Question 1

When companies provide rewards to customers who buy frequently and in substantial amounts, this is referred to as

Accepted Answer

A)  quality programs. 
B)  loyalty programs. 
C)  benefit programs. 
D)  satisfaction programs. 
E)  frequency programs. 
A)  quality programs. 
B)  loyalty programs. 
C)  benefit programs. 
D)  satisfaction programs. 
E)  frequency programs.

Question 2

Price-perception 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) True 
 B)False

Question 3

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

Accepted Answer

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

Question 4

Royal Caribbean uses its database to offer spur-of-the-moment cruise packages to fill all the berths on its ships. It focuses on retired people and single people because they are more able to make quick commitments. This is an example of opportunities presented by

Accepted Answer

A)  advertising. 
B)  frequency programs. 
C)  reactive marketing. 
D)  mail catalogs. 
E)  datamining. 
A)  advertising. 
B)  frequency programs. 
C)  reactive marketing. 
D)  mail catalogs. 
E)  datamining.

Question 5

According to customer profitability analysis (CPA), platinum customers spend the most money with the organization thereby making them valuable.

Accepted Answer

A) True 
 B)False

Question 6

Cluster analysis is a good example of a statistical technique that might be employed in datamining.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

Accepted Answer

The three steps are:the company must (1)

Question 9

A Canadian Business magazine survey found that WestJet scored the highest satisfaction rating in the Canadian airline industry-89 percent.

Accepted Answer

A) True 
 B)False

Question 10

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)  database marketing. 
B)  datamining. 
C)  data warehousing. 
D)  custom marketing. 
E)  electronic marketing. 
A)  database marketing. 
B)  datamining. 
C)  data warehousing. 
D)  custom marketing. 
E)  electronic marketing.

Question 11

________ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking.

Accepted Answer

A)  Data management 
B)  Data accumulation 
C)  Datamining 
D)  Target market analysis 
E)  Data marketing 
A)  Data management 
B)  Data accumulation 
C)  Datamining 
D)  Target market analysis 
E)  Data marketing

Question 12

________ 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)  Report rating 
B)  Competitors market share rate 
C)  Perceived usefulness 
D)  Customer perceived value 
E)  Failure avoidance rate 
A)  Report rating 
B)  Competitors market share rate 
C)  Perceived usefulness 
D)  Customer perceived value 
E)  Failure avoidance rate

Question 13

If Volvo were to focus its marketing efforts on all the experiences the customer will have on the way to obtaining and using their offerings, it would be focusing its marketing efforts on the customer's

Accepted Answer

A)  psychological system. 
B)  demand. 
C)  cost versus benefit system. 
D)  value-delivery system. 
E)  perception system. 
A)  psychological system. 
B)  demand. 
C)  cost versus benefit system. 
D)  value-delivery system. 
E)  perception system.

Question 14

The key to customer retention is customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 15

The average dissatisfied customer gripes to ________ people.

Accepted Answer

A)  13 
B)  5 
C)  9 
D)  11 
E)  20 
A)  13 
B)  5 
C)  9 
D)  11 
E)  20

Question 16

Satisfied customers constitute the company's ________.

Accepted Answer

A)  customer churn 
B)  target audience 
C)  high-value customers 
D)  customer touch points 
E)  customer relationship capital 
A)  customer churn 
B)  target audience 
C)  high-value customers 
D)  customer touch points 
E)  customer relationship capital

Question 17

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

Accepted Answer

A)  Activity-Based Costing (AB
C) . 
B)  input-output analysis. 
C)  factor analysis. 
D)  Revenue-Based Costing (RBC.) 
E)  Future Date Costing (FD
C) . 
A)  Activity-Based Costing (AB
C) . 
B)  input-output analysis. 
C)  factor analysis. 
D)  Revenue-Based Costing (RBC.) 
E)  Future Date Costing (FD
C) .

Question 18

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

Question 19

Another term for high customer ________ is customer churn.

Accepted Answer

A)  defection 
B)  perception 
C)  retention 
D)  value 
E)  belief 
A)  defection 
B)  perception 
C)  retention 
D)  value 
E)  belief

Question 20

Customer perceived value is based on two components. Explain these two components and apply these value concepts to the pricing of a Caterpillar tractor.

Accepted Answer

The two components of customer perceived

Exam 5: Creating Long term Loyalty Relationships

When companies provide rewards to customers who buy frequently and in substantial amounts, this is referred to as

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

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

Royal Caribbean uses its database to offer spur-of-the-moment cruise packages to fill all the berths on its ships. It focuses on retired people and single people because they are more able to make quick commitments. This is an example of opportunities presented by

According to customer profitability analysis (CPA), platinum customers spend the most money with the organization thereby making them valuable.

Cluster analysis is a good example of a statistical technique that might be employed in datamining.

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

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

A Canadian Business magazine survey found that WestJet scored the highest satisfaction rating in the Canadian airline industry-89 percent.

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

________ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking.

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

If Volvo were to focus its marketing efforts on all the experiences the customer will have on the way to obtaining and using their offerings, it would be focusing its marketing efforts on the customer's

The key to customer retention is customer satisfaction.

The average dissatisfied customer gripes to ________ people.

Satisfied customers constitute the company's ________.

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

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

Another term for high customer ________ is customer churn.

Customer perceived value is based on two components. Explain these two components and apply these value concepts to the pricing of a Caterpillar tractor.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Position

Competitive Dynamics

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

Introducing New Marketing Offerings

Tapping into Global Markets

Managing a Holistic Marketing Organization

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