The ________ depicts the phases in the customer acquisition process,
from merely being aware of an offering to becoming loyal
advocates.
A) customer retention funnel
B) customer
acquisition funnel
C) marketing funnel
D) lead-generation
funnel
E) communication funnel
B
Which of these is NOT a phase in the customer acquisition
funnel?
A) Awareness
B) Appeal
C) Ask
D)
Act
E) Anticipate
E
The ________ phase reflects the fact that although customers might
become aware of multiple offerings, they do not actively consider all
of them.
A) awareness
B) appeal
C) ask
D)
act
E) anticipate
B
The ________ phase is the gateway to customers' interaction with the
company's offering. It is in this phase that target customers
encounter the company's offering.
A) awareness
B)
appeal
C) ask
D) act
E) anticipate
A
Which of these is a true statement about the customer acquisition
funnel?
A) People can't reach the advocate stage without become
buyers.
B) Customers do not necessarily go through all five
stages.
C) The steps only occur in a linear fashion.
D) The
appeal stage is the first stage of the funnel.
E) The act stages
is the last stage of the funnel.
B
What are "spinners" in the context of customer acquisition
and retention?
A) Buyers who change their mind multiple
times
B) Buyers who argue with salespeople
C) Consumers who
switch suppliers frequently looking for the best deal
D)
Consumers who "spin" marketing messages to their own
taste
E) Opinion leaders in social media
C
In the customer acquisition funnel model, buyers who recommend a
product to others have reached the ________ stage.
A)
awareness
B) appeal
C) ask
D) act
E) advocate
E
If you text a friend for advice on choosing from three restaurants
you have in mind for dinner tonight, have reached the ________ stage
of the customer acquisition funnel.
A) awareness
B)
appeal
C) ask
D) act
E) advocate
C
Consumers who have "shortlisted" the most favorable-looking
offerings currently under consideration have reached the ________
stage of the customer acquisition funnel.
A) awareness
B)
appeal
C) ask
D) act
E) advocate
B
If you dump your mobile service provider after three billing errors
in a row, you ended your loyalty because of a ________.
A) core
service failure
B) pricing issue
C) competition
D)
convenience
E) service encounter failure
A
What does research suggest about the relative cost of retaining
current customers versus acquiring new customers?
A) Retaining
current customers can cost several times as much as acquiring new
ones.
B) Acquiring new customers can cost several times as much
as retaining current ones.
C) Acquiring new customers costs
slightly more than retaining current ones.
D) Acquiring new
customers costs slightly less than retaining current ones.
E)
Acquiring new customers costs roughly the same as retaining current ones.
B
Which of these could explain a situation where the percentage of
recent users of a particular product is significantly lower than the
percentage of shoppers who have tried the product?
A) Delivery
delays prevent recent buyers from actually using the product.
B)
Something might be wrong with the product that discourages repeat
buying.
C) Advertising has failed to remind people of the wisdom
of buying the product.
D) There isn't enough social media buzz
about the product.
E) Social media buzz is hyping the product heavily.
B
Satisfied customers constitute the company's ________.
A)
customer relationship capital
B) customer churn
C) target
audience
D) high-value customers
E) customer touch points
A
Some customers inevitably become inactive or drop out. The challenge
for marketers is to 1 them through ________ strategies.
A)
win-back
B) retention
C) defection
D) sell-out
E) recuperation
A
Which of these is NOT one of the major sources that customers use to
form expectations of the level of satisfaction they will receive by
doing business with a company?
A) Past buying experience
B)
Advice of friends and associates
C) Government guidelines
D)
Public information and discourse
E) Information and promises from
marketers and competitors
C
________ programs are a type of promotional incentive designed by
companies to encourage customers to continue to patronize their
business and, in some case, to increase the frequency and quantity of
the products and services they purchase from a company.
A)
Coupon
B) Loyalty
C) Communication
D) Discount
E) Advertising
B
A(n) ________ is specialized group of consumers and employees whose
identification and activities center revolve around the brand.
