1) In a modern customer-oriented organization chart, the ________ of an organization

immediately follow the customer segment.

A. top management
B. marketing department
C. middle management
D. frontline people
E. lower management

2) ________ 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. Perceived usefulness
B. Failure avoidance rate
C. Total customer benefit
D. Customer-perceived value
E. Competitors' market share rate

3) When a consumer considers a product or service, he or she will choose whichever product
or service delivers the highest ________.
A. customer-perceived value
B. customer-perceived cost
C. customer profitability analysis
D. customer equity
E. customer lifetime value

4) ________ is the perceived monetary value of the bundle of economic, functional, and
psychological benefits customers expect from a given market offering.
A. Total customer cost
B. Total customer benefit
C. Total benefits of ownership
D. Value proposition
E. Value delivery system

5) The bundle of costs customers expect to incur in evaluating, obtaining, using, and
disposing of the given market offering is called the ________.
A. activity-based cost
B. customer profitability analysis
C. total customer cost
D. product life-cycle cost
E. direct product profitability

6) Which of the following is true for customer-perceived value?

A. It is the perceived monetary value of the bundle of economic, functional, and
psychological benefits customers expect from a product.
B. It is the difference between the prospective customer's evaluation of all the benefits and all
the costs of an offering and the perceived alternatives.
C. It is the perceived bundle of costs customers expect to incur in evaluating, obtaining,
using, and disposing of the given market offering.
D. It is the net present value of the stream of future profits expected over the customer's
lifetime purchases.
E. It is the process of investigating the hierarchy of attributes consumers examine in choosing
a brand if they use phased decision strategies.

7) Which of the following is the first step in customer value analysis?

A. Examine how customers in a specific segment rate the company's performance.
B. Assess the company's and competitors' performances on the different customer values
against their rated importance.
C. Identify the major attributes and benefits that customers value.
D. Monitor customer values over time.
E. Assess the quantitative importance of the different attributes and benefits.

8) The final step of customer value analysis is to ________.

A. identify the major attributes and benefits that customers value
B. assess the company's and competitors' performances on the different customer values
against their rated importance
C. examine how customers in a specific segment rate the company's performance
D. monitor customer values over time
E. assess the quantitative importance of the different attributes and benefits

9) ________ 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. Loyalty
C. Satisfaction
D. Respect
E. Customer value

10) 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.
A. total customer cost
B. customer-perceived value
C. value-delivery system
D. value proposition
E. total customer benefit

11) A company's ________ includes all the experiences the customer will have on the way to
obtaining and using the offering.
A. value proposition
B. value delivery system
C. customer-value analysis
D. total customer benefit
E. total customer cost

12) 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 ________.
A. horizontal marketing system
B. cost versus benefit system
C. consumption system
D. marketing channel system
E. value delivery system

13) Total customer satisfaction is measured based on the relationship of ________.

A. expected value and total customer benefit
B. perceived performance and expectation
C. advertised outcomes and real outcomes
D. past experience and present experience
E. customer attitude and salesperson's attitude

14) ________ can track customer satisfaction directly, measure repurchase intention and also
gauge a consumer's willingness to recommend the company and brand to others.
A. Periodic surveys
B. Mystery shoppers
C. Customer loss rates
D. Customer focus statements
E. Sales summary reports

15) 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?
A. group buyers
B. buyer brokers
C. mystery shoppers
D. personal shoppers
E. buying agents

16) 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. the speed of resolution has no impact on the likelihood of repeat business
E. some will do business with the company again if their complaint is resolved

17) Which of the following is the best method of recovering customer goodwill?
A. sending service people to conduct door-to-door surveys
B. contacting the complaining customer as quickly as possible
C. identifying prospective customers from the customer database
D. customizing products according to individual customer need
E. defining and measuring the customer retention rate

18) ________ 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. Value
C. Quality
D. Customer retention
E. Customer loyalty

19) ________ describes the net present value of the stream of future profits expected over the
customer's lifetime purchases.
A. Activity-based costing
B. Customer lifetime value
C. Customer value analysis
D. Customer-perceived value
E. Customer profitability analysis

20) ________ is the process of carefully managing detailed information about individual
customers and all customer "touch points" to maximize loyalty.
A. Customer relationship management
B. Customer lifetime value
C. Customer profitability analysis
D. Customer satisfaction analysis
E. Customer-value delivery

21) 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 ________.
A. customer lifetime value
B. customer perceived value
C. customer value analysis
D. customer profitability analysis
E. a customer touch point

22) 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.

The Marketing Funnel (Scenario) Q23-Q24

Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a
couple of incidents where they had to return products that were stale and out of date, the
couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both
Amy and Jack must move through each stage in the marketing funnel before becoming loyal
customers.

23) 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.
A. aware
B. open to trial
C. most often used
D. nonrejecter
E. regular user

24) Amy is in the "aware" stage of the marketing funnel when she says ________.
A. she can try shopping at VeggiesNmore while simultaneously exploring other stores in the
neighborhood
B. she was informed about VeggiesNmore by her colleague at work
C. she regularly shops from VeggiesNmore
D. she shops from VeggiesNmore as far as the store is easily accessible
E. she was happy with the experience of shopping at VeggiesNmore

25) 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. make low-profit customers more profitable
C. enhance the growth potential for each customer through cross-selling
D. increase the longevity of the customer relationship
E. focus disproportionate effort on high-value customers

26) Which of the following is an example of enhancing the growth potential of each customer
through cross-selling?
A. In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and
other accessories.
B. 2Wheels has a club for its regular customers, organizing cycling events and parties for
them.
C. Though 2Wheels previously offered free delivery, it now charges for deliveries made
outside the city.
D. 2Wheels allows existing customers to upgrade to a newer model at less than the sticker
price by trading in their older model.
E. 2Wheels encourages customers to send in their suggestions for product improvement.

27) Companies provide rewards to customers who buy often and in substantial amounts.
These reward schemes are referred to as ________.
A. benefit programs
B. frequency programs
C. satisfaction programs
D. profitability programs
E. quality programs

28) 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) ________.
A. cross-selling program
B. value delivery system
C. club membership program
D. activity-based costing program
E. up-selling program

29) 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

30) 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.
A. customer database
B. customer mailing list
C. customer-performance scorecard
D. customer profitability analysis
E. customer-value hierarchy

31) 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. data warehousing
B. data mining
C. database marketing
D. participatory marketing
E. permission marketing

32) A ________ is simply a set of names, addresses, and telephone numbers.

A. customer database
B. customer mailing list
C. customer-performance scorecard
D. customer profitability analysis
E. customer-value hierarchy

33) Through ________, marketing statisticians can extract useful information about
individuals, trends, and segments from the mass of data.
A. data governance
B. data modeling
C. data mining
D. data maintenance
E. data marketing

34) 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?
A. to identify prospects
B. to decide which customers should receive a new sales offer
C. to deepen customer loyalty
D. to avoid serious customer mistakes
E. to beat the competition to a sale

35) Which of the following is not conducive to database marketing?

A. Rushbury Theater relies on the generosity of donors to keep functioning.
B. Kenilworthy retails luxury handbags and leather accessories to a select clientele.
C. 2Wheels sells its most profitable products to repeat customers.
D. Uncle Jim's sells its range of snacks in stores throughout the country.
E. PetZone offers obedience classes, a doggie daycare and other services for pets in the
Manhattan area.

36) Which of the following is most likely to use database marketing?

A. an airline
B. a candy bar manufacturer
C. a fast-food chain
D. a toothpaste manufacturer
E. a hair stylist