Chapter test 11-14
The grassroots marketing approach relies on marketing strategies that are: traditional. conventional. expensive. flexible.
. flexible.
In the context of relationship marketing, the primary bond created by a secondlevel relationship marketing program is usually _____ in nature. social financial structural notional
1
The Eddie Bauer, a clothing retail chain, partnered with Ford to produce the Eddie Bauer edition of the Ford Explorer. This is an example of: cobranding. comarketing. lateral partnership. internal partnership.
1
The term "internal partnership" refers to the relationship of an organization that involves: customers within the organization. competitors who form a monopoly. partner firms in the supply chain. ultimate customers who are the end users of the product.
1
When partners in a strategic alliance form a new business unit in which each takes an ownership position, they have created a: joint venture. collusion organization. development team. merged organization.
1
_____ is a promotional effort that involves assigning a dedicated sales teams to a firm's major customers to provide sales and service. National account selling Quickresponse merchandising Vendormanaged selling Collaborative planning
1
A fast food restaurant is offering various meal options at discounted prices to attract new customers. This marketing effort indicates that the company is at the _____ level of relationship marketing. third first fourth second
2
At the second level of relationship marketing, the focus is on: price and other financial incentives. reaching out to the customer with social interaction. structurally transforming the relationship into an interdependent partnership. analyzing data from the initial purchase to determine the chance of a repeat sale.
2
G.J Inc., an electronic component manufacturer and supplier, has an inventory management system that stores purchase patterns and requirements of its customers. Through this system the firm decides on the amount of the product required by the buyers and automatically ships the supplies to the buyer based on a preexisting agreement. This type of inventory management system is called _____. lateral management system vendormanaged inventory distributive management system symbiotic inventory
2
One of the advantages of national account selling is: a decrease in the value of risk adjusted return on capital. a strengthened buyerseller relationship through collaboration. an increased inventory turnover for the firm. lowered switching costs for a firm's loyal customers.
2
Which of the following firms is most likely to enter into a vertical strategic alliance with Boeing? Airbus, a European consortium of aircraft manufacturers Pratt & Whitney, an aircraft engine manufacturer Cessna, an American airplane manufacturer Gulfstream Aerospace, a jet aircraft producer
2
Which of the following is a justintime strategy that helps in reducing the time a retailer must hold products in the inventory? Lateral partnership Quickresponse merchandising Symbiotic merchandising Vertical strategic alliance
2
_____ is a cooperative arrangement in which two or more businesses team up to closely link their names on a single product. Lateral partnership Cobranding Comarketing Symbiotic marketing
2
A _____ is a strategic relationship that extends to external entities but involves no direct buyerseller interactions. network partnership buyer partnership lateral partnership seller partnership
3
A company trying to engage in a social interaction with the customers is at the _____ level of relationship marketing.
3
In the context of strategic alliances, a cooperative relationship formed between businesses: typically involves forming a new business unit. involves partners taking ownership positions. is usually less formal than a joint venture. is not flexible or easily adaptable to changing market conditions.
3
Revenues and intangible benefits such as referrals and feedback a consumer brings to the seller over an average period of their relationship, less the amount the company must spend to acquire, market to, and service the customer is known as the _____. rate of customer coverage customer turnover rate lifetime value of a customer net customer yield
3
Strategic alliances are partnerships formed among firms in B2B markets to: decrease the value of debt service coverage ratio. avoid problems related to antitrust legislation. create a competitive advantage. present a united front to labor unions.
3
The marketing efforts at the first level of relationship marketing: treat the buyers as true business partners while marketing products. focus on effective communication and customer service for the products. rely on pricing and other financial incentives to motivate consumers to buy products. focus on creating longterm buyer relationships.
3
Which of the following is the most important measure of relationship marketing programs in both consumer and businesstobusiness markets? Cost of the marketing program Clickthrough behavior on websites Lifetime value of a customer Debt to equity ratio
3
Which of the following is true of a vertical strategic alliance created by firms in B2B markets? It is created among the firms at the same level of the supply chain. It can only be formed between companies that serve different industry. It is formed when firms that are at adjacent states in the supply chain. It cannot be formed between two firms if their annual revenues are significantly different.
