Question 1

Which of the following is the best method of recovering customer goodwill?

Accepted Answer

A)  sending service people to conduct door-to-door surveys 
B)  contacting the complaining customer as quickly as possible 
C)  identifying prospective customers from the customer database 
D)  customizing products according to individual customer need 
E)  defining and measuring the customer retention rate 
A)  sending service people to conduct door-to-door surveys 
B)  contacting the complaining customer as quickly as possible 
C)  identifying prospective customers from the customer database 
D)  customizing products according to individual customer need 
E)  defining and measuring the customer retention rate

Question 2

Which of the following gains the most benefit from introducing a frequency program?

Accepted Answer

A)  the first company to introduce a frequency program in an industry 
B)  the fast follower, the second to introduce a program in an industry 
C)  the industry sales leader 
D)  the niche player in the industry 
E)  the low-cost leader in the industry 
A)  the first company to introduce a frequency program in an industry 
B)  the fast follower, the second to introduce a program in an industry 
C)  the industry sales leader 
D)  the niche player in the industry 
E)  the low-cost leader in the industry

Question 3

Activity-based costing does not consider indirect, variable, and overhead costs.

Accepted Answer

A) True 
 B)False

Question 4

The value proposition is also known as the core positioning of the offering.

Accepted Answer

A) True 
 B)False

Question 5

A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer.

Accepted Answer

A)  prospector 
B)  profitable customer 
C)  market challenger 
D)  market nicher 
E)  pioneer customer 
A)  prospector 
B)  profitable customer 
C)  market challenger 
D)  market nicher 
E)  pioneer customer

Question 6

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.

Accepted Answer

A)  input-output analysis 
B)  factor analysis 
C)  revenue-based costing 
D)  activity-based costing 
E)  future date costing 
A)  input-output analysis 
B)  factor analysis 
C)  revenue-based costing 
D)  activity-based costing 
E)  future date costing

Question 7

The 80-20 rule reflects the idea that ________.

Accepted Answer

A)  20 percent of the company's profits are generated by the top 80 percent of customers 
B)  the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend 
C)  20 percent of customers are unprofitable, and 80 percent make up a company's profits 
D)  the top 20 percent of customers often generate 80 percent of the company's profits 
E)  any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle 
A)  20 percent of the company's profits are generated by the top 80 percent of customers 
B)  the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend 
C)  20 percent of customers are unprofitable, and 80 percent make up a company's profits 
D)  the top 20 percent of customers often generate 80 percent of the company's profits 
E)  any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle

Question 8

________ can track customer satisfaction directly, measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others.

Accepted Answer

A)  Periodic surveys 
B)  Mystery shoppers 
C)  Customer loss rates 
D)  Customer focus statements 
E)  Sales summary reports 
A)  Periodic surveys 
B)  Mystery shoppers 
C)  Customer loss rates 
D)  Customer focus statements 
E)  Sales summary reports

Question 9

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Accepted Answer

A)  Activity-based costing 
B)  Customer lifetime value 
C)  Customer value analysis 
D)  Customer-perceived value 
E)  Customer profitability analysis 
A)  Activity-based costing 
B)  Customer lifetime value 
C)  Customer value analysis 
D)  Customer-perceived value 
E)  Customer profitability analysis

Question 10

Frequency programs are designed to reward customers who buy often and in substantial amounts.

Accepted Answer

A) True 
 B)False

Question 11

Satisfied customers constitute the company's ________.

Accepted Answer

A)  customer relationship capital 
B)  customer churn 
C)  target audience 
D)  high-value customers 
E)  customer touch points 
A)  customer relationship capital 
B)  customer churn 
C)  target audience 
D)  high-value customers 
E)  customer touch points

Question 12

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Accepted Answer

A)  Performance 
B)  Value 
C)  Quality 
D)  Customer retention 
E)  Customer loyalty 
A)  Performance 
B)  Value 
C)  Quality 
D)  Customer retention 
E)  Customer loyalty

Question 13

When the brand manager for John Deere sets up advertising, sales promotions, events, and public relations to communicate about the value embodied in its products, she is participating in the "communicating value" management function.

Accepted Answer

A) True 
 B)False

Question 14

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. Though Keiko's products are priced lower than Global's, the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech. What can Keiko do to obtain LZT's order?

Accepted Answer

To obtain LZT's order, Keiko Inc. can ta

Question 15

Sapphire Toys actually sells more than toys. It also sells branded clothing, music CDs, and books for children. This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Accepted Answer

A)  reducing the rate of customer defection 
B)  increasing the longevity of the customer relationship 
C)  enhancing the growth potential of each customer through cross-selling 
D)  making low-profit customers more profitable 
E)  terminating low-profit customers 
A)  reducing the rate of customer defection 
B)  increasing the longevity of the customer relationship 
C)  enhancing the growth potential of each customer through cross-selling 
D)  making low-profit customers more profitable 
E)  terminating low-profit customers

Question 16

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

Accepted Answer

A) True 
 B)False

Question 17

A marketer who wants to position his line of cameras as the "Cadillac" of all cameras is focused on connecting with customers.

Accepted Answer

A) True 
 B)False

Question 18

The final step of customer value analysis is to ________.

Accepted Answer

A)  identify the major attributes and benefits that customers value 
B)  assess the company's and competitors' performances on the different customer values against their rated importance 
C)  examine how customers in a specific segment rate the company's performance 
D)  monitor customer values over time 
E)  assess the quantitative importance of the different attributes and benefits 
A)  identify the major attributes and benefits that customers value 
B)  assess the company's and competitors' performances on the different customer values against their rated importance 
C)  examine how customers in a specific segment rate the company's performance 
D)  monitor customer values over time 
E)  assess the quantitative importance of the different attributes and benefits

Question 19

Identify the pros and cons of using behavioral targeting for marketing.

Accepted Answer

Behavioral targeting allows firms to mat

Question 20

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Accepted Answer

A) True 
 B)False

Exam 5: Creating Long-Term Loyalty Relationships

Which of the following is the best method of recovering customer goodwill?

Which of the following gains the most benefit from introducing a frequency program?

Activity-based costing does not consider indirect, variable, and overhead costs.

The value proposition is also known as the core positioning of the offering.

A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer.

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.

The 80-20 rule reflects the idea that ________.

________ can track customer satisfaction directly, measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others.

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Frequency programs are designed to reward customers who buy often and in substantial amounts.

Satisfied customers constitute the company's ________.

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

When the brand manager for John Deere sets up advertising, sales promotions, events, and public relations to communicate about the value embodied in its products, she is participating in the "communicating value" management function.

Sapphire Toys actually sells more than toys. It also sells branded clothing, music CDs, and books for children. This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

A marketer who wants to position his line of cameras as the "Cadillac" of all cameras is focused on connecting with customers.

The final step of customer value analysis is to ________.

Identify the pros and cons of using behavioral targeting for marketing.

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

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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