Question 1

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)  consumer discount 
D)  consumer relationship 
E)  consumer synergy 
A)  customer-perceived value 
B)  customer-perceived cost 
C)  consumer discount 
D)  consumer relationship 
E)  consumer synergy

Question 2

What is a customer touch point

Accepted Answer

A customer touch point is any

Question 3

________ are adept at building customer relationships,not just products; they are skilled in market engineering,not just product engineering.

Accepted Answer

A)  Profit-centered companies 
B)  Customer-centered companies 
C)  Production-centered companies 
D)  Sales-centered companies 
E)  Promotion-centered companies 
A)  Profit-centered companies 
B)  Customer-centered companies 
C)  Production-centered companies 
D)  Sales-centered companies 
E)  Promotion-centered companies

Question 4

The modern customer-oriented organization chart places top management at the top of the pyramid as long as they can think like consumers.

Accepted Answer

A) True 
 B)False

Question 5

A customer's decision to be loyal or to defect is the sum of many small encounters with the company.In order for all these small encounters to add up to customer loyalty,many companies,such as Joie de Vivre Hospitality,strive to create ________.

Accepted Answer

A)  a reward program 
B)  a comprehensive customer database 
C)  a branded customer experience 
D)  strong word-of-mouth promotions 
E)  a top-notch advertising campaign 
A)  a reward program 
B)  a comprehensive customer database 
C)  a branded customer experience 
D)  strong word-of-mouth promotions 
E)  a top-notch advertising campaign

Question 6

Quality is the key to value creation and customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 7

Unprofitable customers who defect to a competitor should be encouraged to do so.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Royal Caribbean uses its ________ to offer spur-of-the-moment cruise packages to fill all the berths on its ships.It focuses on retired people and single people because they are more able to make quick commitments.

Accepted Answer

A)  advertising 
B)  database 
C)  mail catalogs 
D)  public relations department 
E)  radio advertising 
A)  advertising 
B)  database 
C)  mail catalogs 
D)  public relations department 
E)  radio advertising

Question 10

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Accepted Answer

A)  Activity-based costing 
B)  Customer profitability analysis 
C)  Customer value analysis 
D)  Customer-perceived value 
E)  Customer lifetime value 
A)  Activity-based costing 
B)  Customer profitability analysis 
C)  Customer value analysis 
D)  Customer-perceived value 
E)  Customer lifetime value

Question 11

Customer churn is how rapidly a store can move customers through its checkout facility or process.

Accepted Answer

A) True 
 B)False

Question 12

Give an illustration of how a company can use a customer database to reactivate customer purchases.

Accepted Answer

Companies can install automatic mailing

Question 13

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 14

________ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis,automatic interaction detection,predictive modeling,and neural networking.

Accepted Answer

A)  Data management 
B)  Data marketing 
C)  Target market analysis 
D)  Data accumulation 
E)  Datamining 
A)  Data management 
B)  Data marketing 
C)  Target market analysis 
D)  Data accumulation 
E)  Datamining

Question 15

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 16

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Accepted Answer

A)  Performance 
B)  Value 
C)  Quality 
D)  Customer retention 
E)  Customer loyalty 
A)  Performance 
B)  Value 
C)  Quality 
D)  Customer retention 
E)  Customer loyalty

Question 17

What are the three ways that customer profitability can be assessed

Accepted Answer

Customer profitabili

Question 18

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 19

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 20

A customer touch point in the airline industry would include an item such as ________.

Accepted Answer

A)  reservations 
B)  mechanics' ability to service the airplanes 
C)  ease of access to the airport 
D)  the value of air travel versus surface transportation 
E)  competency of a travel agent 
A)  reservations 
B)  mechanics' ability to service the airplanes 
C)  ease of access to the airport 
D)  the value of air travel versus surface transportation 
E)  competency of a travel agent

Exam 5: Creating Customer Value, Satisfaction, and Loyalty

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

What is a customer touch point

________ are adept at building customer relationships,not just products; they are skilled in market engineering,not just product engineering.

The modern customer-oriented organization chart places top management at the top of the pyramid as long as they can think like consumers.

A customer's decision to be loyal or to defect is the sum of many small encounters with the company.In order for all these small encounters to add up to customer loyalty,many companies,such as Joie de Vivre Hospitality,strive to create ________.

Quality is the key to value creation and customer satisfaction.

Unprofitable customers who defect to a competitor should be encouraged to do so.

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

Royal Caribbean uses its ________ to offer spur-of-the-moment cruise packages to fill all the berths on its ships.It focuses on retired people and single people because they are more able to make quick commitments.

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Customer churn is how rapidly a store can move customers through its checkout facility or process.

Give an illustration of how a company can use a customer database to reactivate customer purchases.

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

________ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis,automatic interaction detection,predictive modeling,and neural networking.

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.

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

What are the three ways that customer profitability can be assessed

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 ________.

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.

A customer touch point in the airline industry would include an item such as ________.

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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