Question 1

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) None of the above
G) B) and E)

Question 2

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) A) and C)
G) C) and D)

Question 3

Executives' most frequent questions about how to improve service quality are concerned with:

Accepted Answer

A)   Cost reduction and environmental impact
B)   Good investment and high return
C)   Following federal regulations and employee satisfaction
D)   Operating in the most economic environments and maintaining a satisfactory level of customer retention
E)   Cost reduction and downsizingF) C) and E)
G) All of the above

Question 4

Which type of promotion has more credibility than other sources of information about a service?

Accepted Answer

A)   Word-of-mouth
B)   Personalized direct mail
C)   Network television advertising
D)   Publicity
E)   Advertising in prestige magazinesF) B) and E)
G) None of the above

Question 5

What is considered to be more credible as a source of information than any other?

Accepted Answer

Word-of-mo...

Question 6

Which of the following has the strongest effect on a service provider's profits?

Accepted Answer

A)   Market share
B)   Unit costs
C)   Location
D)   Employee salaries
E)   Customer defectionF) B) and E)
G) B) and D)

Question 7

The best known and most widely respected approach that executives use for making decisions about service quality investments is:

Accepted Answer

A)   Total quality management returns
B)   Observational research
C)   Focus groups
D)   Return on service quality
E)   Ethnographic researchF) A) and E)
G) C) and D)

Question 8

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

Accepted Answer

A)   Insurgent
B)   Offensive
C)   Flank-movement
D)   Defensive
E)   GuerillaF) None of the above
G) C) and D)

Question 9

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 C)
G) A) and E)

Question 10

The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Accepted Answer

A)   Lower costs
B)   Increased volume of purchases
C)   The ability to charge a price premium
D)   Customer defection
E)   Increased word-of-mouth communicationF) None of the above
G) A) and C)

Question 11

A review of two decades of studies examining the links among customer satisfaction,service quality,and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Accepted Answer

A)   A significant and positive
B)   Absolutely no
C)   A small negative
D)   An undetermined
E)   A large negativeF) None of the above
G) A) and E)

Question 12

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) C) and D)
G) A) and B)

Question 13

What area of the balanced performance scorecard is a company studying when it examines overall customer service perceptions?

Accepted Answer

Customer p...

Question 14

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) B) and D)
G) C) and D)

Question 15

Consumers believe that advertisements in publications like Newsweek,Time,and similar magazines have the highest level of credibility.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Accepted Answer

A)   What is a loyal customer?
B)   How can defection-prone customers be identified?
C)   What is the role of service in defensive marketing?
D)   What aspects of service are most important for customer retention?
E)   What aspects of service are most important for increasing market share?F) B) and E)
G) D) and E)

Question 17

Companies can actually measure increases and decreases in revenue from the retention and defection of customers.

Accepted Answer

A) True 
 B)False

Question 18

Traditional measures of company performance:

Accepted Answer

A)   Have relied on financial indicators such as profit,sales and return on investment
B)   Predict the future performance of companies as well as the results of yesterday's decisions
C)   Measure operational process and customer satisfaction as well as other quantitative factors
D)   Are useful in measuring the effect of a short-term increase of service quality on a company's bottom line
E)   Have used the soft measures primarilyF) A) and C)
G) A) and D)

Question 19

Which of the following statements about customer perceptions of service and consumer purchase intentions is true?

Accepted Answer

A)   There is no relationship between customer perceptions of service and any consumer intentions
B)   While there is no relationship between customer perceptions of service and purchase intentions,there is a strong relationship between perceptions of superior service and increased word-of-mouth communications
C)   Researchers suspect there is little relationship between a customer perception of service and his or her intent to buy
D)   Customer perceptions of service affect consumer intentions in several positive ways - including the purchase intention
E)   Customer expectations - not perceptions - affect consumer behavioral intentionsF) A) and D)
G) D) and E)

Question 20

_____ 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 E)
G) A) and D)

Exam 16: The Financial and Economic Impact of Service

Traditional measures of company performance:

Correct Answer
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Correct Answer
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Which of the following statements about customer perceptions of service and consumer purchase intentions is true?

Correct Answer
verified

_____ marketing is used by companies to prevent customer defection.

Correct Answer
verified

The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Correct Answer
verified

What area of the balanced performance scorecard is a company studying when it examines overall customer service perceptions?

Correct Answer
verified
Customer p...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

What is considered to be more credible as a source of information than any other?

Correct Answer
verified
Word-of-mo...
View Answer

The best known and most widely respected approach that executives use for making decisions about service quality investments is:

Correct Answer
verified

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

Correct Answer
verified

A review of two decades of studies examining the links among customer satisfaction,service quality,and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Correct Answer
verified

Return on service quality (ROSQ) :

Correct Answer
verified

Consumers believe that advertisements in publications like Newsweek,Time,and similar magazines have the highest level of credibility.

Correct Answer
verified

Which type of promotion has more credibility than other sources of information about a service?

Correct Answer
verified

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Correct Answer
verified

Which of the following has the strongest effect on a service provider's profits?

Correct Answer
verified

Companies can actually measure increases and decreases in revenue from the retention and defection of customers.

Correct Answer
verified

PIMS (profit impact of marketing strategy) research:

Correct Answer
verified

Executives' most frequent questions about how to improve service quality are concerned with:

Correct Answer
verified

Exam 16: The Financial and Economic Impact of Service

Traditional measures of company performance:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements about customer perceptions of service and consumer purchase intentions is true?

Correct AnswerverifiedShow Answer

_____ marketing is used by companies to prevent customer defection.

Correct AnswerverifiedShow Answer

The increased profits a service firm realizes from customer retention result from all of the following EXCEPT:

Correct AnswerverifiedShow Answer

What area of the balanced performance scorecard is a company studying when it examines overall customer service perceptions?

Correct AnswerverifiedCustomer p...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is considered to be more credible as a source of information than any other?

Correct AnswerverifiedWord-of-mo...View AnswerShow Answer

The best known and most widely respected approach that executives use for making decisions about service quality investments is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A review of two decades of studies examining the links among customer satisfaction,service quality,and firm performance concluded that improvements in customer satisfaction have _________ impact on firms' financial performance.

Correct AnswerverifiedShow Answer

Return on service quality (ROSQ) :

Correct AnswerverifiedShow Answer

Consumers believe that advertisements in publications like Newsweek,Time,and similar magazines have the highest level of credibility.

Correct AnswerverifiedShow Answer

Which type of promotion has more credibility than other sources of information about a service?

Correct AnswerverifiedShow Answer

Which of the following is NOT included in the list of questions managers and researchers want answered about defensive marketing?

Correct AnswerverifiedShow Answer

Which of the following has the strongest effect on a service provider's profits?

Correct AnswerverifiedShow Answer

Companies can actually measure increases and decreases in revenue from the retention and defection of customers.

Correct AnswerverifiedShow Answer

PIMS (profit impact of marketing strategy) research:

Correct AnswerverifiedShow Answer

Executives' most frequent questions about how to improve service quality are concerned with:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Customer p...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Word-of-mo...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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