3
_____ is the process of rejuvenating lost relationships with customers. Customer polarization Customer acquisition Customer winback Customer orientation
3
Clayten Technologies has set up a sales team exclusively to serve one of its clients who account for a major share of its business. This strategy is an example of: vertical supply chain integration. vendormanaged selling. quickresponse merchandising. national account selling.
4
In the context of the levels of relationship marketing, which of the following is a drawback associated with the efforts that focus on pricing and other financial incentives to attract customers? It makes advertising and promotional expenses worthless. It leads to hostile relationships with the suppliers. It does not encourage creativity in advertising. It is least likely to lead to a longterm relationship.
4
In the context of the levels of relationship marketing, which of the following is an example of a level 1 relationship marketing program? An electronics firm setting up a worldwide technical support system to assist customers. A cheese shop organizing a cooking contest for customers. An automobile company offering a club membership to owners of highend cars. An airline offering special discounts to its customers for early bookings.
4
Which of the following is an important goal of internal marketing? Group polarization Vertical integration Customer desensitization Employee involvement
4
Which of the following is true of longterm customers? They are not effective in providing intangible benefits such as feedback and referrals. They cost more to serve than new customers. They provide a minor share in a company's new business. They are usually more valuable assets than new ones because they buy more.
4
With reference to relationship marketing, which of the following is an example of a typical third- level relationship marketing program? A healthawareness campaign organized by a foodsupplement manufacturer A frequent flyer program introduced by an airline A courier company enabling its users to track the status of their deliveries on its website A company offering a product at a discounted price
A courier company enabling its users to track the status of their deliveries on its website
_____ describes the extent to which buyers of a product or a service are content with their purchases. Average propensity to consume Customer satisfaction Customer lifetime value Market cognizance
Customer satisfaction
Which of the following statements is true regarding the interaction between a company and its customers? Marketers must adhere to traditional performance measures to formulate customerbased missions and goals. Customers have greater loyalty to a company after a conflict has been resolved than if they had never complained at all. As happy customers typically talk about their buying experiences more than unhappy customers do, the cost of dissatisfaction incurred by a company tends to be low. Any method that makes it easier for customers to complain ends up demonstrating the ineptitude of a firm.
Customers have greater loyalty to a company after a conflict has been resolved than if they had never complained at all.
A chocolate bar bought while standing in the checkout line is an example of staples.
F
A college education is an example of a pure product on the goods- services continuum.
F
A company that gathers volunteers to try products and then relies on them to share their experiences with friends and colleagues is adopting a frequency marketing approach.
F
A dinner at an exclusive restaurant is a pure good.
F
A lateral partnership is a strategic relationship that involves direct buyerseller interactions.
F
A strategic alliance can be formed only between those firms that serve the same industry.
F
Affinity marketing is a cooperative arrangement in which two or more organizations join to sell their products in an allied marketing campaign.
F
Alken Technologies has a support team that is dedicated to provide sales and service to its largest customers to pay attention to their special needs. This marketing technique used by Alken to show commitment to its customers, is referred to as internal marketing.
F
Although the United States runs a continuing trade deficit in services, it has maintained a trade surplus in goods since 1992.
F
An internal partnership consists of a relationship that involves longterm exchanges of goods or services in return for cash.
F
Assume that Ford has established a strategic alliance with Michelin to design an exclusive line of tires for Ford automobiles. The FordMichelin strategic alliance would be a horizontal alliance.
F
Buyers rarely play any role in the creation and distribution of services.
F
Customer relationship management systems are more beneficial to retailers than to B2B firms.
F
Customer winback is a customer relationship management strategy that focuses on acquiring new customers.
F
Database marketing is not effective in identifying potential customers as it increases the marketing and promotion costs.
F
During the growth stage of the product lifecycle, available supplies exceed industry demand for the first time.
F
During the maturity stage of the product lifecycle, the industry sales curve for a product reaches a minimum point as competitors exhaust the supply of potential customers.
F
Electronic data interchange (EDI) involves computertocomputer exchanges of invoices, orders, and other business documents.
F
Extensive planning time is required for the purchase of supplies.
F
Fad cycles are examples of traditional product lifecycles.
F
Firms focus on acquiring new customers rather than retaining existing customers, as new customers account for nearly 70 percent of new business for a firm.
F
In a cooperative alliance, the partners establish a new business unit in which each takes an ownership position.
