MAN3802 Marketing Man. Quiz Review Chapter 5
Which of the following is an example of a customer touch point for a car? A. Allowing customers to test drive the product B. Having an article written about the vehicle in a trade magazine such as Car and Driver C. Sending out emails to all customers who currently own the same brand of vehicle D. Redesigning the Web site to make it more interesting to potential buyers E. Offering a discount to the first 50 buyers
A. Allowing customers to test drive the product
What can be done to identify barriers to building a loyal customer franchise? A. Calculate conversion rates. B. Define and measure retention rates. C. Utilize the marketing funnel. D. Monitor churn rates. E. Compare the customer's lifetime value to costs of defection rates
A. Calculate conversion rates.
__________ shows the profitability of selling a product to a customer. A. Customer profitability analysis (CPA) B. American Customer Satisfaction Index (ACSI) C. Customer lifetime value (CLV) D. Activity-based costing (ABC) E. Mystery shopping
A. Customer profitability analysis (CPA)
Which of the following may not be worth the cost when seeking to increase the effectiveness of online brand communities? A. Focus on winning back customers who left the community. B. Increase the frequency of information exchanged. C. Enhance the timeliness of information. D. Enhance the relevance of information posted. E. Extend the conversation.
A. Focus on winning back customers who left the community.
A 5% reduction in customer defection rates can increase profits by how much? A. 25% to 85%, depending on the industry. B. at least half C. five times more than acquiring a new customer D. 10% on average E. 20% to 40% for all industries
A. 25% to 85%, depending on the industry.
During which step of the customer value analysis are customers asked what attributes, benefits, and performance levels they look for in choosing a product and vendors? A. Identifying the major attributes and benefits customers value B. Examining how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis C. Monitoring customer values over time D. Assessing the quantitative importance of the different attributes and benefits E. Assessing the company's and competitors' performances on the different customer values against their rated importance
A. Identifying the major attributes and benefits customers value
Justine conducts a survey on behalf of her firm, Caterpillar. In the survey, she asks prospects to rate Caterpillar- and Komatsu-branded tractors on their performance on attributes that are important to the customer. In which step in the customer value analysis is Justine engaged? A. Assessing the quantitative importance of the different attributes and benefits B. Assessing the company's and competitors' performances on the different customer values against their rated importance C. Identifying the major attributes and benefits customers value D. Examining how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis E. Monitoring customer values over time
B. Assessing the company's and competitors' performances on the different customer values against their rated importance
Holding a contest with online customers to name a new product is an example of which of the following? A. Customer relationship management B. Customer empowerment C. Personalizing marketing D. Consumer review E. Customer touch point
B. Customer empowerment
What is the totality of characteristics of a product that affects its capability to satisfy needs? A. Customer satisfaction B. Quality C. Customer-perceived value D. Loyalty E. Value delivery
B. Quality
Why do companies use information about customers when building long-term relationships? A. To allow for the development of a more personal Web page for an organization B. To enact precision marketing schemes C. To allow customers to comparison shop D. To develop a strong Web-based following E. To allow differentiation
B. To enact precision marketing schemes
Which is not part of the sources a customer uses when evaluating total customer cost? A. People B. Advertising C. Services D. Product E. Image
B. Advertising
The ________ consists of the whole cluster of benefits the company promises to deliver. A. positioning B. value proposition C. customer value analysis D. loyalty equation E. experience
B. value proposition
_______ is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. A. Customer lifetime value B. Customer-perceived value C. Total customer cost D. Customer equity E. Total customer benefit
B. Customer-perceived value
Which of the following can be a source of inspiration for product improvements or innovation? A. Club membership programs B. Marketing funnel C. Brand community D. Defection rates E. Institutional ties
C. Brand community
When increasing the customer-perceived value of a product, how does a competitor lessen the effects of price? A. Strengthen the psychological benefits of the offering's product. B. Enhance to image associated with the product. C. Lessen the cost of maintenance. D. Augment the functional benefits of the product. E. Strengthen the service associated with the produc
C. Lessen the cost of maintenance.
________ is the practice of marketing to consumers only after they opt-in to receive information from the firm. A. Interruption marketing B. Offer personalization C. Permission marketing D. Consumer participation E. One-to-one marketing
C. Permission marketing
The subscription manager at Sports Illustrated keeps track of the subscription renewal rate, which is a good measure of ________. A. customer empowerment B. customer lifetime value C. retention D. customer touch points E. promoters
C. retention
The net promoter score is calculated by subtracting ________ from ________. A. detractors; passively satisfied customers B. passively satisfied customers; promoters C. detractors; promoters D. promoters; detractors E. passively satisfied customers; detractors
C. detractors; promoters
________ subtracts the expected costs of attracting, selling, and servicing the account of a customer from the customer's expected revenues after applying an appropriate discount rate on future revenues. A. Mystery shopping B. Activity-based costing (ABC) C. Customer profitability analysis (CPA) D. Customer lifetime value (CLV) E. American Customer Satisfaction Index (ACSI)
D. Customer lifetime value (CLV)
Which of the following customer groups are often the most profitable? A. The customers who are least profitable per order, but who order more than others B. The customers who place the largest orders C. The customers who place small but highly profitable orders D. The midsize customers E. The top 30% of those who place orders
D. The midsize customers
What is the marketing advantage to using cookies to track an individual's Internet usage? A. To avoid government regulation on tracking systems B. To sell information to third parties C. To increase the number of "likes" on a Web site D. To find the best match between ads and prospects E. To match consumer identities with Web-browsing activities
D. To find the best match between ads and prospects
Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections. A. customer complaints B. customer retention C. detraction D. customer churn E. share-of-wallet
D. customer churn
Which of the following is a characteristic of dissatisfied customers? A. Dissatisfied customers are loyal longer. B. Dissatisfied customers talk favorably to others about the company and its products. C. Highly satisfied customers offer product and service ideas to the company. D. Dissatisfied customers are less sensitive to price. E. Dissatisfied customers have lower expectations for future experiences with the company and its products..
E. Dissatisfied customers have lower expectations for future experiences with the company and its products..
Companies monitor their ________ so that they can contact those who have stopped buying or who have switched to another supplier to find out why. A. net promoter score B. willingness to recommend C. total customer cost D. passively satisfied customers E. customer loss rate
E. customer loss rate
Lending emotional and/or physical support to online members is called ________. A. welcoming B. governing C. evangelizing D. customizing E. empathizing
E. empathizing
