Which of the following is NOT one of the advantages to incremental profits of a loyal customer?
Profit from decreased advertising.
In the worksheet for calculating customer lifetime value, sources of annual revenues include all EXCEPT _____________.
Account management
Steps to building a foundation of loyalty include all EXCEPT _____________.
delivering customer satisfaction
The wheel of loyalty is composed of which of the following three main components?
Build a foundation for loyalty; create loyalty bonds; reduce churn drivers
Firms should not assume that the "right customers" are always the ___________.
high spenders
Which of the following is NOT one of the four customer tiers discussed by Zeithaml, Rust, and Lemon?
Bronze
Which of the following are the three main zones of the satisfaction-loyalty relationship?
Defection; indifference; affection
Which of the following is NOT one of the strategies for developing loyalty bonds with customers?
Lag-based bonds
Which of the following is NOT one of the key strategies used to reduce customer defections?
Eliminate nuisance customers.
The key questions to ask when defining a firm's customer relationship strategy include all EXCEPT _____________.
How will top management feel about our strategy?
Defection describes customers who stop buying from a company and transfer their brand affinity to another supplier.
False
In the B2B context, the smaller firms as a group have a lot of bargaining power.
False
Customers remain loyal to a firm because they experience relational benefits.
True
Most people can think of dozens of service firms they truly like and where they are committed to going back to.
False
Special treatment benefits include being known by name by the service provider.
False
Good relationships start with a good fit between customer needs and company capabilities.
True
Successful customer relationships cannot be built if a firm is selective about the segments they target.
False
Many service firms put too much emphasis on value without enough consideration of the number of customers they will serve.
False
The lead customer tier tends to generate moderate revenue, but only a small amount o business.
False
The two ends of the customer satisfaction/loyalty relationship are terrorist and apostle.
True
Vanguard's success is measured by which of the following?
Low redemption rates
Which of the following is NOT an aspect of ING Direct's no-frills strategy?
Increased contact with the bank
Common CRM applications include all of the following EXCEPT _____________.
Finance automation
Which of the following is NOT an example of common CRM applications?
Market reinvestment
Common failures in CRM implementation include all of the following EXCEPT _____________.
employee enthusiasm about CRM
DHL's less powerful accounts generate significantly lower profitability than their major accounts.
False
Vanguard Group is very careful about acquiring the right type of customers.
True
ING Direct could be called the fast-food model of consumer banking because it is about as no-frills as it gets.
True
Customer satisfaction (based on the ACSI) is highly related to the stock price of individual firms.
True
Part of British Airways' strategy is that customers can earn BA points and air miles on other airlines.
True