Question 1

The value proposition is stated in the price of a product and readily recognized by the average consumer.

Accepted Answer

A) True 
 B)False  False

Question 2

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. How can Keiko make it more difficult for LZT to switch to another customer?

Accepted Answer

To make it more difficult for LZT to switch to another supplier, Keiko's management can implement several strategies to increase customer loyalty and create barriers to switching. Here are some strategies they might consider:

1. **Enhanced Customer Service**: Keiko can invest in providing exceptional customer service to LZT. This could include dedicated account managers, 24/7 support, and rapid response times to inquiries and issues. High-quality service can create a strong relationship and dependency that LZT might be reluctant to disrupt.

2. **Customized Solutions**: If Keiko can offer customized products or services that are specifically tailored to LZT's needs, it will be harder for LZT to find the same level of customization from another provider without incurring significant switching costs.

3. **Long-term Contracts**: Keiko could negotiate long-term contracts with LZT that include benefits for loyalty or penalties for early termination. This creates a financial disincentive for LZT to switch to a competitor.

4. **Volume Discounts and Loyalty Programs**: Offering volume discounts or loyalty programs that reward LZT for continued business can make Keiko's offerings more financially attractive compared to competitors.

5. **Integration of Systems**: Keiko could integrate its systems with LZT's operations, making their processes interdependent. The more integrated the systems, the more costly and complex it would be for LZT to switch to a competitor.

6. **Exclusive Features or Technologies**: If Keiko has proprietary features, technologies, or intellectual property that LZT relies on, this exclusivity can serve as a strong barrier to switching.

7. **Building Strong Relationships**: Relationships matter in business. Keiko should work on building strong personal relationships with key decision-makers at LZT. People are often reluctant to end relationships with those they like and trust.

8. **Understanding and Anticipating Needs**: By understanding LZT's business deeply and anticipating their future needs, Keiko can proactively offer solutions before LZT even realizes they need them, making the competitor's offerings less appealing.

9. **Performance Metrics**: Keiko can demonstrate its value through clear performance metrics that show how their service or product has positively impacted LZT's business.

10. **Exit Barriers**: Keiko can create exit barriers by ensuring that their products or services are deeply embedded in LZT's workflow or by offering unique products that LZT cannot easily replace.

11. **Continuous Improvement**: Keiko should continuously improve its offerings to ensure that they are providing the best value in the market, making it less attractive for LZT to consider a switch.

12. **Competitive Intelligence**: Keiko should keep an eye on the competition to stay ahead of any offers or innovations that might tempt LZT to switch. This way, Keiko can counteract these moves proactively.

By implementing a combination of these strategies, Keiko can create a strong value proposition for LZT that goes beyond price and product, making it more difficult and less desirable for LZT to switch to a competitor.

Question 3

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.

Accepted Answer

A)  customer database 
B)  customer mailing list 
C)  customer-performance scorecard 
D)  customer profitability analysis 
E)  customer-value hierarchy 
A)  customer database 
B)  customer mailing list 
C)  customer-performance scorecard 
D)  customer profitability analysis 
E)  customer-value hierarchy A

Question 4

What are the measurement techniques for monitoring satisfaction?

Accepted Answer

Many companies are systematically measur

Question 5

The Coca-Cola Freestyle dispensing machine, which can dispense 125 sparkling and still drinks that consumers can mix via a touchscreen allowing consumers to create a beverage to suit their particular taste, is an example of permission marketing.

Accepted Answer

A) True 
 B)False

Question 6

After being frustrated by the lack of detailed, reliable, and up-to-date information available to help him decide where to go on a Mexican holiday, Stephen Kaufer founded ________ in 2001.

Accepted Answer

A)  TripAdvisor 
B)  Wanderfly 
C)  EveryTrail 
D)  Starwood 
E)  Expedia 
A)  TripAdvisor 
B)  Wanderfly 
C)  EveryTrail 
D)  Starwood 
E)  Expedia

Question 7

BMW is ________ the customer experience when it offers 500 side-mirror combinations, 1,300 front bumper combinations, and 9,000 center-console combinations and provides new buyers a video link to watch their car being "born" while waiting for delivery.

Accepted Answer

A)  identifying 
B)  synthesizing 
C)  integrating 
D)  acknowledging 
E)  personalizing 
A)  identifying 
B)  synthesizing 
C)  integrating 
D)  acknowledging 
E)  personalizing

Question 8

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

Accepted Answer

A) True 
 B)False

Question 9

Customer churn is how rapidly a store can move customers through its checkout facility or process.