A)
brand community
B) customer club
C) insiders' club
D)
frequency flyer club
E) company alumni
A
Which of these would NOT be considered a brand community?
A) SAP
Community Network
B) My Starbucks Idea
C) CVS customers in
the northeast
D) Sephora Beauty Talk
E) Microsoft Xbox Ambassadors
C
Which of these is NOT a recommendation for making online brand
communities more effective?
A) Enhance the timeliness of
information exchanged.
B) Have a company insider moderate all
comments before they are posted to ensure civil discourse.
C)
Enhance the relevance of information posted.
D) Extend the
conversation, including making it easier for users to express
themselves.
E) Increase the frequency of information exchanged.
B
According to the chapter, which of these techniques does Deere &
Company use to maintain its superb record of customer loyalty?
A)
Using a PR agency to boost its image among homeowners and commercial
users
B) Using database marketing to personalize offers
C)
Using retired employees to interview defectors and customers
D)
Monitoring social media to see who might complaining about its
products
E) Inviting customers to join John's Club to get special
insider information
C
Which of these is NOT noted in the chapter as a benefit of high
customer satisfaction?
A) Lower advertising costs
B)
Stronger ROI
C) Increased sales
D) Long-term firm
value
E) Other financial metrics
A
What does the University of Michigan's ACSI survey measure?
A)
Corporate profitability
B) Customer satisfaction
C) Customer
churn rate
D) Distributor satisfaction
E) Supplier satisfaction
B
The percentage of a customer's spending that a company's brand enjoys
is known as its ________.
A) unit market share
B) share of
voice
C) share of wallet
D) revenue market share
E)
market position
C
Which of these is NOT one of the typical behaviors of a highly
satisfied customer?
A) Staying with a company longer
B)
Buying new and upgraded products from the company
C) Being less
sensitive to price
D) Offering product and service ideas to the
company
E) Requiring more in terms of discounts or special sales attention
E
Which of these was NOT a step Home Depot took to turn around its
slumping customer satisfaction?
A) Requiring all employees to do
nothing but serve customers during peak hours
B) Changing
performance reviews to emphasize customer service
C) Emphasized
cleaner retail spaces
D) Emphasized fully stocked store
shelves
E) Replacing thousands of full-time workers with
part-time employees
E
Which of these is a true statement about customer satisfaction for
customer-centric companies?
A) Customer satisfaction is both a
goal and a marketing tool.
B) Customer satisfaction happens
naturally, with little management oversight.
C) Customer
satisfaction has only a minor impact on long-term customer
loyalty.
D) Marketing employees don't have much of a role in
customer satisfaction.
E) Companies can safely ease off customer
satisfaction efforts once they have achieved long-term customer loyalty.
A
How was Kia able to successfully enter the highly competitive U.S.
automobile market?
A) With an advertising blitz touting the
unusual style of the cars
B) With low-cost, high-quality cars
reliable enough to carry 10-year, 100,000-mile warranties
C) With
high-quality cars brimming with luxury features
D) By emphasizing
its national heritage
E) By launching the Kia Owners Club to
recruit new drivers
B
________ has been 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."
A) Customer commitment
B)
Fanaticism
C) Loyalty
D) Brand community
E) Brand trust
C
Which of these is NOT one of the identified ways that marketing
employees contribute to product and service quality?
A) They
correctly identify customer needs and requirements.
B) They
design products that fill clearly researched customer needs.
C)
They make sure customer orders are filled correctly and on
time
D) They check that customers have received proper
instructions, training, and technical assistance in the use of the
product.
E) They stay in touch with customers after the sale to
ensure that they are, and remain, satisfied.
B
________ 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.
A) Value proposition
B)
Loyalty
C) Satisfaction
D) Respect
E) Customer value
B
Total customer satisfaction is measured based on the relationship of
________.
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
B
________ can track customer satisfaction directly, measure repurchase
intention and also gauge a consumer's willingness to recommend the
company and brand to others.
