Question 1

Which of the following is NOT a way to make online brand communities more effective?

Accepted Answer

A)  set appointed times for topic discussion 
B)  keep the focus on the topic 
C)  make it easy for users to express themselves 
D)  launch contests 
E)  set limits on length of responses 
A)  set appointed times for topic discussion 
B)  keep the focus on the topic 
C)  make it easy for users to express themselves 
D)  launch contests 
E)  set limits on length of responses E

Question 2

What are the steps in a customer value analysis?

Accepted Answer

Managers conduct a customer value analysis to reveal the company's strengths and weaknesses relative to those of various competitors. The steps in this analysis are:
1. Identify the major attributes and benefits that customers value.
2. Assess the quantitative importance of the different attributes and benefits.
3. Assess the company's and competitors' performances on the different customer values against their rated importance.
4. Examine how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis.
5. Monitor customer values over time.

Question 3

Permission marketing presumes that consumers know what they want.

Accepted Answer

A) True 
 B)False  True

Question 4

Sites such as Bizrate.com, Shopping.com, and PriceGrabber.com, and Epinions.com and Yelp.com, which let customers share information about their product and service experiences with others, reflect an increase in customer ________.

Accepted Answer

A)  ambiguity 
B)  empowerment 
C)  privacy 
D)  diplomacy 
E)  empathy 
A)  ambiguity 
B)  empowerment 
C)  privacy 
D)  diplomacy 
E)  empathy

Question 5

Which of the following is an example of enhancing the growth potential of each customer through cross-selling?

Accepted Answer

A)  In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and other accessories. 
B)  2Wheels has a club for its regular customers, organizing cycling events and parties for them. 
C)  Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. 
D)  2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E)  2Wheels encourages customers to send in their suggestions for product improvement. 
A)  In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and other accessories. 
B)  2Wheels has a club for its regular customers, organizing cycling events and parties for them. 
C)  Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. 
D)  2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E)  2Wheels encourages customers to send in their suggestions for product improvement.

Question 6

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 7

It's often easier to re-attract ex-customers than to find new ones because the company knows their names and histories.

Accepted Answer

A) True 
 B)False

Question 8

Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.

Accepted Answer

A) True 
 B)False

Question 9

Provide an example of a big company that fought back against an unjustified complaint.

Accepted Answer

Student responses will vary. When Taco B

Question 10

________ marketing is the practice of sending messages only when consumers express a willingness to become more involved with the brand.

Accepted Answer

A)  Relationship 
B)  Permission 
C)  Cause 
D)  Defensive 
E)  Horizontal 
A)  Relationship 
B)  Permission 
C)  Cause 
D)  Defensive 
E)  Horizontal

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

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 13

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Total customer satisfaction is measured based on the relationship of ________.

Accepted Answer

A)  expected value and total customer benefit 
B)  perceived performance and expectation 
C)  advertised outcomes and real outcomes 
D)  past experience and present experience 
E)  customer attitude and salesperson's attitude 
A)  expected value and total customer benefit 
B)  perceived performance and expectation 
C)  advertised outcomes and real outcomes 
D)  past experience and present experience 
E)  customer attitude and salesperson's attitude

Question 16

Explain permission marketing.

Accepted Answer

Permission marketing is the practice of

Question 17

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 18

The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of a market offering is called the ________.

Accepted Answer

A)  activity-based cost 
B)  customer profitability analysis 
C)  total customer cost 
D)  product life-cycle cost 
E)  direct product profitability 
A)  activity-based cost 
B)  customer profitability analysis 
C)  total customer cost 
D)  product life-cycle cost 
E)  direct product profitability

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 5: Creating Long-Term Loyalty Relationships

Which of the following is NOT a way to make online brand communities more effective?

What are the steps in a customer value analysis?

Permission marketing presumes that consumers know what they want.

Sites such as Bizrate.com, Shopping.com, and PriceGrabber.com, and Epinions.com and Yelp.com, which let customers share information about their product and service experiences with others, reflect an increase in customer ________.

Which of the following is an example of enhancing the growth potential of each customer through cross-selling?

It's often easier to re-attract ex-customers than to find new ones because the company knows their names and histories.

Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.

Provide an example of a big company that fought back against an unjustified complaint.

________ marketing is the practice of sending messages only when consumers express a willingness to become more involved with the brand.

A profitable customer yields a ________.

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.

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

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

Total customer satisfaction is measured based on the relationship of ________.

Explain permission marketing.

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

The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of a market offering is called the ________.

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.

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

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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