front 1 Which of the following is true for the modern company organization chart?
| back 1 B |
front 2 In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?
| back 2 D |
front 3 In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment.
| back 3 D |
front 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.
| back 4 D |
front 5 When a consumer considers a product or service, he or she will choose whichever product or service delivers the highest ________.
| back 5 A |
front 6 ________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.
| back 6 B |
front 7 The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering is called the ________.
| back 7 C |
front 8 Which of the following is true for customer-perceived value?
| back 8 B |
front 9 Which of the following is the first step in customer value analysis?
| back 9 C |
front 10 The final step of customer value analysis is to ________.
| back 10 D |
front 11 Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?
| back 11 A |
front 12 ________ 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.
| back 12 B |
front 13 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.
| back 13 D |
front 14 A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.
| back 14 B |
front 15 Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________.
| back 15 E |
front 16 Total customer satisfaction is measured based on the relationship of ________.
| back 16 B |
front 17 Which of the following is true for customer satisfaction?
| back 17 E |
front 18 ________ can track customer satisfaction directly, measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others.
| back 18 A |
front 19 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?
| back 19 C |
front 20 Of customers who register a complaint, ________.
| back 20 E |
front 21 Which of the following is the best method of recovering customer goodwill?
| back 21 B |
front 22 ________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
| back 22 C |
front 23 When two brands of the same basic product deliver their respective promised quality, they are delivering ________.
| back 23 B |
front 24 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 these companies deliver their respective promised qualities, they are delivering ________.
| back 24 E |
front 25 The 80-20 rule reflects the idea that ________.
| back 25 D |
front 26 A profitable customer ________.
| back 26 B |
front 27 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.
| back 27 B |
front 28 Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________.
| back 28 D |
front 29 Which of the following is true for activity-based costing (ABC)?
| back 29 C |
front 30 ________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.
| back 30 B |
front 31 The aim of customer relationship management is to produce high customer ________.
| back 31 B |
front 32 ________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.
| back 32 A |
front 33 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.
| back 33 A |
front 34 A customer touch point for Abacus Airlines would be an item such as ________.
| back 34 C |
front 35 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. The hotel's actions are an example of ________.
| back 35 E |
front 36 Customer relationship management enables companies to provide excellent real-time customer service through the effective use of ________.
| back 36 D |
front 37 ________ is based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns.
| back 37 B |
front 38 ________ is the practice of sending messages only when consumers express a willingness to become more involved with the brand.
| back 38 B |
front 39 Which of the following is a step in one-to-one marketing that can be adapted for CRM marketing?
| back 39 E |
front 40 Another term for high customer ________ is customer churn.
| back 40 B |
front 41 Which of the following can a company do to reduce defection?
| back 41 D |
front 42 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.
| back 42 D |
front 43 Amy is in the "aware" stage of the marketing funnel when she says ________.
| back 43 B |
front 44 Satisfied customers constitute the company's ________.
| back 44 A |
front 45 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 ________.
| back 45 C |
front 46 LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________.
| back 46 B |
front 47 Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
| back 47 B |
front 48 Which of the following is an example of focusing disproportionate effort on high-profit customers?
| back 48 B |
front 49 Which of the following is an example of enhancing the growth potential of each customer through cross-selling?
| back 49 A |
front 50 Which of the following is a policy a store can adopt to make low-profit customers more profitable?
| back 50 C |
front 51 Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________.
| back 51 B |
front 52 Which of the following gains the most benefit from introducing a frequency program?
| back 52 A |
front 53 Club membership programs that are open to everyone who purchases a product or service ________.
| back 53 D |
front 54 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) ________.
| back 54 C |
front 55 Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies.
| back 55 A |
front 56 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.
| back 56 A |
front 57 The process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships is called ________.
| back 57 C |
front 58 A ________ is simply a set of names, addresses, and telephone numbers.
| back 58 B |
front 59 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.
| back 59 A |
front 60 Through ________, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data.
