Concept Check Quiz

Multiple Choice Questions

This activity contains 11 questions.

The opening vignette on Sobeys Inc. indicates that

successful marketers are the ones that
    manage their customer base.
  divorce themselves from a production mentality.
  diversify their product line.
  understand the sales concept.
  understand promotional strategy.

The 20-80 rule states _____.

    the top 80 percent of customers generate 20 percent of the company's profits
  the bottom 80 percent of customers generate 80 percent of the company's
profits while the bottom 20 percent of customers generate 20 percent of the
profits
  the top 20 percent of customers generate 80 percent of the company's profits
  the bottom 20 percent of customers generate 80 percent of the company's
profits
  20-80 percent of profits are generated by 20-80 percent of the customers

If a company increases customer satisfaction by

lowering its price or increasing its services, the
result may be
    unsatisfying experiences.
   lower profits.
  a loyalty program.
  decreased lifetime value.
  customer defection.

Customer churn refers to ____.

    customer defection
  customer value
  customer anxiety
  customer mix
  customer loyalty

If marketers raise customer expectations too high,

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

Frequency programs (FP's) are designed to provide

rewards to _____.
    customers who buy infrequently in large amounts
  customers who buy frequently and in substantial amounts
  customers who buy infrequently in small amounts
   customers who buy frequently but in small amounts
  customers who need to be encouraged to buy more frequently

A _____ is an organized collection of comprehensive

information about individual customers or
prospects.
    customer mailing list
  business database
  marketing database
  datamine
  customer database

Through _____ marketing statisticians can extract

useful information about individuals, trends, and
segments from the mass of data.
    prospecting
  CRM
  datamining
  calculus
  relationship marketing

Companies can build interest and enthusiasm by

using databases to remember customer preferences.
This strategy helps to _____.
    deepen customer loyalty
  avoid serious customer mistakes
   reactivate dormant customers
  identify prospects
  decide which customers should receive a particular offer

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
    competitive advantage.
  customer lifetime value.
  customer profitability analysis.
  return on quality.
  leverageable advantage.

____________ is the difference between the

prospective customer's evaluation of all the benefits
and all the costs of an offering and the perceived
alternatives.
    Customer value
  Value proposition
  Customer cost
  Customer perceived value
  Value delivery system
Concept Challenge Quiz

Multiple Choice Questions

This activity contains 11 questions.

Total customer benefit is the perceived monetary

value of the bundle of economic, functional, and
________ benefits customers expect from a given
market offering.
    realized
  fabricated
  intangible
  psychological
  advertised

In customer-product profitability analysis, cell C1

P4 refers to a _____.
    mixed-bag customer; losing product
  high-profit customer; mixed-bag product
  losing customer; losing product
  high-profit customer; losing product
  high-profit customer; highly profitable product

The drive in world markets to produce superior

goods has led some countries to recognize or award
prizes. What is the name of Japan's prize for
  developing quality
the J.D. Power Award products?
 
  Malcolm Baldridge National Quality Award
  the John F. Welch Jr. Prize
  the Deming Prize
  the K.C. Irving Quality Award

A car dealership executive estimates that a customer

entering his dealership for the first time represents a
potential lifetime value of over $300,000. This is
called _____.
    customer relationship advantage
  customer advantage
  leveragable advantage
  competitive advantage
  customer lifetime value

Which of the following is the first step in customer

value analysis?
    Monitor customer values over time.
  Assess the quantitative importance of the different attributes and benefits.
  Assess the company's and competitors' performances on the different
customer values against their rated importance.
  Examine how customers in a specific segment rate the company's
performance.
  Identify the major attributes and benefits customers value.
 Data collected by a company's contact center are
organized into a _____.
    data system
  database
  datamine
  data organization
  data warehouse

A company that uses their database to generate sales

leads is using their database to _____.
    avoid serious customer mistakes
  deepen customer loyalty
  identify prospects
  decide which customers should receive a particular offer
  reactivate customer purchases

A company that uses their database by installing an

automatic mail program to send out birthday cards
is attempting to _____.
    reactivate customer purchases
  decide which customers should receive a particular offer
  deepen customer loyalty
  avoid serious customer mistakes
  identify prospects

A bank charging a customer a penalty for a late

 payment while failing to note that the customer was
    identify prospects
  decide which customers should receive a particular offer
  reactivate customer purchases
  deepen customer loyalty
  avoid serious customer mistakes

The best survey method to measure customer

satisfaction directly is
    to compute the customer loss rate.
  to administer periodic surveys.
  to survey former customers.
  to employ a mystery shopper.
  the mailed questionnaire.

A survey performed by Canadian Business magazine

found that the biggest gap between best and worst
customer satisfaction levels occurred in the
    automobile industry.
  computer systems industry.
  financial services industry.
  fashion industry.
  airline industry.