Question 1

In general,companies can use their databases in all of the following ways EXCEPT ________.

Accepted Answer

A) to predict competitive strategies and plans 
B) to identify prospects 
C) to decide which customers should receive a particular offer 
D) to deepen customer loyalty 
E) to avoid serious customer mistakes 
A) to predict competitive strategies and plans 
B) to identify prospects 
C) to decide which customers should receive a particular offer 
D) to deepen customer loyalty 
E) to avoid serious customer mistakes

Question 2

The ultimate goal of the customer-centered firm is ________.

Accepted Answer

A) high customer satisfaction 
B) high profits 
C) low costs 
D) maximum stakeholder satisfaction 
E) none of the above 
A) high customer satisfaction 
B) high profits 
C) low costs 
D) maximum stakeholder satisfaction 
E) none of the above

Question 3

People with the motivation,ability,and opportunity to make a purchase 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 4

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 5

Harley-Davidson sells more than motorcycles and accessories.Its dealerships also sell branded clothing and licensed goods.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Accepted Answer

A) reducing the rate of customer defection 
B) increasing the longevity of the customer relationship 
C) enhancing the growth potential of each customer through cross-selling 
D) making low-profit customers more profitable 
E) terminating low-profit customers 
A) reducing the rate of customer defection 
B) increasing the longevity of the customer relationship 
C) enhancing the growth potential of each customer through cross-selling 
D) making low-profit customers more profitable 
E) terminating low-profit customers

Question 6

What are the four classifications (tiers)of customers in customer profitability analysis using activity-based costing?

Accepted Answer

The tiers would be platinum cu

Question 7

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called activity-based costing (ABC).

Accepted Answer

A) True 
 B)False

Question 8

Marketers have found that pricing plays the most essential role in defining and delivering high-quality goods and services to target customers.

Accepted Answer

A) True 
 B)False

Question 9

A good illustration of a personal touch in the hotel business would be if the hotel employees (e.g. ,registration,maid service,et cetera)call a guest by his or her name.

Accepted Answer

A) True 
 B)False

Question 10

Buyers form expectations in all of the following ways EXCEPT ________.

Accepted Answer

A) from past buying experience 
B) from friends' and associates' advice 
C) from marketers' information 
D) from competitors' information 
E) from inherited traits 
A) from past buying experience 
B) from friends' and associates' advice 
C) from marketers' information 
D) from competitors' information 
E) from inherited traits

Question 11

The 20-80 rule reflects the idea that ________.

Accepted Answer

A) the top 20% of customers often generate 80% of the company's profits 
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) 20% of the company's profits are generated by the top 80% of customers 
E) any new product offering 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) the top 20% of customers often generate 80% of the company's profits 
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) 20% of the company's profits are generated by the top 80% of customers 
E) any new product offering 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 12

The aim of customer relationship management (CRM)is to produce high customer ________.

Accepted Answer

A) value 
B) loyalty 
C) profitability 
D) satisfaction 
E) equity 
A) value 
B) loyalty 
C) profitability 
D) satisfaction 
E) equity

Question 13

Peppers and Rogers outline a four-step framework for one-to-one marketing that can be adapted to CRM marketing.What are those four steps?

Accepted Answer

The four steps are: (1)Identify your pro

Question 14

When Bob found out his friend was thinking about buying a new car,he strongly recommended that his friend look into the newest line of Ford sedans.Bob is best characterized as a(n)________ for Ford.

Accepted Answer

A) first-time customer 
B) member 
C) partner 
D) advocate 
E) prospect 
A) first-time customer 
B) member 
C) partner 
D) advocate 
E) prospect

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

According to customer profitability analysis (CPA),platinum customers spend the most money with the organization,thereby making them valuable.

Accepted Answer

A) True 
 B)False

Question 17

The least profitable 10% to 20% of customers can reduce profits by 50% to 200% per account.

Accepted Answer

A) True 
 B)False

Question 18

Cluster analysis is a good example of a statistical technique that might be employed in datamining.

Accepted Answer

A) True 
 B)False

Question 19

Satisfied customers constitute the company's ________.

Accepted Answer

A) customer relationship capital 
B) customer churn 
C) prospects 
D) high-value customers 
E) customer touch points 
A) customer relationship capital 
B) customer churn 
C) prospects 
D) high-value customers 
E) customer touch points

Question 20

Describe the process of database marketing.

Accepted Answer

Database marketing is the process of bui

Exam 5: Creating Customer Value, satisfaction, and Loyalty

In general,companies can use their databases in all of the following ways EXCEPT ________.

The ultimate goal of the customer-centered firm is ________.

People with the motivation,ability,and opportunity to make a purchase are known as ________.

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

Harley-Davidson sells more than motorcycles and accessories.Its dealerships also sell branded clothing and licensed goods.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

What are the four classifications (tiers)of customers in customer profitability analysis using activity-based costing?

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called activity-based costing (ABC).

Marketers have found that pricing plays the most essential role in defining and delivering high-quality goods and services to target customers.

A good illustration of a personal touch in the hotel business would be if the hotel employees (e.g. ,registration,maid service,et cetera)call a guest by his or her name.

Buyers form expectations in all of the following ways EXCEPT ________.

The 20-80 rule reflects the idea that ________.

The aim of customer relationship management (CRM)is to produce high customer ________.

Peppers and Rogers outline a four-step framework for one-to-one marketing that can be adapted to CRM marketing.What are those four steps?

When Bob found out his friend was thinking about buying a new car,he strongly recommended that his friend look into the newest line of Ford sedans.Bob is best characterized as a(n)________ for Ford.

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.

According to customer profitability analysis (CPA),platinum customers spend the most money with the organization,thereby making them valuable.

The least profitable 10% to 20% of customers can reduce profits by 50% to 200% per account.

Cluster analysis is a good example of a statistical technique that might be employed in datamining.

Satisfied customers constitute the company's ________.

Describe the process of database marketing.

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

Filters