F
In contrast to the purchase of shopping products, consumers buy convenience products only after comparing competing offerings on such characteristics as price, quality, style, and color.
F
Internal analysis involves gathering information about the benchmark partner to find out why the partner is perceived as the industry's best.
F
Internet security software that requires periodic updates and annual product upgrades is considered a pure service on the goodsservices continuum.
F
Lateral partnership is a relationship that involves customers within an organization.
F
One of the key criteria considered while forming a strategic alliance is the size and location of the partner firm.
F
Price is generally the deciding factor in purchasing raw materials since the costs vary widely across markets.
F
Procter & Gamble manufactures laundry detergents under the brand names of Tide, Cheer, and Gain. These brands represent the width of the product mix that Procter & Gamble offers.
F
Product line extension refers to the development of items that would expand the width of the product mix a company has to offer.
F
Product strategies are essentially the same for consumer and business markets.
F
Providers can maintain inventories of their services.
F
SUVs produced by different automobile companies constitute a single product line.
F
Shopping products typically cost less than convenience purchases.
F
Strategic alliances typically include only the largest firms in any industry because of the amount of capital required to invest in shared facilities.
F
The U.S. service sector makes up only onetenth of the nation's economy.
F
The assortment of product lines and individual product offerings that a company sells is known as its product cluster.
F
The classification system for business products emphasizes customer buying behavior rather than product uses.
F
The cost of acquiring a new customer is equivalent to that of retaining a loyal customer.
F
The grassroots marketing approach relies on conventional and traditional marketing strategies.
F
The product lifecycle concept applies to individual brands of a product.
F
The seller's image is very important for those marketers who sell convenience products.
F
The supply chain management process has no influence on the relationship of the company with the product's end users.
F
The term "buzz marketing" refers to a promotional effort in which a dedicated sales team is assigned to a firm's major customers to provide sales and service.
F
When a manufacturer of vinegar, ordinarily used as a food ingredient, promotes its use as a metal cleaner, the manufacturer is attempting to extend the product's lifecycle by changing its package.
F
In level one of relationship marketing purchasers on a company's relationship marketing continuum receive specialized services in value added benefits that may not be available from another firm. True or false
False
In relationship marketing the focus is on enticing a buyer to make an immediate purchase based on factors such as low price convenience or packaging true or false
False
Internal marketing involves selling products to employees of the firm at a discount true or false
False
The service department of an automobile firm calls its customers regularly after service to check the performance of the car. This is an example of the first level of interaction in relationship marketing.
False
Which of the following is true of customer relationship management systems? Purchasing a CRM system allows a firm to expand and customize, whereas hosted systems are more limited. Customer relationship management systems tend to complicate simple business processes. They focus on decentralizing the marketing data. They are more beneficial to the retailers compared to business firms in B2B markets.
Purchasing a CRM system allows a firm to expand and customize, whereas hosted systems are more limited
Cannondale Bicycles has a customers' group called "The Chain Gang." Members receive emails listing cyclingrelated tips, as well as access to a special website dedicated to cycling. In the context of the relationship marketing continuum, this is an example of the _____ level of relationship marketing. first second fifth fourth
Secod
A company limits its growth potential when it concentrates on a single product, even though the company may have started that way.
T
A dentist provides pure service.
T
A firm forming a partnership with another firm at the same level in the supply chain is creating a horizontal alliance.
T
A partnership is an affiliation of two or more companies that help each other achieve common goals.
T
A product is a bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs.
T
A product line is a series of related products offered by one company.
T
A service encounter is a point at which a consumer interacts with a service provider.
T
A strategic alliance formed between firms at adjacent stages in a supply chain is considered a vertical alliance.
T
A strategic alliance is a partnership in which two or more companies combine resources and capital to create competitive advantages in a new market.
T
A vendormanaged inventory is an inventory management system in which the sellerin an existing agreement with a buyerdetermines how much of a product is needed.
T
According to retailers, the purpose of slotting allowances is to cover their losses if products don't sell.
T
Advertising is an important component in the marketing mix for accessory equipments.
T
Advertising via mobile apps helps marketers gain access to users' personal data.
T
An automated teller machine (ATM) is an example of a convenience service.
T
As consumers are willing to exert considerable effort to obtain specialty products, producers can promote them through relatively few retail locations.
