BMK20303 C4 : Managing Relationships and Loyalty

Which stage of loyalty describes a customer who has developed a strong intention to repurchase a service brand?

• Cognitive loyalty

• Affective loyalty

• Conative loyalty

• Action loyalty

A customer continues using a service because they trust the provider and feel low risk. Which type of relational benefit is this?

• Social benefit

• Confidence benefit

• Special treatment

• Functional benefit

If a firm identifies that many customers are leaving due to long waiting times, which churn driver are they addressing?

• Service failure

• Inconvenience

• Ethical problems

• Competition

What should a firm do to improve customer lifetime value through service tiering?

• Offer the same service to all customers

• Base rewards on value, not just frequency

• Eliminate loyalty programs

• Reduce the cost of service for all users

A CRM system that automates data entry for sales representatives is an example of:

• Call center automation

• Marketing automation

• Sales force automation

• Loyalty segmentation

Which type of marketing emphasizes ongoing interaction in B2B relationships?

• Network marketing

• Database marketing

• Transactional marketing

• Interaction marketing

Which segmentation variable is most relevant for tailoring services to customers who prefer mobile-based access?

• Attitude toward technology

• Income level

• Language preference

• Age group

What is a key reason loyal customers are more profitable over time?

• They require more service support

• They increase promotional costs

• They consolidate spending and refer others

• They switch brands frequently

A customer referred five friends and received free service. This reflects which loyalty driver?

• Confidence benefit

• Social benefit

• Special treatment

• Service recovery

Using customer lifetime value to estimate long-term profitability is a part of:

• Emotional loyalty tracking

• Customer equity management

• Brand switching analysis

• Marketing automation