Question 1

Which of the following can a company do to reduce defection?

Accepted Answer

A)  Attract new customers to try out the company's products. 
B)  Increase customer lifetime value by increasing the non-monetary costs of products. 
C)  Enhance the growth potential of existing customers through cross-selling and up-selling. 
D)  Distinguish the causes of customer attrition and identify those that can be managed better. 
E)  Make low-profit customers more profitable or terminate the relationship. 
A)  Attract new customers to try out the company's products. 
B)  Increase customer lifetime value by increasing the non-monetary costs of products. 
C)  Enhance the growth potential of existing customers through cross-selling and up-selling. 
D)  Distinguish the causes of customer attrition and identify those that can be managed better. 
E)  Make low-profit customers more profitable or terminate the relationship.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Explain permission marketing.

Accepted Answer

Permission marketing is the practice of

Question 4

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?

Accepted Answer

Answers will vary but can address any mo

Question 5

A ________ 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)  prospector 
B)  profitable customer 
C)  market challenger 
D)  market nicher 
E)  pioneer customer 
A)  prospector 
B)  profitable customer 
C)  market challenger 
D)  market nicher 
E)  pioneer customer

Question 6

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who are want to participate in activities join the club. What can it do to ensure this?

Accepted Answer

Student answers will vary. 2Wh

Question 7

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 ________ system.

Accepted Answer

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

Question 8

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.
-Amy is in the "aware" stage of the marketing funnel when she says ________.

Accepted Answer

A)  she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood 
B)  she was informed about VeggiesNmore by her colleague at work 
C)  she regularly shops from VeggiesNmore 
D)  she shops from VeggiesNmore as far as the store is easily accessible 
E)  she was happy with the experience of shopping at VeggiesNmore 
A)  she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood 
B)  she was informed about VeggiesNmore by her colleague at work 
C)  she regularly shops from VeggiesNmore 
D)  she shops from VeggiesNmore as far as the store is easily accessible 
E)  she was happy with the experience of shopping at VeggiesNmore

Question 9

Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were offered chilled juice. Their check-in formalities were handled by the staff. When they entered their room, they saw that chocolates had been placed on the pillows and a flower arrangement on the table. These are examples of customer ________.

Accepted Answer

A)  lifetime value 
B)  perceived value 
C)  value analysis 
D)  profitability analysis 
E)  touch points 
A)  lifetime value 
B)  perceived value 
C)  value analysis 
D)  profitability analysis 
E)  touch points

Question 10

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

Accepted Answer

A)  Customer relationship management 
B)  Customer lifetime value 
C)  Customer profitability analysis 
D)  Customer satisfaction analysis 
E)  Customer-value delivery 
A)  Customer relationship management 
B)  Customer lifetime value 
C)  Customer profitability analysis 
D)  Customer satisfaction analysis 
E)  Customer-value delivery

Question 11

Villy Custom Bicycles come in a variety of mix and match colors and styles so consumers can design their own. This is an example of personalizing the product.

Accepted Answer

A) True 
 B)False

Question 12

The 80-20 rule reflects the idea that ________.

Accepted Answer

A)  20 percent of the company's profits are generated by the top 80 percent of customers 
B)  the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend 
C)  20 percent of customers are unprofitable, and 80 percent make up a company's profits 
D)  the top 20 percent of customers often generate 80 percent of the company's profits 
E)  any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle 
A)  20 percent of the company's profits are generated by the top 80 percent of customers 
B)  the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend 
C)  20 percent of customers are unprofitable, and 80 percent make up a company's profits 
D)  the top 20 percent of customers often generate 80 percent of the company's profits 
E)  any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle

Question 13

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but the store doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

Accepted Answer

2Wheels can encourage unprofitable custo

Question 14

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

Accepted Answer

A)  reduce the rate of customer defection 
B)  make low-profit customers more profitable 
C)  enhance the growth potential for each customer through cross-selling 
D)  increase the longevity of the customer relationship 
E)  focus disproportionate effort on high-value customers 
A)  reduce the rate of customer defection 
B)  make low-profit customers more profitable 
C)  enhance the growth potential for each customer through cross-selling 
D)  increase the longevity of the customer relationship 
E)  focus disproportionate effort on high-value customers

Question 15

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. What basic measures can Keiko take to build loyalty with LZT?

Accepted Answer

To build loyalty, Keiko can interact mor

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Bicycle store 2Wheels wants to attract and retain customers to maximize customer profitability. What are the basic tactics it can use to manage customers that vary in loyalty, profitability, risk, and other factors?

Accepted Answer

2Wheels can reduce customer defection, i

Question 18

Are complaints a good indicator of customer satisfaction? Why or why not?

Accepted Answer

No. Studies show that while customers ar

Question 19

A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

Accepted Answer

A) True 
 B)False

Question 20

Total customer satisfaction is measured based on the relationship of ________.

Accepted Answer

A)  expected value and total customer benefit 
B)  perceived performance and expectation 
C)  advertised outcomes and real outcomes 
D)  past experience and present experience 
E)  customer attitude and salesperson's attitude 
A)  expected value and total customer benefit 
B)  perceived performance and expectation 
C)  advertised outcomes and real outcomes 
D)  past experience and present experience 
E)  customer attitude and salesperson's attitude

Which of the following can a company do to reduce defection?

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

Explain permission marketing.

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?

A ________ 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.

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who are want to participate in activities join the club. What can it do to ensure this?

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 ________ system.

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

Villy Custom Bicycles come in a variety of mix and match colors and styles so consumers can design their own. This is an example of personalizing the product.

The 80-20 rule reflects the idea that ________.

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but the store doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

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

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. What basic measures can Keiko take to build loyalty with LZT?

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

Bicycle store 2Wheels wants to attract and retain customers to maximize customer profitability. What are the basic tactics it can use to manage customers that vary in loyalty, profitability, risk, and other factors?

Are complaints a good indicator of customer satisfaction? Why or why not?

A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

Total customer satisfaction is measured based on the relationship of ________.

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

Which of the following can a company do to reduce defection?

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

Explain permission marketing.

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?

A ________ 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.

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who are want to participate in activities join the club. What can it do to ensure this?

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 ________ system.

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

Villy Custom Bicycles come in a variety of mix and match colors and styles so consumers can design their own. This is an example of personalizing the product.

The 80-20 rule reflects the idea that ________.

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but the store doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

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

The management of Keiko has learned that the company risks losing a long-time customer, LZT, to a competitor. What basic measures can Keiko take to build loyalty with LZT?

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

Bicycle store 2Wheels wants to attract and retain customers to maximize customer profitability. What are the basic tactics it can use to manage customers that vary in loyalty, profitability, risk, and other factors?

Are complaints a good indicator of customer satisfaction? Why or why not?

A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

Total customer satisfaction is measured based on the relationship of ________.

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