mktg 494 ch 5

A ________ would contain such items as past volumes, prices, profits, buyer team names, status of current contacts, and an assessment of competitive strengths and weaknesses. a. business database b. contact list c. general corporate database d. customer mailing list e. customer database

A

After conducting customer profitability analysis (CPA), Sunquest Vacations would likely decide to curtail any resources and activities directed at ________ customers, those seen as the most unprofitable and undesirable. a. losing b. loyal c. satisfied d. profitable e. mixed-bag

A

Another term for high customer ________ is customer churn. a. defection b. perception c. retention d. value e. belief

A

Any occasion on which a customer encounters the brand and product, such as a hotel chain's reservation system, business services, and restaurants, is considered a customer a. touch point. b. reward system. c. relationship. d. sensitivity. e. customization.

A

Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called a. Activity-Based Costing (ABC). b. input-output analysis. c. factor analysis. d. Revenue-Based Costing (RBC.) e. Future Date Costing (FDC).

A

Online retailers such as Zazzle and CafePress allow users to upload images and create their own clothing and posters or buy merchandise created by other users. This would be an example of which of the following? a. mass customization b. mass marketing c. environmental marketing d. niche marketing e. individualization

A

Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies. a. win-back b. retention c. defection d. sell-out e. recuperation

A

The ________ consists of the whole cluster of benefits the company promises to deliver; it is more than the core positioning of the offering. a. value proposition b. mission statement c. corporate pledge d. corporate perceived value e. customer promise

A

The aim of customer relationship management (CRM) is to produce high customer a. equity. b. profitability. c. value. d. loyalty. e. satisfaction.

A

The final step of customer value analysis is to _______ a. monitor customer values over time. b. identify the major attributes and benefits that customers value. c. assess the company's and competitors' performances on the different customer values against their rated importance. d. examine how customers in a specific segment rate the company's performance. e. assess the quantitative importance of the different attributes and benefits.

A

The perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychic costs is called the a. total customer cost. b. organizational expense ratio. c. shopper's fatigue. d. comparison shopping to comparison buying ratio. e. analysis paralysis.

A

The process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships is called a. database marketing. b. datamining. c. data warehousing. d. custom marketing. e. electronic marketing.

A

Which of the following is the first step in customer value analysis? a. Identify the major attributes and benefits that customers value. b. Examine how customers in a specific segment rate the company's performance. c. Assess the company's and competitors' performances on the different customer values against their rated importance. d. Monitor customer values over time. e. Assess the quantitative importance of the different attributes and benefits.

A

Which of the following strategies among Peppers and Rogers's four-step framework for one-to-one marketing involves formulating customized offerings communicated in a personalized way. a. interacting with individual customers to learn their needs b. differentiating customers in terms of their needs and value to the company c. focus disproportionate effort on high-value customers d. customizing products, services, and messages to each customer e. identify your prospects and customers

A

A ________ is simply a set of names, addresses, and telephone numbers. a. customer database b. customer mailing list c. call-waiting list d. demographic list e. psychographic list

B

Derrick Lagodzki has just taken possession of new Toyota Yaris. Whether Derrick is satisfied after purchase will depend on the Yaris's performance in relation to a. Toyota's expectations. b. his expectations. c. Toyota's delivery. d. his reactions. e. both Derrick's and Toyota's demands.

B

If a company increases customer satisfaction by lowering its price or increasing its services, the result may be a. a loyalty program. b. lower profits. c. unsatisfying experiences. d. decreased lifetime value. e. customer defection.

B

In general, companies can use their databases in five ways. Which way involves remembering customer preferences and sending appropriate gifts, coupons, and reading material? a. to decide which customers should receive a particular offer b. to deepen customer loyalty c. to reactivate customer purchases d. to identify prospects e. to avoid serious customer mistakes

B

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid? a. Sales are at the top of the organizational pyramid. b. Customers are at the top of the organizational pyramid. c. Middle management is at the top of the organizational pyramid. d. The president is at the top of the organizational pyramid. e. Front-line people are at the top of the organizational pyramid.