A) Periodic surveys
B) Mystery
shoppers
C) Customer loss rates
D) Customer focus
statements
E) Sales summary reports
A
Field Grocery wants to learn the strengths and weaknesses in customer
service at all the Field Grocery stores. Which of the following
methods can it use for this?
A) Group buyers
B) Buyer
brokers
C) Mystery shoppers
D) Personal shoppers
E)
Buying agents
C
________ is the totality of features and characteristics of a product
or service that bear on its ability to satisfy stated or implied
needs.
A) Performance
B) Value
C) Quality
D)
Customer retention
E) Customer loyalty
C
Cable TV operators and cellular carriers are among the companies that
suffer from high levels of ________.
A) customer
retention
B) customer defections
C) detraction
D)
share-of-wallet
E) customer reevaluation
B
Which of the following is NOT a way to make online brand communities
more effective?
A) Set appointed times for topic
discussion
B) Keep the focus on the topic
C) Make it easy
for users to express themselves
D) Launch contests
E) Set
limits on length of responses
E
Which of the following can a company do to reduce defection?
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 up-selling.
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.
D
Companies provide rewards to customers who buy often and in
substantial amounts. These reward schemes are referred to as ________
programs.
A) benefit
B) loyalty
C) satisfaction
D)
profitability
E) quality
B
Which of the following gains the most benefit from introducing a
frequency program?
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
Club membership programs that are open to everyone who purchases a
product or service ________.
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
D
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) ________.
A) cross-selling
program
B) value delivery system
C) loyalty program
D)
activity-based costing program
E) up-selling program
C
Which of these was NOT identified in the chapter as a popular
strategy for enhancing customer relationship management?
A)
Customization
B) Customer empowerment
C) Shunting
troublesome customers to competitors
D) Managing customer word of
mouth
E) Dealing with customer complaints
C
________ is the practice of marketing to consumers only after they
have indicated their willingness to receive communications from a
company.
A) Permission marketing
B) Social marketing
C)
Social commerce
D) Interactive marketing
E) Acceptance marketing
A
Today's consumers can choose whether and how they want to engage with
company marketing, a phenomenon known as ________.
A) permission
marketing
B) social marketing
C) customer
empowerment
D) social commerce
E) two-way marketing
C
Which of these is a way that negative reviews of their products can
help a company?
A) Consumers may learn a product is not right for
them before ordering it, which lowers the cost of returns.
B)
Negative reviews show that the product is real.
C) Negative
reviews help "humanize" a company; after all, everybody
makes mistakes from time to time.
D) Negative reviews give
product evangelists the opportunity to challenge naysayers.
E)
Consumers know to ignore complainers, so negative reviews actually
make them feel more positive toward a company.
A
Why is it a good idea for companies to use social media and other
platforms during quiet times to actively shape their public
images?
A) Paid media are cheaper during these quiet
times.
B) Doing so builds goodwill that can help firms in the
event of a public relations crisis.
C) Social media users pay
more attention to brands during quiet times.
D) These quiet times
give social media teams the chance to practice their skills.
E)
With few companies communicating during quiet times, it's easy to
increase a firm's share of voice.
B
Which of these is NOT one of the recommended ways to recover customer
goodwill?
A) Make it easy for customers to reach the company at
any time.
B) Contact the complaining customer as quickly as
possible.
C) Be sure to resolve every situation to the customer's
satisfaction, regardless of the cost.
D) Identify the true source
of customer dissatisfaction before seeking a solution.
E) Accept
responsibility for the customer's disappointment.
C
Which of these is a safe assumption to make about dissatisfied
customers?
A) Few will have legitimate reasons for
complaining.
B) Many will have been "put up to it" by
competitors.
C) The vast majority will take the time to
complain.
D) Many won't complain and will simply take their
business elsewhere.
E) Once they complain, the firm has lost the
opportunity to keep them as customers.
D
If a customer has a complaint but the company solves it quickly, what
are the odds that the customer might do business with the firm
again?
A) Less than 10 percent
B) 10 to 20 percent
C)
25 percent
D) 50 percent
E) 95 percent
E
How did Angie's List avoid attracting anonymous or biased
reviews?
