Question 1

No matter how perfectly designed and implemented a marketing program is, mistakes will happen. What procedures can help recover customer goodwill?

Accepted Answer

The answer of No matter how perfectly designed and implemented...

Question 2

A key driver of shareholder value is the aggregate value of the customer base.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following strategies among Peppers and Rogers's four-step framework for one-to-one marketing involves formulating customized offerings communicated in a personalized way.

Accepted Answer

A)  interacting with individual customers to learn their needs 
B)  differentiating customers in terms of their needs and value to the company 
C)  focus disproportionate effort on high-value customers 
D)  customizing products, services, and messages to each customer 
E)  identify your prospects and customers

Question 4

Nina Saab has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database. In which of the following ways is Ms. Saab most likely using his database?

Accepted Answer

A)  to beat the competition to a sale 
B)  to avoid serious customer mistakes 
C)  to deepen customer loyalty 
D)  to identify prospects 
E)  to decide which customers should receive a new sales offer

Question 5

A customer database is simply a listing of a customer's name, address, and phone number for credit reference.

Accepted Answer

A) True 
 B)False

Question 6

Database marketing is most frequently used by business marketers and service providers (hotels, banks, airlines, and insurance, credit card, and telephone companies) that normally and easily collect a lot of customer data.

Accepted Answer

A) True 
 B)False

Question 7

Since January 1, 2004, Canadian marketers must comply with the Personal Information Protection and Electronic Documents Act. What limitations for marketers does the act include?

Accepted Answer

The answer of Since January 1, 2004, Canadian marketers must...

Question 8

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

Accepted Answer

A)  Sales are at the top of the organizational pyramid. 
B)  Customers are at the top of the organizational pyramid. 
C)  Middle management is at the top of the organizational pyramid. 
D)  The president is at the top of the organizational pyramid. 
E)  Front-line people are at the top of the organizational pyramid.

Question 9

When a company like HBC sends out automatic Christmas shopping reminders or off-season promotions, which of the five ways to use databases applies?

Accepted Answer

The answer of When a company like HBC sends out...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The midsize customers for most organizations receive good service, pay nearly full price for the products and services they purchase, and are often the most profitable.

Accepted Answer

A) True 
 B)False

Question 12

There are two determinates of customer perceived value: total customer benefit and total customer cost.

Accepted Answer

A) True 
 B)False

Question 13

Brand equity is the customer's objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs.

Accepted Answer

A) True 
 B)False

Question 14

Enterprise Office Depot is a marketer that has moved from the traditional to a modern customer-oriented organization chart. In that case, we would expect to find the ________ of Enterprise, second in importance.

Accepted Answer

A)  middle management 
B)  service department 
C)  top management 
D)  front-line people 
E)  marketing department

Question 15

Which of the following gains the most benefit from introducing a frequency program?

Accepted Answer

A)  the first company to introduce a frequency program in an industry 
B)  the fast follower, the second to introduce a program in an industry 
C)  the industry sales leader 
D)  the niche player in the industry 
E)  the low-cost leader in the industry

Question 16

Online retailers such as Zazzle and CafePress allow users to upload images and create their own clothing and posters or buy merchandise created by other users. This would be an example of which of the following?

Accepted Answer

A)  mass customization 
B)  mass marketing 
C)  environmental marketing 
D)  niche marketing 
E)  individualization

Question 17

Susan Belcourt's company advertises widely. In each magazine ad, a business reply card is attached. Ms. Belcourt uses these cards to build her company's database. In which of the following ways would Ms. Belcourt most likely be using the newly constructed database?

Accepted Answer

A)  to avoid serious customer mistakes 
B)  to determine if up-selling is appropriate 
C)  to reactivate customer purchases 
D)  to deepen customer loyalty 
E)  to identify prospects

Question 18

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

Accepted Answer

The answer of Today, companies are increasingly concerned about customer...

Question 19

For a consumer to be delighted with a product or service he or she must perceive that performance exceeds expectations.

Accepted Answer

A) True 
 B)False

Question 20

The opening vignette on Sobeys Inc. indicates that successful marketers are the ones that

Accepted Answer

A)  understand the sales concept. 
B)  manage their customer base. 
C)  divorce themselves from a production mentality. 
D)  understand promotional strategy. 
E)  diversify their product line.

Exam 5: Creating Long term Loyalty Relationships

No matter how perfectly designed and implemented a marketing program is, mistakes will happen. What procedures can help recover customer goodwill?

A key driver of shareholder value is the aggregate value of the customer base.

Which of the following strategies among Peppers and Rogers's four-step framework for one-to-one marketing involves formulating customized offerings communicated in a personalized way.

Nina Saab has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database. In which of the following ways is Ms. Saab most likely using his database?

A customer database is simply a listing of a customer's name, address, and phone number for credit reference.

Database marketing is most frequently used by business marketers and service providers (hotels, banks, airlines, and insurance, credit card, and telephone companies) that normally and easily collect a lot of customer data.

Since January 1, 2004, Canadian marketers must comply with the Personal Information Protection and Electronic Documents Act. What limitations for marketers does the act include?

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

When a company like HBC sends out automatic Christmas shopping reminders or off-season promotions, which of the five ways to use databases applies?

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

The midsize customers for most organizations receive good service, pay nearly full price for the products and services they purchase, and are often the most profitable.

There are two determinates of customer perceived value: total customer benefit and total customer cost.

Brand equity is the customer's objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs.

Enterprise Office Depot is a marketer that has moved from the traditional to a modern customer-oriented organization chart. In that case, we would expect to find the ________ of Enterprise, second in importance.

Which of the following gains the most benefit from introducing a frequency program?

Online retailers such as Zazzle and CafePress allow users to upload images and create their own clothing and posters or buy merchandise created by other users. This would be an example of which of the following?

Susan Belcourt's company advertises widely. In each magazine ad, a business reply card is attached. Ms. Belcourt uses these cards to build her company's database. In which of the following ways would Ms. Belcourt most likely be using the newly constructed database?

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

For a consumer to be delighted with a product or service he or she must perceive that performance exceeds expectations.

The opening vignette on Sobeys Inc. indicates that successful marketers are the ones that