Question 1

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 2

TBS Bikes has recently introduced a series of bikes called Surami. The core positioning of TBS Bikes is "speed". Surami is a five-gear bike and apart from speed, the company promises to include other features such as safety, good performance, and pollution control features. This describes the ________ of the bike.

Accepted Answer

A)  total customer cost 
B)  customer-perceived value 
C)  value-delivery system 
D)  value proposition 
E)  total customer benefit 
A)  total customer cost 
B)  customer-perceived value 
C)  value-delivery system 
D)  value proposition 
E)  total customer benefit

Question 3

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.

Accepted Answer

A)  Total customer cost 
B)  Total customer benefit 
C)  Total benefits of ownership 
D)  Value proposition 
E)  Value delivery system 
A)  Total customer cost 
B)  Total customer benefit 
C)  Total benefits of ownership 
D)  Value proposition 
E)  Value delivery system

Question 4

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 5

It is difficult to collect the right data, especially to capture all the occasions of company interaction with ______________.

Accepted Answer

A)  individual suppliers 
B)  individual demands 
C)  individual complaints 
D)  individual customers 
E)  individual regulators 
A)  individual suppliers 
B)  individual demands 
C)  individual complaints 
D)  individual customers 
E)  individual regulators

Question 6

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 7

A company should try to retain the customer only as long as the cost to discourage defection is lower than the lost profit.

Accepted Answer

A) True 
 B)False

Question 8

Sara is the marketing manager of a small HR consultancy firm. She is in the process of implementing the use of a database to assist her company in its marketing efforts. List five ways in which she might be able to use the database for marketing efforts.

Accepted Answer

Sara can use a database for marketing ef

Question 9

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Accepted Answer

A)  Perceived usefulness 
B)  Failure avoidance rate 
C)  Total customer benefit 
D)  Customer-perceived value 
E)  Competitors' market share rate 
A)  Perceived usefulness 
B)  Failure avoidance rate 
C)  Total customer benefit 
D)  Customer-perceived value 
E)  Competitors' market share rate

Question 10

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

Accepted Answer

2Wheels can encourage unprofitable custo

Question 11

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 12

Susan Lee's company advertises widely. Ms. Lee uses business reply cards attached to her company's magazine ads to build her company's database. In which of the following ways would Ms. Lee most likely use the database?

Accepted Answer

A)  to deepen customer loyalty 
B)  to reactivate customer purchases 
C)  to avoid serious customer mistakes 
D)  to determine if up-selling is appropriate 
E)  to identify prospects 
A)  to deepen customer loyalty 
B)  to reactivate customer purchases 
C)  to avoid serious customer mistakes 
D)  to determine if up-selling is appropriate 
E)  to identify prospects

Question 13

Loyal customers are the best ambassadors for a brand.

Accepted Answer

A) True 
 B)False

Question 14

Explain total customer satisfaction.

Accepted Answer

In general, satisfaction is a person's f

Question 15

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

Accepted Answer

The answer of Give an example of how a hotel...

Question 16

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who are ready to participate in activities join the club. What can it do to ensure this?

Accepted Answer

The answer of To increase customer loyalty, 2Wheels wants to...

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

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

Accepted Answer

A) True 
 B)False

Question 19

Of customers who register a complaint, ________.

Accepted Answer

A)  all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor 
B)  none will do business with the company again 
C)  customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied 
D)  the speed of resolution has no impact on the likelihood of repeat business 
E)  some will do business with the company again if their complaint is resolved 
A)  all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor 
B)  none will do business with the company again 
C)  customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied 
D)  the speed of resolution has no impact on the likelihood of repeat business 
E)  some will do business with the company again if their complaint is resolved

Question 20

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.

Exam 5: Creating Customer Value, Satisfaction, and Loyalty

Satisfied customers constitute the company's ________.

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.

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

It is difficult to collect the right data, especially to capture all the occasions of company interaction with ______________.

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

A company should try to retain the customer only as long as the cost to discourage defection is lower than the lost profit.

Sara is the marketing manager of a small HR consultancy firm. She is in the process of implementing the use of a database to assist her company in its marketing efforts. List five ways in which she might be able to use the database for marketing efforts.

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

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

Susan Lee's company advertises widely. Ms. Lee uses business reply cards attached to her company's magazine ads to build her company's database. In which of the following ways would Ms. Lee most likely use the database?

Loyal customers are the best ambassadors for a brand.

Explain total customer satisfaction.

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who are ready to participate in activities join the club. What can it do to ensure this?

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

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

Of customers who register a complaint, ________.

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

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

Managing Personal Communications: Direct Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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