1、Chapter 5:Creating Customer Value, Satisfaction, and LoyaltyGENERAL CONCEPT QUESTIONSMultiple Choice _ are adept at building customer relationships, not just products; they are skilled in market engineering, not just product engineering. Profit-centered companiesCustomer-centered companiesProduction

2、-centered companiesSales-centered companiesPromotion-centered companiesAnswer: bPage: 139Level of difficulty: EasyThe opening vignette on Washington Mutual indicates that, as the Washington Mutual experience shows, successful marketers are the ones that fully _. understand promotional strategydivers

3、ify their product linedivorce themselves from a production mentalitysatisfy their customersunderstand the sales conceptAnswer: dPage: 140Level of difficulty: Medium In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyram

4、id? Sales are at the top of the organizational pyramid.The president is at the top of the organizational pyramid.Front-line people are at the top of the organizational pyramid.Customers are at the top of the organizational pyramid.Middle management, because of their importance, is at the top of the

5、organizational pyramid.Answer: dPage: 140Level of difficulty: Medium_ is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives.Perceived usefulnessFailure avoidance rateReport ratingCustomer perceived valueComp

6、etitors market share rateAnswer: dPage: 141 Level of difficulty: MediumTotal customer value is the perceived monetary value of the bundle of economic, functional, and _ benefits customers expect from a given market offering.psychologicalintangiblerealizedfabricatedadvertisedAnswer: aPage: 141Level o

7、f difficulty: HardThe bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering, including monetary, time, energy, and psychic costs is called the _.organizational expense ratioshoppers fatiguetotal customer costanalysis paralysiscomparison

8、 shopping to comparison buying ratioAnswer: cPage: 141Level of difficulty: MediumIn applying a customers perceived value to a decision, a seller who is at a customer perceived value disadvantage has two alternatives: to increase total customer value or _.increase a cash-back bonusdecrease costlose t

9、he sale to the competitoradvertise more frequentlyoffer an extended warrantyAnswer: bPage: 143Level of difficulty: MediumThe _ consists of the whole cluster of benefits the company promises to deliver; it is more than the core positioning of the offering. customer promisemission statementcorporate p

10、ledgecorporate perceived valuevalue propositionAnswer: ePage: 143Level of difficulty: MediumTotal customer satisfaction is measured based on the relationship of _. anticipated and real performanceperceived performance and expectationadvertised outcomes and real outcomespast experience and present ex

11、periencecustomer attitude and salespersons attitudeAnswer: bPage: 144Level of difficulty: HardBuyers form their expectations from all of the following EXCEPT _.past buying experiencefriends and associates advicemarketers informationcompetitors informationgovernmental newslettersAnswer: ePage: 144Lev

12、el of difficulty: EasyJetBlue is able to meet or exceed customer expectations of low price air travel in part to a few corporate commandments like: safety, caring, integrity, fun and passion. JetBlue refers to these as _.teamwork parablesvaluessatisfaction indices customer focus statementsJetBlue be

13、nefitsAnswer: bPage: 144 Level of difficulty: MediumA customers decision to be loyal or to defect is the sum of many small encounters with the company. Consulting firm Forum Corporation says that in order for all these small encounters to add up to customer loyalty, companies need to create _.a rewa

14、rd programa comprehensive customer databasea branded customer experiencestrong word-of-mouth promotionsa top-notch advertising campaignAnswer: cPage: 144Level of difficulty: HardOne key to customer retention is _. It would be wise for a company to measure this factor frequently. heavy promotiondeep

15、discounts for intermediariesto have an ethics officercustomer satisfactionto have customers on the board of directorsAnswer: dPage: 145Level of difficulty: MediumThe best survey method to measure customer satisfaction directly is _.to employ a mystery shopperthe mailed questionnaireto survey former

16、customersperiodic surveyscompute the customer loss rateAnswer: dPage: 146Level of difficulty: MediumWhich of the following firms leads its industry with a number one ranking for customer satisfaction on the ACSI scale (American Consumer Satisfaction Index) with a score of 87? Cadillac FordChryslerCh

17、evroletCorvetteAnswer: aPage: 146 Level of difficulty: Medium_ is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. PerformanceValueQualityCustomer retentionCustomer loyaltyAnswer: cPage: 146Level of difficulty: EasyTota

18、l quality is the key to value creation and customer satisfaction. Marketing managers have two roles to play in a quality-centered company. First, they must participate in formulating strategies and policies to help the company win through total quality excellence. Second, they must _.participate in

19、cross-functional team buildingdeliver marketing quality alongside production qualitydefine customer requirements during the innovation stage of the product life cycleset expectations both internally and externallywork closely with the sales team to create a dynamic sales messageAnswer: bPage: 147Lev

20、el of difficulty: Hard_ is an organization-wide approach to continuously improving the quality of all the organizations processes, products, and services. Total quality managementStrategic managementProfit-centered managementCustomer-retention management Total customer control managementAnswer: aPag

