Services Marketing Exam 1
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The total retention costs AFTER the customer relationship program are: $4,500 Zero $6,000 $1,050
$1,050
Service failure and recovery is considered part of: Provider gap1 Provider gap2 Provider gap3 Provider gap4
Provider gap1
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The total acquisition costs AFTER the customer relationship program are: $4,500 Zero $6,000 $1,050
$4,500
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. What are the total marketing costs for the swim team AFTER the customer relationship marketing program? (Hint: total marketing costs = cost to acquire + cost to retain) $6,000 $5,550 $4,500 $8,250
$5,550
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The total acquisition costs BEFORE the customer relationship program are: $4,500 Zero $6,000 $1,050
$6,000
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. What are the total marketing costs for the swim team BEFORE the customer relationship marketing program? (Hint: total marketing costs = cost to acquire + cost to retain) $6,000 $5,500 $4,500 $8,250
$6,000
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The percent of customers acquired AFTER the customer relationship marketing program (i.e., a banquet is held) is: 40% 60% 30% 70%
30%
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The percent of customers acquired BEFORE the customer relationship marketing program (i.e., no banquet is held) is: 40% 60% 30% 70%
40%
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The retention rate BEFORE the customer relationship marketing program (i.e., no banquet is held) is: 40% 60% 30% 70%
60%
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The retention rate AFTER the customer relationship marketing program (i.e., a banquet is held) is: 40% 60% 30% 70%
70%
Miriam does not want to switch from Netflix to Hulu, because she has been told that it takes time to get used to the user interface on Hulu. Hulu's website would not be as easy to navigate as Netflix's. The reason for Miriam's lack of motivation to switch is an example of: A setup cost. A Learning cost. A search cost. A contractual cost.
A Learning cost.
The car breaking down despite being fixed is an example of: A Service failure A Service recovery Interactional unfairness Provider gap 4
A Service failure
FGCU currently has a 2-year agreement with Star Computer Inc. to repair the computers on campus. FGCU is dissatisfied with this agreement but will not cancel it because there is a dissolution penalty. The following cost is behind FGCU's decision: A contractual cost. A setup cost. Learning cost. A search cost.
A contractual cost.
Rob is looking for another dry cleaner. All it took him was 5 minutes to search for an alternative one on Google. The limited time it to him to look for alternative is an example of the following type of switching cots: A search cost. A Learning cost. A setup cost. A contractual cost.
A search cost.
Buying a new phone from Sprint after switching from Verizon is an example of the following type of switching cots: A search cost. A Learning cost. A contractual cost. A setup cost.
A setup cost.
Yvette found that other coffee shops have specific targets for their operations, like 80% customer satisfaction. This is an example of the following reason for gap2: Poor service design Absence of customer driven standards Inappropriate physical evidence and servicescape
Absence of customer driven standards
A Netflix subscription is an example of the following broad category of non-ownership: Access to and usage of systems and networks Access to shared physical environments Labor and expertise rentals Defined space and place rentals Rented goods services
Access to and usage of systems and networks
Membership at a Gym or recreation center is an example of the following broad category of non-ownership: Rented goods services Access to shared physical environments Defined space and place rentals Labor and expertise rentals Access to and usage of systems and networks
Access to shared physical environments
Brie went to visit a doctor because she had a sore throat. The doctor informed her that she has a viral infection and that her throat will no longer hurt her once the virus subsides. Brie is thinking to herself that this doctor does not know anything and lacks confidence in his diagnosis. Reliability Assurance Empathy Responsiveness Tangibles
Assurance
Mahesh reports a leak in his roof to his insurance company. They promise to send an appraiser to appraise the damage. The appraiser goes to check the roof and comes after 5 minutes. Mahesh does not feel confident that the appraiser did his job. Tangibles Reliability Empathy Responsiveness Assurance
Assurance
Marco going back to the dealership to voice his concerns is an example of the following type of complaint action: Complaining to the service provider Negative word of mouth Third-party action Switching
Complaining to the service provider
There are several benefits from relationship marketing for consumers. Match each of the following examples with the type of consumer benefit that is belongs to:Jarrod: I go to the same Barber because he knows the hair cut I like. I don't have to explain what I want every time, and have to worry about what it would look like after he's done" Confidence benefits Social benefits Special treatment benefits Customer behavior benefits
Confidence benefits
Pizza Romero's service guarantee:We promise you that your Pizza is on us if it is not delivered in 30 minutes, given that the traffic conditions are normal and that there no inclement weather conditions.The previous service guarantee: Is not easy to understand. Contains several limitations and restrictions. Is not meaningful. Is not easy to invoke.
