Question 1

A customer touch point for Asiana 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 C

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

Student answers may vary.
An example of

Question 5

Using an example,contrast behavioral loyalty and attitudinal loyalty to a product.

Accepted Answer

Student answers will vary.
James shows h

Question 6

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 7

Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A key driver of shareholder value is the aggregate value of the customer base.Identify the five strategies employed by winning companies to improve the value of their customer base.

Accepted Answer

Winning companies improve the value of t

Question 10

The value proposition is also known as the core positioning of the offering.

Accepted Answer

A) True 
 B)False

Question 11

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

Keiko can reduce the price or

Question 12

What are the steps in a customer value analysis?

Accepted Answer

Managers conduct a customer value analys

Question 13

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 three steps that a company can take

Question 14

A profitable customer 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 the customer.

Accepted Answer

A) True 
 B)False

Question 15

Permission marketing presumes that consumers know what they want.

Accepted Answer

A) True 
 B)False

Question 16

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

A) absorbing some risk by offering a warranty 
B) improving the functional aspects of the products 
C) augmenting the psychological benefits of the products 
D) training service personnel to improve their skills 
E) investing in brand building for the products 
A) absorbing some risk by offering a warranty 
B) improving the functional aspects of the products 
C) augmenting the psychological benefits of the products 
D) training service personnel to improve their skills 
E) investing in brand building for the products

Question 17

Activity-based costing does not consider indirect,variable and overhead costs.

Accepted Answer

A) True 
 B)False

Question 18

Club membership programs that are open to everyone who purchases a product or service ________.

Accepted Answer

A) are more powerful long-term loyalty builders than limited-membership clubs. 
B) will not help a company attract customers from competitors 
C) prevent those with only a fleeting interest in a company's products from joining 
D) are useful for building a database of customers but are not very good as long-term loyalty builders 
E) are useless unless there are fees and membership conditions 
A) are more powerful long-term loyalty builders than limited-membership clubs. 
B) will not help a company attract customers from competitors 
C) prevent those with only a fleeting interest in a company's products from joining 
D) are useful for building a database of customers but are not very good as long-term loyalty builders 
E) are useless unless there are fees and membership conditions

Question 19

Customer-perceived value is based on the difference between benefits the customer gets and the costs he or she assumes for different choices.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 5: Creating Customer Value,satisfaction,and Loyalty

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

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

Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete.

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

Using an example,contrast behavioral loyalty and attitudinal loyalty to a product.

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

Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.

Another term for high customer ________ is customer churn.

A key driver of shareholder value is the aggregate value of the customer base.Identify the five strategies employed by winning companies to improve the value of their customer base.

The value proposition is also known as the core positioning of the offering.

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?

What are the steps in a customer value analysis?

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.

A profitable customer 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 the customer.

Permission marketing presumes that consumers know what they want.

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?

Activity-based costing does not consider indirect,variable and overhead costs.

Club membership programs that are open to everyone who purchases a product or service ________.

Customer-perceived value is based on the difference between benefits the customer gets and the costs he or she assumes for different choices.

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

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Gathering Information and Forecasting Demand

Conducting Marketing Research

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Competitive Dynamics

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Marketing Channels and Value Networks

Managing Retailing,wholesaling,and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, sales Promotions, events, and Public Relations

Managing Digital Communications: Online, social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Introducing New Market Offerings

Tapping Into Global Markets

Managing a Holistic Marketing Organization

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