Exam 1 Raving Fans & Articles

According to the article "Lead for Loyalty", organizations that are flexible and speedy have ( ).

"To make their organizations as flexible and speedy as they need to be in an increasingly complex world, great leaders understand they must simplify the rules for decision making."

Dennis, the taxi driver, likes to discuss politics and religion with customers.

(False)

According to the article "Lead for Loyalty", the goal strategy of high-road companies is to create market power.

(False) "The goal of strategy at low road companies is to create market power; the job of leaders is to use that power to strangle competitors, bully vendors, intimidate employees, and extract maximum value from customers - all to please the shareholders, whoever they happen to be this month."

According to the article "Lead for Loyalty," careful selection of employees is just as important as selection of customers.

(False) According to the article "Lead for Loyalty," careful selection of employees is just as important as selection of customers.

Customer loyalty drives customer satisfaction, while customer satisfaction drives profitability and growth.

(False) Customer satisfaction drives customer loyalty, customer loyalty drives profitability and growth.

According to the article "Lead for Loyalty", Enterprise Rent-A-Car has risen to the top of the car-rental industry by chasing after frequent travelers in every airport terminal.

(False) Enterprise Rent-A-Car has risen to the top of the car-rental industry by generating business from its existing customer base, not by chasing after frequent travelers in every airport terminal."

Front line workers and customers need to be the center of management's concern because employee-customer interaction affects Internal Marketing.

(False) Front line workers and customers need to be the center of management's concern because employee-customer interaction affects Interactive Marketing.

According to the article "A Stake in the Business", the JVPs (joint venture partners) focus on monitoring performance, finding and developing new locations, operations and community relations.

(False) Managing partners focus on operations and community relations whereas the JVPs focus on monitoring performance, finding and developing new locations.

According to the article "A Stake in the Business", most Outback restaurants are located in downtown areas of big cities like New York and Los Angeles.

(False) Most Outback restaurants are located in suburbia, next to essentially residential neighborhoods. There are relatively few Outbacks in places like New York and Los Angeles where most of the population is concentrated in the big cities.

According to the article "A Stake in the Business", revenues were lower at Outback Steakhouse restaurants where the employees strongly agreed with the company's Principles and Beliefs (P&Bs).

(False) Revenues were higher at Outback Steakhouse restaurants where the employees strongly agreed with the company's Principles and Beliefs (P&Bs).

According to the article "A Stake in the Business", OSI believes employee turnover is the most important form of turnover for a company to manage.

(True)

According to the article "A Stake in the Business", managing partners of OSI invest $25,000 of their own money because their financial contributions make them committed investors in the business they'll be running.

(True)

According to the article "Putting the Service-Profit Chain to Work", several companies have found that their most loyal customers not only provide most of the profit but also cover losses incurred in dealing with less loyal customers.

(True)

According to the book, Raving Fan systems and training programs guarantee the consistency of service organizations.

(True)

According to the video "Service- Profit Chain: Managers Matter", manager performance and satisfaction could have an effect on customer satisfaction and revenue growth.

(True)

Bill explains to the Area Manager that the two traps of customer listening are (1) Customers saying one thing while meaning another and (2) 'Fine' and silence.

(True)

Employee satisfaction is linked and can be measured through the same means as customer satisfaction.

(True)

The second secret to creating Raving Fans is Discover What the Customer Wants.

(True)

When speaking with Sally she tells the Area Manager, "When you decide what you want, you must create a vision of perfection centered on the business."

(True)

3 Steps to get raving fans

- Decide what you want - Discover what the custom wants - Deliver on that vision plus 1%/ Deliver Plus One

According to the article "Lead for Loyalty," which of the following is NOT one of the loyalty leader companies mentioned in the article?

According to the article "Lead for Loyalty," the loyalty leader companies are a diverse bunch, ranging from Northwestern Mutual and Vanguard, to Chick-fil-A, Enterprise Rent-A-Car, Harley Davidson, and Intuit.