Question 1

What area of the balanced performance scorecard is a company studying when it examines its employee skills, return on innovation and time spent talking to customers?

Accepted Answer

The innova...

Question 2

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

Question 3

From the inception of service quality, managers had highly sophisticated tools to measure the impact of improved service on profits.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

Customer p...

Question 5

The key drivers of service quality, customer retention and profits are:

Accepted Answer

A)   The servicescape
B)   The five dimensions of service
C)   External marketing communications
D)   Service encounters
E)   All of the aboveF) A) and B)
G) D) and E)

Question 6

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

Accepted Answer

Cost savings, volume...

Question 7

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

Question 8

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

Question 9

Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Accepted Answer

A)   Not linking measures to strategy
B)   Not validating the links
C)   Not setting the right performance targets
D)   Measuring incorrectly
E)   Not creating a balanced scorecardF) A) and E)
G) A) and D)

Question 10

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

Accepted Answer

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

Question 11

Which of the following is NOT a question managers want researchers to answer about defensive marketing?

Accepted Answer

A)   What is a loyal customer?
B)   How can defect-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) A) and B)
G) A) and E)

Question 12

Service quality, like advertising, has a cumulative effect on a company's profit.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Financial measures used in the balanced scorecard include the long-term value of the customer, the number of new products, return on innovation and number of customer referrals.

Accepted Answer

A) True 
 B)False

Question 15

Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves measuring complex phenomenon with one or two simple measures or using quantitative metrics to capture qualitative results for factors such as leadership.

Accepted Answer

A)   Not linking measures to strategy
B)   Not validating the links
C)   Not setting the right performance targets
D)   Measuring incorrectly
E)   Not creating a balanced scorecardF) A) and B)
G) A) and C)

Question 16

The operational measures used within the balanced performance scorecard should be:

Accepted Answer

A)   Customer-defined
B)   Cost-driven
C)   Competitively sensitive
D)   Front-line employee-defined
E)   Environmentally-derivedF) A) and B)
G) A) and E)

Question 17

The ROSQ approach would be appropriate for a service provider:

Accepted Answer

A)   That used service blueprints
B)   That terminated relationships with its least profitable customers
C)   Deciding to purchase employee dental insurance
D)   That was thinking of developing a home delivery service in addition to offering products at a central location
E)   Deciding to increase prices for basic services by ten percentF) B) and C)
G) C) and E)

Question 18

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 churn
E)   Increased word-of-mouth communicationF) B) and C)
G) B) and D)

Question 19

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

Question 20

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 many of its regular customers are now buying flowers at the newly opened Kroger supermarket. It would be appropriate for the owner to institute _____ marketing.

Accepted Answer

A)   Guerrilla
B)   Flanking-movement
C)   Vertical integration
D)   Defensive
E)   OffensiveF) B) and D)
G) A) and B)

Exam 18: The Financial and Economic Impact of Service

From the inception of service quality, managers had highly sophisticated tools to measure the impact of improved service on profits.

Correct Answer
verified

Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves measuring complex phenomenon with one or two simple measures or using quantitative metrics to capture qualitative results for factors such as leadership.

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

Which of the following is NOT a question managers want researchers to answer about defensive marketing?

Correct Answer
verified

Service quality, like advertising, has a cumulative effect on a company's profit.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The key drivers of service quality, customer retention and profits are:

Correct Answer
verified

Financial measures used in the balanced scorecard include the long-term value of the customer, the number of new products, return on innovation and number of customer referrals.

Correct Answer
verified

Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

The operational measures used within the balanced performance scorecard should be:

Correct Answer
verified

The ROSQ approach would be appropriate for a service provider:

Correct Answer
verified

What area of the balanced performance scorecard is a company studying when it examines its employee skills, return on innovation and time spent talking to customers?

Correct Answer
verified
The innova...
View Answer

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

Correct Answer
verified
Cost savings, volume...
View Answer

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

Correct Answer
verified

Exam 18: The Financial and Economic Impact of Service

From the inception of service quality, managers had highly sophisticated tools to measure the impact of improved service on profits.

Correct AnswerverifiedShow Answer

Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves measuring complex phenomenon with one or two simple measures or using quantitative metrics to capture qualitative results for factors such as leadership.

Correct AnswerverifiedShow Answer

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

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

Which of the following is NOT a question managers want researchers to answer about defensive marketing?

Correct AnswerverifiedShow Answer

Service quality, like advertising, has a cumulative effect on a company's profit.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The key drivers of service quality, customer retention and profits are:

Correct AnswerverifiedShow Answer

Financial measures used in the balanced scorecard include the long-term value of the customer, the number of new products, return on innovation and number of customer referrals.

Correct AnswerverifiedShow Answer

Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The operational measures used within the balanced performance scorecard should be:

Correct AnswerverifiedShow Answer

The ROSQ approach would be appropriate for a service provider:

Correct AnswerverifiedShow Answer

What area of the balanced performance scorecard is a company studying when it examines its employee skills, return on innovation and time spent talking to customers?

Correct AnswerverifiedThe innova...View AnswerShow Answer

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

Correct AnswerverifiedCost savings, volume...View AnswerShow 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 has the strongest effect on a service provider's profits?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The innova...
View Answer

Correct Answer
verified
Cost savings, volume...
View Answer

Correct Answer
verified
Customer p...
View Answer

Correct Answer
verified