A) By requiring all reviews to be notarized.
B) By
allowing only paid and registered subscribers to access the
website.
C) By requiring reviews to disclose their full purchase
histories.
D) By rewarding top reviewers with cash
prizes.
E) By requiring members to write five reviews before they
were allowed to post.
B
Of customers who register a complaint, ________.
A) all will do
business with the company again because they are unwilling to dedicate
the effort required to find another vendor
B) none will do
business with the company again
C) customers whose complaints are
satisfactorily resolved are more likely to provide publicity than
those who are dissatisfied
D) the speed of resolution has no
impact on the likelihood of repeat business
E) 50 to 70 percent
might do business with the company again if their complaint is resolved
E
Which of the following is one of the best methods of recovering
customer goodwill?
A) Sending service people to conduct
door-to-door surveys
B) Contacting the complaining customer as
quickly as possible
C) Identifying prospective customers from the
customer database
D) Customizing products according to individual
customer need
E) Defining and measuring the customer retention rate
B
The aim of customer relationship management is to maximize customer
________.
A) integrity
B) loyalty
C) innovation
D)
liability
E) equity
B
________ is the process of carefully managing detailed information
about individual customers and all customer touch points to maximize
loyalty.
A) Customer relationship management
B) Customer
lifetime value
C) Customer profitability analysis
D)
Customer satisfaction analysis
E) Customer-value delivery
A
Customer relationship management enables companies to provide
excellent real-time customer service through the effective use of
________.
A) reports from mystery shoppers
B) survey data
from customers who have defected
C) market research
D)
individual account information
E) demographic trend data
D
________ marketing is based on the premise that marketers can no
longer use "interruption marketing" via mass media
campaigns.
A) Relationship
B) Permission
C)
Database
D) Internet
E) Horizontal
B
________ marketing is the practice of sending messages only when
consumers express a willingness to become more involved with the
brand.
A) Relationship
B) Permission
C) Cause
D)
Defensive
E) Horizontal
B
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.
A)
customer database
B) customer mailing list
C)
customer-performance scorecard
D) customer profitability
analysis
E) customer-value hierarchy
A
________ describes the company's optimization of the value of its
customer base.
A) Customer relationship management
B)
Behavioral targeting
C) Customer value management
D)
Terminal marketing
E) Personalized mark
C
________ focuses on the analysis of individual data on prospects and
customers to develop marketing strategies to acquire and retain
customers and drive customer behavior.
A) Permission
marketing
B) Customer value management
C) Behavioral
targeting
D) Customer relationship management
E) Terminal marketing
B
BMW is ________ the customer experience when it offers 500
side-mirror combinations, 1,300 front bumper combinations, and 9,000
center-console combinations and provides new
buyers a video link
to watch their car being "born" while waiting for
delivery.
A) identifying
B) synthesizing
C)
integrating
D) acknowledging
E) personalizing
E
To exploit the power of social media, marketers need to create
tangible value for consumers, which can come from all of the following
EXCEPT ________.
A) discounts
B) coupons
C)
information
D) solicitations
E) special offers
D
________ helps companies manage and monitor online reviews using a
process called device fingerprinting.
A) Gawker
B)
Bazaarvoice
C) Metacritic
D) Angie's List
E) Technorati
B
A Forrester study of 10,000 consumers of Amazon's electronics and
home and garden products discovered that ________ found negative
reviews helpful.
A) few
B) less than 10 percent
C)
around 25 percent
D) 50 percent
E) 90 percent
D
________ involves making the company's offering as personally
relevant as possible to as many customers as possible—a challenge,
given that no two customers are identical.
A)
Customization
B) Permission
C) Identification
D)
Database
E) Integrated
A
Another term for customer lifetime value is ________.
A) brand
equity
B) customer value
C) customer equity
D) unit
market share
E) revenue market share
C
Which of these is NOT a component of customer lifetime value?
A)
Revenue
B) Customer acquisition costs
C) Customer retention
costs
D) Research and development costs
E) Customer support costs
D
Which of these firms would most likely take a customer equity
perspective over a brand equity perspective?
