Question 1

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

Accepted Answer

A)  where the product is a one-in-a-lifetime purchase 
B)  where customers show little loyalty to a brand 
C)  where the company has a long relationship with its customers 
D)  where the unit sale is very small 
E)  where the cost of gathering the information is high 
A)  where the product is a one-in-a-lifetime purchase 
B)  where customers show little loyalty to a brand 
C)  where the company has a long relationship with its customers 
D)  where the unit sale is very small 
E)  where the cost of gathering the information is high

Question 2

Companies provide rewards to customers who buy often and in substantial amounts.These reward schemes are referred to as ________.

Accepted Answer

A)  benefit programs 
B)  frequency programs 
C)  satisfaction programs 
D)  profitability programs 
E)  quality programs 
A)  benefit programs 
B)  frequency programs 
C)  satisfaction programs 
D)  profitability programs 
E)  quality programs

Question 3

Which of the following is true for activity-based costing (ABC)?

Accepted Answer

A)  ABC considers the real costs associated with each product. 
B)  With ABC, the company can estimate all costs coming from the customer, less revenue. 
C)  The tools of ABC can be used to conduct customer profitability analysis. 
D)  It identifies the costs of products and services based on the revenue they generate. 
E)  ABC allocates indirect costs in proportion to direct costs. 
A)  ABC considers the real costs associated with each product. 
B)  With ABC, the company can estimate all costs coming from the customer, less revenue. 
C)  The tools of ABC can be used to conduct customer profitability analysis. 
D)  It identifies the costs of products and services based on the revenue they generate. 
E)  ABC allocates indirect costs in proportion to direct costs.

Question 4

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

Accepted Answer

A)  Customer relationship management 
B)  Customer lifetime value 
C)  Customer profitability analysis 
D)  Customer satisfaction analysis 
E)  Customer-value delivery 
A)  Customer relationship management 
B)  Customer lifetime value 
C)  Customer profitability analysis 
D)  Customer satisfaction analysis 
E)  Customer-value delivery

Question 5

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current,accessible,and actionable for lead generation,lead qualification,sale of a product or service,or maintenance of customer relationships.

Accepted Answer

A)  customer database 
B)  customer mailing list 
C)  customer-performance scorecard 
D)  customer profitability analysis 
E)  customer-value hierarchy 
A)  customer database 
B)  customer mailing list 
C)  customer-performance scorecard 
D)  customer profitability analysis 
E)  customer-value hierarchy

Question 6

The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

Accepted Answer

A)  everyday low prices 
B)  expanded home delivery options 
C)  database marketing 
D)  under-the-line promotions 
E)  retailer alliances 
A)  everyday low prices 
B)  expanded home delivery options 
C)  database marketing 
D)  under-the-line promotions 
E)  retailer alliances

Question 7

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors.This is an example of ________.

Accepted Answer

A)  trying to increase the retention rate for low-profit customers 
B)  terminating the relationship with low-profit customers 
C)  enhancing the growth potential of each customer through up-selling 
D)  increasing the longevity of the customer relationship 
E)  reducing the rate of customer defection 
A)  trying to increase the retention rate for low-profit customers 
B)  terminating the relationship with low-profit customers 
C)  enhancing the growth potential of each customer through up-selling 
D)  increasing the longevity of the customer relationship 
E)  reducing the rate of customer defection

Question 8

Amy is in the "aware" stage of the marketing funnel when she says ________.

Accepted Answer

A)  she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood 
B)  she was informed about VeggiesNmore by her colleague at work 
C)  she regularly shops from VeggiesNmore 
D)  she shops from VeggiesNmore as far as the store is easily accessible 
E)  she was happy with the experience of shopping at VeggiesNmore 
A)  she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood 
B)  she was informed about VeggiesNmore by her colleague at work 
C)  she regularly shops from VeggiesNmore 
D)  she shops from VeggiesNmore as far as the store is easily accessible 
E)  she was happy with the experience of shopping at VeggiesNmore

Question 9

Using the information in his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

Accepted Answer

A)  data warehouse 
B)  call back list 
C)  call rejection list 
D)  bibliographic database 
E)  customer-value hierarchy 
A)  data warehouse 
B)  call back list 
C)  call rejection list 
D)  bibliographic database 
E)  customer-value hierarchy

Question 10

The 80-20 rule reflects the idea that ________.

