Question 1

The key drivers of service quality, customer retention and profits are service encounters.

Accepted Answer

A) True 
 B)False

Question 2

Traditionally, organizations have measured their performances almost completely on the basis of financial indicators.

Accepted Answer

A) True 
 B)False

Question 3

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Accepted Answer

A)   Process quality
B)   Throughput time
C)   Number of cross sales
D)   Reduction in waste
E)   Transaction timeF) A) and C)
G) B) and C)

Question 4

A Marriott hotel is able to charge four times as much as an Econo-Lodge for a room because of the amenities the Marriott offers. These amenities include a swimming pool, room service, exercise equipment, in-room iron, hair dryer and coffee maker and more. The Econo-Lodge provides guests with a clean room to sleep in and little else. Marriott's ability to charge a premium price is the result of its _____ strategy.

Accepted Answer

A)   Defensive
B)   Price skimming
C)   Neutral
D)   Guerrilla
E)   FlankingF) B) and D)
G) A) and E)

Question 5

The customer equity model illustrates how:

Accepted Answer

A)   Customer equity is influenced by value equity, brand equity and relationship equity
B)   Interactive marketing, external marketing and internal marketing are interrelated
C)   To identify unexpected service encounters
D)   Customer equity leads to more efficient defensive marketing
E)   Organizations can more effectively monitor customer churnF) A) and B)
G) A) and C)

Question 6

PIMS (profit impact of marketing strategy)  research:

Accepted Answer

A)   Is used for determining the short-term effect of service quality on company profits
B)   Shows that companies offering superior service achieve the same market share growth as those who offer average service
C)   Demonstrates the advantages of offensive marketing
D)   Relies on executives' opinions to predict how services will affect profit
E)   Is accurately described by all of the aboveF) None of the above
G) C) and E)

Question 7

Return on service quality (ROSQ) :

Accepted Answer

A)   Is based on the assumption that it is impossible to spend too much money on quality
B)   Replaces intuition as a guide for service quality investments
C)   Is an intuitive approach to determining whether a company should implement specific service quality strategies
D)   Is based on the assumption that all quality expenditures are valid
E)   Is accurately described by all of the aboveF) A) and E)
G) B) and E)

Question 8

_____ marketing is used by companies to prevent customer defection.

Accepted Answer

A)   Vertical integration
B)   Guerilla
C)   Defensive
D)   Flank-movement
E)   OffensiveF) A) and B)
G) C) and D)

Question 9

Customer perceptual measures are leading indicators of financial performance.

Accepted Answer

A) True 
 B)False

Question 10

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community.

Accepted Answer

A)   Customer churn
B)   Customer empowerment
C)   An ethical dilemma
D)   Customer autonomizing
E)   CustomerizationF) A) and B)
G) A) and E)

Question 11

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

Accepted Answer

A)   Leading and lagging variables do not influence time utility
B)   Qualitative metrics are more telling than quantitative metrics
C)   100 percent customer satisfaction is the only important goal
D)   Statistical reliability and statistical validity are always important
E)   The improvement of non-financial measures leads to offensive marketingF) C) and D)
G) A) and B)

Question 12

Service quality can help companies attract more and better customers to the business through offensive marketing.

Accepted Answer

A) True 
 B)False

Question 13

Attracting a new customer is five times as costly as retaining an existing one.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Accepted Answer

A)   Higher market share
B)   Increased price premium
C)   Customer churn
D)   Customer acquisition
E)   Improved word-of-mouth communicationF) A) and E)
G) B) and E)

Question 15

What research methodology has been used to determine the benefits of offensive marketing on a company's market share and profits?

Accepted Answer

PIMS (prof...

Question 16

Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect?

Accepted Answer

A)   Increased market share
B)   Customer retention
C)   Lower costs
D)   Increased word-of-mouth communication
E)   Increased price premiumF) B) and D)
G) A) and B)

Question 17

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Accepted Answer

A)   Number of defections
B)   Number of cross sales
C)   Service perceptions
D)   Long-term value of customer
E)   Service expectationsF) B) and C)
G) A) and C)

Question 18

What are the positive effects of implementing defensive marketing to reduce or eliminate customer churn?

