Question 1

A seller pursues a basic relationship with what kind of customers?
A) many customers regardless of profitability
B) many high-margin customers
C) many low-margin customers
D) a few high-margin customers
E) a few low-margin customers

Accepted Answer

The answer of A seller pursues a basic relationship with...

Question 2

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

Accepted Answer

Customer relationship management (CRM) encompasses a broader strategy including understanding customer needs, enhancing customer interactions, and building long-term relationships, not just managing customer data.

Question 3

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 4

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 renovations of guest rooms and plans to add an indoor pool area are examples of product development, which falls under the product concept in marketing. This concept emphasizes on improving and innovating the product or service to meet the needs and wants of the target market.

Question 5

The portion of the customer's purchasing that a company gets in its product categories is known as ________.
A) customer-perceived value
B) share of customer
C) customer insight
D) consumption function
E) induced consumption

Accepted Answer

Share of customer refers to the percentage of a customer's total purchasing that a company gets in its product categories. This metric is important for companies to track as it helps them understand how much of a customer's business they are actually getting and where there may be opportunities to increase their share.

Question 6

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

Barnacles are customers who are loyal but not profitable. They stick to the company but do not significantly contribute to its profitability, sometimes even increasing losses.

Question 7

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith trying to increase?
A) shared value
B) share of customer
C) social responsibility
D) customer-generated marketing
E) customer loyalty

Accepted Answer

Keith is trying to increase his share of customer by offering product suggestions based on customers' current purchases. This means he wants customers to buy more products from his store, rather than shopping elsewhere.

Question 8

Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms?
A) Marketers want to increase their market share.
B) Marketers want to increase the share they get of the customer's purchasing in their product categories.
C) Marketers want to diversify their operations and customize their products to cater to the entire market.
D) Marketers want to continuously increase their customers' levels of satisfaction.
E) Marketers want to turn satisfied customers into delighted customers.

Accepted Answer

"Share of customer" refers to the portion of the customer's purchases in a particular product category that a company is able to capture. Therefore, marketers who want to increase their share of customer would aim to increase the share they get of the customer's purchasing in their product categories.

Question 9

________ is one of the best ways to increase share of customer.
A) Targeting new customers
B) Using bait and switch
C) Cross-selling
D) Divesting
E) Partnership marketing

Accepted Answer

Cross-selling is the best way to increase share of customer. This involves offering related or complementary products to existing customers, which can lead to additional purchases and increased loyalty. Targeting new customers may be effective for expanding customer base but not necessarily for increasing share of customer. Bait and switch tactics are unethical and can damage customer trust. Divesting involves selling off or discontinuing certain products or services, which may not necessarily increase share of customer. Partnership marketing can be effective but not necessarily the best way to increase share of customer.

Question 10

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 typically a purpose for a company to reach out using digital and social media. The other options listed (solving consumer problems, building customer relationships, helping customers shop, and providing product information) are all common reasons for companies to utilize digital and social media channels.

Question 11

The meaning of value is perceived identically by all consumers.

Accepted Answer

The meaning of value can vary from person to person based on their needs, wants, and preferences. What one person considers valuable, another may not.

Question 12

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?
A) share of customer
B) marketing mix
C) customer equity
D) target market
E) customer-perceived value

Accepted Answer

Customer equity refers to the total combined customer lifetime value of all of the company's current and potential customers. Share of customer refers to the portion of the customer's purchasing that a company gets in their product categories. Marketing mix refers to the set of marketing tools that a company uses to pursue its marketing objectives in the target market. Target market refers to a particular group of customers at which a product or service is aimed. Customer-perceived value refers to the worth or benefit that a customer perceives to obtain from a product or service.

Question 13

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

Accepted Answer

Although customer-managed relationships are controlled by customers, they are still of great significance to marketers. Marketers need to understand and align their strategies with the customers' expectations and preferences to build long-lasting and profitable relationships.

Question 14

A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________.
A) decreasing prices
B) increasing discounts and coupons
C) sending samples directly to customers
D) introducing customers to "brand evangelists"
E) creating programs to cross-sell and up-sell to market more products and service to existing customers

Accepted Answer

Cross-selling and up-selling to existing customers is a proven technique to increase share of customer. By offering more products and services to existing customers, a marketer can increase the amount of revenue generated from each customer, without having to acquire new customers. Decreasing prices and increasing discounts may attract new customers, but it may not necessarily increase the share of customer. Sending samples directly to customers or introducing them to brand evangelists can lead to increased awareness and loyalty, but may not directly improve share of customer.

Question 15

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 customers who bring high profitability and long-term loyalty, making them valuable to a business.

Question 16

A company should not always target all possible customers. Which kind of customer is not the most valuable to a company, but, can over time, contribute to the firm's success?
A) butterflies
B) shooting stars
C) barnacles
D) true friends
E) strangers

Accepted Answer

The answer of A company should not always target all...

Question 17

In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________.
A) true friend
B) butterfly
C) stranger
D) barnacle
E) market maven

Accepted Answer

A potentially profitable and short-term customer is referred to as a "butterfly". This type of customer will make a quick purchase but is not likely to become a loyal, long-term customer. They tend to flit from one brand or product to another, making them difficult to retain.

Question 18

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 19

A seller pursues a full partnership with what kind of customers?
A) many customers regardless of profitability
B) many high-margin customers
C) many low-margin customers
D) a few high-margin customers
E) a few low-margin customers

Accepted Answer

A seller should pursue a full partnership with a few high-margin customers who will provide long-term profitability and strategic value. Working closely with these customers can lead to joint innovation and a deep understanding of their needs, allowing the seller to provide better products and services.

Question 20

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

By asking guests for suggestions and implementing them, Carol would be following the marketing concept, which focuses on understanding and meeting the needs and wants of customers.

Quiz 1: Marketing: Creating Customer Value and Engagement

A seller pursues a basic relationship with what kind of customers?

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

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.

The portion of the customer's purchasing that a company gets in its product categories is known as ________.

Keith, a clothing store owner, offers product suggestions to customers based on their current purchases. Which of the following is Keith trying to increase?

Apart from retaining good customers, most marketers want to constantly increase their "share of customer." What does this mean in marketing terms?

________ is one of the best ways to increase share of customer.

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?

The meaning of value is perceived identically by all consumers.

Which of the following refers to the total combined customer lifetime value of all of the company's current and potential customers?

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

A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________.

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 company should not always target all possible customers. Which kind of customer is not the most valuable to a company, but, can over time, contribute to the firm's success?

In the context of customer relationship groups, a potentially profitable and short-term customer is referred to as a ________.

A seller pursues a full partnership with what kind of customers?