Question 1

Which of the following is NOT a focus of customer relationship management?

Accepted Answer

A) customer prioritization 
B) share of customer 
C) lifetime value of the customer 
D) customer equity 
E) undifferentiated targeting

Question 2

Which of the following statements about customer relationship management (CRM) programs is true?

Accepted Answer

A) The success of a CRM program relies on its use of mass communication channels. 
B) CRM programs include information gathered from each customer touchpoint. 
C) Internet technology is a barrier to the successful implementation of CRM programs. 
D) To succeed, all companies should engage in CRM every time they interact with a customer. 
E) Only consumer marketers can benefit from the use of CRM programs.

Question 3

French Canadians,Italian Canadians, and Asian Canadians are all examples of ________ demographic segments.

Accepted Answer

A) life cycle 
B) psychographic 
C) ethnicity 
D) social class 
E) geocoding

Question 4

Jolene Enterprises mass produces an all-purpose floor cleaner, mass distributes it, and mass promotes it.This firm uses a(n)________.

Accepted Answer

A) segmented strategy 
B) undifferentiated targeting strategy 
C) focused targeting strategy 
D) differentiated targeting strategy 
E) concentrated targeting strategy

Question 5

Markets can be segmented into group of nonusers, ex-users, potential users, heavy users, and moderate users of a product.This is an example of ________ segmentation.

Accepted Answer

A) behavioral 
B) occasion 
C) demographic 
D) psychographic 
E) geocoding

Question 6

Why do marketers segment the market and use a target marketing strategy?

Accepted Answer

The answer of Why do marketers segment the market and...

Question 7

To determine ________, firms compare the investments they make in acquiring and retaining customers to the financial return on those investments.

Accepted Answer

A) segmentation 
B) share of customer 
C) brand personality 
D) customer equity 
E) positioning

Question 8

XYZ Computers, Inc., a business with limited resources, uses a concentrated targeting strategy.How might XYZ benefit from this?

Accepted Answer

The answer of XYZ Computers, Inc., a business with limited...

Question 9

Why might a marketer of laundry detergent be interested in viewing a perceptual map?

Accepted Answer

The answer of Why might a marketer of laundry detergent...

Question 10

A company that uses a(n)________ targeting strategy is appealing to a broad spectrum of people.

Accepted Answer

A) fragmented 
B) undifferentiated 
C) concentrated 
D) differentiated 
E) customized

Question 11

Compare and contrast the advantages and disadvantages of undifferentiated targeting, differentiated targeting, and concentrated targeting.

Accepted Answer

The answer of Compare and contrast the advantages and disadvantages...

Question 12

An industrial manufacturer that works with one or a few large clients and develops products that only these clients will use is most likely to implement a(n)________ strategy.

Accepted Answer

A) undifferentiated targeting 
B) homogeneous 
C) custom marketing 
D) bottom-of-pyramid 
E) differentiated targeting

Question 13

Which of the following is a segmentation technique that combines geography with demographics?

Accepted Answer

A) geocoding 
B) geodemography 
C) geodiversity 
D) regional generation 
E) psychographics

Question 14

Which of the following most accurately describes PSYTE?

Accepted Answer

A) a method of removing heterogeneous variables from a target market 
B) a method of data mining used to implement market development strategies 
C) a database that classifies the Canadian consumers into 60 clusters based on postal code and demographic information 
D) a database that classifies the international population into segments based on demographic and geographic characteristics 
E) a positioning strategy used in the introduction of new consumer products

Question 15

The long tail approach to segmentation indicates that companies can make money selling small amounts of items that only a few people want as long as they sell enough different items.

Accepted Answer

A) True 
 B)False

Question 16

________ is the financial value of a customer throughout the lifetime of the customer relationship.

Accepted Answer

A) Share of customer 
B) The customer perceptual map 
C) CRM 
D) Customer equity 
E) The 80/20 rule

Question 17

Explain how a computer company might use custom marketing to meet the needs of its customers.

Accepted Answer

The answer of Explain how a computer company might use...

Question 18

Which of the following is true of perceptual maps?

Accepted Answer

A) They are only used during the new product development process. 
B) They are the most effective method for predicting product success. 
C) They identify consumer shopping preferences in terms of retail and nonretail locations. 
D) They are not useful in business-to-business marketing. 
E) They cannot be created without consumer research.

Question 19

Companies that successfully practice customer relationship management measure success by ________.

Accepted Answer

A) share of market and market growth rate 
B) business potential and industry potential 
C) share of customer and lifetime value of the customer 
D) PRIZM and VALS2 
E) cost of customer and duration of relationship with customer

Question 20

Which of the following is the best example of the long tail approach to selling?

Accepted Answer

A) Nearly 20% of the videos delivered by Netflix are older or obscure titles from its vast collection of videos. 
B) Kraft Foods focuses on the 20% of U.S.households that purchase 80% of the Miracle Whip the company markets. 
C) Barnes & Noble stocks the most popular books and magazines in its retail stores. 
D) Google lets advertisers target certain ads to certain segments of search engine users. 
E) Staples segments its business-to-business markets based on sales volume.

Exam 6: Sharpen the Focus: Target Marketing Strategies and Customer Relationship