Question 1

Describe four situations or cases when building a customer database would not be worthwhile for a company.

Accepted Answer

Four situations or cases when building a

Question 2

Consumers' expectations result exclusively from past buying experiences.

Accepted Answer

A) True 
 B)False

Question 3

A ________ would contain such items as past volumes,prices,profits,buyer,status of current contacts,and an assessment of competitive strengths and weaknesses.

Accepted Answer

A) customer mailing list 
B) contact list 
C) customer database 
D) business database 
E) general corporate database 
A) customer mailing list 
B) contact list 
C) customer database 
D) business database 
E) general corporate database

Question 4

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _______.

Accepted Answer

A) reports from mystery shoppers 
B) survey data from customers who have defected 
C) market research into overall consumption trends 
D) individual account information 
E) demographic trend data 
A) reports from mystery shoppers 
B) survey data from customers who have defected 
C) market research into overall consumption trends 
D) individual account information 
E) demographic trend data

Question 5

Immediately below the customers in a modern customer-oriented organization chart,we would expect to find the ________ of an organization.

Accepted Answer

A) top management 
B) marketing department 
C) middle management 
D) frontline people 
E) service department 
A) top management 
B) marketing department 
C) middle management 
D) frontline people 
E) service department

Question 6

According to information provided in the text,what are the four main perils of CRM?

Accepted Answer

The four main perils are: (1)implementin

Question 7

Compare and contrast the traditional organization chart for an organization against the modern customer-oriented organization chart.

Accepted Answer

For a visual comparison,see Figure 5.1.W

Question 8

Although actual costs vary from business to business depending on the complexity of the sales process,the most expensive customer acquisition method based on cost per solicitation is ________.

Accepted Answer

A) personal selling 
B) direct mail 
C) telemarketing 
D) banner advertisements 
E) e-mail 
A) personal selling 
B) direct mail 
C) telemarketing 
D) banner advertisements 
E) e-mail

Question 9

John Chambers,CEO of Cisco Systems,said,"Make your customer the center of your culture." Customer-centered companies are adept at building customer relationships,not just producing products;they are skilled in ________,not just product engineering.

Accepted Answer

A) service engineering 
B) market engineering 
C) cultural engineering 
D) innovation engineering 
E) management engineering 
A) service engineering 
B) market engineering 
C) cultural engineering 
D) innovation engineering 
E) management engineering

Question 10

If a company were to focus its marketing efforts on all the experiences the customer will have on the way to obtaining and using the offering,it would be focusing its marketing efforts on the customer's ________.

Accepted Answer

A) perception system 
B) cost versus benefit system 
C) demand 
D) psychological system 
E) value delivery system 
A) perception system 
B) cost versus benefit system 
C) demand 
D) psychological system 
E) value delivery system

Question 11

In the modern customer-oriented organizational chart,which of the following is considered to be at the top of the organizational pyramid?

Accepted Answer

A) Sales 
B) The president 
C) Front-line people 
D) Customers 
E) Middle management 
A) Sales 
B) The president 
C) Front-line people 
D) Customers 
E) Middle management

Question 12

Buyers do not always make logical or rational decisions.They might purchase the most expensive and least quality item for example.Which of the following would be another good example of this behavior?

Accepted Answer

A) The buyer is not seen by the seller as being very intelligent. 
B) The buyer might be under orders to buy at the lowest price. 
C) The buyer might be underage. 
D) The buyer might be under pressure to resist sales messages. 
E) The buyer refuses to listen to or read any advertising. 
A) The buyer is not seen by the seller as being very intelligent. 
B) The buyer might be under orders to buy at the lowest price. 
C) The buyer might be underage. 
D) The buyer might be under pressure to resist sales messages. 
E) The buyer refuses to listen to or read any advertising.

Question 13

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Accepted Answer

A) Perceived usefulness 
B) Failure avoidance rate 
C) Report rating 
D) Customer-perceived value 
E) Competitors' market share rate 
A) Perceived usefulness 
B) Failure avoidance rate 
C) Report rating 
D) Customer-perceived value 
E) Competitors' market share rate

Question 14

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

Accepted Answer

A) True 
 B)False

Question 15

Discuss the concepts of a data warehouse and datamining.