T
As consumers devote little effort to convenience product purchase decisions, marketers must strive to make these exchanges as simple as possible.
T
Benchmarking is the method of measuring quality by comparing performance against industry leaders.
T
Buyerseller relationships between companies involve working together to provide advantages that benefit both parties.
T
Career counseling session is an example of a pure service on the goodsservices continuum.
T
Cobranding is a cooperative arrangement in which two or more businesses team up to closely link their names on a single product.
T
Companies can use database marketing to improve customer retention and referral rates.
T
Companies use knowledge obtained from databases to track customer buying patterns and to customize offerings and sales promotions.
T
Convenience of location is unimportant to a consumer who wants to buy a specialty product.
T
Customer relationship management (CRM) requires a topdown commitment to succeed and must penetrate every aspect of a firm's business.
T
Customer relationship management systems help firms to simplify complex business processes.
T
Database marketing involves the use of information technology to analyze data about customers and their transactions.
T
During the introductory stage of the product lifecycle, the public becomes acquainted with the item's merits and begins to accept it.
T
Firms that practice homeshoring experience the benefit of reduction in the use of energy and other natural resources thereby decreasing their impact on the environment.
T
Firms with similar skills and resources form a partnership to reduce costs.
T
Hershey's introduction of a sugarfree version of its candy bar is an example of line extension.
T
Homeshoring enables firms to save on office space, furnishings, and supplies.
T
Homeshoring is the practice of hiring workers to do jobs from home.
T
If advertisements are used for installations, they emphasize the company's reputation and direct potential buyers to contact local sales representatives.
T
In a buyer partnership, the supplier must meet the unique needs of the purchaser in order to make the relationship successful.
T
In the case of shopping products, a store's name and reputation have considerable influence on people's buying behavior.
T
In the maturity stage of a product lifecycle, differences between competing products diminish as competitors discover the product and promotional characteristics most desired by customers.
T
In the maturity stage, heavy promotional outlays emphasize any differences still separating competing products, and brand competition intensifies.
T
Installations are major capital investments in the B2B markets and they are often designed specifically for the purchasers.
T
Installations' marketers typically focus their promotional efforts on employing highly trained sales representatives, often with technical backgrounds.
T
Interactive television delivers valuable data on real consumer behavior and attitudes toward brands.
T
Internal analysis in the benchmarking process establishes a baseline for comparison.
T
It is essential for an organization to build and maintain internal partnerships in order to meet the needs of its external partnerships.
T
Managers are responsible for communicating the goals of total quality management to all staff members.
T
Many grocery chains require customers to have a membership card in order to receive sale prices or other discounts. These grocery chains are practicing database marketing.
T
Marketers can use grassroots marketing approach to develop longlasting, individual relationships with loyal customers.
T
Marketers think in terms of a product as a compilation of package design and labeling, brand name, price, availability, warranty, reputation, image, and customer service activities that add value for the customer.
T
Marketers typically measure product mixes according to width, length, and depth.
T
Marketing accessory equipments requires continuous representation and dealing with the widespread geographic dispersion of purchasers.
T
Milk is an example of a convenience product.
T
Most fads experience shortlived popularity and then quickly fade, although some maintain residual markets among certain segments.
T
National account selling technique is used by marketers to serve their largest and most profitable customers.
T
Often, the desirability of partnering in the business market is based on the fact that each firm brings to the partnership something the other needs but cannot provide on its own.
T
One way to distinguish goods from services is that services are inseparable from their service providers.
T
Organizations must share similar values and goals for a partnership to succeed in the long run.
T
Product lifecycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by current customers; increase the number of users for the product or change package sizes, labels, or product quality.
T
Purchasers of component parts and materials need regular, continuous supplies of uniformquality products.
T
Quickresponse merchandising is a justintime strategy that reduces the time merchandise is held in inventory, resulting in substantial cost savings.
T
Research alliances between forprofit firms and colleges and universities are examples of lateral partnerships.
T
Restaurant chains often use the same room decor and dining menu at all their locations in an attempt to standardize the services they offer.
T
Reviewing customer comments and feedback and monitoring the clickthrough behavior on websites help companies to set appropriate, measurable goals for relationship programs.
T
Sales of a product category continue to grow during the early part of the maturity stage buteventually reach a plateau as the backlog of potential customers dwindles.
