Question 1

The average company loses 25% of its customers each year.

Accepted Answer

A) True 
 B)False

Question 2

Whether the buyer is satisfied after purchase depends on the offer's performance in relation to the ________.

Accepted Answer

A)  buyer's reactions 
B)  buyer's expectations 
C)  seller's delivery 
D)  seller's expectations 
E)  both the buyer's and seller's demands 
A)  buyer's reactions 
B)  buyer's expectations 
C)  seller's delivery 
D)  seller's expectations 
E)  both the buyer's and seller's demands

Question 3

Winning companies improve the value of their customer base by excelling at each of the following strategies EXCEPT ________.

Accepted Answer

A)  retaining all customers regardless of profitability 
B)  reducing the rate of customer defection 
C)  increasing the longevity of the customer relationship 
D)  making low-profit customers more profitable or terminating them 
E)  focusing disproportionate efforts on high-value customers 
A)  retaining all customers regardless of profitability 
B)  reducing the rate of customer defection 
C)  increasing the longevity of the customer relationship 
D)  making low-profit customers more profitable or terminating them 
E)  focusing disproportionate efforts on high-value customers

Question 4

Identify three ways companies with customer complaints can recover customer goodwill.

Accepted Answer

Five methods are identified in the text.

Question 5

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 6

Provide a customer-centered definition of the term quality.

Accepted Answer

Quality is the totality of fea

Question 7

Assume that a marketing manager of a small company is in the process of implementing the use of a database to assist his or her company in its marketing efforts.Considering the information found in the text,list five ways that the marketing manager might be able to use the database for marketing efforts.

Accepted Answer

Five ways to use a database for marketin

Question 8

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

Accepted Answer

A)  value proposition 
B)  value delivery system 
C)  customer-value analysis 
D)  total customer benefit 
E)  total customer cost 
A)  value proposition 
B)  value delivery system 
C)  customer-value analysis 
D)  total customer benefit 
E)  total customer cost

Question 9

Most companies measure customer satisfaction and individual customer profitability.

Accepted Answer

A) True 
 B)False

Question 10

3M makes it easy for dialog to occur with its customers.3M claims that over two-thirds of its product-improvement ideas come from listening to ________.

Accepted Answer

A)  customer suggestions 
B)  entrepreneurial product ideas 
C)  customer complaints 
D)  media feedback 
E)  customer reactions to competitive products 
A)  customer suggestions 
B)  entrepreneurial product ideas 
C)  customer complaints 
D)  media feedback 
E)  customer reactions to competitive products

Question 11

Through ________,marketing statisticians can extract useful information about individuals,trends,and segments from the mass of data.

Accepted Answer

A)  data accumulation 
B)  target market information supplied by the government 
C)  datamining 
D)  data management 
E)  data marketing 
A)  data accumulation 
B)  target market information supplied by the government 
C)  datamining 
D)  data management 
E)  data marketing

Question 12

All of the following are CRM imperatives EXCEPT ________.

Accepted Answer

A)  acquiring the right customer 
B)  crafting the right value proposition 
C)  instituting the best processes 
D)  motivating employees 
E)  learning to make profits through marginal customers 
A)  acquiring the right customer 
B)  crafting the right value proposition 
C)  instituting the best processes 
D)  motivating employees 
E)  learning to make profits through marginal customers

Question 13

________ can track customer satisfaction directly and also gauge consumers' willingness to recommend the company and brand to others.

Accepted Answer

A)  Periodic surveys 
B)  Mystery shoppers 
C)  Customer loss rates 
D)  Customer focus statements 
E)  All of the above 
A)  Periodic surveys 
B)  Mystery shoppers 
C)  Customer loss rates 
D)  Customer focus statements 
E)  All of the above

Question 14

Consumers tend to be value maximizes-they estimate which offer will deliver the most perceived value and act on it.

Accepted Answer

A) True 
 B)False

Question 15

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This is an example of ________.

Accepted Answer

A)  reducing the rate of customer defection 
B)  making low-profit customers more profitable 
C)  enhancing the growth potential for each customer through cross-selling 
D)  increasing the longevity of the customer relationship 
E)  focusing disproportionate effort on high-value customers 
A)  reducing the rate of customer defection 
B)  making low-profit customers more profitable 
C)  enhancing the growth potential for each customer through cross-selling 
D)  increasing the longevity of the customer relationship 
E)  focusing disproportionate effort on high-value customers

Question 16

The opening vignette on Ritz-Carlton shows that successful marketers are the ones that fully ________.

Accepted Answer

A)  understand promotional strategy 
B)  diversify their product line 
C)  divorce themselves from a production mentality 
D)  satisfy their customers profitably 
E)  understand the sales concept 
A)  understand promotional strategy 
B)  diversify their product line 
C)  divorce themselves from a production mentality 
D)  satisfy their customers profitably 
E)  understand the sales concept

Question 17

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 18

Discuss the concepts of a data warehouse and datamining.

Accepted Answer

Data are collected by the company's cont

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

Exam 5: Creating Customer Value, Satisfaction, and Loyalty

The average company loses 25% of its customers each year.

Whether the buyer is satisfied after purchase depends on the offer's performance in relation to the ________.

Winning companies improve the value of their customer base by excelling at each of the following strategies EXCEPT ________.

Identify three ways companies with customer complaints can recover customer goodwill.

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

Provide a customer-centered definition of the term quality.

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

Most companies measure customer satisfaction and individual customer profitability.

3M makes it easy for dialog to occur with its customers.3M claims that over two-thirds of its product-improvement ideas come from listening to ________.

Through ________,marketing statisticians can extract useful information about individuals,trends,and segments from the mass of data.

All of the following are CRM imperatives EXCEPT ________.

________ can track customer satisfaction directly and also gauge consumers' willingness to recommend the company and brand to others.

Consumers tend to be value maximizes-they estimate which offer will deliver the most perceived value and act on it.

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This is an example of ________.

The opening vignette on Ritz-Carlton shows that successful marketers are the ones that fully ________.

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.

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

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

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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