Question 1

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Accepted Answer

A) 2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise. 
B) 2Wheels has a club for its regular customers,organizing cycling events and parties for them. 
C) Though 2Wheels previously offered free delivery,it now charges for deliveries made outside the city. 
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E) 2Wheels encourages customers to send in their suggestions for product improvement. 
A) 2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise. 
B) 2Wheels has a club for its regular customers,organizing cycling events and parties for them. 
C) Though 2Wheels previously offered free delivery,it now charges for deliveries made outside the city. 
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E) 2Wheels encourages customers to send in their suggestions for product improvement.

Question 2

Which of the following is an example of enhancing the growth potential of each customer through cross-selling?

Accepted Answer

A) In addition to bicycles,2Wheels stocks biking gear such as helmets,bottles,jackets and other accessories. 
B) 2Wheels has a club for its regular customers,organizing cycling events and parties for them. 
C) Though 2Wheels previously offered free delivery,it now charges for deliveries made outside the city. 
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E) 2Wheels encourages customers to send in their suggestions for product improvement. 
A) In addition to bicycles,2Wheels stocks biking gear such as helmets,bottles,jackets and other accessories. 
B) 2Wheels has a club for its regular customers,organizing cycling events and parties for them. 
C) Though 2Wheels previously offered free delivery,it now charges for deliveries made outside the city. 
D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. 
E) 2Wheels encourages customers to send in their suggestions for product improvement.

Question 3

When a consumer considers a product or service,he or she will choose whichever product or service delivers the highest ________.

Accepted Answer

A) customer-perceived value 
B) customer-perceived cost 
C) customer profitability analysis 
D) customer equity 
E) customer lifetime value 
A) customer-perceived value 
B) customer-perceived cost 
C) customer profitability analysis 
D) customer equity 
E) customer lifetime value

Question 4

________ is the practice of sending messages only when consumers express a willingness to become more involved with the brand.

Accepted Answer

A) Relationship marketing 
B) Permission marketing 
C) Cause marketing 
D) Defensive marketing 
E) Horizontal marketing 
A) Relationship marketing 
B) Permission marketing 
C) Cause marketing 
D) Defensive marketing 
E) Horizontal marketing

Question 5

In a modern customer-oriented organization chart,the ________ of an organization immediately follow the customer segment.

Accepted Answer

A) top management 
B) marketing department 
C) middle management 
D) frontline people 
E) lower management 
A) top management 
B) marketing department 
C) middle management 
D) frontline people 
E) lower management

Question 6

What technique is used for customer profitability analysis?

Accepted Answer

Customer profitability analysis (CPA)is

Question 7

Singapore Airlines offers the Krisflyer Rewards program that allows customers to count flights they have taken toward free future flights.This is an example of a(n)________.

Accepted Answer

A) cross-selling program 
B) value delivery system 
C) club membership program 
D) activity-based costing program 
E) up-selling program 
A) cross-selling program 
B) value delivery system 
C) club membership program 
D) activity-based costing program 
E) up-selling program

Question 8

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Accepted Answer

A) Performance 
B) Value 
C) Quality 
D) Customer retention 
E) Customer loyalty 
A) Performance 
B) Value 
C) Quality 
D) Customer retention 
E) Customer loyalty

Question 9

Amy and Jill were loyal customers of Jon’s Market, 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 Jill must move through each stage in the marketing funnel before becoming loyal customers.
-Jill has shopped at VeggiesNmore.She was happy with the experience and thought that it could be an alternative to Jon's Market.However,she is also keen to try out other stores in the neighborhood.She is in the________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.

Accepted Answer

A) aware 
B) open to trial 
C) most often used 
D) trier 
E) regular user 
A) aware 
B) open to trial 
C) most often used 
D) trier 
E) regular user

Question 10

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called ________.

Accepted Answer

A) input-output analysis 
B) factor analysis 
C) revenue-based costing 
D) activity-based costing 
E) future date costing 
A) input-output analysis 
B) factor analysis 
C) revenue-based costing 
D) activity-based costing 
E) future date costing

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.Though Keiko's products are priced lower than Global's,the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech.What can Keiko do to obtain LZT's order?

Accepted Answer

Student answers may vary.Keiko can incre

Question 12

Which of the following is true for customer satisfaction?

Accepted Answer

A) Satisfaction is a deeply held commitment to rebuy or repatronize a preferred product despite situational influences. 
B) Consumers often form more favorable perceptions of a product with a brand that is new. 
C) The ultimate goal of a customer-centered firm is to create high customer satisfaction. 
D) Only increased customer satisfaction can help a company increase its profits. 
E) A company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfaction. 
A) Satisfaction is a deeply held commitment to rebuy or repatronize a preferred product despite situational influences. 
B) Consumers often form more favorable perceptions of a product with a brand that is new. 
C) The ultimate goal of a customer-centered firm is to create high customer satisfaction. 
D) Only increased customer satisfaction can help a company increase its profits. 
E) A company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfaction.