B

RBC wants to understand what value propositions make sense to which customers. When the bank discovered that it sometimes makes sense to tell a customer her or she is not using the right service, even if that services generates less revenue in the short term, it was acting on a a. return on quality. b. customer lifetime value. c. leverageable advantage. d. competitive advantage. e. customer profitability analysis.

B

The opening vignette on Sobeys Inc. indicates that successful marketers are the ones that a. understand the sales concept. b. manage their customer base. c. divorce themselves from a production mentality. d. understand promotional strategy. e. diversify their product line.

B

Which of the following is considered to be one of the five problems that can deter a firm from using CRM (customer relationship marketing)? a. It is very difficult to find and train database employees. b. Building and maintaining a customer database requires a large investment. c. Focusing too much on databases separates a company from its customers. d. Long-term results of such systems are still unproven. e. Competitors can often hack into CRM systems.

B

Whole Foods Market trains their employees to be knowledgeable and friendly in order to a. increase the longevity of the customer relationship. b. reduce the rate of customer defection. c. make low-profit customers more profitable or terminating them. d. enhance the growth potential of each customer through up-selling. e. focus disproportionate effort on high-value customers.

B

________ are adept at building customer relationships, not just products. a. Sales-centred companies b. Customer-centred companies c. Production-centred companies d. Profit-centred companies e. Promotion-centred companies

B

53) 3M makes it easy for dialog to occur with its customers. 3M claims that over two-thirds of its product improvement ideas come from listening to a. entrepreneurial product ideas. b. customer reactions to competitive products. c. customer complaints. d. media feedback. e. customer suggestions.

C

A Lexus rides smoother, goes faster, and lasts longer. Yet both a Lexus and a Hyundai deliver the same ______ if all the units deliver their respective promised quality. a. safety quality b. unique quality c. conformance quality d. customer support e. performance quality

C

A ________ 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 that customer. a. semi-profitable b. target c. profitable d. niche e. unprofitable

C

Most companies have learned that the ________ are the most profitable because of service expectations and their willingness to pay almost full price for the products they purchase. a. large-size customers b. target market customers c. midsize customers d. small-size customers e. niche customers

C

One key to customer retention is ________. It would be wise for a company to measure this factor frequently. a. to have an ethics officer b. to have customers on the board of directors c. customer satisfaction d. deep discounts for intermediaries e. heavy promotion

C

Total customer benefit is the perceived monetary value of the bundle of economic, functional, and ________ benefits customers expect from a given market offering. a. fabricated b. advertised c. psychological d. intangible e. realized

C

When a consumer considers a product or service, he or she will choose whichever product or service delivers the highest customer perceived value. A retailer such as Zellers can improve it offerings in three ways. If Zellers improves products, personnel, and image benefits, it will a. reduce total customer cost. b. reduce product cost. c. increase total customer benefit. d. increase long-term loyalty. e. reduce psychic costs.

C

Which of the following is a characteristic of one-to-one marketing rather than mass marketing? a. mass promotion b. share of market c. two-way messages d. standard product e. customer attraction

C

With respect to the CRM Imperative, "you get it" when a. you eliminate all your strong competitors. b. you have learned how to outsource. c. you have identified your most valuable customers. d. you develop a Web presence. e. you have selected the most beneficial promotion channels.

C

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty. a. Customer lifetime value b. Customer profitability analysis c. Customer relationship management d. Customer satisfaction analysis e. Customer-value delivery

C

________ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. a. Performance b. Customer loyalty c. Quality d. Value e. Customer retention

C

An organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for such marketing purposes as lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships is called a. customer segments. b. relationship markets. c. target market segments. d. a customer database. e. a customer mail list.

D

Buyers do not always make logical or rational decisions. They might purchase the most expensive and least quality item for example. Which of the following would be another good example of this behaviour? a. The buyer might be underage. b. The buyer might be under pressure to resist sales messages. c. The buyer is not seen by the seller as being very intelligent. d. The buyer might be under orders to buy at the lowest price. e. The buyer refuses to listen to or read any advertising.

