Exam 2: Marketing: Delivering and Capturing Value

Select the term that best completes the following sentence. Many industry- specific terms are used to describe share of customer. Banks compete for a "share of wallet" by capturing more of the customer's financial transactions; fashion stores want to increase their "share of closet;" car manufacturers want to increase their "share of _________."

If a dissatisfied customer makes a written complaint and receives no reply from the company, which of the following is the most likely outcome?

Companies derive many benefits from highly satisfied customers. According to the text, which of the following is NOT one of these benefits?

The process whereby companies deliver value by involving and engaging the customer in brand creation and brand communications is known as:

When product performance exceeds customer expectations, there are two possible outcomes: the customer may be either highly satisfied or highly dissatisfied.

Internal marketing refers to in- house market analysis.

Total customer satisfaction is mainly an image- based promotional device, since it costs no more to recruit new customers than to retain satisfied ones.

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

At its most basic level, the need for customer retention stems from the fact that:

Which of the following is NOT a source from which buyer's form performance expectations about the company's product?

Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc., follows the _________concept in doing business.

Which of the following items provide marketers with an indication of customer satisfaction?

One reason for emphasising total customer satisfaction is that:

While marketers must ensure that customer's orders are filled and delivered correctly, it is not up to marketers to follow- up on customer satisfaction.

The total combined customer lifetime values of a company's current and existing customers is known as:

The process of estimating how much a customer spends per purchase, how often s/he buys from the company, and how long the company can expect the customer to continue to buy is used to estimate the:

Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What marketing philosophy characterises Webmax's orientation towards the marketplace?

Define and describe the value delivery network.

Direct marketer, Guthy Renker Australia, markets a number of skincare products including Pro- Activ, Reclaim, Meaningful Beauty, Sheer Cover and Wen haircare. A distinctive feature of Guthy Renker's direct sales approach is that customers are offered deep discounts on the initial order along with a choice of free products to be sent with the first shipment. Following purchase, customers automatically become members of the relevant Guthy Renker product club which establishes a relationship between the company and the consumer. On a quarterly basis, the company sends three months' supply of the product and invoices club members for the goods. Members always retain the option of returning the goods and terminating their membership at any time. This "club concept" used in association with direct sales is based on the philosophy that:

If a customer has very high expectations and the product falls short of those expectations, the customer will always be dissatisfied.