Contains several limitations and restrictions.
The following excerpts is from an interview with a Trainer about her experiences with customers. This excerpt identifies examples of firm benefits of relationship marketing for a firm. Match those examples with the types of firm benefits:Trainer: "Most of our new customers are referred to me by existing customers. They've heard how good our trainers are. It's also easy to strike conversations with our customers because they don't change that frequently:"Customer referrals are an example of ______________ benefits while, the easiness of striking conversations with customers is an example of _____________ benefits. Economic; customer behavior. Human resource management; customer behavior. Customer behavior; economic. Customer behavior; human resource management.
Customer behavior; human resource management.
A customer expects that he will get his sandwich in 3 minutes but gets it in 10 minutes. This example illustrates a: Provider gap because customer expectations fell short of customer perceptions Provider gap because customer perceptions fell short of customer expectations Customer gap because customer perceptions fell short of customer expectations Customer gap because customer expectations fell short of customer perceptions
Customer gap because customer perceptions fell short of customer expectations
Regency Dry Cleaners operates in a medium-sized community. Its customers all live within a 20-mile radius of the cleaners. Regency provides its regular customers with several alternative pickup and delivery schedules rather than a single weekly pickup and delivery. Regency's driver will pick up clothes in the morning and deliver them back clean in the afternoon if that is what a customer needs. Regency has found the increase in its total number of customers because of this service more than pays its additional operation expenses. Regency has built its customer retention strategy around: Financial bonds Structural bonds Customization bonds Social bonds Switching costs.
Customization bonds
Hiring employees who are not excited about the job, and failing to motivate employees are examples of the following reason for gap 3: Customers no fulfilling Roles Problems with service intermmediaries Failure to match supply and demand Deficiencies in human resource policies
Deficiencies in human resource policies
Renting an appartment is an example of the following broad category of non-ownership: Rented goods services Labor and expertise rentals Defined space and place rentals Access to shared physical environments Access to and usage of systems and networks
Defined space and place rentals
Sara's son, Adam, wants the camp to be fun, and therefore is looking for a camp that emphasizes this aspect. This is an example of how: Personal needs affect desired expectations. Derived expectations affect adequate expectations. Derived expectations affect desired expectations. Personal needs affect adequate expectations.
Derived expectations affect desired expectations.
The following excerpts is from an interview with a gym manager about her experiences with customers. This excerpt identifies examples of firm benefits of relationship marketing for a firm. Match those examples with the types of firm benefits:Manager: "I don't have to spend on advertising to attract new customers. Customers also help each other during the workout because they've developed long lasting relationships amongst themselves"Not having to spend advertising is considered an example of _____________ benefits, while customer helping each other is considered an example of ____________ benefits. Economic; customer behavior. Human resource management; customer behavior. Customer behavior; economic. Customer behavior; human resource management.
Economic; customer behavior.
