Question 1

How do companies use their databases to identify prospects?

Accepted Answer

Many companies generate sales leads by a

Question 2

Customers who enthusiastically recommend the company and its products and services to others are known as ________.

Accepted Answer

A) potentials 
B) advocates 
C) members 
D) prospects 
E) partners 
A) potentials 
B) advocates 
C) members 
D) prospects 
E) partners

Question 3

One-to-one marketing is not for every company.For whom does this style of marketing work best?

Accepted Answer

One-to-one marketing works best for comp

Question 4

According to Stanford's business guru Jeffery Pfeffer,"the best companies build cultures in which frontline people ________."

Accepted Answer

A) can refer serious problems to senior management 
B) have strictly limited freedom to deviate from standard operating procedures 
C) are also consumers of the company's products 
D) are empowered to do what's needed to take care of the customer 
E) live in the communities they serve 
A) can refer serious problems to senior management 
B) have strictly limited freedom to deviate from standard operating procedures 
C) are also consumers of the company's products 
D) are empowered to do what's needed to take care of the customer 
E) live in the communities they serve

Question 5

What are the three ways that customer profitability can be assessed?

Accepted Answer

Customer profitabili

Question 6

Quality is the key to value creation and customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 7

The ________ consists of the whole cluster of benefits the company promises to deliver;it is more than the core positioning of the offering.

Accepted Answer

A) customer promise 
B) mission statement 
C) corporate pledge 
D) corporate-perceived value 
E) value proposition 
A) customer promise 
B) mission statement 
C) corporate pledge 
D) corporate-perceived value 
E) value proposition

Question 8

Price perception 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 9

There are two determinates of customer-perceived value: total customer benefit and total customer cost.

Accepted Answer

A) True 
 B)False

Question 10

At the heart of a good value delivery system is a set of core business processes that help to deliver distinctive customer value.

Accepted Answer

A) True 
 B)False

Question 11

A key driver of shareholder value is the aggregate value of the customer base.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Provide a customer-centered definition of the term quality.

Accepted Answer

Quality is the totality of fea

Question 14

With respect to customer profitability analysis,________ customers are the most likely dropped as customers because of poor profitability.

Accepted Answer

A) granite 
B) wood 
C) iron 
D) plastic 
E) lead 
A) granite 
B) wood 
C) iron 
D) plastic 
E) lead

Question 15

Unprofitable customers who defect to a competitor should be encouraged to do so.

Accepted Answer

A) True 
 B)False

Question 16

The midsize customers for most organizations receive good service,pay nearly full price for the products and services they purchase,and are often the most profitable.

Accepted Answer

A) True 
 B)False

Question 17

Of customers who register a complaint,________.

Accepted Answer

A) the majority will do business with the company again because they are unwilling to dedicate the effort required to find another vendor 
B) none will do business with the company again 
C) customers whose complaints are satisfactorily resolved spread more word of mouth than those who continue to be dissatisfied 
D) the speed of resolution has no impact on the likelihood of repeat business 
E) between approximately half and three-quarters will do business with the company again if their complaint is resolved 
A) the majority will do business with the company again because they are unwilling to dedicate the effort required to find another vendor 
B) none will do business with the company again 
C) customers whose complaints are satisfactorily resolved spread more word of mouth than those who continue to be dissatisfied 
D) the speed of resolution has no impact on the likelihood of repeat business 
E) between approximately half and three-quarters will do business with the company again if their complaint is resolved

Question 18

The case for maximizing long-term customer profitability is captured in the concept of customer lifetime value.How is customer lifetime value calculated?

Accepted Answer

Customer lifetime value describes the ne

Question 19

For a consumer to be delighted with a product or service he or she must perceive that performance exceeds expectations.

Accepted Answer

A) True 
 B)False

Question 20

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Accepted Answer

A) Activity-based costing 
B) Customer profitability analysis 
C) Customer value analysis 
D) Customer-perceived value 
E) Customer lifetime value 
A) Activity-based costing 
B) Customer profitability analysis 
C) Customer value analysis 
D) Customer-perceived value 
E) Customer lifetime value

Exam 5: Creating Customer Value, satisfaction, and Loyalty

How do companies use their databases to identify prospects?

Customers who enthusiastically recommend the company and its products and services to others are known as ________.

One-to-one marketing is not for every company.For whom does this style of marketing work best?

According to Stanford's business guru Jeffery Pfeffer,"the best companies build cultures in which frontline people ________."

What are the three ways that customer profitability can be assessed?

Quality is the key to value creation and customer satisfaction.

The ________ consists of the whole cluster of benefits the company promises to deliver;it is more than the core positioning of the offering.

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

There are two determinates of customer-perceived value: total customer benefit and total customer cost.

At the heart of a good value delivery system is a set of core business processes that help to deliver distinctive customer value.

A key driver of shareholder value is the aggregate value of the customer base.

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

Provide a customer-centered definition of the term quality.

With respect to customer profitability analysis,________ customers are the most likely dropped as customers because of poor profitability.

Unprofitable customers who defect to a competitor should be encouraged to do so.

The midsize customers for most organizations receive good service,pay nearly full price for the products and services they purchase,and are often the most profitable.

Of customers who register a complaint,________.

The case for maximizing long-term customer profitability is captured in the concept of customer lifetime value.How is customer lifetime value calculated?

For a consumer to be delighted with a product or service he or she must perceive that performance exceeds expectations.

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

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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