Question 1

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.

Accepted Answer

A)   Total customer cost
B)   Total customer benefit
C)   Total benefits of ownership
D)   Value proposition
E)   Value delivery system

Question 2

Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing.

Accepted Answer

A) True 
 B)False

Question 3

Explain total customer satisfaction.

Accepted Answer

In general, satisfaction is a person's f...

Question 4

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?

Accepted Answer

A)   by absorbing some risk by offering a warranty
B)   by improving the functional aspects of the products
C)   by augmenting the psychological benefits of the products
D)   by training service personnel to improve their skills
E)   by investing in brand building for the products

Question 5

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Accepted Answer

A) True 
 B)False

Question 6

________ helps companies manage and monitor online reviews using a process called device fingerprinting.

Accepted Answer

A)   Gawker
B)   Bazaarvoice
C)   Metacritic
D)   Angie's List
E)   Technorati

Question 7

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps banks to ________.

Accepted Answer

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

Question 8

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

Accepted Answer

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.

Question 9

Customer churn is how rapidly a store can move customers through its checkout facility or process.

Accepted Answer

A) True 
 B)False

Question 10

For a magazine, subscription renewal rate is a good measure of retention.

Accepted Answer

A) True 
 B)False

Question 11

________ 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 rate

Question 12

In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment.

Accepted Answer

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

Question 13

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

Accepted Answer

A hotel can generate customer loyalty at...

Question 14

Club membership programs that are open to everyone who purchases a product or service ________.

Accepted Answer

A)   are more powerful long-term loyalty builders than limited-membership clubs
B)   will not help a company attract customers from competitors
C)   prevent those with only a fleeting interest in a company's products from joining
D)   are useful for building a database of customers but are not very good as long-term loyalty builders
E)   are useless unless there are fees and membership conditions

Question 15

The 80-20 rule reflects the idea that ________.

Accepted Answer

A)   20 percent of the company's profits are generated by the top 80 percent of customers
B)   the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend
C)   20 percent of customers are unprofitable, and 80 percent make up a company's profits
D)   the top 20 percent of customers often generate 80 percent of the company's profits
E)   any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle

Question 16

All companies should practice one-to-one marketing.

Accepted Answer

A) True 
 B)False

Question 17

Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing instead of interruption marketing. How can this benefit the company?

Accepted Answer

Berry's, as a chain of shoe stores, can ...

Question 18

Which of the following can a company do to reduce defection?

Accepted Answer

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.

Question 19

A customer ________ is any occasion on which a customer encounters the brand and product - from actual experience to personal or mass communications to casual observation.

Accepted Answer

A)   touch point
B)   point of order
C)   point of difference
D)   pivot point
E)   point of parity

Question 20

A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

Accepted Answer

A) True 
 B)False

Exam 5: Creating Long-Term Loyalty Relationships

A company should try to retain a customer only as long as the cost to discourage defection is lower than the lost profit.

Correct AnswerverifiedShow Answer

For a magazine, subscription renewal rate is a good measure of retention.

Correct AnswerverifiedShow Answer

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?

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

Club membership programs that are open to everyone who purchases a product or service ________.

Correct AnswerverifiedShow Answer

Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing instead of interruption marketing. How can this benefit the company?

Correct AnswerAnswered by ExamLex AIBerry's, as a chain of shoe stores, can ...View AnswerShow Answer

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

Correct AnswerAnswered by ExamLex AIA hotel can generate customer loyalty at...View AnswerShow Answer

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Correct AnswerverifiedShow Answer

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing.

Correct AnswerverifiedShow Answer

________ helps companies manage and monitor online reviews using a process called device fingerprinting.

Correct AnswerverifiedShow Answer

Which of the following can a company do to reduce defection?

Correct AnswerverifiedShow Answer

In a modern customer-oriented organization chart, the ________ of an organization immediately follow the customer segment.

Correct AnswerverifiedShow Answer

Explain total customer satisfaction.

Correct AnswerverifiedIn general, satisfaction is a person's f...View AnswerShow Answer

The 80-20 rule reflects the idea that ________.

Correct AnswerverifiedShow Answer

All companies should practice one-to-one marketing.

Correct AnswerverifiedShow Answer

Customer churn is how rapidly a store can move customers through its checkout facility or process.

Correct AnswerverifiedShow Answer

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps banks to ________.

Correct AnswerverifiedShow Answer

A customer ________ is any occasion on which a customer encounters the brand and product - from actual experience to personal or mass communications to casual observation.

Correct AnswerverifiedShow Answer

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Berry's, as a chain of shoe stores, can ...
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A hotel can generate customer loyalty at...
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In general, satisfaction is a person's f...
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