Question 13

Econ Minimart wants to learn the strengths and weaknesses in customer service at all the Econ Minimart stores.Which of the following methods can it use for this?

Accepted Answer

A) group buyers 
B) buyer brokers 
C) mystery shoppers 
D) personal shoppers 
E) buying agents 
A) group buyers 
B) buyer brokers 
C) mystery shoppers 
D) personal shoppers 
E) buying agents

Question 14

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

Accepted Answer

A) Activity-based costing 
B) Customer lifetime value 
C) Customer value analysis 
D) Customer-perceived value 
E) Customer profitability analysis 
A) Activity-based costing 
B) Customer lifetime value 
C) Customer value analysis 
D) Customer-perceived value 
E) Customer profitability analysis

Question 15

Sapphire Toys actually sells more than toys.It also sells branded clothing,music CDs,and books for children.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Accepted Answer

A) reducing the rate of customer defection 
B) increasing the longevity of the customer relationship 
C) enhancing the growth potential of each customer through cross-selling 
D) making low-profit customers more profitable 
E) terminating low-profit customers 
A) reducing the rate of customer defection 
B) increasing the longevity of the customer relationship 
C) enhancing the growth potential of each customer through cross-selling 
D) making low-profit customers more profitable 
E) terminating low-profit customers

Question 16

Which of the following is most likely to use database marketing?

Accepted Answer

A) a mobile service provider 
B) a candy bar manufacturer 
C) a fast-food chain 
D) a toothpaste manufacturer 
E) a hair stylist 
A) a mobile service provider 
B) a candy bar manufacturer 
C) a fast-food chain 
D) a toothpaste manufacturer 
E) a hair stylist

Question 17

Phil Leong 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 Mr.Leong most likely using his database?

Accepted Answer

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

Question 18

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost,not the profit from a particular transaction.

Accepted Answer

A) True 
 B)False

Question 19

Rade and Talion are competitors in the business of manufacturing wrist watches.While Rade promises to deliver design and quality to its customers,Talion promises to deliver durability and cost effectiveness.When both these companies deliver their respective promised qualities,they are delivering ________.

Accepted Answer

A) performance quality 
B) customer support 
C) unique quality 
D) accuracy quality 
E) conformance quality 
A) performance quality 
B) customer support 
C) unique quality 
D) accuracy quality 
E) conformance quality

Question 20

A customer ________ is any occasion on which a customer encounters the brand and product-from actual experience to personal or mass communications to casual observation.

Accepted Answer

A) touch point 
B) point of order 
C) point of difference 
D) pivot point 
E) point of parity 
A) touch point 
B) point of order 
C) point of difference 
D) pivot point 
E) point of parity

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Which of the following is an example of enhancing the growth potential of each customer through cross-selling?

When a consumer considers a product or service,he or she will choose whichever product or service delivers the highest ________.

________ is the practice of sending messages only when consumers express a willingness to become more involved with the brand.

In a modern customer-oriented organization chart,the ________ of an organization immediately follow the customer segment.

What technique is used for customer profitability analysis?

Singapore Airlines offers the Krisflyer Rewards program that allows customers to count flights they have taken toward free future flights.This is an example of a(n)________.

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called ________.

Which of the following is true for customer satisfaction?

Econ Minimart wants to learn the strengths and weaknesses in customer service at all the Econ Minimart stores.Which of the following methods can it use for this?

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

Sapphire Toys actually sells more than toys.It also sells branded clothing,music CDs,and books for children.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Which of the following is most likely to use database marketing?

Phil Leong 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 Mr.Leong most likely using his database?

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost,not the profit from a particular transaction.

A customer ________ is any occasion on which a customer encounters the brand and product-from actual experience to personal or mass communications to casual observation.

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

Filters

Exam 5: Creating Customer Value,satisfaction,and Loyalty

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Which of the following is an example of enhancing the growth potential of each customer through cross-selling?

When a consumer considers a product or service,he or she will choose whichever product or service delivers the highest ________.

________ is the practice of sending messages only when consumers express a willingness to become more involved with the brand.

In a modern customer-oriented organization chart,the ________ of an organization immediately follow the customer segment.

What technique is used for customer profitability analysis?

Singapore Airlines offers the Krisflyer Rewards program that allows customers to count flights they have taken toward free future flights.This is an example of a(n)________.

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called ________.

Which of the following is true for customer satisfaction?

Econ Minimart wants to learn the strengths and weaknesses in customer service at all the Econ Minimart stores.Which of the following methods can it use for this?

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

Sapphire Toys actually sells more than toys.It also sells branded clothing,music CDs,and books for children.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Which of the following is most likely to use database marketing?

Phil Leong 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 Mr.Leong most likely using his database?

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost,not the profit from a particular transaction.

A customer ________ is any occasion on which a customer encounters the brand and product-from actual experience to personal or mass communications to casual observation.

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

Filters