A) A fashion
designer
B) A health and fitness club
C) An automobile
manufacturer
D) A cereal manufacturer
E) A soft drinks manufacturer
B
Which of these is a key to effectively employing activity-based
costing?
A) Defining and judging "activities"
properly
B) Knowing each customer's brand preferences
C)
Having a detailed breakdown of advertising media costs
D) Not
putting a price on customer satisfaction
E) Merging sales and
support activities, since they both contribute to satisfaction
A
Which of these firms would most likely take a brand equity
perspective over a customer equity perspective?
A) A health
club
B) A management consulting firm
C) An advertising
agency
D) A fast food chain
E) A home builder
D
A profitable customer yields a ________.
A) cost stream that
exceeds by an acceptable amount his revenue stream
B) revenue
stream that exceeds the company's cost stream
C) cost stream that
exceeds the company's revenue stream
D) revenue stream that
exceeds by an acceptable amount his cost stream
E) revenue stream
that equals the company's cost stream
B
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.
A)
prospector
B) profitable customer
C) market
challenger
D) niche marketer
E) pioneer customer
B
Customer profitability analysis is best conducted with the tools of
an accounting technique called ________.
A) input-output
analysis
B) factor analysis
C) revenue-based costing
D)
activity-based costing
E) future date costing
D
Which of the following is true for activity-based costing?
A) It
considers the real costs associated with each product.
B) With
activity-based costing, the company can estimate all costs coming from
the customer, less revenue.
C) The tools of activity-based
costing 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.
C
________ describes the net present value of the stream of future
profits expected over the customer's lifetime purchases.
A)
Activity-based costing
B) Customer lifetime value
C)
Customer value analysis
D) Customer-perceived value
E)
Customer profitability analysis
B
LifeTime Insurance screens its customers and tries to get
unprofitable customers to buy services from competitors. This is an
example of ________.
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
B
Many banks and phone companies now charge fees for once-free services
to ensure minimum customer revenue levels. This helps banks to
________.
A) reduce the rate of customer defection
B) make
low-profit customers more profitable
C) enhance the growth
potential for each customer through cross-selling
D) increase the
longevity of the customer relationship
E) focus disproportionate
effort on high-value customers
B
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 ________.
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
C
Which of the following is an example of enhancing the growth
potential of each customer through cross-selling?
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
Which of the following is a policy a store can adopt to make
low-profit customers more profitable?
A) 2Wheels sends birthday
greetings to its best customers and gives them discounts on
merchandise.
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
C
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.
A) touch point
B)
point of order
C) point of difference
D) pivot point
E)
point of parity
A
A customer touch point for Abacus Airlines would be an item such as
________.
A) ease of access to the airport
B) a mechanic's
ability to service the airplanes
C) the reservations desk
D)
the value of air travel versus surface transportation
E)
competency of a travel agent
C
Rachel and Josh are on vacation in Hawaii. When they arrived at the
hotel, they were offered chilled juice. Their check-in formalities
were handled by the staff. When they entered their room, they saw that
chocolates had been placed on the pillows and a flower arrangement on
the table. These are examples of customer ________.
A) lifetime
value
B) perceived value
C) value analysis
D)
profitability analysis
E) touch points
E
In the context of customer lifetime value, the 80-20 rule reflects
the idea that ________.
A) 20 percent of the company's profits
are generated by the top 80 percent of customers
B) the top 20
percent of customers are highly satisfied and 80 percent of customers
will recommend the company to a friend
C) 20 percent of customers
are unprofitable, and 80 percent make up a company's profits
D)
the top 20 percent of customers often generate 80 percent of the
company's profits
E) any new product will be accepted by 20
percent of the customers immediately, but 80 percent of the customers
will be up for grabs throughout the product's life cycle
D
The Net Promoter Score is calculated by subtracting ________ from
________.
A) promoters; detractors
B) detractors;
promoters
C) detractors; passively satisfied customers
D)
passively satisfied customers; detractors
E) passively satisfied
customers; promoters
B