Question 1

Many companies now use customer profitability analysis to identify and weed out unprofitable customers.

Accepted Answer

Customer profitability analysis is used by companies to identify and prioritize their most profitable customers, while identifying and potentially eliminating unprofitable customers.

Question 2

A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows

Accepted Answer

The answer of A financial services firm has several loyal...

Question 3

To increase its "share of customer," a firm concentrates on retaining as many customers as possible over its lifetime.

Accepted Answer

The answer of To increase its "share of customer," a...

Question 4

Alex works in the marketing department of an international company. How can Alex use modern technologies to conduct market research and better serve his company's customers?

Accepted Answer

The answer of Alex works in the marketing department of...

Question 5

Refer to the scenario below to answer the following question(s).
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan also involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter."
-Carol Veldt's plan also involves a seasonal promotional gimmick that she wants to promote aggressively. This is an example of the ________ concept.
A) selling
B) marketing
C) product
D) production
E) societal marketing

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 6

Refer to the scenario below to answer the following question(s).
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan also involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter."
-Carol Veldt has decided to ask selected guests to participate in an extensive survey about their experience at Seagull Terrace and about their requirements in terms of amenities and cuisines. By implementing the suggestions she receives from guests, Carol would be following the ________ concept.
A) production
B) product
C) selling
D) marketing
E) societal marketing

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 7

For most marketers, customer relationship management is exclusively a matter of customer data management.

Accepted Answer

The answer of For most marketers, customer relationship management is...

Question 8

Digital technology allows companies to reach out to customers in numerous ways. Which of the following is NOT the purpose of a company reaching out using digital and social media?
A) solving consumer problems
B) building customer relationships
C) helping customers shop
D) providing product information
E) working with suppliers

Accepted Answer

Working with Suppliers is not a purpose of a company reaching out using digital and social media. The other options, such as solving consumer problems, building customer relationships, helping customers shop, and providing product information are all important reasons for companies to use digital and social media for customer engagement.

Question 9

Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows

Accepted Answer

True friends are the customers who are considered to be the most profitable and have long-term loyalty towards a company. They have a high level of satisfaction and are often advocates for the brand.

Question 10

How can a marketer increase its "share of customer"?

Accepted Answer

The answer of How can a marketer increase its "share...

Question 11

Customer-perceived value is defined as the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.

Accepted Answer

Customer-perceived value is indeed defined as the customer's evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers.

Question 12

Large-scale marketing approaches that foster two-way customer relationships are made possible by new communication technologies.

Accepted Answer

New communication technologies such as social media, email marketing, chatbots, and other digital tools allow for large-scale marketing approaches that facilitate two-way customer relationships. These technologies make it possible for businesses to engage with customers, receive feedback, and provide personalized experiences, ultimately fostering stronger connections and loyalty.

Question 13

Customer-managed relationships are marketing relationships that are controlled by customers, therefore, they are of no significance to marketers.

Accepted Answer

Customer-managed relationships may be initiated, maintained and controlled by customers, but they are of great significance to marketers as they allow for a deeper understanding of the individual customer's wants and needs, enabling the marketer to tailor their products and services to meet those individual requirements.

Question 14

In consumer-generated marketing, marketers play a bigger role in shaping consumers' brand experiences and those of others.

Accepted Answer

In consumer-generated marketing, consumers play a bigger role in shaping their own brand experiences and sharing them with others. Marketers may facilitate or encourage this process, but ultimately it is the consumer who generates the content and drives the conversation.

Question 15

What determines whether sellers pursue basic relationships or full partnerships with customers?

Accepted Answer

The answer of What determines whether sellers pursue basic relationships...

Question 16

Refer to the scenario below to answer the following question(s).
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a cliff overlooking the Maine coast, Seagull Terrace had attracted thousands of visitors during summer, but then faced a tremendous downturn in business during winter. "But, given the established industries in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan also involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals.
"We still have a long way to go," Carol admitted. "Our delicatessen offers entrees that are a part of the local cuisine, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities. With an indoor pool area, I will eventually offer weekend getaways throughout winter."
-Renovations of the guest rooms at the Seagull Terrace and plans to add an indoor pool area are examples of the ________ concept.
A) selling
B) marketing
C) product
D) production
E) societal marketing

Accepted Answer

The concept being described is related to the product, specifically the renovations of the guest rooms and the plans to add an indoor pool area. It is not related to selling, marketing, production, or societal marketing.

Question 17

Explain how storing customer information in a database might better prepare carmaker Kia in customer relationship management.

Accepted Answer

The answer of Explain how storing customer information in a...

Question 18

Define customer relationship management and explain its associated tools and levels of relationships.

Accepted Answer

The answer of Define customer relationship management and explain its...

Question 19

The meaning of value is perceived identically by all consumers.

Accepted Answer

The meaning of value can differ among consumers due to factors such as individual needs, preferences, and budget constraints. Therefore, value is not always perceived identically by all consumers.

Question 20

Explain what marketers can expect from individuals in the customer relationship group classified as "butterflies."

Accepted Answer

The answer of Explain what marketers can expect from individuals...

Quiz 1: Marketing: Creating Customer Value and Engagement