Question 1

What is indicated by a net promoter score?

Accepted Answer

A)  customer satisfaction with a product 
B)  customer attachment to a brand 
C)  customer lifetime value 
D)  customer profitability 
A)  customer satisfaction with a product 
B)  customer attachment to a brand 
C)  customer lifetime value 
D)  customer profitability B

Question 2

Which term refers to the net present value of future cash flows attributed to the customer relationship?

Accepted Answer

A)  customer loyalty 
B)  customer retention 
C)  customer attractiveness 
D)  customer lifetime value 
A)  customer loyalty 
B)  customer retention 
C)  customer attractiveness 
D)  customer lifetime value D

Question 3

All of the following are necessary to calculate the customer lifetime value EXCEPT ________.

Accepted Answer

A)  customer level operating profit per year 
B)  length of customer relationship 
C)  economies of scale 
D)  discount rate 
A)  customer level operating profit per year 
B)  length of customer relationship 
C)  economies of scale 
D)  discount rate C

Question 4

Which of the following is NOT one of the categories used to analyze customer profitability?

Accepted Answer

A)  customer output-unit-level costs 
B)  customer lifetime value costs 
C)  customer batch-level costs 
D)  customer-sustaining costs 
A)  customer output-unit-level costs 
B)  customer lifetime value costs 
C)  customer batch-level costs 
D)  customer-sustaining costs

Question 5

How can a customer portfolio help marketers with customer relationship management? What are the four types of customers identified in a customer portfolio? As a marketer,on which types of customers would you primarily focus?

Accepted Answer

To prioritize marketing activities,a cus

Question 6

The customer portfolio matrix categorizes customers based on ________ and ________.

Accepted Answer

A)  share-of-wallet; production costs 
B)  customer loyalty rate; market share 
C)  market share; customer loyalty rate 
D)  share-of-wallet; customer attractiveness 
A)  share-of-wallet; production costs 
B)  customer loyalty rate; market share 
C)  market share; customer loyalty rate 
D)  share-of-wallet; customer attractiveness

Question 7

Which term refers to the cash flow from new customer relationships through customers' word-of-mouth?

Accepted Answer

A)  networking potential 
B)  core business potential 
C)  learning potential 
D)  cross-selling potential 
A)  networking potential 
B)  core business potential 
C)  learning potential 
D)  cross-selling potential

Question 8

Customer profitability is calculated by analyzing ________ and ________.

Accepted Answer

A)  product marketing costs; customer support costs 
B)  customer-sustaining costs; production costs 
C)  costs of goods sold; customer discounts 
D)  customer costs; customer revenues 
A)  product marketing costs; customer support costs 
B)  customer-sustaining costs; production costs 
C)  costs of goods sold; customer discounts 
D)  customer costs; customer revenues

Question 9

When conducting a customer lifetime value analysis,networking potential and learning potential are more difficult to evaluate than core business potential and cross-selling potential.

Accepted Answer

A) True 
 B)False

Question 10

By measuring customer retention rates,firms can determine both behavioral loyalty and attitudinal loyalty.

Accepted Answer

A) True 
 B)False

Question 11

According to Frederick Reichheld,what is the best indicator for a firm's growth?

Accepted Answer

A)  customer repurchase rates 
B)  long-term customer retention rate 
C)  number of customer recommendations 
D)  ratio of customer profits and marketing costs 
A)  customer repurchase rates 
B)  long-term customer retention rate 
C)  number of customer recommendations 
D)  ratio of customer profits and marketing costs

Question 12

According to research,it costs a firm five to seven times more to acquire a new customer than to keep an existing customer.

Accepted Answer

A) True 
 B)False

Question 13

In most cases,a long-term customer relationship is ________ a short-term customer relationship.

Accepted Answer

A)  more profitable than 
B)  less profitable than 
C)  as profitable as 
D)  no different than 
A)  more profitable than 
B)  less profitable than 
C)  as profitable as 
D)  no different than

Question 14

By analyzing customer lifetime value,a firm can most likely ________ for a specific customer group.

Accepted Answer

A)  implement direct marketing 
B)  establish marketing strategies 
C)  evaluate personal selling approaches 
D)  assess international distribution methods 
A)  implement direct marketing 
B)  establish marketing strategies 
C)  evaluate personal selling approaches 
D)  assess international distribution methods

Exam 23: Note : Customer Lifetime Value

What is indicated by a net promoter score?

Which term refers to the net present value of future cash flows attributed to the customer relationship?

All of the following are necessary to calculate the customer lifetime value EXCEPT ________.

Which of the following is NOT one of the categories used to analyze customer profitability?

How can a customer portfolio help marketers with customer relationship management? What are the four types of customers identified in a customer portfolio? As a marketer,on which types of customers would you primarily focus?

The customer portfolio matrix categorizes customers based on ________ and ________.

Which term refers to the cash flow from new customer relationships through customers' word-of-mouth?

Customer profitability is calculated by analyzing ________ and ________.

When conducting a customer lifetime value analysis,networking potential and learning potential are more difficult to evaluate than core business potential and cross-selling potential.

By measuring customer retention rates,firms can determine both behavioral loyalty and attitudinal loyalty.

According to Frederick Reichheld,what is the best indicator for a firm's growth?

According to research,it costs a firm five to seven times more to acquire a new customer than to keep an existing customer.

In most cases,a long-term customer relationship is ________ a short-term customer relationship.

By analyzing customer lifetime value,a firm can most likely ________ for a specific customer group.

Overview of Marketing Strategy the Strategic Marketing Process

Situation Assessment - the External Environment

Situation Assessment - the Company

Strategy Formation

Implementation

Planning,assessment,and Adjustment

Note : Market Definition

Note : Context: Pest Analysis

Note : Customer Assessment - Trends and Insights

Note : Consumer and Organizational Buyer Behavior

Note : Competitor Analysis - Competitive Intelligence

Note : Company Assessment - Missions and Visions

Note : Company Assessment - the Value Chain

Note : Industry Analysis

Note : the Product Life Cycle

Note : Experience Curve Effects on Cost Reduction

Note : Economies and Diseconomies of Scale

Note : Economies of Scope-Synergies and Virtuous Circles

Note : Market-Share Effects

Note : Scenario Analysis

Note : the Marketing Concept

Note : What Is a Marketing Strategy

Note : Generic Strategies - Advantage and Scope

Note : Generic Strategies - the Value Map

Note : Generic Strategies - Product-Market Growth Strategies

Note : Specific Marketing Strategies

Note : Market Segmentation

Note : Loyalty-Based Marketing,customer Acquisition,and Customer Retention

Note : Competitive Advantages

Note : Swot Analysis

Note : Targeting

Note : Positioning

Note : Customer-Oriented Market Research

Note : Brands and Branding

Note : Products - New Product Development

Note : Products - Innovations

Note : Products - Product Portfolios

Note : Pricing Strategies

Note : Promotion and People - Integrated Marketing Communications

Note : Place - Distribution

Note : Budgets,forecasts,and Objectives

Note : Staircase Analysis

Note : Assessment and Adjustment

Filters

The customer portfolio matrix categorizes customers based on and .

Customer profitability is calculated by analyzing and .