Accepted Answer

A) True 
 B)False

Question 10

A customer touch point for Abacus Airlines would be an item such as ________.

Accepted Answer

A)  ease of access to the airport 
B)  a mechanic's ability to service the airplanes 
C)  the reservations desk 
D)  the value of air travel versus surface transportation 
E)  competency of a travel agent 
A)  ease of access to the airport 
B)  a mechanic's ability to service the airplanes 
C)  the reservations desk 
D)  the value of air travel versus surface transportation 
E)  competency of a travel agent

Question 11

Compare and contrast the typical traditional organization chart for an organization against the modern customer-oriented organization chart.

Accepted Answer

The traditional organization chart is a

Question 12

One of the ways a company like Caterpillar could increase the customer-perceived value of an offer, relative to a competitor like Komatsu, is to increase the total customer benefit by improving psychological benefits of its product, services, people, and/or image.

Accepted Answer

A) True 
 B)False

Question 13

The marketing funnel identifies the profitability of consumers at each stage in the decision process.

Accepted Answer

A) True 
 B)False

Question 14

Create a value proposition for cell phone manufacturer LZT.

Accepted Answer

The value proposition for cell phone man

Question 15

Explain customer-perceived value.

Accepted Answer

Customer-perceived value (CPV) is the di

Question 16

The best thing a company can do in the face of company mistakes is to discourage the customer from complaining.

Accepted Answer

A) True 
 B)False

Question 17

Bicycle store 2Wheels wants to maximize sales from each customer. The marketing team suggests that 2Wheels uses cross-selling techniques. How can the company implement this technique?

Accepted Answer

2Wheels can use cross-selling

Question 18

Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Berry's can use to discover the problem.

Accepted Answer

Periodic surveys can track customer sati

Question 19

Which of the following is true for the modern company organization chart?

Accepted Answer

A)  Frontline employees are less important than top management. 
B)  Customers are at the top of the pyramid. 
C)  Top management is at the top of the pyramid. 
D)  Customers are less important than middle management. 
E)  Frontline employees are at the top of the pyramid. 
A)  Frontline employees are less important than top management. 
B)  Customers are at the top of the pyramid. 
C)  Top management is at the top of the pyramid. 
D)  Customers are less important than middle management. 
E)  Frontline employees are at the top of the pyramid.

Question 20

Customer-perceived value is based on the difference between benefits the customer gets and
costs he or she assumes for different choices.

Accepted Answer

A) True 
 B)False

Exam 5: Creating Long-Term Loyalty Relationships

The value proposition is stated in the price of a product and readily recognized by the average consumer.

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. How can Keiko make it more difficult for LZT to switch to another customer?

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.

What are the measurement techniques for monitoring satisfaction?

The Coca-Cola Freestyle dispensing machine, which can dispense 125 sparkling and still drinks that consumers can mix via a touchscreen allowing consumers to create a beverage to suit their particular taste, is an example of permission marketing.

After being frustrated by the lack of detailed, reliable, and up-to-date information available to help him decide where to go on a Mexican holiday, Stephen Kaufer founded ________ in 2001.

BMW is ________ the customer experience when it offers 500 side-mirror combinations, 1,300 front bumper combinations, and 9,000 center-console combinations and provides new buyers a video link to watch their car being "born" while waiting for delivery.

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

Customer churn is how rapidly a store can move customers through its checkout facility or process.

A customer touch point for Abacus Airlines would be an item such as ________.

Compare and contrast the typical traditional organization chart for an organization against the modern customer-oriented organization chart.

One of the ways a company like Caterpillar could increase the customer-perceived value of an offer, relative to a competitor like Komatsu, is to increase the total customer benefit by improving psychological benefits of its product, services, people, and/or image.

The marketing funnel identifies the profitability of consumers at each stage in the decision process.

Create a value proposition for cell phone manufacturer LZT.

Explain customer-perceived value.

The best thing a company can do in the face of company mistakes is to discourage the customer from complaining.

Bicycle store 2Wheels wants to maximize sales from each customer. The marketing team suggests that 2Wheels uses cross-selling techniques. How can the company implement this technique?

Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Berry's can use to discover the problem.

Which of the following is true for the modern company organization chart?

Customer-perceived value is based on the difference between benefits the customer gets and costs he or she assumes for different choices.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Analyzing Consumer Markets

Analyzing Business Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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