T
Service quality refers to the expected and perceived quality of a service offering.
T
Services are intangible products.
T
Slotting allowances refer to money paid by producers to retailers to guarantee display of their merchandise.
T
Some of the motives for firms to enter into partnership are warding off threats of future competition, raising or creating barriers to entry, and learning new skills.
T
Staples are convenience goods and services that consumers constantly replenish to maintain a ready inventory.
T
Successful customer relationship management systems reduce costs by empowering customers to find the information they need to manage their own orders.
T
Supplies are also called MRO items.
T
Tangible goods and intangible services both intend to satisfy consumer wants and needs, but the marketing efforts supporting them may be vastly different.
T
The Malcolm Baldrige National Quality Award is the highest national recognition for quality a U.S. company can receive.
T
The depth of product mix refers to the variations in each product the firm markets in its mix.
T
The length of a product mix refers to the number of different products a firm sells.
T
The marketing mix is the blending of the four strategy elements- product, price, distribution, and promotionto satisfy the target market.
T
The motivations for marketing complete product lines include the desire to grow, enhancing the company's position in the market, optimal use of company resources, and exploiting the product lifecycle.
T
The payback period in a customer relationship is the length of time it takes to break even on customer acquisition costs.
T
The purchaser of a shopping product lacks complete information prior to the buying trip and gathers information during the buying process.
T
The right blend of product lines and individual products allows a firm to maximize sales opportunities within the limitations of its resources.
T
The term "lifetime value of a customer" refers to revenues and intangible benefits such as referrals and customer feedback a customer brings to the seller over an average lifetime of their relationship, less the amount the company must spend to acquire, market to, and service the customer.
T
The trend of backshoring, firms returning their offshore work to the U.S., is growing.
T
The width of a product mix refers to the number of product lines the firm offers.
T
Unsought products are marketed to consumers who may not yet recognize any need for them.
T
Viral marketing involves efforts that allow satisfied customers to spread the word about products to other customers.
T
A major drawback associated with customer relationship management systems is that: they are not effective in reducing the marketing and distribution costs for the products. the strategy needs to be thought out in advance, and everyone in the firm must be committed to it. they cannot provide a complete picture of the customers in order to understand their needs. they complicate simple business processes while trying to reorganize the focus on customer satisfaction.
The stratedy
Companies that excel satisfying customers provide their employees of the necessary tools to address customer request and problems in a timely manner. True or false
True
Relationship marketing views customers as equal partners and buyer seller transaction true or false
True
Successful internal marketing efforts create satisfied employees who spread positive word of mouth Messages to relative friends and acquaintances true or false
True
A marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities is called _____ marketing. frequency affinity internal inclusive
affiity
In a salute to fans of the Olympic games, Ralph Lauren launched a complete wardrobe, inspired by the Olympics designs, for men, women, children, and infants. This is an example of _____ marketing. distributive internal database affinity
affiity
While forming partnerships in businesstobusiness markets, organizations primarily look for companies that: are focused on productorientation. have shorter distribution channels than their competitors. can add value to the relationship. differ from them in the core values and goals.
ca add value to relatioship
_____ is a cooperative arrangement in which two or more businesses jointly promote each other's products. Internal marketing Cobranding Comarketing Seller lockin
cpmarketig
The main objective of internal marketing programs is to: share resources with business partners. encourage employees to view each other as competitors. create satisfied employees. facilitate a vertical integration.
create satisfied emplyees
An Internet service provider (ISP) loses approximately 12 percent of its existing customers every year. According to this information, the ISP is experiencing: market reorganization. customer churn. group polarization. social referencing.
customer chur
The term _____ describes the turnover in a company's customer base. customer winback customer lifetime value customer distribution pattern customer churn
customer chur
A leading detergent brand receives complaints from its customers that the chemicals used are too strong and dangerous, and they do not smell good. To counter this, the company runs a series of ads showing its experts approaching select customers with an improved detergent that addresses the concerns of the customers. The company is engaging in: controlled experimentation. database marketing. internal marketing. customer winback.
customer wi ack
The use of information technology to analyze information about customers and their transactions is referred to as _____ marketing. frequency affinity database internal
dataase
The Nielsen Co. carefully tracks Super Bowl viewership each year to help the network that airs the game and other football broadcasters determine ad rates for the following year. This is an example of: frequency marketing. buzz marketing. database marketing. internal marketing.
