacturing

b. Professional service firms

c. Luxury brands

d. Fast-food franchises

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Question textSuccess of industrial marketers relies on the following EXCEPT:

Select one:

a. Consumer marketing practices

b. Products have to be price competitive

c. Value added services and support are important

d. Cultivating customer relations