Question 1

In which of the following cases is building a database worthwhile for the company?

Accepted Answer

A)  Clare's creates personalized sculptures for special occasions. 
B)  Sales of Clarity soap have fallen over the past few months in all regions. 
C)  2Wheels sells its most profitable products to repeat customers. 
D)  Uncle Jim's sells its range of snacks in stores throughout the country. 
E)  Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the U.S. 
A)  Clare's creates personalized sculptures for special occasions. 
B)  Sales of Clarity soap have fallen over the past few months in all regions. 
C)  2Wheels sells its most profitable products to repeat customers. 
D)  Uncle Jim's sells its range of snacks in stores throughout the country. 
E)  Ready-to-wear clothes brand Zeep targets the teen and tween market throughout the U.S.

Question 2

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 3

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 
B)  top management 
C)  front-line people 
D)  customers 
E)  middle management 
A)  sales 
B)  top management 
C)  front-line people 
D)  customers 
E)  middle management

Question 4

A profitable customer ________.

Accepted Answer

A)  yields a cost stream that exceeds by an acceptable amount his revenue stream 
B)  yields a revenue stream that exceeds the company's cost stream 
C)  yields a cost stream that exceeds the company's revenue stream 
D)  yields a revenue stream that exceeds by an acceptable amount his cost stream 
E)  yields a revenue stream that equals the company's cost stream 
A)  yields a cost stream that exceeds by an acceptable amount his revenue stream 
B)  yields a revenue stream that exceeds the company's cost stream 
C)  yields a cost stream that exceeds the company's revenue stream 
D)  yields a revenue stream that exceeds by an acceptable amount his cost stream 
E)  yields a revenue stream that equals the company's cost stream

Question 5

Which of the following statements demonstrates behavioral loyalty towards a brand?

Accepted Answer

A)  2Wheels has very customer-friendly return policies for its products. 
B)  I always buy 2Wheels products when I'm looking for bike accessories. 
C)  Most of my friends agree that 2Wheels is the best place for durable biking gear. 
D)  2Wheels has the friendliest customer service people I've ever met. 
E)  I think that 2Wheels products are the highest-quality products in their price range. 
A)  2Wheels has very customer-friendly return policies for its products. 
B)  I always buy 2Wheels products when I'm looking for bike accessories. 
C)  Most of my friends agree that 2Wheels is the best place for durable biking gear. 
D)  2Wheels has the friendliest customer service people I've ever met. 
E)  I think that 2Wheels products are the highest-quality products in their price range.

Question 6

Southwest Airlines offers a Rapid 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 7

Through ________,marketing statisticians can extract useful information about individuals,trends,and segments from the mass of data.

Accepted Answer

A)  data governance 
B)  data modeling 
C)  data mining 
D)  data maintenance 
E)  data marketing 
A)  data governance 
B)  data modeling 
C)  data mining 
D)  data maintenance 
E)  data marketing

Question 8

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Accepted Answer

A) True 
 B)False

Question 9

A ________ 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 that customer.

Accepted Answer

A)  prospector 
B)  profitable customer 
C)  market challenger 
D)  market nicher 
E)  pioneer customer 
A)  prospector 
B)  profitable customer 
C)  market challenger 
D)  market nicher 
E)  pioneer customer

Question 10

Sammy's is a fast food chain that offers burgers,sandwiches,and shakes.It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it.Hence,Sammy's is focusing its marketing efforts on its ________.

Accepted Answer

A)  horizontal marketing system 
B)  cost versus benefit system 
C)  consumption system 
D)  marketing channel system 
E)  value delivery system 
A)  horizontal marketing system 
B)  cost versus benefit system 
C)  consumption system 
D)  marketing channel system 
E)  value delivery system

Question 11

Which of the following can a company do to reduce defection?

Accepted Answer

A)  Attract new customers to try out the company's products. 
B)  Increase customer lifetime value by increasing the non-monetary costs of products. 
C)  Enhance the growth potential of existing customers through cross-selling and upselling. 
D)  Distinguish the causes of customer attrition and identify those that can be managed better. 
E)  Make low-profit customers more profitable or terminate the relationship. 
A)  Attract new customers to try out the company's products. 
B)  Increase customer lifetime value by increasing the non-monetary costs of products. 
C)  Enhance the growth potential of existing customers through cross-selling and upselling. 
D)  Distinguish the causes of customer attrition and identify those that can be managed better. 
E)  Make low-profit customers more profitable or terminate the relationship.

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)  Greater customer satisfaction has also been linked to higher returns and lower risk in the stock market. 
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)  Greater customer satisfaction has also been linked to higher returns and lower risk in the stock market.

Question 13

Phil Langston 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.Langston 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 14

Conformance quality and performance quality are identical in the marketing sense.

Accepted Answer

A) True 
 B)False

Question 15

Unprofitable customers who defect to a competitor should be encouraged to do so.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Activity-based costing tries to identify the real costs associated with serving each customer.

Accepted Answer

A) True 
 B)False

Question 18

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Accepted Answer

A)  Value proposition 
B)  Loyalty 
C)  Satisfaction 
D)  Respect 
E)  Customer value 
A)  Value proposition 
B)  Loyalty 
C)  Satisfaction 
D)  Respect 
E)  Customer value

Question 19

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 20

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

In which of the following cases is building a database worthwhile for the company?

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

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

A profitable customer ________.

Which of the following statements demonstrates behavioral loyalty towards a brand?

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

Through ________,marketing statisticians can extract useful information about individuals,trends,and segments from the mass of data.

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

A ________ 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 that customer.

Sammy's is a fast food chain that offers burgers,sandwiches,and shakes.It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it.Hence,Sammy's is focusing its marketing efforts on its ________.

Which of the following can a company do to reduce defection?

Which of the following is true for customer satisfaction?

Phil Langston 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.Langston most likely using his database?

Conformance quality and performance quality are identical in the marketing sense.

Unprofitable customers who defect to a competitor should be encouraged to do so.

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

Activity-based costing tries to identify the real costs associated with serving each customer.

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

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

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 ________.

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

Exam 4: Creating Long-term Loyalty Relationships

In which of the following cases is building a database worthwhile for the company?

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

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

A profitable customer ________.

Which of the following statements demonstrates behavioral loyalty towards a brand?

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

Through ________,marketing statisticians can extract useful information about individuals,trends,and segments from the mass of data.

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

A ________ 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 that customer.

Sammy's is a fast food chain that offers burgers,sandwiches,and shakes.It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it.Hence,Sammy's is focusing its marketing efforts on its ________.

Which of the following can a company do to reduce defection?

Which of the following is true for customer satisfaction?

Phil Langston 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.Langston most likely using his database?

Conformance quality and performance quality are identical in the marketing sense.

Unprofitable customers who defect to a competitor should be encouraged to do so.

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

Activity-based costing tries to identify the real costs associated with serving each customer.

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

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

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 ________.

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