Question 1

Companies sometimes aim too high in setting improvement targets for nonfinancial measures of performance.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) A) and E)
G) A) and C)

Question 2

The _____ is a set of measures that gives top managers a fast,but comprehensive view of the business.It complements financial measures with operational measures of customer satisfaction,internal processes and the organization's innovation and improvement activities.

Accepted Answer

A)   Lifetime value of a customer
B)   Multi-measure quality indicator
C)   Balanced performance scorecard
D)   FOCI satisfaction ratio
E)   Benchmark of augmented successF) A) and C)
G) All of the above

Question 3

The benefits of offensive marketing have been documented through the use of:

Accepted Answer

A)   PIMS (profit impact of marketing strategy) 
B)   Multiple regression analysis
C)   Return on investment (ROI) analysis
D)   Financial ratios
E)   All of the aboveF) A) and C)
G) All of the above

Question 4

The ________ metric is obtained by summing up the customer lifetime values of the firm's customers.

Accepted Answer

A)   The customer equilibrium
B)   Customer equity
C)   Customer empowerment
D)   Fiscal value
E)   Service blueprint valueF) C) and D)
G) C) and E)

Question 5

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 6

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

Question 7

Customer perceptual measures are leading indicators of financial performance.

Accepted Answer

A) True 
 B)False

Question 8

Balanced scorecards sound good in theory,but they are nearly impossible to implement; therefore,their use is nominal.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

In general,the longer a customer remains...

Question 10

How have companies traditionally measured their performance?

Accepted Answer

On the bas...

Question 11

Evidence shows that customer perceptions of quality do not affect consumer intentions.

Accepted Answer

A) True 
 B)False

Question 12

What type of services marketing needs to be used to stop customer defection?

Accepted Answer

The answer of What type of services marketing needs to...

Question 13

What is ROSQ? Why would the manager of a large management consulting firm use ROSQ to determine which service offerings customers like and which customers don't really care for? Explain the assumptions that the manager must accept in order to use this approach.

Accepted Answer

ROSQ (return on service quality)looks at...

Question 14

Which of the following is an example of a soft measure of a company's success?

Accepted Answer

A)   Return on investment
B)   Customer satisfaction
C)   Sales volume
D)   Gross margin
E)   Inventory turnoverF) B) and E)
G) None of the above

Question 15

Offensive marketing effects involve market share,reputation and:

Accepted Answer

A)   Word-of-mouth communication
B)   Vertical integration
C)   Price premiums
D)   High purchase volumes
E)   Geodemographic segmentationF) A) and E)
G) A) and D)

Question 16

The money a company makes from customer retention comes from four sources.List them.

Accepted Answer

Cost savings,volume ...

Question 17

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) B) and D)
G) A) and E)

Question 18

What are the key determinants of service quality,customer retention and profits?

Accepted Answer

The service encounte...

Question 19

The easiest area of the balanced scorecard to measure quantitatively is innovation and learning.

Accepted Answer

A) True 
 B)False

Question 20

A service firm that calculates the long-term value of a customer is looking at the _____ in its balanced performance scorecard.

Accepted Answer

A)   Competitor perspective
B)   Customer perspective
C)   Financial measures
D)   Innovation and learning perspective
E)   Operational measuresF) A) and C)
G) A) and E)

Exam 16: The Financial and Economic Impact of Service

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

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

Which of the following is an example of a soft measure of a company's success?

Correct AnswerverifiedShow Answer

What are the key determinants of service quality,customer retention and profits?

Correct AnswerverifiedThe service encounte...View AnswerShow Answer

A service firm that calculates the long-term value of a customer is looking at the _____ in its balanced performance scorecard.

Correct AnswerverifiedShow Answer

The benefits of offensive marketing have been documented through the use of:

Correct AnswerverifiedShow Answer

The easiest area of the balanced scorecard to measure quantitatively is innovation and learning.

Correct AnswerverifiedShow Answer

What type of services marketing needs to be used to stop customer defection?

Correct AnswerverifiedShow Answer

Evidence shows that customer perceptions of quality do not affect consumer intentions.

Correct AnswerverifiedShow Answer

The _____ is a set of measures that gives top managers a fast,but comprehensive view of the business.It complements financial measures with operational measures of customer satisfaction,internal processes and the organization's innovation and improvement activities.

Correct AnswerverifiedShow Answer

Customer perceptual measures are leading indicators of financial performance.

Correct AnswerverifiedShow Answer

Offensive marketing effects involve market share,reputation and:

Correct AnswerverifiedShow Answer

How have companies traditionally measured their performance?

Correct AnswerverifiedOn the bas...View AnswerShow Answer

What is ROSQ? Why would the manager of a large management consulting firm use ROSQ to determine which service offerings customers like and which customers don't really care for? Explain the assumptions that the manager must accept in order to use this approach.

Correct AnswerverifiedROSQ (return on service quality)looks at...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

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

Companies sometimes aim too high in setting improvement targets for nonfinancial measures of performance.Managers tend to make mistakes in this area by assuming:

Correct AnswerverifiedShow Answer

The customer equity model illustrates how:

Correct AnswerverifiedShow Answer

The ________ metric is obtained by summing up the customer lifetime values of the firm's customers.

Correct AnswerverifiedShow Answer

Balanced scorecards sound good in theory,but they are nearly impossible to implement; therefore,their use is nominal.

Correct AnswerverifiedShow Answer

The money a company makes from customer retention comes from four sources.List them.

Correct AnswerverifiedCost savings,volume ...View AnswerShow Answer

Correct Answer
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In general,the longer a customer remains...
View Answer

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The service encounte...
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On the bas...
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Correct Answer
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ROSQ (return on service quality)looks at...
View Answer

Correct Answer
verified

Correct Answer
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PIMS (prof...
View 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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Cost savings,volume ...
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