ESSAY. Write Your Answer in the Space Provided Or on a Separate Sheet of Paper

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Exam

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

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Three areas of having the greatest impact on customer service and loyalty are discussed in this chapter. Name these and give a brief example of each.

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Answer:

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Three areas are:

• personalization (example: demand for individualized, customized products and services; rejection of "one-size-fits-all" thinking)

• changing demographics (example: adapting to broader ages range, changing image of older customers, global economy and broader range of cultures served, greater ethnic mix of employees, customers)

• transparency (example: customers have access to pricing information, competitive comparisons, etc.; companies being more open and trusting)

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Page Ref: 110

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What is meant by the advice to "identify granular attributes" about customers and why is this important?

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Answer:

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"Granular" refers to highly individualized characteristics as opposed to generalizing common traits to groups of people. Identifying these is important because of the heightened expectation of personalized, customized marketing, communication, and service.

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Page Ref: 112

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In discussing things that remain constant, the chapter refers to caring, concern and competence. Describe three ways to do this as discussed in the chapter.

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Answer:

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Answers should allude to the following as "constants":

• providing fair value

• satisfying customer needs and wants

• giving priority to customer share over market share

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Page Ref: 116-117

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What is the difference between "share of the market" and "share of the customer?"

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Answer:

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Share of the market refers to what percentage of all sales of a particular product/service your company gets. For example, you may sell 15% of all men's clothing in your town. Share of the customer refers to what percentage of the customer's spending do you get. Example, a customer buys 80% of all his clothing needs from you.

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Page Ref: 111-112

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

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An example of applying one-to-one opportunities to internal customers would be:

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cafeteria style benefits programs.

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requiring union membership.

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making work more engaging and enriching.

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making pay fair for all employees.

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Answer:

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Page Ref: 112

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The story of USAA Insurance company's refund of premiums for military personnel in the Gulf War illustrates that:

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profits are not important to some successful companies.

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illustrated USAA's cultural value of treating customers the way you'd want to be treated.

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insurance companies are almost all open and generous.

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USAA makes significant profits through ridged cost controls.

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Answer:

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Page Ref: 114-115

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Some ways customer demographics are changing discussed in this chapter are:

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"baby boomers" are changing the image of active 60-plus buyers.

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young people becoming active consumers at earlier age.

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businesses face a more diverse mix of cultures.

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All of the above.

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Answer:

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Page Ref: 110

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Companies can enhance their "trustability" by:

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automatically renewing subscriptions or product shipment so that customers don't have to do this.

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giving different policy answers to individual customers.

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keeping pricing information confidential so that customers do not feel they are paying too much.

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exceeding expectation for openness and transparency.

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Answer:

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Page Ref: 115

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Future communication options allow greater customization by such things as:

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increasing the frequency of messages sent to customers.

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broadcasting in cable TV.

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being interactive, two-way information sharing.

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All of the above.

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Answer:

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Page Ref: 113

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10)

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The Hertz Car Rental "#1 Gold Club" is an example of:

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not effectively adapting to fairness expectations.

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a program targeting the loyalty of its frequent renters.

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an appeal to greed.

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lack of transparency since not all customers get treated well.

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Answer:

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Page Ref: 119

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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

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11)

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Companies that build "trustability" often find themselves giving away too much product, thus hurting profitability.

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Answer:

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True

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False

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Page Ref: 115

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12)

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Employees (internal customers) are more mobile and job-changing is more commonplace than a generation ago.

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Answer:

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True

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False

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Page Ref: 114

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13)

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Targeted, personalized messages can be sent to huge audiences with today's technology.

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Answer:

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True

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False

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Page Ref: 111

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14)

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The "human touch" is far less important in technology-based industries.

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Answer:

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True

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False

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Page Ref: 115

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15)

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The customer demand for fair value (which will remain constant into the future) makes earning immediate profits critical for companies to be successful.

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Answer:

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True

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False

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Page Ref: 116

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16)

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So-called "bad profits" emphasize immediate gain over longer-term relationship building.

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Answer:

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True

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False

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Page Ref: 116

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