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

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?

Accepted Answer

Keiko can reduce the price or

Question 3

Customer satisfaction is the only way by which a firm can increase its profitability.

Accepted Answer

A) True 
 B)False

Question 4

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. How can Keiko make it more difficult for LZT to switch to another customer?

Accepted Answer

To make it more difficult for LZT to swi

Question 5

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 6

A profitable customer ________.

Accepted Answer

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

Question 7

Activity-based costing tries to identify the real costs associated with serving each customer.

Accepted Answer

A) True 
 B)False

Question 8

All companies should practice one-to-one marketing.

Accepted Answer

A) True 
 B)False

Question 9

What technique is used for customer profitability analysis?

Accepted Answer

Customer profitability analysis (CPA) is

Question 10

Which of the following is true for customer relationship marketing?

Accepted Answer

A)  Competitors can often hack into CRM systems. 
B)  Building and maintaining a customer database requires a large investment. 
C)  It is very difficult to find and train database employees. 
D)  Long-term results of such systems are still unproven. 
E)  Focusing too much on databases separates a company from its customers. 
A)  Competitors can often hack into CRM systems. 
B)  Building and maintaining a customer database requires a large investment. 
C)  It is very difficult to find and train database employees. 
D)  Long-term results of such systems are still unproven. 
E)  Focusing too much on databases separates a company from its customers.

Question 11

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Accepted Answer

A) True 
 B)False

Question 12

Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Berry's can use to discover the problem.

Accepted Answer

Periodic surveys can track customer sati

Question 13

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.

Accepted Answer

A)  customer database 
B)  customer mailing list 
C)  customer-performance scorecard 
D)  customer profitability analysis 
E)  customer-value hierarchy 
A)  customer database 
B)  customer mailing list 
C)  customer-performance scorecard 
D)  customer profitability analysis 
E)  customer-value hierarchy

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by winning companies to improve the value of their customer base.

Accepted Answer

Winning companies improve the value of t

Question 16

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-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

The answer of Cell phone manufacturer LZT has to choose...

Question 17

Consumers' expectations result exclusively from past buying experiences.

Accepted Answer

A) True 
 B)False

Question 18

In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment.

Accepted Answer

A)  top management 
B)  marketing department 
C)  middle management 
D)  frontline people 
E)  lower management 
A)  top management 
B)  marketing department 
C)  middle management 
D)  frontline people 
E)  lower management

Question 19

Explain permission marketing.

Accepted Answer

Permission marketing is the practice of

Question 20

Which of the following statements demonstrates behavioral loyalty towards a brand?

Accepted Answer

A)  2Wheels has very customer-friendly return policies for its products. 
B)  I always buy 2Wheels products when I'm looking for bike accessories. 
C)  Most of my friends agree that 2Wheels is the best place for durable biking gear. 
D)  2Wheels has the friendliest customer service people I've ever met. 
E)  I think that 2Wheels products are the highest-quality products in their price range. 
A)  2Wheels has very customer-friendly return policies for its products. 
B)  I always buy 2Wheels products when I'm looking for bike accessories. 
C)  Most of my friends agree that 2Wheels is the best place for durable biking gear. 
D)  2Wheels has the friendliest customer service people I've ever met. 
E)  I think that 2Wheels products are the highest-quality products in their price range.

Exam 5: Creating Customer Value, Satisfaction, and Loyalty

Another term for high customer ________ is customer churn.

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?

Customer satisfaction is the only way by which a firm can increase its profitability.

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. How can Keiko make it more difficult for LZT to switch to another customer?

The final step of customer value analysis is to ________.

A profitable customer ________.

Activity-based costing tries to identify the real costs associated with serving each customer.

All companies should practice one-to-one marketing.

What technique is used for customer profitability analysis?

Which of the following is true for customer relationship marketing?

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors. The company needs to identify the problems and rectify them. Give two methods Berry's can use to discover the problem.

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.

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

A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by winning companies to improve the value of their customer base.

Consumers' expectations result exclusively from past buying experiences.

In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment.

Explain permission marketing.

Which of the following statements demonstrates behavioral loyalty towards a brand?

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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