Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Online retailers such as Zazzle and CafePress allow users to upload images and create their own clothing and posters or buy merchandise created by other users. This would be an example of which of the following?

Accepted Answer

A)   mass customization
B)   mass marketing
C)   environmental marketing
D)   niche marketing
E)   individualizationF) C) and E)
G) B) and E)

Question 3

The midsize customers for most organizations receive good service, pay nearly full price for the products and services they purchase, and are often the most profitable.

Accepted Answer

A) True 
 B)False

Question 4

Brand equity is the customer's objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs.

Accepted Answer

A) True 
 B)False

Question 5

Since January 1, 2004, Canadian marketers must comply with the Personal Information Protection and Electronic Documents Act. What limitations for marketers does the act include?

Accepted Answer

Firms can only colle...

Question 6

Which of the following strategies among Peppers and Rogers's four-step framework for one-to-one marketing involves formulating customized offerings communicated in a personalized way.

Accepted Answer

A)   interacting with individual customers to learn their needs
B)   differentiating customers in terms of their needs and value to the company
C)   focus disproportionate effort on high-value customers
D)   customizing products, services, and messages to each customer
E)   identify your prospects and customersF) All of the above
G) A) and B)

Question 7

Susan Belcourt's company advertises widely. In each magazine ad, a business reply card is attached. Ms. Belcourt uses these cards to build her company's database. In which of the following ways would Ms. Belcourt most likely be using the newly constructed database?

Accepted Answer

A)   to avoid serious customer mistakes
B)   to determine if up-selling is appropriate
C)   to reactivate customer purchases
D)   to deepen customer loyalty
E)   to identify prospectsF) B) and D)
G) None of the above

Question 8

Nina Saab 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 Ms. Saab most likely using his database?

Accepted Answer

A)   to beat the competition to a sale
B)   to avoid serious customer mistakes
C)   to deepen customer loyalty
D)   to identify prospects
E)   to decide which customers should receive a new sales offerF) B) and E)
G) A) and D)

Question 9

Which of the following gains the most benefit from introducing a frequency program?

Accepted Answer

A)   the first company to introduce a frequency program in an industry
B)   the fast follower, the second to introduce a program in an industry
C)   the industry sales leader
D)   the niche player in the industry
E)   the low-cost leader in the industryF) B) and C)
G) A) and D)

Question 10

No matter how perfectly designed and implemented a marketing program is, mistakes will happen. What procedures can help recover customer goodwill?

Accepted Answer

The procedures are:
1)set up a 24/7 toll...

Question 11

Enterprise Office Depot is a marketer that has moved from the traditional to a modern customer-oriented organization chart. In that case, we would expect to find the ________ of Enterprise, second in importance.

Accepted Answer

A)   middle management
B)   service department
C)   top management
D)   front-line people
E)   marketing departmentF) A) and B)
G) B) and E)

Question 12

A key driver of shareholder value is the aggregate value of the customer base.

Accepted Answer

A) True 
 B)False

Question 13

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

Accepted Answer

A)   Sales are at the top of the organizational pyramid.
B)   Customers are at the top of the organizational pyramid.
C)   Middle management is at the top of the organizational pyramid.
D)   The president is at the top of the organizational pyramid.
E)   Front-line people are at the top of the organizational pyramid.F) B) and C)
G) All of the above

Question 14

The opening vignette on Sobeys Inc. indicates that successful marketers are the ones that

Accepted Answer

A)   understand the sales concept.
B)   manage their customer base.
C)   divorce themselves from a production mentality.
D)   understand promotional strategy.
E)   diversify their product line.F) A) and B)
G) A) and E)

Question 15

When a company like HBC sends out automatic Christmas shopping reminders or off-season promotions, which of the five ways to use databases applies?

Accepted Answer

There are five ways for compan...

Question 16

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

Accepted Answer

The three steps that a company can take ...

Question 17

For a consumer to be delighted with a product or service he or she must perceive that performance exceeds expectations.

Accepted Answer

A) True 
 B)False

Question 18

Database marketing is most frequently used by business marketers and service providers (hotels, banks, airlines, and insurance, credit card, and telephone companies) that normally and easily collect a lot of customer data.

Accepted Answer

A) True 
 B)False

Question 19

There are two determinates of customer perceived value: total customer benefit and total customer cost.

Accepted Answer

A) True 
 B)False

Question 20

A customer database is simply a listing of a customer's name, address, and phone number for credit reference.

Accepted Answer

A) True 
 B)False

Exam 5: Creating Long term Loyalty Relationships

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

Correct AnswerverifiedShow Answer

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Characterize those three steps.

Correct AnswerverifiedThe three steps that a company can take ...View AnswerShow Answer

A key driver of shareholder value is the aggregate value of the customer base.

Correct AnswerverifiedShow Answer

Which of the following strategies among Peppers and Rogers's four-step framework for one-to-one marketing involves formulating customized offerings communicated in a personalized way.

Correct AnswerverifiedShow Answer

Nina Saab 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 Ms. Saab most likely using his database?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There are two determinates of customer perceived value: total customer benefit and total customer cost.

Correct AnswerverifiedShow Answer

Online retailers such as Zazzle and CafePress allow users to upload images and create their own clothing and posters or buy merchandise created by other users. This would be an example of which of the following?

Correct AnswerverifiedShow Answer

Since January 1, 2004, Canadian marketers must comply with the Personal Information Protection and Electronic Documents Act. What limitations for marketers does the act include?

Correct AnswerverifiedFirms can only colle...View AnswerShow Answer

Brand equity is the customer's objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs.

Correct AnswerverifiedShow Answer

A customer database is simply a listing of a customer's name, address, and phone number for credit reference.

Correct AnswerverifiedShow Answer

The opening vignette on Sobeys Inc. indicates that successful marketers are the ones that

Correct AnswerverifiedShow Answer

For a consumer to be delighted with a product or service he or she must perceive that performance exceeds expectations.

Correct AnswerverifiedShow Answer

Database marketing is most frequently used by business marketers and service providers (hotels, banks, airlines, and insurance, credit card, and telephone companies) that normally and easily collect a lot of customer data.

Correct AnswerverifiedShow Answer

Which of the following gains the most benefit from introducing a frequency program?

Correct AnswerverifiedShow Answer

No matter how perfectly designed and implemented a marketing program is, mistakes will happen. What procedures can help recover customer goodwill?

Correct AnswerverifiedThe procedures are:1)set up a 24/7 toll...View AnswerShow Answer

The midsize customers for most organizations receive good service, pay nearly full price for the products and services they purchase, and are often the most profitable.

Correct AnswerverifiedShow Answer

When a company like HBC sends out automatic Christmas shopping reminders or off-season promotions, which of the five ways to use databases applies?

Correct AnswerverifiedThere are five ways for compan...View AnswerShow Answer

Susan Belcourt's company advertises widely. In each magazine ad, a business reply card is attached. Ms. Belcourt uses these cards to build her company's database. In which of the following ways would Ms. Belcourt most likely be using the newly constructed database?

Correct AnswerverifiedShow Answer

Enterprise Office Depot is a marketer that has moved from the traditional to a modern customer-oriented organization chart. In that case, we would expect to find the ________ of Enterprise, second in importance.

Correct AnswerverifiedShow Answer

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The three steps that a company can take ...
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Firms can only colle...
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The procedures are:
1)set up a 24/7 toll...
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There are five ways for compan...
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