Bus Adm 463-203

Which of the following is NOT an external performance metrics for a business? -Customer Lifetime Value -Customer Loyalty -Customer Satisfaction -Gross Profit

-Gross Profit

Which of the following statement does NOT reflect "value is in the eyes of the beholders"? 1. Mug owners wants to sell the mug at a price twice as much as which non-owners are willing to buy at 2. Dollar stores charges most of its products with just one dollar, i.e., an iPhone screen protector is charged at the same price as a Wilson basketball 3. The priceless painting "The Starry Night" by Vincent van Gogh was never sold out before Van Gogh passed away (in the year 1890) 4. The same ice cream is charged with different prices in retail stores and on the beaches

2. Dollar stores charges most of its products with just one dollar, i.e., an iPhone screen protector is charged at the same price as a Wilson basketball

A business that has a 55 percent customer retention rate has an an average customer life of ___________ years. 2.22 1.54 3.37 2.86

2.22

Mini Case: there are 3 questions Automation Inc. is a company that provides wireless telecommunications network in several cities in the Midwest region, and the company plans to know more about its customers. The company found that one of his customers has a short customer history of 55, an above-average purchase amount of 75, a low repurchase desirability of 25, a weak product preference of 20, and the customer does not recommend the company's services to potential customers. (i) Based on the values provided, what is this customer's loyalty index? 35 39 42 31

35

Coffee House, a local catchy coffee shop, hopes to find its customer retention (CR) rate for the year 2019. They started the year with 11,000 customers, during the whole year, they gained 5,600 new customers, but had 3900 customers churn (left). What is the CR for the year 2019? 93% 49% 65% 44%

65%

A new coffee shop, BestCoffeeTime, opened in the fall of 2019. It is located next street to Coffee House to compete with Coffee House. For the 4th quarter of 2019, BestCoffeeTime started the quarter with 1,000 customers, and during the quarter they gained 2,200 new customers, and had 430 customers churn (left). Coffee House was worried about losing customers to BestCoffeeTime, so it checked data on the 4th quarter. It started the 4th quarter with 15,200 customers, and had 1000 new customers, and 300 customers churn. Which coffee shop was more successful in terms of customer retention for the 4th quarter? Their CR are the same BestCoffeeTime Coffee House

Coffee House

Which of the following statements is true about customer retention and customer life expectancy? -Customer life expectancy decreases exponentially with customer retention. -The higher the customer retention rate, the lower the short-term profit impact. -As customer retention increases, the customer's life expectancy decreases. -In general, it can cost five times more to replace than to keep a customer.

In general, it can cost five times more to replace than to keep a customer.

Mini Case Automation Inc. is a company that provides wireless telecommunications network in several cities in the Midwest region, and the company plans to know more about its customers. The company found that one of his customers has a short customer history of 35, an above-average purchase amount of 75, a low repurchase desirability of 25, a weak product preference of 20, and the customer does not recommend the company's services to potential customers. (iii) If the same customer has a long customer history, a high repurchase probability, a strong product preference, and recommends the company's wireless telecommunications services to his friends and acquaintances, what type of customer would he be? an unprofitable customer a loyal customer a captive customer a repeat customer

a loyal customer

Mini Case Automation Inc. is a company that provides wireless telecommunications network in several cities in the Midwest region, and the company plans to know more about its customers. The company found that one of his customers has a short customer history of 35, an above-average purchase amount of 75, a low repurchase desirability of 25, a weak product preference of 20, and the customer does not recommend the company's services to potential customers. (ii) Based on the customer loyalty index (CLI) for the customer, what type of customer is LEAST likely to be? a repeated Customer a new customer an unprofitable customer a captive Customer

a repeated Customer

Which of the following statement is correct? -companies with high customer satisfaction on average provide better returns for investors -Measures of business performance such as sales revenue and market share will be good enough to assess business success or failure -The marketing cost of retaining customers is much higher than the cost of replacing them -In a customer-focused business, the analysis of customer feedback is performed only by the senior management

companies with high customer satisfaction on average provide better returns for investors

Which of the following is NOT considered as a customer loyalty components? customer history customer lifetime value product preference purchase amount

customer lifetime value

What change in customer retention from an decrease from 6 to 2 years of an average customer life? (the change in customer retention = customer retention rate with 6 years of customer life − customer retention rate with 2 years of customer life) increase, 33% decrease, 33% increase, 30% decrease, 30%

decrease, 33%

The effect that people will assign high value to the items they own than they don't own is named: -endowment effect -Value difference effect -Cornell Cup effect -"eyes of the beholders" effect

endowment effect

Which of the following statement is NOT correct? -managing customer values is very challenging, because values differ across people and time -The major benefit of a strong customer focus is long-run survival. -the same customer may value the same product differently -minimum customer focus results in a reduction in the cost of marketing and sales

minimum customer focus results in a reduction in the cost of marketing and sales