Question 1

One key to customer retention is ________.It would be wise for a company to measure this factor frequently.

Accepted Answer

A) heavy promotion 
B) deep discounts for intermediaries 
C) to have an ethics officer 
D) customer satisfaction 
E) to have customers on the board of directors 
A) heavy promotion 
B) deep discounts for intermediaries 
C) to have an ethics officer 
D) customer satisfaction 
E) to have customers on the board of directors D

Question 2

What is a customer touch point?

Accepted Answer

A customer touch point is any occasion on which a customer encounters the brand and product-from actual experience to personal or mass communications to casual observation.

Question 3

The average company loses 25% of its customers each year.

Accepted Answer

A) True 
 B)False  False

Question 4

Customer lifetime value (CLV)describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Accepted Answer

A) True 
 B)False

Question 5

Professional buyers and purchasing agents operate under various constraints and occasionally make choices that give more weight to their personal benefit than to the company's benefit.

Accepted Answer

A) True 
 B)False

Question 6

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 7

All of the following are examples of the perils of CRM EXCEPT ________.

Accepted Answer

A) implementing CRM before creating a customer strategy 
B) the enormous cost that might eventually drain significant profits from the organization 
C) rolling out CRM before changing the organization to match 
D) assuming more CRM technology is better 
E) stalking,not wooing,customers 
A) implementing CRM before creating a customer strategy 
B) the enormous cost that might eventually drain significant profits from the organization 
C) rolling out CRM before changing the organization to match 
D) assuming more CRM technology is better 
E) stalking,not wooing,customers

Question 8

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

Accepted Answer

A) psychological 
B) intangible 
C) realized 
D) fabricated 
E) advertised 
A) psychological 
B) intangible 
C) realized 
D) fabricated 
E) advertised

Question 9

Jim is a residential construction contractor.Although one particular realtor provides Jim with a large volume of work,the realtor frequently demands discounts for sending him customers.This realtor is best described as a(n)________ customer.

Accepted Answer

A) platinum 
B) gold 
C) lead 
D) iron 
E) ivory 
A) platinum 
B) gold 
C) lead 
D) iron 
E) ivory

Question 10

3M makes it easy for dialog to occur with its customers.3M claims that over two-thirds of its product-improvement ideas come from listening to ________.

Accepted Answer

A) customer suggestions 
B) entrepreneurial product ideas 
C) customer complaints 
D) media feedback 
E) customer reactions to competitive products 
A) customer suggestions 
B) entrepreneurial product ideas 
C) customer complaints 
D) media feedback 
E) customer reactions to competitive products

Question 11

All of the following are considered to be customer costs EXCEPT ________.

Accepted Answer

A) financial cost of acquiring the product 
B) financial cost of disposing of the product 
C) time spent acquiring the product 
D) the risk of social stigma associated with acquiring the product 
E) All of the above are considered to be customer costs. 
A) financial cost of acquiring the product 
B) financial cost of disposing of the product 
C) time spent acquiring the product 
D) the risk of social stigma associated with acquiring the product 
E) All of the above are considered to be customer costs.

Question 12

Acquiring new customers can cost ________ times more than satisfying and retaining current customers.

Accepted Answer

A) two 
B) three 
C) five 
D) seven 
E) 10 
A) two 
B) three 
C) five 
D) seven 
E) 10

Question 13

Studies of customer dissatisfaction show that customers are dissatisfied with their purchases about 25% of the time,but only about ________ complain.

Accepted Answer

A) 1% 
B) 5% 
C) 10% 
D) 15% 
E) 20% 
A) 1% 
B) 5% 
C) 10% 
D) 15% 
E) 20%

Question 14

Southwest Airlines offers a Rapid Rewards program,an example of a ________ that allows customers to count flights they have taken toward free future flights.

Accepted Answer

A) value proposition 
B) value delivery system 
C) club membership program 
D) one-to-one marketing program 
E) customer churn 
A) value proposition 
B) value delivery system 
C) club membership program 
D) one-to-one marketing program 
E) customer churn

Question 15

A customer database should contain all of the following EXCEPT ________.

Accepted Answer

A) a customer's past purchases 
B) demographics 
C) psychographics 
D) mediagraphics 
E) an assessment of competitive strengths and weaknesses 
A) a customer's past purchases 
B) demographics 
C) psychographics 
D) mediagraphics 
E) an assessment of competitive strengths and weaknesses

Question 16

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) consumer discount 
D) consumer relationship 
E) consumer synergy 
A) customer-perceived value 
B) customer-perceived cost 
C) consumer discount 
D) consumer relationship 
E) consumer synergy

Question 17

Explain how a company frequency program might work.

Accepted Answer

Frequency programs are designe

Question 18

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Buyers form their expectations from all of the following EXCEPT ________.

Accepted Answer

A) past buying experience 
B) friends and associates advice 
C) marketers' information 
D) competitors' information 
E) governmental newsletters 
A) past buying experience 
B) friends and associates advice 
C) marketers' information 
D) competitors' information 
E) governmental newsletters

Exam 5: Creating Customer Value, satisfaction, and Loyalty

One key to customer retention is ________.It would be wise for a company to measure this factor frequently.

What is a customer touch point?

The average company loses 25% of its customers each year.

Customer lifetime value (CLV)describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Professional buyers and purchasing agents operate under various constraints and occasionally make choices that give more weight to their personal benefit than to the company's benefit.

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

All of the following are examples of the perils of CRM EXCEPT ________.

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

Jim is a residential construction contractor.Although one particular realtor provides Jim with a large volume of work,the realtor frequently demands discounts for sending him customers.This realtor is best described as a(n)________ customer.

3M makes it easy for dialog to occur with its customers.3M claims that over two-thirds of its product-improvement ideas come from listening to ________.

All of the following are considered to be customer costs EXCEPT ________.

Acquiring new customers can cost ________ times more than satisfying and retaining current customers.

Studies of customer dissatisfaction show that customers are dissatisfied with their purchases about 25% of the time,but only about ________ complain.

Southwest Airlines offers a Rapid Rewards program,an example of a ________ that allows customers to count flights they have taken toward free future flights.

A customer database should contain all of the following EXCEPT ________.

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

Explain how a company frequency program might work.

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

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

Buyers form their expectations from all of the following EXCEPT ________.

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

Dealing With Competition

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing

Managing Retailing, wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications:

Managing Personal Communications:

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

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