Angel arrived for his appointment at Estero Massage. He was greeted by Estel, who was extremely friendly. She asked him how his day was and whether he felt tightness in any particular spot. He complained from his back. She then proceeded to work on his back. Angel felt that the employees at the SPA really care about their clients. Responsiveness Assurance Empathy Tangibles Reliability
Empathy
Sara is taking her kids to swimming practice. Her kids start the lesson but she seems upset that there are plenty of kids in the pool with only one instructor. She does not feel that they will get the desired attention because her kids are beginners and the rest of the children are more experienced swimmers. Assurance Empathy Reliability Responsiveness Tangibles
Empathy
A customer of Verizon thinks that he should get excellent cellphone coverage but does not get it. The customer is referring to his____________________ when he mentions the he should get excellent cellphone coverage, and is referring to his ______________ when he mentions that he does not get excellent coverage. Expectation ; satisfaction Expectation ; Perception Perception ; Gap Gap ; Satisfaction
Expectation ; Perception
FGCU's website highlighted the fun aspect and so did the other camps. There was no mention about the development of the children's swimming skills. The text on the website explaining the fun aspect of the camp is an example of how expectations are influenced by: Word of mouth. Implicit service promises. Personal service philosophy. Explicit service promises.
Explicit service promises.
Not informing customers of the waiting times of the rides to avoid overcrowding and long lines, is an example of the following reason of gap 3: Customers no fulfilling Roles Problems with service intermmediaries Failure to match supply and demand Deficiencies in human resource policies
Failure to match supply and demand
Encouraging customer to complain in case the service does not meet their expectations is not recommended. True False
False
Every time Tom and Betty stay at a Marriott Hotel, they earn points that can be used at a later date for free rooms, meals and other hotel amenities. Marriott is using _____ to implement its retention strategy. Structural bonds Switching costs. Social bonds Customization bonds Financial bonds
Financial bonds
When Theo complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overheard him and went to the kitchen. When the hotel worker returned, he presented Theo with a plate of sweet rolls, a cup of coffee and the hotel's apology for having to close down the breakfast service early. Which service recovery strategy is being used in this example? Fix the customer Fix the problem Offer a service guarantee
Fix the customer
When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent they are bosses in their own offices but are totally controlled by the airlines when they travel. Canadian Airline instituted gate-side business centers, shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops. By listening to its business travelers and providing the services they want, Canadian Airline's sales started increasing. What service recovery strategy did Canadian Airline use? Fix the customer Fix the problem Offer a service guarantee
Fix the problem
Sara visited the facilities at FGCU's and they were state of the art, and this lead her to believe that her son would be able to learn how to swim quickly. What she assumed from the state of the facilities at FGCU is an example of how ______________ affect expectations. Word of mouth. Personal service philosophy. Explicit service promises. Implicit service promises.
Implicit service promises.
Running the initial advertising campaign without talking with the hospital staff is an example of the following reason for gap 4: Overpromising Ineffective management of customer expectations Lack of integrated services marketing communications Inadequate horizontal communications
Inadequate horizontal communications
Dave is puzzled about the poor performance of the bank in spite of the positive feedback from the questionnaire. This is an example of the following reason for gap 1: Inadequate marketing research Lack of upward communication Insufficient relationship focus Inadequate service recovery
Inadequate marketing research
The video refers to the difficulty of complaining about issues that customers face with their banking services. This is example of the following reason for gap 1: Inadequate marketing research Inadequate service recovery Insufficient relationship focus Lack of upward communication
Inadequate service recovery
The uncomfortable chairs and outdated furniture are examples of the following reason for gap2: Poor service design Absence of customer driven standards Inappropriate physical evidence and servicescape
Inappropriate physical evidence and servicescape
The staff at the hospital tried to explain to the patients that it is difficult to see the doctors within 30 minutes. This is an example of how the staff are trying to remedy the following reason for gap 4: Ineffective management of customer expectations Lack of integrated services marketing communications Overpromising Inadequate horizontal communications
Ineffective management of customer expectations
According to the video, Customers feel hurried and rushed, and employees are told to focus on upselling credit cards. This is an example of the following reason for gap 1: Lack of upward communication Inadequate marketing research Insufficient relationship focus Inadequate service recovery
Insufficient relationship focus
Uber's service is difficult to visualize because the service of transportation cannot be seen. Uber, therefore, attempts to help customers visualize the service by providing customer testimonials on Facebook that talk about the customers' experience with Uber. Variability Intangibility Seperability of consumption and production Perishability
Intangibility
The person who handled my complaint about the faulty air conditioned repair didn't seem to care. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Interactional fairness
The receptionist was very rude; she made it seem like the doctor's time was important but mine was not. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Interactional fairness
When I complained about my meal being cold the waiter apologized profusely. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Interactional fairness
Lind Airlines' service guarantee:In the case of lost luggage, we promise to compensate you with dollar value of the items lost. All you need to do is fill out a form with all of the items and the dollar value of each and then submit it via Fax to the following number +1-888-989-9494.The previous service guarantee: Is not easy to understand. Contains several limitations and restrictions. Is not meaningful. Is not easy to invoke.