| back 60 C |
front 61 2Wheels conducts exhaustive customer surveys to discover customer preferences and attitudes towards the brand. Sally uses cluster analysis to classify the data and help the company determine the trends in the information. Sally is using the technique of ________.
| back 61 E |
front 62 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?
| back 62 E |
front 63 Phil Langston has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database. In which of the following ways is Mr. Langston most likely using his database?
| back 63 C |
front 64 The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.
| back 64 C |
front 65 Which of the following is true for customer relationship marketing?
| back 65 B |
front 66 Which of the following is not conducive to database marketing?
| back 66 D |
front 67 In which of the following cases is building a database worthwhile for the company?
| back 67 C |
front 68 In which of the following cases is building a database worthwhile for the company?
| back 68 C |
front 69 Which of the following is most likely to use database marketing?
| back 69 A |
front 70 Which of the following statements demonstrates behavioral loyalty towards a brand?
| back 70 B |
front 71 Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete.
| back 71 true |
front 72 The modern customer-oriented organization chart places top management at the top of the pyramid.
| back 72 false |
front 73 Customer-perceived value is based on the difference between benefits the customer gets and
| back 73 true |
front 74 Total customer cost consists of only the non-monetary costs in evaluating, obtaining, using, and disposing of the given market offering.
| back 74 false |
front 75 Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.
| back 75 false |
front 76 A seller who is at a disadvantage has two alternatives: decrease total customer benefit or increase total customer cost.
| back 76 false |
front 77 The value proposition is stated in the price of a product and readily recognized by the average consumer.
| back 77 false |
front 78 The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.
| back 78 true |
front 79 The value proposition is also known as the core positioning of the offering.
| back 79 false |
front 80 Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.
| back 80 false |
front 81 Customer satisfaction is the only way by which a firm can increase its profitability.
| back 81 false |
front 82 Consumers' expectations result exclusively from past buying experiences.
| back 82 false |
front 83 The best thing a company can do in the face of company mistakes is to discourage the customer from complaining.
| back 83 false |
front 84 Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
| back 84 true |
front 85 Conformance quality and performance quality are identical in the marketing sense.
| back 85 false |
front 86 Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.
| back 86 true |
front 87 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.
| back 87 true |
front 88 A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.
| back 88 true |
front 89 Unprofitable customers who defect to a competitor should be encouraged to do so.
| back 89 true |
front 90 Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing.
| back 90 true |
front 91 Activity-based costing tries to identify the real costs associated with serving each customer.
| back 91 true |
front 92 Activity-based costing does not consider indirect, variable and overhead costs.
| back 92 false |
front 93 Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases.
| back 93 true |
front 94 The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.
| back 94 false |
front 95 A customer touch point is the time when the customer makes a purchase.
| back 95 false |
front 96 Permission marketing presumes that consumers know what they want.
| back 96 true |
front 97 All companies should practice one-to-one marketing.
| back 97 false |
front 98 Customer churn is how rapidly a store can move customers through its checkout facility or process.
| back 98 false |
front 99 For a magazine, subscription renewal rate is a good measure of retention.
| back 99 true |
front 100 A company should try to retain the customer only as long as the cost to discourage defection is lower than the lost profit.
| back 100 true |
front 101 Profit rate tends to decrease over the life of the retained customer due to increased purchases,
| back 101 false |
front 102 The marketing funnel identifies the profitability of consumers at each stage in the decision process.
| back 102 false |
front 103 Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.
| back 103 false |
front 104 Frequency programs are designed to reward customers who buy frequently and in substantial amounts.
| back 104 true |
front 105 Clubs that are open to everyone who purchases a product or service are good for building a customer database.
| back 105 true |
front 106 It's often easier to reattract ex-customers than to find new ones because the company knows their names and histories.
| back 106 true |
front 107 A customer database is simply a listing of a customer's name, address, and phone number for credit reference.
| back 107 false |
front 108 Cluster analysis is a statistical technique that can be employed in data mining.
| back 108 true |
front 109 Building a customer database is not recommended when the product is a once-in-a-lifetime purchase.
| back 109 true |
front 110 Loyal customers are the best ambassadors for a brand.
| back 110 false |