Question 1

Total customer cost consists of only the non-monetary costs in evaluating,obtaining,using,and disposing of the given market offering.

Accepted Answer

A) True 
 B)False  False

Question 2

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 A

Question 3

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This helps the banks to ________.

Accepted Answer

A)  reduce the rate of customer defection 
B)  make low-profit customers more profitable 
C)  enhance the growth potential for each customer through cross-selling 
D)  increase the longevity of the customer relationship 
E)  focus disproportionate effort on high-value customers 
A)  reduce the rate of customer defection 
B)  make low-profit customers more profitable 
C)  enhance the growth potential for each customer through cross-selling 
D)  increase the longevity of the customer relationship 
E)  focus disproportionate effort on high-value customers

Question 6

________ 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 7

A customer touch point is the time when the customer makes a purchase.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  an airline 
B)  a candy bar manufacturer 
C)  a fast-food chain 
D)  a toothpaste manufacturer 
E)  a hair stylist 
A)  an airline 
B)  a candy bar manufacturer 
C)  a fast-food chain 
D)  a toothpaste manufacturer 
E)  a hair stylist

Question 9

________ 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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

A customer touch point for Abacus 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

Question 14

Which of the following is true for customer-perceived value?

Accepted Answer

A)  It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. 
B)  It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. 
C)  It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. 
D)  It is the net present value of the stream of future profits expected over the customer's lifetime purchases. 
E)  It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies. 
A)  It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. 
B)  It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. 
C)  It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. 
D)  It is the net present value of the stream of future profits expected over the customer's lifetime purchases. 
E)  It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies.

Question 15

Which of the following is true for the modern company organization chart?

Accepted Answer

A)  Frontline employees are less important than top management. 
B)  Customers are at the top of the pyramid. 
C)  Top management is at the top of the pyramid. 
D)  Customers are less important than middle management. 
E)  Frontline employees are at the top of the pyramid. 
A)  Frontline employees are less important than top management. 
B)  Customers are at the top of the pyramid. 
C)  Top management is at the top of the pyramid. 
D)  Customers are less important than middle management. 
E)  Frontline employees are at the top of the pyramid.

Question 16

Rachel and Josh are on vacation in Hawaii.When they arrived at the hotel,they were offered chilled juice.Their check-in formalities were handled by the staff.When they entered their room,they saw that chocolates had been placed on the pillows and a flower arrangement on the table.The hotel's actions are an example of ________.

Accepted Answer

A)  customer lifetime value 
B)  customer perceived value 
C)  customer value analysis 
D)  customer profitability analysis 
E)  a customer touch point 
A)  customer lifetime value 
B)  customer perceived value 
C)  customer value analysis 
D)  customer profitability analysis 
E)  a customer touch point

Question 17

Consumers' expectations result exclusively from past buying experiences.

Accepted Answer

A) True 
 B)False

Question 18

Give an example of two products that have different performance quality but are of equal conformance quality.

Accepted Answer

Student answers may vary.
Performance qu

Question 19

Which of the following is an example of focusing disproportionate effort on high-profit customers?

Accepted Answer

A)  In addition to bicycles, 2Wheels sells 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 sells 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 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

Total customer cost consists of only the non-monetary costs in evaluating,obtaining,using,and disposing of the given market 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?

The value delivery system includes all the experiences the customer will have on the way to obtaining and using 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?

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This helps the banks to ________.

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

A customer touch point is the time when the customer makes a purchase.

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

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

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

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

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

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

Which of the following is true for customer-perceived value?

Which of the following is true for the modern company organization chart?

Consumers' expectations result exclusively from past buying experiences.

Give an example of two products that have different performance quality but are of equal conformance quality.

Which of the following is an example of focusing disproportionate effort on high-profit customers?

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Managing Marketing in the Global Economy

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Exam 4: Creating Long-term Loyalty Relationships

Total customer cost consists of only the non-monetary costs in evaluating,obtaining,using,and disposing of the given market 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?

The value delivery system includes all the experiences the customer will have on the way to obtaining and using 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?

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This helps the banks to ________.

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

A customer touch point is the time when the customer makes a purchase.

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

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

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

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

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

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

Which of the following is true for customer-perceived value?

Which of the following is true for the modern company organization chart?

Consumers' expectations result exclusively from past buying experiences.

Give an example of two products that have different performance quality but are of equal conformance quality.

Which of the following is an example of focusing disproportionate effort on high-profit customers?

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

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning and Competing Effectively

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling

Managing Marketing in the Global Economy

Filters