D

If Volvo were to focus its marketing efforts on all the experiences the customer will have on the way to obtaining and using their offerings, it would be focusing its marketing efforts on the customer's a. psychological system. b. demand. c. cost versus benefit system. d. value-delivery system. e. perception system.

D

In applying a customer's perceived value to a decision, a seller who is at a customer perceived value disadvantage has two alternatives: to increase total customer benefit or a. offer an extended warranty. b. lose the sale to the competitor. c. advertise more frequently. d. decrease total customer cost. e. increase a cash-back bonus.

D

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________. a. reduce the rate of customer defection b. enhance the growth potential for each customer through cross-selling c. increase the longevity of the customer relationship d. make low-profit customers more profitable e. focus disproportionate effort on high-value customers

D

Of customers who register a complaint, ________. a. all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor b. none will do business with the company again c. customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied d. some will do business with the company again if their complaint is resolved e. the speed of resolution has no impact on the likelihood of repeat business

D

The 20-80-30 rules reflects the idea that a. the top 20 percent of customers are highly satisfied, 80 percent of customers will recommend the company to a friend, and 30 percent are unsatisfied. b. 20 percent of customers are unprofitable, 80 percent of customers make up 30 percent of a company's profits. c. any new product offering will be accepted by 20 percent of the customers immediately, this figure will eventually rise to 30 percent, however, 80 percent of the customers will be up for grabs throughout the product life cycle for the product. d. the top 20 percent of customers generate 80 percent of the company's profits, half of which are lost serving the bottom 30 percent of unprofitable customers. e. 20 percent of the company's profits are generated by 80 percent of customers, and 30 percent of customers are satisfied.

D

The ability of a company to meet each customer's requirements to prepare on a mass basis individually designed products, services, programs, and communications, is referred to as a. individualization. b. proactive customer service. c. competitive advantage. d. mass customization. e. target market customization.

D

Which of the following can a company do to reduce defection? a. Attract new customers to try out the company's products. b. Increase customer lifetime value by increasing the non-monetary costs of products. c. Enhance the growth potential of existing customers through cross-selling and upselling. d. Distinguish the causes of customer attrition and identify those that can be managed better. e. Make low-profit customers more profitable or terminate the relationship.

D

________ is an organization-wide approach to continuously improving the quality of all the organization's processes, products, and services. a. Profit-centred management b. Strategic management c. Customer-retention management d. Total quality management e. Total customer control management

D

________ 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. Report rating b. Competitors market share rate c. Perceived usefulness d. Customer perceived value e. Failure avoidance rate

D

If marketers raise customer expectations too high, the buyer is likely to be disappointed. However, if the company sets expectations too low, it a. must offer a fixed price. b. will raise the value proposition. c. will lower total customer cost. d. will create customer loyalty. e. won't attract enough buyers.

E

One large construction company has paid $19,000 for a Caterpillar tractor, yet when the company calculates the bundle of economic, functional, and psychological benefits of the tractor, they arrive at a figure much higher. The construction company's assessment is seen as the a. total customer satisfaction. b. value proposition. c. total customer cost. d. customer perceived benefit. e. total customer benefit.

E

Satisfied customers constitute the company's ________. a. customer churn b. target audience c. high-value customers d. customer touch points e. customer relationship capital

E

The CRM (customer relationship management) imperative is characterized by five steps or factors. It begins with acquiring the right customer which can involve a. identifying HR systems to boost employee loyalty. b. spotting what products or services to offer. c. learning how to win customers back. d. researching the best way to delivery your products. e. calculating your share of their wallet.

E

________ 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. a. Value proposition b. Satisfaction c. Respect d. Customer value e. Loyalty

E

________ is the total of the discounted lifetime values of all of a firm's customers. a. Customer relationship management b. Relational equity c. Value equity d. Customer lifetime value e. Customer equity

E

There are two determinates of customer perceived value: total customer benefit and total customer cost. T or F

T