Question 1

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 2

Create a value proposition for cell phone manufacturer LZT.

Accepted Answer

Student answers may vary.
LZT'

Question 3

________ is the perceived monetary value of the bundle of economic,functional,and psychological benefits customers expect from a given market offering.

Accepted Answer

A)  Total customer cost 
B)  Total customer benefit 
C)  Total benefits of ownership 
D)  Value proposition 
E)  Value delivery system 
A)  Total customer cost 
B)  Total customer benefit 
C)  Total benefits of ownership 
D)  Value proposition 
E)  Value delivery system

Question 4

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

Accepted Answer

A)  Perceived usefulness 
B)  Failure avoidance rate 
C)  Total customer benefit 
D)  Customer-perceived value 
E)  Competitors' market share rate 
A)  Perceived usefulness 
B)  Failure avoidance rate 
C)  Total customer benefit 
D)  Customer-perceived value 
E)  Competitors' market share rate

Question 5

The value proposition is stated in the price of a product and readily recognized by the average consumer.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Explain customer-perceived value.

Accepted Answer

Customer-perceived value (CPV)is the dif

Question 8

Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

Accepted Answer

A) True 
 B)False

Question 9

Amy and Jack were loyal customers of GreenFoods, 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 However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town.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 Jack must move through each stage in the marketing funnel before becoming loyal customers.
-Jack has shopped at VeggiesNmore.He was happy with the experience and thought that this could be an alternative to GreenFoods.However,he is also keen to try out other stores in the neighborhood.He 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)  nonrejecter 
E)  regular user 
A)  aware 
B)  open to trial 
C)  most often used 
D)  nonrejecter 
E)  regular user

Question 10

Susan Lefferts' company advertises widely.Ms.Lefferts uses business reply cards attached to her company's magazine ads to build her company's database.In which of the following ways would Ms.Lefferts most likely use the database?

Accepted Answer

A)  to deepen customer loyalty 
B)  to reactivate customer purchases 
C)  to avoid serious customer mistakes 
D)  to determine if up-selling is appropriate 
E)  to identify prospects 
A)  to deepen customer loyalty 
B)  to reactivate customer purchases 
C)  to avoid serious customer mistakes 
D)  to determine if up-selling is appropriate 
E)  to identify prospects

Question 11

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 12

Which of the following is true for customer relationship marketing?

Accepted Answer

A)  Competitors can often hack into CRM systems. 
B)  Building and maintaining a customer database requires a large investment. 
C)  It is very difficult to find and train database employees. 
D)  Long-term results of such systems are still unproven. 
E)  Focusing too much on databases separates a company from its customers. 
A)  Competitors can often hack into CRM systems. 
B)  Building and maintaining a customer database requires a large investment. 
C)  It is very difficult to find and train database employees. 
D)  Long-term results of such systems are still unproven. 
E)  Focusing too much on databases separates a company from its customers.

Question 13

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 14

Customer satisfaction is the only way by which a firm can increase its profitability.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Which of the following gains the most benefit from introducing a frequency program?

Accepted Answer

A)  the first company to introduce a frequency program in an industry 
B)  the fast follower, the second to introduce a program in an industry 
C)  the industry sales leader 
D)  the niche player in the industry 
E)  the low-cost leader in the industry 
A)  the first company to introduce a frequency program in an industry 
B)  the fast follower, the second to introduce a program in an industry 
C)  the industry sales leader 
D)  the niche player in the industry 
E)  the low-cost leader in the industry

Question 17

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 18

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 19

The aim of customer relationship management is to produce high customer ________.

Accepted Answer

A)  integrity 
B)  loyalty 
C)  innovation 
D)  liability 
E)  equity 
A)  integrity 
B)  loyalty 
C)  innovation 
D)  liability 
E)  equity

Question 20

The process of building,maintaining,and using customer databases and other databases for the purpose of contacting,transacting,and building customer relationships is called ________.

Accepted Answer

A)  data warehousing 
B)  data mining 
C)  database marketing 
D)  participatory marketing 
E)  permission marketing 
A)  data warehousing 
B)  data mining 
C)  database marketing 
D)  participatory marketing 
E)  permission marketing

Another term for high customer ________ is customer churn.

Create a value proposition for cell phone manufacturer LZT.

________ is the perceived monetary value of the bundle of economic,functional,and psychological benefits customers expect from a given market offering.

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

The value proposition is stated in the price of a product and readily recognized by the average consumer.

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

Explain customer-perceived value.

Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

Susan Lefferts' company advertises widely.Ms.Lefferts uses business reply cards attached to her company's magazine ads to build her company's database.In which of the following ways would Ms.Lefferts most likely use the database?

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.

Which of the following is true for customer relationship marketing?

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

Customer satisfaction is the only way by which a firm can increase its profitability.

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

Which of the following gains the most benefit from introducing a frequency program?

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

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

The aim of customer relationship management is to produce high customer ________.

The process of building,maintaining,and using customer databases and other databases for the purpose of contacting,transacting,and building customer relationships is called ________.

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

Another term for high customer ________ is customer churn.

Create a value proposition for cell phone manufacturer LZT.

________ is the perceived monetary value of the bundle of economic,functional,and psychological benefits customers expect from a given market offering.

________ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

The value proposition is stated in the price of a product and readily recognized by the average consumer.

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

Explain customer-perceived value.

Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

Susan Lefferts' company advertises widely.Ms.Lefferts uses business reply cards attached to her company's magazine ads to build her company's database.In which of the following ways would Ms.Lefferts most likely use the database?

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.

Which of the following is true for customer relationship marketing?

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

Customer satisfaction is the only way by which a firm can increase its profitability.

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

Which of the following gains the most benefit from introducing a frequency program?

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

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

The aim of customer relationship management is to produce high customer ________.

The process of building,maintaining,and using customer databases and other databases for the purpose of contacting,transacting,and building customer relationships is called ________.

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