Exam 5: Creating Customer Value, Satisfaction, and Loyalty

Phil Leong has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database. In which of the following ways is Mr. Leong most likely using his database?

Total customer cost consists of only the non-monetary costs in evaluating, obtaining, using, and disposing of the given market offering.

A ________ is simply a set of names, addresses, and telephone numbers.

Which of the following is true for activity-based costing (ABC)?

Uncle Jim's is a brand of ready-to-eat snacks that is widely distributed in supermarkets and stores across the country. Should Uncle Jim's opt for one-to-one marketing? Give reasons for your answer.

Uncle Jim's is a brand of ready-to-eat snacks that is widely distributed in supermarkets and stores across the country. The marketing team has recently suggested that the company adopt database marketing so that it can better target its customers. Should Uncle Jim's create a database? Give reasons for your answer.

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

Conformance quality and performance quality are identical in the marketing sense.

Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies.

The value proposition is stated in the price of a product and readily recognized by the average consumer.

Which of the following can a company do to reduce defection?

When two brands of the same basic product deliver their respective promised quality, they are delivering ________.

Which of the following is the first step in customer value analysis?

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

2Wheels conducts exhaustive customer surveys to discover customer preferences and attitudes towards the brand. Sally uses cluster analysis to classify the data and help the company determine the trends in the information. Sally is using the technique of ________.

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 ________.

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.

The process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships is called ________.

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.