21、e: 147Level of difficulty: MediumThe 20-80-30 rules reflects the idea that _.the top 20 percent of customers generate 80 percent of the companys profits, half of which are lost serving the bottom 30 percent of unprofitable customersthe top 20 percent of customers are highly satisfied, 80 percent of

22、customers will recommend the company to a friend, and 30 percent are unsatisfied20 percent of customers are unprofitable, 80 percent of customers make up 30 percent of a companys profits20 percent of the companys profits are generated by 80 percent of customers, and 30 percent of customers are satis

23、fiedany new product offering will be accepted by 20 percent of the customers immediately, this figure will eventually rise to 30 percent, however, 80 percent of the customers will be up for grabs throughout the product life cycle for the product Answer: aPage: 148Level of difficulty: HardMost compan

24、ies have learned that the _ are the most profitable because of service expectations and their willingness to pay almost full price for the products they purchase. large-size customersmidsize customerssmall-size customersniche customerstarget market customersAnswer: bPage: 148Level of difficulty: Med

25、iumA _ customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the companys cost stream of attracting, selling, and servicing that customer. profitable semi-profitable unprofitable nichetargetAnswer: aPage: 149Level of difficulty: Easy

26、Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called _. input-output analysisfactor analysisRevenue-Based Costing (RBC)Activity-Based Costing (ABC)Future Date Costing (FDC)Answer: dPage: 149Level of difficulty: MediumWhich of the following is the b

27、est example of what is called a leverageable advantage? Dell avoiding selling its products in retail stores.Apple winning design awards and producing unique commercials. Microsofts use of its operating system to Microsoft Office as a means to supply networking applications. Southwest Airlines winnin

28、g the J.D. Power award.American tobacco companies attempts to diversify their holdings after the famous tobacco case losses. Answer: cPage: 150Level of difficulty: HardTaco Bell has determined that keeping customers satisfied can be very profitable. A repeat customer in Taco Bells eyes can be worth

29、as much as _ over the customers lifetime. $100,000 $61,000 $35,000 $11,000$2,000Answer: dPage: 150Level of difficulty: HardThe aim of customer relationship management (CRM) is to produce high customer _.valueloyaltyprofitabilitysatisfactionequityAnswer: ePage: 151Level of difficulty: MediumThe three

30、 drivers of customer equity are: value equity, brand equity, and _ equity.relationshiprevenuequalitypriceproductAnswer: aPage: 151Level of difficulty: EasySub-drivers of relationship equity include all of the following EXCEPT _. loyalty programsspecial recognition and treatment programscommunity bui

31、lding programsknowledge-building programsprice protection programsAnswer: ePage: 151Level of difficulty: HardAn alternative formulation to customer equity is provided by Blattberg, Getz, and Thomas. They view customer equity as being driven by three components: acquisition, _, and add-on selling.sat

32、isfactionretentionperceived valuequalitypricingAnswer: bPage: 151Level of difficulty: Medium_ is seen as the cumulative value of the firms network of relationships with its customers, partners, suppliers, employers, and investors.Responsive equityMarket equityRelational equityStrategic equitySatisfa

33、ction equityAnswer: cPage: 152Level of difficulty: MediumThe ability of a company to meet each customers requirementsto prepare on a mass basis individually designed products, services, programs, and communications, is referred to as _.proactive customer serviceindividualizationmass customizationcom

34、petitive advantagetarget market customizationAnswer: cPage: 152Level of difficulty: HardA customer touch point in the airline industry would include an item such as _.reservationsmechanics ability to service the airplanesease of access to the airportthe value of air travel versus surface transportat

35、ioncompetency of a travel agentAnswer: aPage: 152Level of difficulty: MediumAll of the following would be among the Peppers and Rogerss four-step framework for one-to-one marketing that can be adapted to CRM marketing EXCEPT _. customizing products, services, and messages to each customerinteracting

36、 with individual customers to learn their needsalways offering the lowest pricedifferentiating customers in terms of their needs and value to the companyidentify your prospects and customersAnswer: cPage: 154Level of difficulty: HardWinning companies improve the value of their customer base by excel

37、ling at strategies listed below EXCEPT _. eliminating low-profit customers immediatelyreducing the rate of customer defectionincreasing the longevity of the customer relationshipmaking low-profit customers more profitable or terminating themfocusing disproportionate efforts on high-value customersAn

38、swer: aPage: 154Level of difficulty: MediumWhich of the following is a characteristic of one-to-one marketing? Mass promotionStandard productTwo-way messagesShare of marketCustomer attractionAnswer: cPage: 155Level of difficulty: MediumAnother term for high customer _ is customer churn.retentiondefe

39、ctionvalueperceptionbeliefAnswer: bPage: 155Level of difficulty: EasyMarkets can be characterized by their long-term buying dynamics and how easily and often customers can enter and leave. In _, customers can leave and come back. permanent capture marketssimple retention marketsadvocate marketssimpl