Accepted Answer

In general, the longer a customer remain...

Question 19

How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?

Accepted Answer

The balanced scorecard require...

Question 20

Offensive marketing effects involve market, reputation and:

Accepted Answer

A)   Word-of-mouth communication
B)   Vertical integration
C)   Price premiums
D)   High purchase volumes
E)   Geodemographic segmentationF) C) and D)
G) None of the above

Exam 18: The Financial and Economic Impact of Service

Offensive marketing effects involve market, reputation and:

Correct Answer
verified

Customer perceptual measures are leading indicators of financial performance.

Correct Answer
verified

The key drivers of service quality, customer retention and profits are service encounters.

Correct Answer
verified

What research methodology has been used to determine the benefits of offensive marketing on a company's market share and profits?

Correct Answer
verified
PIMS (prof...
View Answer

What are the positive effects of implementing defensive marketing to reduce or eliminate customer churn?

Correct Answer
verified
In general, the longer a customer remain...
View Answer

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community.

Correct Answer
verified

PIMS (profit impact of marketing strategy) research:

Correct Answer
verified

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Correct Answer
verified

Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect?

Correct Answer
verified

_____ marketing is used by companies to prevent customer defection.

Correct Answer
verified

Traditionally, organizations have measured their performances almost completely on the basis of financial indicators.

Correct Answer
verified

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

Correct Answer
verified

Attracting a new customer is five times as costly as retaining an existing one.

Correct Answer
verified

Correct Answer
verified

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Correct Answer
verified

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Correct Answer
verified

How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?

Correct Answer
verified
The balanced scorecard require...
View Answer

Service quality can help companies attract more and better customers to the business through offensive marketing.

Correct Answer
verified

The customer equity model illustrates how:

Correct Answer
verified

Return on service quality (ROSQ) :

Correct Answer
verified

Exam 18: The Financial and Economic Impact of Service

Offensive marketing effects involve market, reputation and:

Correct AnswerverifiedShow Answer

Customer perceptual measures are leading indicators of financial performance.

Correct AnswerverifiedShow Answer

The key drivers of service quality, customer retention and profits are service encounters.

Correct AnswerverifiedShow Answer

What research methodology has been used to determine the benefits of offensive marketing on a company's market share and profits?

Correct AnswerverifiedPIMS (prof...View AnswerShow Answer

What are the positive effects of implementing defensive marketing to reduce or eliminate customer churn?

Correct AnswerverifiedIn general, the longer a customer remain...View AnswerShow Answer

The owner of Fiori Flower and Gift Shop has noticed a gradual decline in its number of customers over the last three years. The owner suspects that it is experiencing _____ due to the recent opening of a Kroger supermarket in the community.

Correct AnswerverifiedShow Answer

PIMS (profit impact of marketing strategy) research:

Correct AnswerverifiedShow Answer

Which of the following is NOT likely to occur when a company uses an offensive marketing effect?

Correct AnswerverifiedShow Answer

Which of the following is NOT likely to be a source of money when a company uses a defensive marketing effect?

Correct AnswerverifiedShow Answer

_____ marketing is used by companies to prevent customer defection.

Correct AnswerverifiedShow Answer

Traditionally, organizations have measured their performances almost completely on the basis of financial indicators.

Correct AnswerverifiedShow Answer

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

Correct AnswerverifiedShow Answer

Attracting a new customer is five times as costly as retaining an existing one.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are customer perceptual measures within the balanced performance scorecard EXCEPT:

Correct AnswerverifiedShow Answer

All of the following are examples of operational measures within the balanced performance scorecard EXCEPT:

Correct AnswerverifiedShow Answer

How does the way the balanced performance scorecard examines operational measures differ from the traditional uses of such measurements?

Correct AnswerverifiedThe balanced scorecard require...View AnswerShow Answer

Service quality can help companies attract more and better customers to the business through offensive marketing.

Correct AnswerverifiedShow Answer

The customer equity model illustrates how:

Correct AnswerverifiedShow Answer

Return on service quality (ROSQ) :

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
PIMS (prof...
View Answer

Correct Answer
verified
In general, the longer a customer remain...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The balanced scorecard require...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified