Question 1

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.

Accepted Answer

A)  input-output analysis 
B)  factor analysis 
C)  revenue-based costing 
D)  activity-based costing 
E)  future date costing 
A)  input-output analysis 
B)  factor analysis 
C)  revenue-based costing 
D)  activity-based costing 
E)  future date costing

Question 2

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

Accepted Answer

A) True 
 B)False

Question 3

The 20-80 rule reflects the idea that ________.

Accepted Answer

A)  20% of the company's profits are generated by the top 80% of customers 
B)  the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend 
C)  20% of customers are unprofitable, and 80% make up a company's profits 
D)  the top 20% of customers often generate 80% of the company's profits 
E)  any new product will be accepted by 20% of the customers immediately, but 80% of the customers will be up for grabs throughout the product's life cycle 
A)  20% of the company's profits are generated by the top 80% of customers 
B)  the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend 
C)  20% of customers are unprofitable, and 80% make up a company's profits 
D)  the top 20% of customers often generate 80% of the company's profits 
E)  any new product will be accepted by 20% of the customers immediately, but 80% of the customers will be up for grabs throughout the product's life cycle

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Explain "Win-Backs" in detail.

Accepted Answer

Regardless of the nature of the category

Question 6

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.

Accepted Answer

A)  trying to increase the retention rate for low-profit customers 
B)  terminating the relationship with low-profit customers 
C)  enhancing the growth potential of each customer through up-selling 
D)  increasing the longevity of the customer relationship 
E)  reducing the rate of customer defection 
A)  trying to increase the retention rate for low-profit customers 
B)  terminating the relationship with low-profit customers 
C)  enhancing the growth potential of each customer through up-selling 
D)  increasing the longevity of the customer relationship 
E)  reducing the rate of customer defection

Question 7

The marketing funnel identifies the profitability of consumers at each stage in the decision process.

Accepted Answer

A) True 
 B)False

Question 8

Permission marketing presumes that consumers know what they want.

Accepted Answer

A) True 
 B)False

Question 9

Rachel and John are on vacation in Hawaii. When they arrived at the hotel, they were offered chilled juice. Their check-in formalities were handled by the staff. When they entered their room, they saw that chocolates had been placed on the pillows and a flower arrangement on the table. The hotel's actions are an example of ________.

Accepted Answer

A)  customer lifetime value 
B)  customer perceived value 
C)  customer value analysis 
D)  customer profitability analysis 
E)  a customer touch point 
A)  customer lifetime value 
B)  customer perceived value 
C)  customer value analysis 
D)  customer profitability analysis 
E)  a customer touch point

Question 10

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 11

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Accepted Answer

A) True 
 B)False

Question 12

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Accepted Answer

A) True 
 B)False

Question 13

Frequency programs are designed to reward customers who buy frequently and in substantial amounts.

Accepted Answer

A) True 
 B)False

Question 14

Sara is the marketing manager of a small HR consultancy firm. She is in the process of building a database to assist her company in its marketing efforts. Give five problems that can make the database less effective.

Accepted Answer

1. Some situations are just not conduciv

Question 15

LZT is a cell phone manufacturer that designs its phones based on customer input. Once a new model is launched, the company monitors customer feedback and uses negative reviews to improve the next model. LZT also handles customer queries at length, and customer service is considered to be the most important function in the company. Is LZT more likely to use a traditional or modern company organization?

Accepted Answer

LZT is more likely to have a m

Question 16

The aim of customer relationship management is to maximize customer ________.

Accepted Answer

A)  integrity 
B)  loyalty 
C)  innovation 
D)  liability 
E)  equity 
A)  integrity 
B)  loyalty 
C)  innovation 
D)  liability 
E)  equity

Question 17

The skillful use of ________ has made Avon one of the world's largest direct-mail marketers.

Accepted Answer

A)  everyday low prices 
B)  expanded home delivery options 
C)  database marketing 
D)  under-the-line promotions 
E)  retailer alliances 
A)  everyday low prices 
B)  expanded home delivery options 
C)  database marketing 
D)  under-the-line promotions 
E)  retailer alliances

Question 18

A customer touch point is the time when the customer makes a purchase.

Accepted Answer

A) True 
 B)False

Question 19

Singapore Airlines offers the Krisflyer Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________.

Accepted Answer

A)  cross-selling program 
B)  value delivery system 
C)  club membership program 
D)  activity-based costing program 
E)  up-selling program 
A)  cross-selling program 
B)  value delivery system 
C)  club membership program 
D)  activity-based costing program 
E)  up-selling program

Question 20

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________.

Accepted Answer

A)  benefit programs 
B)  frequency programs 
C)  satisfaction programs 
D)  profitability programs 
E)  quality programs 
A)  benefit programs 
B)  frequency programs 
C)  satisfaction programs 
D)  profitability programs 
E)  quality programs

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

The 20-80 rule reflects the idea that ________.

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

Explain "Win-Backs" in detail.

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.

The marketing funnel identifies the profitability of consumers at each stage in the decision process.

Permission marketing presumes that consumers know what they want.

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

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Frequency programs are designed to reward customers who buy frequently and in substantial amounts.

Sara is the marketing manager of a small HR consultancy firm. She is in the process of building a database to assist her company in its marketing efforts. Give five problems that can make the database less effective.

The aim of customer relationship management is to maximize customer ________.

The skillful use of ________ has made Avon one of the world's largest direct-mail marketers.

A customer touch point is the time when the customer makes a purchase.

Singapore Airlines offers the Krisflyer Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________.

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________.

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

Filters

Exam 5: Creating Customer Value, Satisfaction, and Loyalty

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

The 20-80 rule reflects the idea that ________.

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

Explain "Win-Backs" in detail.

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.

The marketing funnel identifies the profitability of consumers at each stage in the decision process.

Permission marketing presumes that consumers know what they want.

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

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Frequency programs are designed to reward customers who buy frequently and in substantial amounts.

Sara is the marketing manager of a small HR consultancy firm. She is in the process of building a database to assist her company in its marketing efforts. Give five problems that can make the database less effective.

The aim of customer relationship management is to maximize customer ________.

The skillful use of ________ has made Avon one of the world's largest direct-mail marketers.

A customer touch point is the time when the customer makes a purchase.

Singapore Airlines offers the Krisflyer Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n) ________.

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________.

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

Filters