40、e competitive marketscustomer migration marketsAnswer: ePage: 156Level of difficulty: Medium In _ marketing, the salesperson contacts the customer from time to time with suggestions about improved product uses or new products. accountable marketingproactive marketingreactive marketingpartnership mar

41、ketingbasic marketingAnswer: bPage: 157Level of difficulty: MediumMost companys practice only _ when their markets contain many customers and their unit profit margin(s) are small.reactive marketingpartnership marketingbasic marketingproactive marketingaccountable marketingAnswer: cPage: 157 Level o

42、f difficulty: Easy In markets with few customers and high profit margins, most sellers will move toward _ marketing.reactive marketingpartnership marketingbasic marketingproactive marketingaccountable marketingAnswer: bPage: 157Level of difficulty: MediumThe CRM (customer relationship management) im

43、perative is characterized by five steps or factors. All of the following would be among those steps or factors EXCEPT _. acquiring the right customercrafting the right value propositioninstituting the best processesmotivating employeeslearning to make profits through marginal customersAnswer: ePage:

44、 158Level of difficulty: HardWhen companies provide rewards to customers who buy frequently and in substantial amounts, this is referred to as _.benefit programsfrequency programssatisfaction programsloyalty programsquality programsAnswer: b Page: 159Level of difficulty: Easy Frequency marketing is

45、an acknowledgment of the fact that 20 percent of a companys customers might account for _ percent of its business.5070408090Answer: dPage: 159Level of difficulty: Medium Companies who try to increase a customers likelihood to repurchase a product may try to create long-term contracts, turn the produ

46、ct into a long-term service, and _.send frequent surveysoffer couponscharge lower prices to customers who purchase large suppliesrequest the customer join their loyalty programencourage customers to purchase in greater frequencyAnswer: cPage: 162Level of difficulty: MediumAn organized collection of

47、comprehensive information about individual customers or prospects that is current, accessible, and actionable for such marketing purposes as lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships is called _.a customer databasea customer mail list

48、target market segmentscustomer segmentsrelationship marketsAnswer: aPage: 162Level of difficulty: Medium The process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships is called _. data warehousin

49、gdataminingdatabase marketingcustom marketingelectronic marketingAnswer: cPage: 162Level of difficulty: EasyA _ is simply a set of names, addresses, and telephone numbers. customer databasecustomer mailing listcall-waiting listpsychographic listdemographic listAnswer: bPage: 163Level of difficulty:

50、Easy A customer database should contain all of the following EXCEPT _. a customers past purchasesdemographicspsychographicsmediagraphicsan assessment of competitive strengths and weaknessesAnswer: ePage: 163Level of difficulty: MediumA _ would contain such items as past volumes, prices, profits, buy

51、er team names, status of current contacts, and an assessment of competitive strengths and weaknesses. customer mailing listcontact listcustomer databasebusiness databasegeneral corporate databaseAnswer: dPage: 163Level of difficulty: EasySavvy companies are capturing information every time a custome

52、r comes into contact with any of its departments. As a marketing manager all of the following would be available customer touch points for your consideration EXCEPT _. a customer purchasean online querya mail-in rebate cardan ad run on a national television networka customer-requested service callAn

53、swer: dPage: 163Level of difficulty: MediumJames Everett is a telemarketer. He can use his companys _ to respond to customer inquiries more effectively because of his ability to see a total picture of the customer relationship. data warehousecall back listcall rejection listcorporate databaseBetter

54、Business Bureau contacts Answer: aPage: 164Level of difficulty: MediumThrough _, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data. data accumulationtarget market information supplied by the governmentdataminingdata managementdata ma

55、rketingAnswer: cPage: 164Level of difficulty: Medium_ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking. Data managementData marketingTarget market analysisData accumulationD

56、ataminingAnswer: ePage: 164Level of difficulty: MediumIn general, companies can use their databases in all of the following ways EXCEPT _. to predict competitive strategies and plansto identify prospectsto decide which customers should receive a particular offerto deepen customer loyaltyto avoid ser

57、ious customer mistakesAnswer: aPages: 164165Level of difficulty: MediumSusan Lefferts company advertises widely. In each magazine ad, a business reply card is attached. Ms. Lefferts uses these cards to build her companys database. In which of the following ways would Ms. Lefferts most likely be usin

58、g the newly constructed database? To deepen customer loyalty.To reactivate customer purchases.To avoid serious customer mistakes.To determine if up-selling is appropriate.To identify prospects.Answer: ePage: 164Level of difficulty: HardPhil Langston has just ordered a number of expensive executive g

59、ifts 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 Mr. Langston most likely using his database? To identify prospects.To decide which customers should receive a new sales offer.To deepen customer loyalty.To avoi

60、d serious customer mistakes.To beat the competition to a sale.Answer: cPage: 165Level of difficulty: MediumRoyal Caribbean uses its _ to offer spur-of-the-moment cruise packages to fill all the berths on its ships. It focuses on retired people and single people because they are more able to make qui