Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  touch point 
B)  point of order 
C)  point of difference 
D)  pivot point 
E)  point of parity 
A)  touch point 
B)  point of order 
C)  point of difference 
D)  pivot point 
E)  point of parity

Question 4

What are the steps in a customer value analysis?

Accepted Answer

Managers conduct a customer value analys

Question 5

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 6

Consumers' expectations result exclusively from past buying experiences.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Permission marketing presumes that consumers know what they want.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is the best method of recovering customer goodwill?

Accepted Answer

A)  sending service people to conduct door-to-door surveys 
B)  contacting the complaining customer as quickly as possible 
C)  identifying prospective customers from the customer database 
D)  customizing products according to individual customer need 
E)  defining and measuring the customer retention rate 
A)  sending service people to conduct door-to-door surveys 
B)  contacting the complaining customer as quickly as possible 
C)  identifying prospective customers from the customer database 
D)  customizing products according to individual customer need 
E)  defining and measuring the customer retention rate

Question 10

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)  customer profitability analysis 
D)  customer equity 
E)  customer lifetime value 
A)  customer-perceived value 
B)  customer-perceived cost 
C)  customer profitability analysis 
D)  customer equity 
E)  customer lifetime value

Question 11

Susan Lefferts' company advertises widely. Ms. Lefferts uses business reply cards attached to her company's magazine ads to build her company's database. In which of the following ways would Ms. Lefferts most likely use the database?

Accepted Answer

A)  to deepen customer loyalty 
B)  to reactivate customer purchases 
C)  to avoid serious customer mistakes 
D)  to determine if up-selling is appropriate 
E)  to identify prospects 
A)  to deepen customer loyalty 
B)  to reactivate customer purchases 
C)  to avoid serious customer mistakes 
D)  to determine if up-selling is appropriate 
E)  to identify prospects

Question 12

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________.

Accepted Answer

A)  horizontal marketing system 
B)  cost versus benefit system 
C)  consumption system 
D)  marketing channel system 
E)  value delivery system 
A)  horizontal marketing system 
B)  cost versus benefit system 
C)  consumption system 
D)  marketing channel system 
E)  value delivery system

Question 13

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Accepted Answer

A)  Value proposition 
B)  Loyalty 
C)  Satisfaction 
D)  Respect 
E)  Customer value 
A)  Value proposition 
B)  Loyalty 
C)  Satisfaction 
D)  Respect 
E)  Customer value

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Activity-based costing tries to identify the real costs associated with serving each customer.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

Accepted Answer

The three steps that a company can take

Question 18

For a magazine, subscription renewal rate is a good measure of retention.

Accepted Answer

A) True 
 B)False

Question 19

Club membership programs that are open to everyone who purchases a product or service ________.

Accepted Answer

A)  are more powerful long-term loyalty builders than limited-membership clubs. 
B)  will not help a company attract customers from competitors 
C)  prevent those with only a fleeting interest in a company's products from joining 
D)  are useful for building a database of customers but are not very good as long-term loyalty builders 
E)  are useless unless there are fees and membership conditions 
A)  are more powerful long-term loyalty builders than limited-membership clubs. 
B)  will not help a company attract customers from competitors 
C)  prevent those with only a fleeting interest in a company's products from joining 
D)  are useful for building a database of customers but are not very good as long-term loyalty builders 
E)  are useless unless there are fees and membership conditions

Question 20

Another term for high customer ________ is customer churn.

Accepted Answer

A)  retention 
B)  defection 
C)  value 
D)  perception 
E)  belief 
A)  retention 
B)  defection 
C)  value 
D)  perception 
E)  belief

Exam 5: Creating Long-Term Loyalty Relationships

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

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

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

What are the steps in a customer value analysis?

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

Consumers' expectations result exclusively from past buying experiences.

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

Permission marketing presumes that consumers know what they want.

Which of the following is the best method of recovering customer goodwill?

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

Susan Lefferts' company advertises widely. Ms. Lefferts uses business reply cards attached to her company's magazine ads to build her company's database. In which of the following ways would Ms. Lefferts most likely use the database?

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________.

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

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

Activity-based costing tries to identify the real costs associated with serving each customer.

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

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

For a magazine, subscription renewal rate is a good measure of retention.

Club membership programs that are open to everyone who purchases a product or service ________.

Another term for high customer ________ is customer churn.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

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 Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Introducing New Market Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization for the Long Run

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