Is not easy to invoke.
Angie Airlines' service guarantee:In the case of lost luggage, we promise to compensate you in accordance with the Paris-Warsaw convention.The previous service guarantee: Is not easy to understand. Contains several limitations and restrictions. Is not meaningful. Is not easy to invoke.
Is not easy to understand.
Getting a haircut is an example of the following broad category of non-ownership: Access to shared physical environments Labor and expertise rentals Rented goods services Access to and usage of systems and networks Defined space and place rentals
Labor and expertise rentals
The marketing manager launched a campaign that has a unified message across different media. This is how she is trying to avoid the following reason for gap 4: Inadequate horizontal communications Overpromising Lack of integrated services marketing communications Ineffective management of customer expectations
Lack of integrated services marketing communications
Dave does not meet with the bank tellers who deal with customers. This is an example of the following reason for gap 1: Insufficient relationship focus Lack of upward communication Inadequate service recovery Inadequate marketing research
Lack of upward communication
Marco talking about his negative experience at the dealership with his friends is an example of the following type of complaint action: Complaining to the service provider Negative word of mouth Third-party action Switching
Negative word of mouth
Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. What type of service recovery tool is Kelso Massage Therapy using? Fix the customer Fix the problem Offer a service guarantee
Offer a service guarantee
All I wanted was for the ticket agent to apologize for doubting my story. I never got the apology. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Outcome fairness
The sandwiches were replaced when we received the wrong order. We were also given a free drink. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Outcome fairness
Their refusal to refund our money or makeup for the inconvenience and cold food was inexcusable. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Outcome fairness
Communicating with the customer that he/she will be able to see a doctor in the emergency room was deemed unrealistic by the chief of medical staff. This is an example of the following reasons for gap 4: Ineffective management of customer expectations Lack of integrated services marketing communications Overpromising Inadequate horizontal communications
Overpromising
Sara was a professional swimmer when she was younger, and remembers that swimming camps improved her swimming skills dramatically. This is an example of how: Perceived service alternatives affect expectations. Personal service philosophy affects expectations. Past experience affects expectations. Personal needs affect expectations.
Past experience affects expectations.
Match each example with the corresponding element of the expanded marketing mix: Employees are trained to prepare sandwiches to ensure that the sandwiches are not different from one customer to the other.
People
Sara does extensive research on the different options available. She finds that there is only one option that fits her busy schedule; the FGCU summer camp. This is an example of how: Perceived service alternatives raise desired expectations. Perceived service alternatives lower desired expectations. Perceived service alternatives lower adequate expectations. Perceived service alternatives raise adequate expectations.
Perceived service alternatives lower adequate expectations.
Uber cannot store rides ahead of time. It, therefore, has price surges (i.e, higher prices) during the rush hour to encourage people to use its services during off-peak hours. Which of the following characteristics of services do these examples illustrate: Variability Intangibility Seperability of consumption and production Perishability
Perishability
Relationship marketing is considered part of: Provider gap3 Provider gap1 Provider gap2 Provider gap4
Provider gap1
Sara is hoping that she can find a camp that opens until 6pm, because she works fulltime and gets off work at 5:30 pm. This is an example of how: Situational needs affect desired expectations. Personal needs affect adequate expectations. Situational needs affect adequate expectations. Personal needs affect desired expectations.
Personal needs affect desired expectations.
