Relational And Sustainability Strategies Test Bank Chapter 6

Chapter 6: Relational and sustainability strategies

Test Bank

Type: multiple choice question

Title: Chapter 06 Question 01

1) According to Umayr Ismail there are five key pillars to bear in mind when building long-term, sustainable customer relationships. Which of the following is not one of them?

a. People-centred

b. Trust

c. Respect

d. Coopetition

Type: multiple choice question

Title: Chapter 06 Question 02

2) ________is the present value of future profits that will accrue from customers’ lifetime purchase.

a. ABCD

b. CLV

c. CTLV

d. CVLT

Type: multiple choice question

Title: Chapter 06 Question 03

3) Which of the following is not one of Schoder’s (2007) steps in the process for making CLV calculations?

a. Calculate costs per customer per period.

b. Estimate the probability of purchase and dollar amounts expected to be spent using RFM (reach, frequency, and monetary value).

c. Estimate the probability of purchase and dollar amounts expected to be spent using RFM (recency, frequency, and monetary value).

d. Estimate the profit contribution for each customer.

Type: multiple choice question

Title: Chapter 06 Question 04

4) The development of long-term and intimate relationships between buyers and sellers is called ________

a. relationship marketing.

b. long-term marketing.

c. strategic marketing.

d. continuous marketing.

Type: multiple choice question

Title: Chapter 06 Question 05

5) In the loyalty ladder, what are Suspects?

a. This is warm lead.

b. He is one who has actually bought your product/service.

c. Are not yet interested in your products or services

d. They are regular customers.

Type: multiple choice question

Title: Chapter 06 Question 06

6) What all needs to be considered while determining customer equity test?

a. Each customer’s expected contribution to offset the company’s fixed costs over their expected lifetime

b. Expected contributions to net present value are discounted.

c. Add together all of the discounted expected contributions across all of the company’s current customers.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 06 Question 07

7) In the loyalty ladder, what are prospects?

a. This is warm lead.

b. He is one who has actually bought your product/service.

c. Are not yet interested in your products or services

d. They are regular customers.

Type: multiple choice question

Title: Chapter 06 Question 08

8) What is not necessarily a defining characteristic of a customer, from the perspective of the company?

a. That the customer is one who has actually bought the product/service.

b. That the company must aim to enhance that individual’s (or company’s) purchase frequency and volume over time.

c. That the customer is always good and beneficial for the company.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 06 Question 09

9) Some companies adjust for different customers by using different pricing and venues; this is called _________

a. compatibility management.

b. consumer management.

c. franchise management.

d. marketing management.

Type: multiple choice question

Title: Chapter 06 Question 10

10) Zeithaml et al (2001) proposed __________ based upon profitability for firms trying to improve long-term firm performance.

a. customer profitability pyramid

b. customer pyramid of needs

c. customer predictability pyramid

d. customer pyramid of influence

Type: multiple choice question

Title: Chapter 06 Question 11

11) What are the four levels of the Customer Profitability Pyramid?

a. Lead, Iron, Silver, Gold

Lead, Iron, Gold, Platinum

b. Lead, Steel, Silver, Gold

Lead, Iron, Gold, Platinum

c. Lead, Iron, Gold, Platinum

Lead, Iron, Gold, Platinum

d. Lead, Iron, Silver, Platinum

Lead, Iron, Gold, Platinum

Type: multiple choice question

Title: Chapter 06 Question 12

12) ________ tier in the customer profitability pyramid may have high volume but profits may be limited due to desire for price discounts.

a. Silver

b. Iron

c. Gold

d. Platinum

Type: multiple choice question

Title: Chapter 06 Question 13

13) What is not a characteristic of a client?

a. They are regular customers.

b. They have some level of trust in the seller.

c. Some clients may be ‘mercenaries’.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 06 Question 14

14) The type of client which only appears to have loyalty to the relationship but may hold the tenuousness of that relationship over the seller’s head to maintain some kind of leverage over the seller is known as a ___________

a. hostage.

b. mercenary.

c. terrorist.

d. guerilla.

Type: multiple choice question

Title: Chapter 06 Question 15

15) A strategy aimed at identifying the best customers, keeping them, and increasing their expenditures through the development of intimate long-term relationships is called _______ marketing.

a. frequency

b. pull

c. intimate

d. guerilla

Type: multiple choice question

Title: Chapter 06 Question 16

16) ______ are the most valuable of all customers.

a. Supporters

b. Clients

c. Advocates

d. Bohemians

Type: multiple choice question

Title: Chapter 06 Question 17

17) Which of the following is NOT true?

a. You can convert a client into a supporter through great service.

b. Advocates buy the products and services and actively recruit others to do the same.

c. Some clients may feel that they are hostages to the seller.

d. Supporters are the most valuable to a firm.

