Quiz #1

Consumer Behavior
Time Allowed: 30 Minutes

Name:
Section:
Roll Number:

A. Highlight the correct answers

1. Customer value is _____.

a. a marketing term which explains how customers weigh benefits against costs when
making buying decisions
b. something that should be considered when making all marketing decisions
c. measured differently by individual consumers when making buying decisions
d. All answers are correct.

2. Toothbrushes, Inc., is a toothbrush manufacturer. What can they do to increase the

customer value of their toothbrushes?
a. Reduce the price.
b. Add features that will provide benefits to their customers and keep the price the same.
c. Improve their customer service until it is the best in the industry.
d. All answers are correct.

3. Which statement is FALSE regarding customer value?

a. The product or service that is the highest quality will always have the highest customer
value.
b. Customer value can be increased by lowering the cost of a product or service.
c. Customer value can be increased by increasing the quality of a product or service.
d. Customer value is equal to the perceived benefits minus the perceived costs in the mind
of a customer.

B. Define the following terms with examples:

1. Customer Retention
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 2. Customer Trust
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Defectors
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C. How companies can create loyal customers using digital technologies.