Sara sends an email to the FGCU swimming camp, and expects a reply within one business day because this this is the amount of time it took her to respond to customers' emails when she was working at Verizon. Her previous experience is an example of how ____________ affect(s) her expectations: Past experience. Situational factors. Personal service philosophy. Personal needs.
Personal service philosophy.
Match each example with the corresponding element of the expanded marketing mix: Subway displays the different sandwiches on a board that can be easily seen by any customer. The store, however, does not have very comfortable seating.
Physical Evidence
Yvette found out that other coffeeshop owners have thought about the series of steps that have to be performed to deliver service to customers. This is something that she has not done. This is an example of the following reason for gap2: Poor service design Absence of customer driven standards Inappropriate physical evidence and servicescape
Poor service design
The franchisee in Europe unwillingness to follow corporate procedures is an example of the following reason for gap 3: Customers no fulfilling Roles Problems with service intermmediaries Failure to match supply and demand Deficiencies in human resource policies
Problems with service intermmediaries
I had to tell my problem to too many people, I had to become very angry in order to talk with the manager, who was apparently the only one who could provide a solution. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Procedural fairness
It was very easy to complain because the manager had placed cards on the counter displaying a phone number to his cellphone and urging customers to call if service at the ice cream shop was not to their satisfaction. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Procedural fairness
They should have assisted me with the problem instead of giving me a phone number to call. No one returned my calls, and I never had a chance to speak to a real person. Which dimension of fairness during service recovery is the previous statement an example of: Procedural fairness Interactional fairness Outcome fairness
Procedural fairness
Match each example with the corresponding element of the expanded marketing mix: Preparing the sandwich for customer follows specific steps. Customers first order the type of bread, then meats, then they select the cheese,. After the sandwich is toasted customers then select the vegetables they want and the sauces, then finally pay.
Process
Allie ordered a book from Amazon.com. The website promised that the package would be delivered in 5 days. In 4 days she receives the package and is very happy. Responsiveness Reliability Tangibles Empathy Assurance
Reliability
Ryan took his car to the mechanic to be fixed because the check engine light was on, but when he picked it up the check engine light was still on, despite the mechanic promising that the engine light will be turned off. Responsiveness Reliability Empathy Assurance This previous example illustrates the following dimensions of service quality: Tangibles
Reliability
Renting a truck for transporting your furniture is an example of the following broad category of non-ownership: Access to shared physical environments Rented goods services Access to and usage of systems and networks Defined space and place rentals Labor and expertise rentals
Rented goods services
Laura was trying on clothes at Zara in the changing room. The shirt does not fit her and wants a larger size. Laura calls a sales associate to ask for different size. The sale associate brings here a shirt to the changing room quickly. Assurance Reliability Responsiveness Empathy Tangibles
Responsiveness
Rihanna and her friends went to Applebee's on Friday night. They waited for 5 minutes to be seated but no one showed up. They waved at several waiters to help them, and eventually someone helped them after 20 minutes. Tangibles Reliability Responsiveness Assurance Empathy
Responsiveness
Relationship marketing emphasizes: Retaining customers over acquiring customers. Retaining employees over acquiring employees. Acquiring customers over retaining customers. Acquiring employees over retaining customer.
Retaining customers over acquiring customers.
Uber cannot produce rides ahead of time, because the customer has to be physically present. The service of transportation is delivered and used at the same time. Which of the following characteristics of services do these examples illustrate: Variability Intangibility Seperability of consumption and production Perishability
Seperability of consumption and production
________ refers to the actions taken by an organization in response to a service failure. Service recovery Service failure Service inconsistency Outcome fairness
Service recovery
The swimming summer camps sometimes will have to shift activities indoors because of the rain and storms. This would sometimes mean that students would not develop their swimming skills as planned. This is an example of how: Situational factors lead to lower expectations and a narrow zone of tolerance. Situational factors lead to lower expectations and a wide zone of tolerance. Situational factors lead to higher expectations and a narrow zone of tolerance. Situational factors lead to higher expectations and a wide zone of tolerance.
Situational factors lead to lower expectations and a wide zone of tolerance.
