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

Question 2

Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

Carol is currently considering buying a Motorola cell phone offered by her service provider in conjunction with a two-year service contract.Carol is best characterized as a(n)________ for Motorola.

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 6

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 7

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 8

The skillful use of database marketing and ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

Accepted Answer

A)  everyday low prices 
B)  expanded home delivery options 
C)  relationship building 
D)  competitor's mistakes 
E)  retailer alliances 
A)  everyday low prices 
B)  expanded home delivery options 
C)  relationship building 
D)  competitor's mistakes 
E)  retailer alliances

Question 9

The bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the given market offering is called the ________.

Accepted Answer

A)  organizational expense ratio 
B)  shopper's fatigue 
C)  total customer cost 
D)  analysis paralysis 
E)  comparison shopping to comparison buying ratio 
A)  organizational expense ratio 
B)  shopper's fatigue 
C)  total customer cost 
D)  analysis paralysis 
E)  comparison shopping to comparison buying ratio

Question 10

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 11

The final step of customer value analysis is to ________.

Accepted Answer

A)  identify the major attributes and benefits that customers value 
B)  assess the company's and competitors' performances on the different customer values against their rated importance 
C)  examine how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis 
D)  monitor customer values over time 
E)  assess the quantitative importance of the different attributes and benefits 
A)  identify the major attributes and benefits that customers value 
B)  assess the company's and competitors' performances on the different customer values against their rated importance 
C)  examine how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis 
D)  monitor customer values over time 
E)  assess the quantitative importance of the different attributes and benefits

Question 12

Total quality is the key to value creation and customer satisfaction.A marketing manager has several roles to play in a quality-centered company,including ________.

Accepted Answer

A)  participating in cross-functional team building 
B)  correctly identifying customers' needs and requirements 
C)  ensuring costs are adequately controlled during order fulfillment 
D)  setting expectations both internally and externally 
E)  working closely with the sales team to create a dynamic sales message 
A)  participating in cross-functional team building 
B)  correctly identifying customers' needs and requirements 
C)  ensuring costs are adequately controlled during order fulfillment 
D)  setting expectations both internally and externally 
E)  working closely with the sales team to create a dynamic sales message

Question 13

Database marketing is most frequently used by business marketers and service providers (hotels,banks,airlines,and insurance,credit card,and telephone companies)that normally and easily collect a lot of customer data.

Accepted Answer

A) True 
 B)False

Question 14

How do companies use their databases to identify prospects

Accepted Answer

Many companies generate sales leads by a

Question 15

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 (RB
C)  
D)  activity-based costing (AB
C)  
E)  future date costing (FD
C)  
A)  input-output analysis 
B)  factor analysis 
C)  revenue-based costing (RB
C)  
D)  activity-based costing (AB
C)  
E)  future date costing (FD
C)

Question 16

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 are: (1)The company must

Question 17

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 18

Field Grocery is considering using _________ to pose as customers and report on strong and weak points in customer service at Field Grocery stores.

Accepted Answer

A)  intelligence agents 
B)  covert operatives 
C)  mystery shoppers 
D)  market mavens 
E)  opinion leaders 
A)  intelligence agents 
B)  covert operatives 
C)  mystery shoppers 
D)  market mavens 
E)  opinion leaders

Question 19

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 20

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

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.

Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete.

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

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

Carol is currently considering buying a Motorola cell phone offered by her service provider in conjunction with a two-year service contract.Carol is best characterized as a(n)________ for Motorola.

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

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

The skillful use of database marketing and ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

The bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the given market offering is called the ________.

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.

The final step of customer value analysis is to ________.

Total quality is the key to value creation and customer satisfaction.A marketing manager has several roles to play in a quality-centered company,including ________.

Database marketing is most frequently used by business marketers and service providers (hotels,banks,airlines,and insurance,credit card,and telephone companies)that normally and easily collect a lot of customer data.

How do companies use their databases to identify prospects

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

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.

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

Field Grocery is considering using _________ to pose as customers and report on strong and weak points in customer service at Field Grocery stores.

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

Satisfied customers constitute the company's ________.

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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