Accepted Answer

Data are collected by the company's cont

Question 16

A(n)________ customer is a person,household,or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting,selling,and servicing that customer.

Accepted Answer

A) profitable 
B) semiprofitable 
C) unprofitable 
D) niche 
E) target 
A) profitable 
B) semiprofitable 
C) unprofitable 
D) niche 
E) target

Question 17

Building a database would not be worthwhile for a company in all of the following cases EXCEPT ________.

Accepted Answer

A) where the product is a one-in-a-lifetime purchase 
B) where customers show little loyalty to a brand 
C) where the company already has an above average relationship with its customers 
D) where the unit sale is very small 
E) where the cost of gathering the information is too high 
A) where the product is a one-in-a-lifetime purchase 
B) where customers show little loyalty to a brand 
C) where the company already has an above average relationship with its customers 
D) where the unit sale is very small 
E) where the cost of gathering the information is too high

Question 18

Companies need to be especially concerned today with their customer satisfaction level.Why?

Accepted Answer

Companies need to be especiall

Question 19

Using his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

Accepted Answer

A) data warehouse 
B) call back list 
C) call rejection list 
D) corporate database 
E) Better Business Bureau contacts 
A) data warehouse 
B) call back list 
C) call rejection list 
D) corporate database 
E) Better Business Bureau contacts

Question 20

All of the following are methods to form strong customer bonds EXCEPT ________.

Accepted Answer

A) creating superior products,services,and experiences for the target market 
B) making it easy for customers to reach the appropriate company personnel and express their needs,perceptions,and complaints 
C) organizing and making accessible a database of information on individual customer needs,preferences,contacts,purchase frequency,and satisfaction 
D) running award programs recognizing outstanding employees 
E) concentrating the planning and management of the customer satisfaction and retention process within the marketing department 
A) creating superior products,services,and experiences for the target market 
B) making it easy for customers to reach the appropriate company personnel and express their needs,perceptions,and complaints 
C) organizing and making accessible a database of information on individual customer needs,preferences,contacts,purchase frequency,and satisfaction 
D) running award programs recognizing outstanding employees 
E) concentrating the planning and management of the customer satisfaction and retention process within the marketing department

Exam 5: Creating Customer Value, satisfaction, and Loyalty

Describe four situations or cases when building a customer database would not be worthwhile for a company.

Consumers' expectations result exclusively from past buying experiences.

A ________ would contain such items as past volumes,prices,profits,buyer,status of current contacts,and an assessment of competitive strengths and weaknesses.

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _______.

Immediately below the customers in a modern customer-oriented organization chart,we would expect to find the ________ of an organization.

According to information provided in the text,what are the four main perils of CRM?

Compare and contrast the traditional organization chart for an organization against the modern customer-oriented organization chart.

Although actual costs vary from business to business depending on the complexity of the sales process,the most expensive customer acquisition method based on cost per solicitation is ________.

John Chambers,CEO of Cisco Systems,said,"Make your customer the center of your culture." Customer-centered companies are adept at building customer relationships,not just producing products;they are skilled in ________,not just product engineering.

If a company were to focus its marketing efforts on all the experiences the customer will have on the way to obtaining and using the offering,it would be focusing its marketing efforts on the customer's ________.

In the modern customer-oriented organizational chart,which of the following is considered to be at the top of the organizational pyramid?

Buyers do not always make logical or rational decisions.They might purchase the most expensive and least quality item for example.Which of the following would be another good example of this behavior?

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

Discuss the concepts of a data warehouse and datamining.

A(n)________ customer is a person,household,or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting,selling,and servicing that customer.

Building a database would not be worthwhile for a company in all of the following cases EXCEPT ________.

Companies need to be especially concerned today with their customer satisfaction level.Why?

Using his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

All of the following are methods to form strong customer bonds 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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