Accepted Answer

A)  20% of the company's profits are generated by the top 80% of customers 
B)  the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend 
C)  20% of customers are unprofitable, and 80% make up a company's profits 
D)  the top 20% of customers often generate 80% of the company's profits 
E)  any new product will be accepted by 20% of the customers immediately, but 80% of the customers will be up for grabs throughout the product's life cycle 
A)  20% of the company's profits are generated by the top 80% of customers 
B)  the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend 
C)  20% of customers are unprofitable, and 80% make up a company's profits 
D)  the top 20% of customers often generate 80% of the company's profits 
E)  any new product will be accepted by 20% of the customers immediately, but 80% of the customers will be up for grabs throughout the product's life cycle

Question 11

When two brands of the same basic product deliver their respective promised quality,they are delivering ________.

Accepted Answer

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

Question 12

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

TBS Bikes has recently introduced a series of bikes called Surami.The core positioning of TBS Bikes is "speed." Surami is a five-gear bike and apart from speed,the company promises to include other features such as safety,good performance,and pollution control features.This describes the ________ of the bike.

Accepted Answer

A)  total customer cost 
B)  customer-perceived value 
C)  value-delivery system 
D)  value proposition 
E)  total customer benefit 
A)  total customer cost 
B)  customer-perceived value 
C)  value-delivery system 
D)  value proposition 
E)  total customer benefit

Question 15

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

Question 16

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _________.

Accepted Answer

A)  reports from mystery shoppers 
B)  survey data from customers who have defected 
C)  market research 
D)  individual account informtion 
E)  demographic trend data 
A)  reports from mystery shoppers 
B)  survey data from customers who have defected 
C)  market research 
D)  individual account informtion 
E)  demographic trend data

Question 17

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 of 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 18

The bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the given market offering is called the ________.

Accepted Answer

A)  activity-based cost 
B)  customer profitability analysis 
C)  total customer cost 
D)  product life-cycle cost 
E)  direct product profitability 
A)  activity-based cost 
B)  customer profitability analysis 
C)  total customer cost 
D)  product life-cycle cost 
E)  direct product profitability

Question 19

Total customer satisfaction is measured based on the relationship of ________.

Accepted Answer

A)  expected value and total customer benefit 
B)  perceived performance and expectation 
C)  advertised outcomes and real outcomes 
D)  past experience and present experience 
E)  customer attitude and salesperson's attitude 
A)  expected value and total customer benefit 
B)  perceived performance and expectation 
C)  advertised outcomes and real outcomes 
D)  past experience and present experience 
E)  customer attitude and salesperson's attitude

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

Companies provide rewards to customers who buy often and in substantial amounts.These reward schemes are referred to as ________.

Which of the following is true for activity-based costing (ABC)?

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current,accessible,and actionable for lead generation,lead qualification,sale of a product or service,or maintenance of customer relationships.

The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors.This is an example of ________.

Amy is in the "aware" stage of the marketing funnel when she says ________.

Using the information in his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

The 80-20 rule reflects the idea that ________.

When two brands of the same basic product deliver their respective promised quality,they are delivering ________.

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

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

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.

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _________.

The bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the given market offering is called the ________.

Total customer satisfaction is measured based on the relationship of ________.

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

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

Companies provide rewards to customers who buy often and in substantial amounts.These reward schemes are referred to as ________.

Which of the following is true for activity-based costing (ABC)?

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current,accessible,and actionable for lead generation,lead qualification,sale of a product or service,or maintenance of customer relationships.

The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors.This is an example of ________.

Amy is in the "aware" stage of the marketing funnel when she says ________.

Using the information in his company's ________ lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.

The 80-20 rule reflects the idea that ________.

When two brands of the same basic product deliver their respective promised quality,they are delivering ________.

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

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

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.

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of _________.

The bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the given market offering is called the ________.

Total customer satisfaction is measured based on the relationship of ________.

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