dataase marketing
Which of the following is a characteristic of transactionbased marketing? Frequent customer contact Emphasis on longterm relationship Customer interactions based on commitment and trust Emphasis on individual sales
emphasis o individual sales
Transactionbased marketing differs from relationship marketing as transactionbased marketing: ranks customer service as a high priority. encourages frequent customer contact. emphasizes on individual sales rather than longterm relationships. views customers as equal partners in buyerseller transactions.
emphasizes o idividial sales rather tha logterm rela
A successful customer relationship management system reorganizes the business processes to deliver superior value to the customers by: decentralizing the marketing data. bringing down a firm's reliance on expensive wordofmouth marketing. expanding the response time for customer queries to increase their satisfaction. empowering customers to find information they need to manage their own
empowering customers to find information they need to manage their own
Affinity marketing consists of frequentbuyer or user marketing programs that reward customers with cash, rebates, merchandise, or other premiums.
false
As compared to happy customers, unhappy customers typically talk less about their buying experiences.
false
At the second level of relationship marketing, buyers and sellers develop a dependence on one another that continues to grow over time.
false
Frequency marketing programs are promotional efforts sponsored by organizations that solicit involvement by individuals who share common interests and activities.
false
The first step in measuring customer satisfaction involves comparing actual sales to forecasted sales.
false
The interactions at the first level of relationship marketing are most likely to lead to a longterm relationship.
false
The first step in measuring customer satisfaction is: testing market response for new products through controlled experiments. hiring a firstrate market research firm. finding out what customers need, want, and expect. searching the blogs and discussion groups on the Internet to obtain customer feedback.
finding out what customers need, want, and expect
Best Buy Rewards Program tracks customer sales, and periodically issues coupons to customers based on the values of prior purchases. This marketing effort by Best Buy can be regarded as _____ marketing. affinity database frequency societal
frequecy
_____ marketing programs are designed to reward top customers with cash, rebates, merchandise, or other premiums. Frequency Social Internal Affinity
frequecy
A video renting outlet offers free movies for customers, if they rent a certain number of movies within a specified time periods, in order to encourage them to spend more on renting movies from the outlet. This type of marketing strategy is an example of _____. frequency marketing viral marketing internal marketing buzz marketing
frequency marketig
A food manufacturing company that has just entered into the market is trying to attract potential customers through marketing strategies that are unconventional, nontraditional, and extremely flexible. The company has a relatively small budget for marketing its products. Which of the following marketing strategies is most likely being used by this company? Affinity marketing Frequency marketing Grassroots marketing Viral marketing
grassroot marketig
_____ involves connecting directly with existing and potential customers through nonmainstream channels. Viral marketing Interactive marketing Grassroots marketing Buzz marketing
grassroot marketig
Which of the following is true of relationship marketing? It focuses on shortterm, onetime exchanges with limited communications. Its only goal is "sell somethingnow." It views customers as equal partners in buyerseller transactions. It involves little or no ongoing relationship between the buyers and sellers.
it views customers as equal parters I uyer seller trasactios
Managerial actions that enable all members of an organization to understand, accept, and fulfill their respective roles in implementing marketing strategy are collectively referred to as _____. social referencing social loafing internal marketing strategic positioning
iteral marketig
The marketing programs at the third level of relationship marketing usually aim to create: social interaction. financial interaction. interdependent partnership. viral advertising.
iterdepedet partership
A biotechnology company and a medical school have formed a partnership to develop a new class of cancerfighting drugs. This is an example of a(n) _____ partnership. buyer seller internal lateral
lateral
One of the motives that prompt firms to enter into partnerships is: creating longer distribution channels. raising barriers to entry. promoting the use of technology to facilitate customer orientation. avoiding vertical and horizontal integration.
raisif arriers to etry
_____ marketing is the development, growth, and maintenance of costeffective, highvalue associations with individual customers, suppliers, and other partners over time. Relationship Transactionbased Substitutive Associative
relatioship
The term customer relationship management refers to a combination of strategies and tools that attempts to: create good relationships between all wholesalers and/or retailers in the distribution channel. retain customers by offering lower prices on the purchase of specific products or services. develop a network of interconnected businesses involved in the ultimate provision of products and services required by end customers. reorient an entire organization to a concentrated focus on satisfying customers.
reorient an entire organization to a concentrated focus on satisfying customers.