Type: multiple choice question

Title: Chapter 06 Question 18

18) _______is when the buyer and seller enter into a joint position of commitment and the buyer often has to modify the ways in which he/she works to accommodate the seller.

a. Advocacy

b. Partnership

c. Co-marketing

d. Support

Type: multiple choice question

Title: Chapter 06 Question 19

19) Programmes that are established by companies to provide added value to the regular purchaser as opposed to the irregular customer are known as _____________

a. loyalty schemes.

b. customer love.

c. friendship packages.

d. partnership clubs.

Type: multiple choice question

Title: Chapter 06 Question 20

20) According to Narayandas (2005), those B2B customers which tend to be prestigious accounts that were acquired to build credibility by luring them with very low cost or even free services are known as______________

a. partners.

b. commodity buyers.

c. underperformers.

d. most valuable customers.

Type: multiple choice question

Title: Chapter 06 Question 21

21) What are the four dimensions of customer relationship quality in B2B relationships according to Zhang, Watson, and Palmatier (2018)?

a. Confidence, commitment, interdependence, and normality

b. Trust, commercialization, interdependence, and norms

c. Tradability, commitment, dependence, and normality

d. Trust, commitment, dependence, and norms

Type: multiple choice question

Title: Chapter 06 Question 22

22) To move gold customers to platinum customers (as per the customer profitability pyramid) which of the following are not the suggested strategies?

a. Become a full service provider

b. Provide outsourcing

c. Decrease brand impact

d. Create structural bonds

Type: multiple choice question

Title: Chapter 6 Question 23

23) A process by which a firm gathers information about the wants and needs of its customers to enable it to adjust its offerings to better fit those wants and needs is called

a. customer database management.

b. customer management.

c. customer retention management.

d. customer relationship management.

Type: multiple choice question

Title: Chapter 06 Question 24

24) As per Kotler (2003) the two ways to strengthen customer retention are

a. switching barriers, increase satisfaction.

b. switching barriers, increase spends.

c. entry barriers, increase satisfaction.

d. exit barriers, increase satisfaction.

Type: multiple choice question

Title: Chapter 06 Question 25

25) The analysis of consumer databases to look for possible new relationships that can provide direction for innovative customer relationship strategies is called _______

a. data searching.

b. data analysis.

c. data surfing.

d. data mining.

Type: multiple choice question

Title: Chapter 06 Question 26

26) The key issue with CRM is that customers would feel______ rather than being _____

a. wooed, stalked.

b. booed, stalked.

c. stalked, wooed.

d. stalked, booed.

Type: multiple choice question

Title: Chapter 06 Question 27

27) Companies that are building databases to focus on customers’ transactions are missing what important information?

a. Consumer purchases

b. Interactions with the industry

c. Demographics

d. Historical information

Type: multiple choice question

Title: Chapter 06 Question 28

28) What is the best strategy in terms of data collection?

a. Relying on raw data rather than really observing and getting to know the customers

b. Asking customers for information

c. Combining both transaction data with human data

d. Data for the sake of data

Type: multiple choice question

Title: Chapter 06 Question 29

29) What does BDAI stand for?

a. Big data analysis interaction

b. Big database analytical inflation

c. Best data analytical intelligence

d. Big data analytical intelligence

Type: multiple choice question

Title: Chapter 06 Question 30

30) Bell (2002) argues that it is no longer sufficient to just have a relationship with you customer. You need to develop _____

a. affection.

b. passion.

c. direction.

d. love.

Type: multiple choice question

Title: Chapter 06 Question 31

31) Which is not an important step in building customer love?

a. Enlistment

b. Engagement

c. Enlightenment

d. Transcendence

Type: multiple choice question

Title: Chapter 06 Question 32

32) What is customer empowerment?

a. Affirming the covenant

b. Customer control through consistency

c. Making the process magical

d. Giving without a price

Type: multiple choice question

Title: Chapter 06 Question 33

33) Kotler (2003) explains that there are two ways to strengthen customer retention. Which of the following is one those ways?

a. Lowering switching barriers

b. Keeping the same customer satisfaction level

c. Customer reality management

d. Delivering ever-increasing levels of customer satisfaction

Type: multiple choice question

Title: Chapter 06 Question 34

34) Loyalty schemes can reasonably be expected to do several things for the companies that use them (Nunes and Dreze, 2006). Which of the following is not one of the benefits of loyalty schemes?

a. Keep customers from defecting.

b. Win a greater share of the wallet.

c. Create competition.

d. Prompt customers to make additional purchases.

Type: multiple choice question

Title: Chapter 06 Question 35

35) Which of following are NOT the benefits from achieving customer love?

a. Customers who love you take care of you.

b. Customers not only recommend you; they insist.

c. Customers forgive our mistakes.

d. They will pay less for what you offer.