Question 1

Identify ways in which companies facing customer complaints can recover customer goodwill.

Accepted Answer

Given the potential downside of having a...

Question 2

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Accepted Answer

A)   Activity-based costing
B)   Customer lifetime value
C)   Customer value analysis
D)   Customer-perceived value
E)   Customer profitability analysisF) A) and D)
G) B) and E)

Question 3

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Accepted Answer

A)   2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise.
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.F) A) and B)
G) C) and E)

Question 4

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Accepted Answer

A) True 
 B)False

Question 5

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives.

Accepted Answer

A)   Perceived usefulness
B)   Failure avoidance rate
C)   Total customer benefit
D)   Customer-perceived value
E)   Competitors' market share rateF) A) and E)
G) All of the above

Question 6

The Marketing Funnel (Scenario) 
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 However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town.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.
-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 eager 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.

Accepted Answer

A)   aware
B)   open to trial
C)   most often used
D)   nonrejecter
E)   regular userF) B) and D)
G) A) and C)

Question 7

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Accepted Answer

A)   customer retention
B)   customer churn
C)   detraction
D)   share-of-wallet
E)   customer complaintsF) C) and D)
G) A) and E)

Question 8

What technique is used for customer profitability analysis?

Accepted Answer

Customer profitability analysis is best ...

Question 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.

Accepted Answer

A)   Value proposition
B)   Loyalty
C)   Satisfaction
D)   Respect
E)   Customer valueF) A) and B)
G) C) and D) B

Question 10

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

Accepted Answer

Student answers will vary. An example of...

Question 11

The aim of customer relationship management is to produce high customer ________.

Accepted Answer

A)   integrity
B)   loyalty
C)   innovation
D)   liability
E)   equityF) A) and D)
G) C) and E)

Question 12

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Accepted Answer

A) True 
 B)False

Question 13

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. Though Keiko's products are priced lower than Global's, the non-monetary costs of doing business with Keiko may lead LZT to choose Global Tech. What can Keiko do to obtain LZT's order?

Accepted Answer

Student answers will vary. Keiko can increase total customer benefit by improving economic, functional, and psychological benefits of its product, services, people, and image. It can reduce LZT's nonmonetary costs by reducing the time, energy, and psychological investment. It can also further reduce its product's monetary cost.

Question 14

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Accepted Answer

A) True 
 B)False

Question 15

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

Accepted Answer

A)   Mystery shopping
B)   Activity-based costing
C)   Customer profitability analysis
D)   Customer lifetime value
E)   American Customer Satisfaction IndexF) A) and B)
G) B) and D) C

Question 16

Give an example of two products that have different performance quality but are of equal conformance quality.

Accepted Answer

Student answers will vary. Performance q...

Question 17

A customer touch point for Abacus Airlines would be an item such as ________.

Accepted Answer

A)   ease of access to the airport
B)   a mechanic's ability to service the airplanes
C)   the reservations desk
D)   the value of air travel versus surface transportation
E)   competency of a travel agentF) A) and B)
G) D) and E)

Question 18

Which of the following is a way for companies to increase customer-perceived value?

Accepted Answer

A)   increase the psychological investment associated with buying
B)   increase the buyer's time and energy investment
C)   increase total customer benefit by improving economic and functional benefits
D)   decrease total customer benefit by replacing psychological benefits of the product
E)   decrease the difference between total customer benefit and total customer costF) A) and C)
G) D) and E)

Question 19

Another term for high customer ________ is customer churn.

Accepted Answer

A)   retention
B)   defection
C)   value
D)   perception
E)   beliefF) B) and E)
G) A) and E)

Question 20

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

Accepted Answer

A)   value proposition
B)   value delivery system
C)   customer-value analysis
D)   total customer benefit
E)   total customer costF) A) and E)
G) C) and D)

Exam 4: Creating Long-Term Loyalty Relationships

Identify ways in which companies facing customer complaints can recover customer goodwill.

Correct Answer
verified
Given the potential downside of having a...
View Answer

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Correct Answer
verified

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Correct Answer
verified

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Correct Answer
verified

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives.

Correct Answer
verified

Correct Answer
verified

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Correct Answer
verified

What technique is used for customer profitability analysis?

Correct Answer
verified
Customer profitability analysis is best ...
View Answer

________ 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.

Correct Answer
verified
B

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

Correct Answer
verified
Student answers will vary. An example of...
View Answer

The aim of customer relationship management is to produce high customer ________.

Correct Answer
verified

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Correct Answer
verified

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Correct Answer
verified

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

Correct Answer
verified
C

Give an example of two products that have different performance quality but are of equal conformance quality.

Correct Answer
verified
Student answers will vary. Performance q...
View Answer

A customer touch point for Abacus Airlines would be an item such as ________.

Correct Answer
verified

Which of the following is a way for companies to increase customer-perceived value?

Correct Answer
verified

Another term for high customer ________ is customer churn.

Correct Answer
verified

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

Correct Answer
verified

Exam 4: Creating Long-Term Loyalty Relationships

Identify ways in which companies facing customer complaints can recover customer goodwill.

Correct AnswerverifiedGiven the potential downside of having a...View AnswerShow Answer

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

Correct AnswerverifiedShow Answer

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Correct AnswerverifiedShow Answer

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Correct AnswerverifiedShow Answer

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

Correct AnswerverifiedShow Answer

What technique is used for customer profitability analysis?

Correct AnswerverifiedCustomer profitability analysis is best ...View AnswerShow Answer

________ 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.

Correct AnswerverifiedB

Give an example of how a hotel can generate customer loyalty at a "customer touch point".

Correct AnswerverifiedStudent answers will vary. An example of...View AnswerShow Answer

The aim of customer relationship management is to produce high customer ________.

Correct AnswerverifiedShow Answer

The subscription manager at Cosmopolitan magazine keeps track of the subscription renewal rate, which is a good measure of customer lifetime value.

Correct AnswerverifiedShow Answer

Loyalty is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations.

Correct AnswerverifiedShow Answer

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer.

Correct AnswerverifiedC

Give an example of two products that have different performance quality but are of equal conformance quality.

Correct AnswerverifiedStudent answers will vary. Performance q...View AnswerShow Answer

A customer touch point for Abacus Airlines would be an item such as ________.

Correct AnswerverifiedShow Answer

Which of the following is a way for companies to increase customer-perceived value?

Correct AnswerverifiedShow Answer

Another term for high customer ________ is customer churn.

Correct AnswerverifiedShow Answer

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Given the potential downside of having a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Customer profitability analysis is best ...
View Answer

Correct Answer
verified
B

Correct Answer
verified
Student answers will vary. An example of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified
Student answers will vary. Performance q...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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