Question 1

Another term for high customer ________ is customer churn.

Accepted Answer

A)  retention 
B)  defection 
C)  value 
D)  perception 
E)  belief 
A)  retention 
B)  defection 
C)  value 
D)  perception 
E)  belief

Question 2

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Accepted Answer

A) True 
 B)False

Question 3

The Net Promoter Score is calculated by subtracting ________ from ________.

Accepted Answer

A)  promoters; detractors 
B)  detractors; promoters 
C)  detractors; passively satisfied customers 
D)  passively satisfied customers; detractors 
E)  passively satisfied customers; promoters 
A)  promoters; detractors 
B)  detractors; promoters 
C)  detractors; passively satisfied customers 
D)  passively satisfied customers; detractors 
E)  passively satisfied customers; promoters

Question 4

When a consumer considers a product or service, he or she will choose whichever product or service delivers the highest ________.

Accepted Answer

A)  customer-perceived value 
B)  customer-perceived cost 
C)  customer profitability analysis 
D)  customer equity 
E)  customer lifetime value 
A)  customer-perceived value 
B)  customer-perceived cost 
C)  customer profitability analysis 
D)  customer equity 
E)  customer lifetime value

Question 5

Consumers' expectations result exclusively from past buying experiences.

Accepted Answer

A) True 
 B)False

Question 6

Unprofitable customers who defect to a competitor should be encouraged to do so.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following can a company do to reduce defection?

Accepted Answer

A)  Attract new customers to try out the company's products. 
B)  Increase customer lifetime value by increasing the non-monetary costs of products. 
C)  Enhance the growth potential of existing customers through cross-selling and upselling. 
D)  Distinguish the causes of customer attrition and identify those that can be managed better. 
E)  Make low-profit customers more profitable or terminate the relationship. 
A)  Attract new customers to try out the company's products. 
B)  Increase customer lifetime value by increasing the non-monetary costs of products. 
C)  Enhance the growth potential of existing customers through cross-selling and upselling. 
D)  Distinguish the causes of customer attrition and identify those that can be managed better. 
E)  Make low-profit customers more profitable or terminate the relationship.

Question 8

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Describe those three steps.

Accepted Answer

The three steps that a company can take

Question 9

Berry's is a chain of shoe stores. The company recently reviewed its customer relations strategy and suggested that the brand communication be consistent across all customer touch points. What are the various touch points for Berry's?

Accepted Answer

The various touch points for Berry's sho

Question 10

According to IBM, what do firms need to do to exploit the power of social media?

Accepted Answer

To successfully exploit the potential of

Question 11

A profitable customer yields a ________.

Accepted Answer

A)  cost stream that exceeds by an acceptable amount his revenue stream 
B)  revenue stream that exceeds the company's cost stream 
C)  cost stream that exceeds the company's revenue stream 
D)  revenue stream that exceeds by an acceptable amount his cost stream 
E)  revenue stream that equals the company's cost stream 
A)  cost stream that exceeds by an acceptable amount his revenue stream 
B)  revenue stream that exceeds the company's cost stream 
C)  cost stream that exceeds the company's revenue stream 
D)  revenue stream that exceeds by an acceptable amount his cost stream 
E)  revenue stream that equals the company's cost stream

Question 12

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Accepted Answer

A)  Value proposition 
B)  Loyalty 
C)  Satisfaction 
D)  Respect 
E)  Customer value 
A)  Value proposition 
B)  Loyalty 
C)  Satisfaction 
D)  Respect 
E)  Customer value

Question 13

Which of the following is true for customer-perceived value?

Accepted Answer

A)  It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. 
B)  It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. 
C)  It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. 
D)  It is the net present value of the stream of future profits expected over the customer's lifetime purchases. 
E)  It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies. 
A)  It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. 
B)  It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. 
C)  It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. 
D)  It is the net present value of the stream of future profits expected over the customer's lifetime purchases. 
E)  It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies.

Question 14

Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing instead of interruption marketing. How can this benefit the company?

Accepted Answer

Berry's, as a chain of shoe stores, can

Question 15

A marketer who is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and demand is focused on capturing marketing insights.

Accepted Answer

A) True 
 B)False

Question 16

Customers who load up with personalized options in their BMWs - generating more profitability for BMW and its dealers - are less loyal.

Accepted Answer

A) True 
 B)False

Question 17

Southwest Airlines offers a Rapid Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________.

Accepted Answer

A)  cross-selling program 
B)  value delivery system 
C)  club membership program 
D)  activity-based costing program 
E)  up-selling program 
A)  cross-selling program 
B)  value delivery system 
C)  club membership program 
D)  activity-based costing program 
E)  up-selling program

Question 18

Club membership programs that are open to everyone who purchases a product or service ________.

Accepted Answer

A)  are more powerful long-term loyalty builders than limited-membership clubs 
B)  will not help a company attract customers from competitors 
C)  prevent those with only a fleeting interest in a company's products from joining 
D)  are useful for building a database of customers but are not very good as long-term loyalty builders 
E)  are useless unless there are fees and membership conditions 
A)  are more powerful long-term loyalty builders than limited-membership clubs 
B)  will not help a company attract customers from competitors 
C)  prevent those with only a fleeting interest in a company's products from joining 
D)  are useful for building a database of customers but are not very good as long-term loyalty builders 
E)  are useless unless there are fees and membership conditions

Question 19

Activists used ________ to populate the Internet with unflattering information about Nike.

Accepted Answer

A)  banner ads 
B)  YouTube videos 
C)  goodwill 
D)  search engine optimization 
E)  brand studies 
A)  banner ads 
B)  YouTube videos 
C)  goodwill 
D)  search engine optimization 
E)  brand studies

Question 20

Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.

Accepted Answer

A)  aware 
B)  open to trial 
C)  most often used 
D)  nonrejecter 
E)  regular user 
A)  aware 
B)  open to trial 
C)  most often used 
D)  nonrejecter 
E)  regular user

Exam 5: Creating Long-Term Loyalty Relationships

Another term for high customer ________ is customer churn.

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

The Net Promoter Score is calculated by subtracting ________ from ________.

When a consumer considers a product or service, he or she will choose whichever product or service delivers the highest ________.

Consumers' expectations result exclusively from past buying experiences.

Unprofitable customers who defect to a competitor should be encouraged to do so.

Which of the following can a company do to reduce defection?

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Describe those three steps.

Berry's is a chain of shoe stores. The company recently reviewed its customer relations strategy and suggested that the brand communication be consistent across all customer touch points. What are the various touch points for Berry's?

According to IBM, what do firms need to do to exploit the power of social media?

A profitable customer yields a ________.

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Which of the following is true for customer-perceived value?

Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing instead of interruption marketing. How can this benefit the company?

A marketer who is using a reliable marketing information system to monitor the marketing environment so s/he can assess market potential and demand is focused on capturing marketing insights.

Customers who load up with personalized options in their BMWs - generating more profitability for BMW and its dealers - are less loyal.

Southwest Airlines offers a Rapid Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________.

Club membership programs that are open to everyone who purchases a product or service ________.

Activists used ________ to populate the Internet with unflattering information about Nike.

Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.

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

Filters

The Net Promoter Score is calculated by subtracting from .