Question 1

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

Accepted Answer

A)  Mystery shopping 
B)  Activity-based costing 
C)  Customer profitability analysis 
D)  Customer lifetime value 
E)  American Customer Satisfaction Index 
A)  Mystery shopping 
B)  Activity-based costing 
C)  Customer profitability analysis 
D)  Customer lifetime value 
E)  American Customer Satisfaction Index C

Question 2

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. Though Keiko's products are priced lower than Global's, the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech. What can Keiko do to obtain LZT's order?

Accepted Answer

Student answers will vary. Keiko can increase total customer benefit by improving economic, functional, and psychological benefits of its product, services, people, and image. It can reduce LZT's nonmonetary costs by reducing the time, energy, and psychological investment. It can also further reduce its product's monetary cost.

Question 3

________ 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 B

Question 4

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Accepted Answer

A) True 
 B)False

Question 5

Identify ways in which companies facing customer complaints can recover customer goodwill.

Accepted Answer

Given the potential downside of having a

Question 6

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Accepted Answer

A)  customer retention 
B)  customer churn 
C)  detraction 
D)  share-of-wallet 
E)  customer complaints 
A)  customer retention 
B)  customer churn 
C)  detraction 
D)  share-of-wallet 
E)  customer complaints

Question 7

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

Question 8

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

Accepted Answer

Student answers will vary. An example of

Question 9

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

Accepted Answer

A)  integrity 
B)  loyalty 
C)  innovation 
D)  liability 
E)  equity 
A)  integrity 
B)  loyalty 
C)  innovation 
D)  liability 
E)  equity

Question 10

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a way for companies to increase customer-perceived value?

Accepted Answer

A)  increase the psychological investment associated with buying 
B)  increase the buyer's time and energy investment 
C)  increase total customer benefit by improving economic and functional benefits 
D)  decrease total customer benefit by replacing psychological benefits of the product 
E)  decrease the difference between total customer benefit and total customer cost 
A)  increase the psychological investment associated with buying 
B)  increase the buyer's time and energy investment 
C)  increase total customer benefit by improving economic and functional benefits 
D)  decrease total customer benefit by replacing psychological benefits of the product 
E)  decrease the difference between total customer benefit and total customer cost

Question 12

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

Question 13

Give an example of two products that have different performance quality but are of equal conformance quality.

Accepted Answer

Student answers will vary. Performance q

Question 14

The Marketing Funnel (Scenario)
Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers.
-Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.

Accepted Answer

A)  aware 
B)  open to trial 
C)  most often used 
D)  nonrejecter 
E)  regular user 
A)  aware 
B)  open to trial 
C)  most often used 
D)  nonrejecter 
E)  regular user

Question 15

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Accepted Answer

A)  2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise. 
B)  2Wheels has a club for its regular customers, organizing cycling events and parties for them. 
C)  Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. 
D)  2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E)  2Wheels encourages customers to send in their suggestions for product improvement. 
A)  2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise. 
B)  2Wheels has a club for its regular customers, organizing cycling events and parties for them. 
C)  Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. 
D)  2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E)  2Wheels encourages customers to send in their suggestions for product improvement.

Question 16

A customer touch point for Abacus Airlines would be an item such as ________.

Accepted Answer

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

Question 17

What technique is used for customer profitability analysis?

Accepted Answer

Customer profitability analysis is best

Question 18

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

Accepted Answer

A)  Perceived usefulness 
B)  Failure avoidance rate 
C)  Total customer benefit 
D)  Customer-perceived value 
E)  Competitors' market share rate 
A)  Perceived usefulness 
B)  Failure avoidance rate 
C)  Total customer benefit 
D)  Customer-perceived value 
E)  Competitors' market share rate

Question 19

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 20

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Accepted Answer

A) True 
 B)False

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

________ 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.

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Identify ways in which companies facing customer complaints can recover customer goodwill.

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Another term for high customer ________ is customer churn.

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

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

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Which of the following is a way for companies to increase customer-perceived value?

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

Give an example of two products that have different performance quality but are of equal conformance quality.

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

A customer touch point for Abacus Airlines would be an item such as ________.

What technique is used for customer profitability analysis?

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

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

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Defining Marketing for the New Realities

Developing and Implementing Marketing Strategies and Plans

Capturing Marketing Insights and Forecasting Demand

Analyzing Consumer and Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning and Competing Effectively

Creating Brand Equity and Driving Growth

Setting Product Strategy and Introducing New Offerings

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 Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Tapping Into Global Markets

Filters

Exam 4: Creating Long-Term Loyalty Relationships

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

________ 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.

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Identify ways in which companies facing customer complaints can recover customer goodwill.

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Another term for high customer ________ is customer churn.

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

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

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Which of the following is a way for companies to increase customer-perceived value?

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

Give an example of two products that have different performance quality but are of equal conformance quality.

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

A customer touch point for Abacus Airlines would be an item such as ________.

What technique is used for customer profitability analysis?

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

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

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Defining Marketing for the New Realities

Developing and Implementing Marketing Strategies and Plans

Capturing Marketing Insights and Forecasting Demand

Analyzing Consumer and Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning and Competing Effectively

Creating Brand Equity and Driving Growth

Setting Product Strategy and Introducing New Offerings

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 Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Tapping Into Global Markets

Filters