Question 1

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

Accepted Answer

A)  sales 
B)  top management 
C)  front-line people 
D)  customers 
E)  middle management 
A)  sales 
B)  top management 
C)  front-line people 
D)  customers 
E)  middle management

Question 2

CJ's is a clothes retailer that grew from a single store into a chain over a few years. The key service characteristic during CJ's early years was a personalized customer relationship, and the company continues to collect information about its customers and maintain a database. Recently, however, CJ's has been losing customers to competitors as the expansion has made it difficult to personalize services. How can CJ's use its customer database to reactivate customer purchases?

Accepted Answer

CJ's can install automatic mailing progr

Question 3

What are the steps in a customer value analysis?

Accepted Answer

Managers conduct a customer value analys

Question 4

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 5

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 6

In which of the following cases is building a database worthwhile for the company?

Accepted Answer

A)  where the product is a once-in-a-lifetime purchase 
B)  where customers show little loyalty to a brand 
C)  where the company wishes to reactivate customer purchases 
D)  where the unit sale is very small 
E)  where the cost of gathering the information is high 
A)  where the product is a once-in-a-lifetime purchase 
B)  where customers show little loyalty to a brand 
C)  where the company wishes to reactivate customer purchases 
D)  where the unit sale is very small 
E)  where the cost of gathering the information is high

Question 7

Profit rate tends to decrease over the life of the retained customer due to increased purchases, referrals, price premiums, and increased operating costs to service.

Accepted Answer

A) True 
 B)False

Question 8

In which of the following cases is building a database worthwhile for the company?

Accepted Answer

A)  Clare's creates personalized sculptures for special occasions. 
B)  Sales of Clarity soap have fallen over the past few months in all regions. 
C)  2Wheels sends appropriate gifts and discount coupons to deepen customer loyalty. 
D)  Uncle Jim's sells its range of snacks in stores throughout the country. 
E)  Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the U.S. 
A)  Clare's creates personalized sculptures for special occasions. 
B)  Sales of Clarity soap have fallen over the past few months in all regions. 
C)  2Wheels sends appropriate gifts and discount coupons to deepen customer loyalty. 
D)  Uncle Jim's sells its range of snacks in stores throughout the country. 
E)  Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the U.S.

Question 9

Amy is in the "aware" stage of the marketing funnel when she says ________.

Accepted Answer

A)  she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood 
B)  she was informed about VeggiesNmore by her colleague at work 
C)  she regularly shops from VeggiesNmore 
D)  she shops from VeggiesNmore as far as the store is easily accessible 
E)  she was happy with the experience of shopping at VeggiesNmore 
A)  she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood 
B)  she was informed about VeggiesNmore by her colleague at work 
C)  she regularly shops from VeggiesNmore 
D)  she shops from VeggiesNmore as far as the store is easily accessible 
E)  she was happy with the experience of shopping at VeggiesNmore

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Jill has shopped at VeggiesNmore. She was happy with the experience and thought that it could be an alternative to Jon's Market. However, she is also keen to try out other stores in the neighborhood. She 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)  trier 
E)  regular user 
A)  aware 
B)  open to trial 
C)  most often used 
D)  trier 
E)  regular user

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Using the information in his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

Accepted Answer

A)  data warehouse 
B)  call back list 
C)  call rejection list 
D)  bibliographic database 
E)  customer-value hierarchy 
A)  data warehouse 
B)  call back list 
C)  call rejection list 
D)  bibliographic database 
E)  customer-value hierarchy

Question 16

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________.

Accepted Answer

A)  horizontal marketing system 
B)  cost versus benefit system 
C)  consumption system 
D)  marketing channel system 
E)  value delivery system 
A)  horizontal marketing system 
B)  cost versus benefit system 
C)  consumption system 
D)  marketing channel system 
E)  value delivery system

Question 17

Give an example of two products that have different performance quality but are of equal conformance quality.

Accepted Answer

An example of two products that have dif

Question 18

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of ________.

Accepted Answer

A)  reports from mystery shoppers 
B)  survey data from customers who have defected 
C)  market research 
D)  individual account information 
E)  demographic trend data 
A)  reports from mystery shoppers 
B)  survey data from customers who have defected 
C)  market research 
D)  individual account information 
E)  demographic trend data

Question 19

For a magazine, subscription renewal rate is a good measure of retention.

Accepted Answer

A) True 
 B)False

Question 20

What are the measurement techniques for monitoring satisfaction?

Accepted Answer

Many companies are systematically measur

Exam 5: Creating Customer Value, Satisfaction, and Loyalty

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

What are the steps in a customer value analysis?

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.

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

In which of the following cases is building a database worthwhile for the company?

Profit rate tends to decrease over the life of the retained customer due to increased purchases, referrals, price premiums, and increased operating costs to service.

In which of the following cases is building a database worthwhile for the company?

Amy is in the "aware" stage of the marketing funnel when she says ________.

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

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

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?

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

Using the information in his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________.

Give an example of two products that have different performance quality but are of equal conformance quality.

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of ________.

For a magazine, subscription renewal rate is a good measure of retention.

What are the measurement techniques for monitoring satisfaction?

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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