There are several benefits from relationship marketing for consumers. Match each of the following examples with the type of consumer benefit that is belongs to:Jason: I go to the same Barber because he is a funny guy. He also provides good advice about my relationships with other people. Confidence benefits Social benefits Special treatment benefits Customer behavior benefits
Social benefits
Every Thursday afternoon for almost twenty years, Jasmine and Tanya have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Jasmine and Tanya still find it a convenient place to meet and share news about friends and relatives. Jasmine and Tanya's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy. Structural bonds Customization bonds Financial bonds Social bonds Switching costs.
Social bonds
There are several benefits from relationship marketing for consumers. Match each of the following examples with the type of consumer benefit that is belongs to:Jamie: I go to the same Barber because he fits me in to his busy schedule, even if I have not made a reservation ahead of time Confidence benefits Social benefits Special treatment benefits Customer behavior benefits
Special treatment benefits
Aramark is a food service company that supplies meals to more than 200,000 hospital patients daily. To improve its service, it created a database that tracks patient preferences individually by hospitals, regionally and nationally. The accumulated database is used to provide better menus. Aramark's kitchen staffs deliver the food and are referred to as hosts. All hosts have a minimum of 40 hours of training to teach them how to be courteous, efficient and quick. These trained hosts deliver customized meals from carts preloaded according to room number. According to patient surveys, Aramark has boosted patient satisfaction by almost 10 percent by providing customized meals. Aramark is using _____ in its customer retention strategy. Social bonds Switching costs. Structural bonds Financial bonds Customization bonds
Structural bonds
Often, _____ are created by providing customized services to the client that are technology based and make the customer more productive. Switching costs. Social bonds Financial bonds Customization bonds Structural bonds
Structural bonds
All of the employees at Publix, a supermarket chain, are expected to wear a name tag that displays their names and green shirts. This displays a high level of professionalism to its customers. Responsiveness Reliability Tangibles Empathy Assurance
Tangibles
Omar is on vacation in his home country Egypt. He decided to get some dental work done before he goes back to USA. He goes to Dr Al Sharway based on the recommendation of his friends. He notices that the doctor's clinic is in an old building, and that the doctor is using a jar as a chandelier, and that the several chairs are broken. Reliability Empathy Tangibles Assurance Responsiveness
Tangibles
Service failure and recovery is considered part of: The listening gap. The service design and standards gap. The performance gap. The communications gap.
The listening gap.
The litigation that Marco was talking about is an example of the following type of complaint action: Complaining to the service provider Negative word of mouth Third-party action Switching
Third-party action
T or F? A customer gap exists when there is a difference between customer expectations and perceptions.
True
T or F? A customer gap is the result of a provider gap.
True
Uber's level of service quality is not very consistent. For example, drivers are sometimes friendly and other times are rude. The cars are also not always clean. These examples, illustrate the following characteristic of service: Intangibility Variability Seperability of consumption and production Perishability
Variability
Several of Sara's friends have informed her that the swim camps in Fort Myers do a good job of developing the children's' professional swimming technique. This is an example of how expectations are influenced by: Word of mouth. Explicit service promises. Personal service philosophy. Implicit service promises.
Word of mouth.
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. Should the swim team spend on customer relationship marketing? Yes, because the team will make an additional profit of $450 No, because the team will make a loss of $450 Yes, because the team will increase revenues by $450 No, because the team will increase costs by $450
Yes, because the team will make an additional profit of $450
A local swim team has 150 swimmers at any given time. The revenue from each swimmer is $960 per year, and the return on sales is 20%. It costs $100 to acquire every swimmer. The swim team currently does not spend on retaining its customers. 40% of its swimmers are new every year. The team decides to spend more on customer relationship marketing by organizing an annual banquet to retain more swimmers. An additional 10% percent of the swimmers will be retained if this banquet is held. This annual banquet will cost the team $10 per swimmer. The total retention costs BEFORE the customer relationship program are: $4,500 Zero $6,000 $1,050
Zero