_____ is a relationship involving longterm exchanges of goods or services in return for cash or other valuable consideration. Buyer partnership Seller partnership Internal partnership Lateral partnership
seller part
Affinity marketing programs focus on creating extra value for consumers.
t
Marketers classify goods and services by considering the purchase patterns of the majority of buyers.
t
Customers prefer to have continuing relationships with businesses or suppliers because: it helps the consumers in the process of benchmarking. by nature, customers are resistant to change and prefer preexisting relationships with businesses. the decisionmaking process becomes easier with the reduction in the number of choices. most businesses have low switching costs which make them attractive to have continued relationships with.
the decisionmaking process becomes easier with the reduction in the number of choices
Which of the following is a feature of marketing efforts at the third level of relationship marketing? They are least likely to lead to a longterm relationship between the buyer and seller. They are more likely to be focused on geographic segmentation rather than psychographic segmentation. They try to motivate consumers to buy products by offering financial incentives. They focus on developing a dependance between buyers and sellers.
they focus ad dev. a depedece
Mobile apps have become a multibillion dollar industry because: They are easy to use. They are free to smartphone and tablet users. They provide advertisers with detailed consumer data. They keep user information secure.
they provide advertiser with detailed cosumer data
A consumer goods company is trying to develop a relationship with its customers by implementing marketing strategies that focus on developing interdependence between the company and its customers. These marketing strategies indicate that the company is at the _____ level of relationship marketing. third second first fourth
third
At the third level of relationship marketing, buyerseller relationships are transformed structurally into business partnerships.
true
Customer satisfaction can be measured in terms of the gaps between what customers expect and what they perceive they have received.
true
Firstlevel relationship marketing programs typically rely on pricing and other financial incentives to motivate the customer into a buying relationship with a vendor.
true
One of the main goals of a ternal marketing is to keep the employees and further informed about corporate goals strategies and customer needs. True or false
true
One of the steps involved in measuring customer satisfaction is compiling feedback from customers regarding present performance.
true
Which of the following is an example of affinity marketing? University of Iowa branded credit card Hallmark's Gold Crown card Blockbuster Rewards video card United Airlines Mileage Plus program
university of iowa
A _____ partnership is a relationship in which the firm purchases goods and services from one or more providers who meet the unique needs of the firm. lateral internal seller buyer
uyer
Which of the following marketing exchanges is most likely to be transactionbased? Golf club membership Buying property from a real estate agent Medical care for a person with a chronic illness Annual service contract with a lawn and garden company
uyig property from a real estate aget
_____ gathers volunteers to try products and then relies on them to talk about their experiences with friends and colleagues. Grassroots marketing Frequency marketing Affinity marketing Buzz marketing
uzz market
A electronics company has hired some product experts who have sufficient following on social media sites to spread a word about their products. The company provides the products to these individuals and requests them to post their opinion which helps in promoting the products. This is an example of: buzz marketing. internal marketing. lateral marketing. distributive marketing
uzz marketig
marketing program that enables satisfied customers to spread the word about products to other consumers is called _____ marketing. grassroots viral frequency affinity
viral
A clothing brand allows its customers to interact with each other on their website so that the customers can share their views and opinions about the company's products. The company has also created a Web page on a social networking site where the customers can express their opinions. This type of marketing strategy is an example of _____. internal marketing viral marketing societal marketing distributive marketing
viral marketig
YouTube offers viewers the option to share a video they have watched by sending it to one or more contacts in their email address books. Which of the following types of marketing is being used this case? Frequency marking Viral marketing Internal marketing Lateral marketing
viral marketig
Proactive methods a firm might use to assess customer satisfaction would include: visiting, calling, or mailing written surveys to clients. setting up customer service help lines to receive customer complaints. offering gifts and reward points to appease a dissatisfied customer. quickly replacing defective products with new products after receiving complaints from customers.
visiting, calling, or mailing written surveys to clients.
Which of the following concepts forms the basis of buzz marketing? Elasticity of demand Wordofmouth Employee empowerment Longterm product viability
word of mouth
