1 Which of the following is true for the modern company organization chart? Page: 124 2 In the modern customer-oriented organizational
chart, which of the following is considered to be at the top of the organizational pyramid? Page: 124 3 In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment. Page: 124 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. Page: 125 5 When a consumer considers a product or service, he or she will choose whichever product or
service delivers the highest ________. Page: 125 6 ________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. Page: 125 7 The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering is called the ________. Page: 125 8 Which of the following is true for
customer-perceived value? Page: 125 9 Which of the following is the first step in customer value analysis? Page: 126 10 The final step of customer value analysis is to ________. Page: 126 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? Page: 126 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. Page: 127 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. Page: 127 14 A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering. Page: 127 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 ________. Page: 127 16 Total customer satisfaction is measured based on the relationship of ________. Page: 128 17 Which of the following is true for customer satisfaction? Page: 128 18 ________ can track customer satisfaction directly, measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others. Page: 129 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? Page: 129 20 Of customers who register a complaint, ________. Page: 131 21 Which of the following is the best method of recovering customer goodwill? Page: 131 22 ________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Page: 131 23 When two brands of the same basic product deliver their respective promised quality, they are delivering ________. Page: 131 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 ________. Page: 131 25 The 80-20 rule reflects the idea that ________. Page: 132 26 A profitable customer ________. Page: 133 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. Page: 133 28 Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________. Page: 133 29 Which of the following is true for activity-based costing (ABC)? Page: 133 30 ________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases. Page: 134 31 The aim of customer
relationship management is to produce high customer ________. Page: 135 32 ________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty. Page: 135 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. Page: 135 34 A customer touch point for Abacus Airlines would be an item such as ________. Page: 135 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 ________. Page: 135 36 Customer relationship management enables companies to provide excellent real-time customer service through the effective use of ________. Page: 135 37 ________ is based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns. Page: 136 38 ________
is the practice of sending messages only when consumers express a willingness to become more involved with the brand. Page: 136-137 39 Which of the following is a step in one-to-one marketing that can be adapted for CRM marketing? Page: 137 40 Another term for high customer ________ is customer churn. Page: 139 41 Which of the following can a company do to
reduce defection? Page: 140 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. Page: 140 43 Amy is in the "aware" stage of the marketing funnel when
she says ________. Page: 140 44 Satisfied customers constitute the company's ________. Page: 140 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 ________. Page: 141 46 LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of ________. Page: 141 47 Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________. Page: 141 48 Which of the following is an example of focusing disproportionate effort on high-profit customers? Page: 141 49 Which of the following is an example of
enhancing the growth potential of each customer through cross-selling? Page: 141 50 Which of the following is a policy a store can adopt to make low-profit customers more profitable? Page: 141 51 Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________.
Page: 142 52 Which of the following gains the most benefit from introducing a frequency program? Page: 142 53 Club membership programs that are open to everyone who purchases a product or service ________. Page: 142 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) ________. Page: 142 55 Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies. Page: 143 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. Page: 143 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 ________. Page: 143 58 A ________ is simply a set of names, addresses, and telephone numbers. Page: 143 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. Page: 144 60 Through ________, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data. Page: 144 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 ________. Page: 144 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? Page: 144 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? Page: 144 64 The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers. Page: 144 65 Which of the following is true for customer relationship marketing? Page: 145 66 Which of the following is not conducive to database marketing? Page: 145 67 In which of the following cases is building a database worthwhile for the company? Page: 145 68 In which of the following cases is building a database worthwhile for the
company? Page: 145-146 69 Which of the following is most likely to use database marketing? Page: 145 70 Which of the following statements demonstrates behavioral loyalty towards a brand? Page: 146 71 Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete. Page: 124 72 The modern customer-oriented organization chart places top management at the top of the pyramid. Page: 124 73 Customer-perceived
value is based on the difference between benefits the customer gets and Page: 125 74 Total customer cost consists of only the non-monetary costs in evaluating, obtaining, using, and disposing of the given market offering. Page: 125 75 Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis. Page: 125 76 A seller who is at a disadvantage has two alternatives: decrease total customer benefit or increase total customer cost. Page: 126 77 The value proposition is stated in the price of a product and readily recognized by the average consumer. Page: 127 78 The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering. Page: 127 79 The value proposition is also known as the core positioning of the offering. Page: 127 80 Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations. Page: 128 81 Customer satisfaction is the only way by which a firm can increase its profitability. Page: 128 82 Consumers' expectations result exclusively from past buying experiences. Page: 128 83 The best thing a company can do in the face of company mistakes is to discourage the customer from complaining. Page: 131 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. Page: 131 85 Conformance quality and performance quality are identical in the marketing sense. Page: 131 86 Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality. Page: 131 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. Page: 133 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. Page: 133 89 Unprofitable customers who defect to a competitor should be encouraged to do so. Page: 133 90 Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing. Page: 133 91 Activity-based costing tries to identify the real costs associated with serving each customer. Page: 133 92 Activity-based costing does not consider indirect, variable and overhead costs. Page: 133 93 Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases. Page: 134 94 The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible. Page: 135 95 A customer touch point is the time when the customer makes a purchase. Page: 135 96 Permission marketing presumes that consumers know what they want. Page: 137 97
All companies should practice one-to-one marketing. Page: 137 98 Customer churn is how rapidly a store can move customers through its checkout facility or process. Page: 139 99 For a magazine, subscription renewal rate is a good measure of retention. Page: 139 100 A company should try to retain the customer only as long as the cost to discourage defection is lower than the lost profit. Page: 140 101 Profit rate tends to decrease over the life of the retained customer due to increased purchases, Page: 140 102 The marketing funnel identifies the profitability of consumers at each stage in the decision process. Page: 140 103 Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers. Page: 141 104 Frequency programs are designed to reward customers who buy frequently and in substantial amounts. Page: 142 105 Clubs that are open to everyone who purchases a product or service are good for building a customer database. Page: 142 106 It's often easier to reattract ex-customers than to find new ones because the company knows their names and histories. Page: 143 107 A customer database is simply a listing of a customer's name, address, and phone number for credit reference. Page: 143 108 Cluster analysis is a statistical technique that can be employed in data mining. Page: 144 109 Building a customer database is not recommended when the product is a once-in-a-lifetime purchase. Page: 145 110 Loyal customers are the best ambassadors for a brand. Page: 146 |