Question 1

The value chain is a tool used to identify ways to create more customer value.

Accepted Answer

The value chain is a strategic tool used to analyze a company's internal activities by identifying ways to create more value for customers, which ultimately leads to competitive advantage and profitability.

Question 2

Satisfaction isn't always a good predictor of customer loyalty.

Accepted Answer

Although satisfaction is important, there are other factors such as convenience, price, and brand reputation that can also impact customer loyalty.

Question 3

A key challenge for modern marketers is whether "to meet or beat expectations." Comment on this statement and explain why it is so difficult to beat expectations in the long term.

Accepted Answer

The answer of A key challenge for modern marketers is...

Question 4

Frequency marketing programmes are just one of the techniques used by marketers to strengthen the bond between the company and the customer.

Accepted Answer

Frequency marketing programmes, also known as loyalty or rewards programmes, are specifically designed to enhance customer loyalty and build stronger relationships between the customer and the company. They incentivize customers to make repeat purchases and engage with the brand, ultimately leading to increased revenue for the company.

Question 5

Customer satisfaction is a global concept that refers to the customer's overall evaluation of a product performance or a service encounter and is formed after consumption. It is not normally used to evaluate product component parts or steps of the service delivery process.

Accepted Answer

Customer satisfaction can be used to evaluate both the overall experience and specific aspects of product performance or steps in the service delivery process, allowing businesses to identify areas for improvement.

Question 6

Return on marketing investment (or marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment.

Accepted Answer

This is the correct definition and formula of marketing ROI.

Question 7

The value proposition is stated in the price of a product and is readily recognised by the typical consumer.

Accepted Answer

The value proposition is not just stated in the price of a product, but also in its benefits, features, and overall value proposition to the consumer. While price is certainly an important factor, it is not the sole determinant of a product's value proposition.

Question 8

If a customer expects a product to be poor but purchases it anyway due to lack of choice, and the product turns out to perform better than expected, the customer will always be highly satisfied or delighted.

Accepted Answer

Customer satisfaction can be influenced by a variety of factors including expectations, individual preferences, and specific circumstances of the purchase. A product performing better than expected can lead to increased satisfaction, but it does not guarantee the customer will always be highly satisfied or delighted.

Question 9

In terms of share of customer, "share of throat" is to the beverage market just as "share of stomach" is to the food industry.

Accepted Answer

"Share of throat" refers to the amount of a customer's beverage consumption that a particular brand captures, while "share of stomach" refers to the amount of a customer's food consumption that a particular brand captures.

Question 10

Frequency marketing programmes offer customers a reward such as price discounts, free upgrades or the opportunity to trade points for gifts, as a means of building a relationship with the customer.

Accepted Answer

Frequency marketing programmes are designed to incentivize customers to repeatedly purchase from a business by offering rewards, such as price discounts or gifts, as a means of building a long-term relationship with the customer.

Question 11

Internal marketing refers to a diverse range of activities designed to ensure that employees share an understanding of organisational goals, mission and purpose.

Accepted Answer

Internal marketing focuses on promoting the organisation's goals and mission within the company, ensuring that employees are aligned with these values and objectives.

Question 12

Basically, retaining current customers is less expensive than acquiring new ones.

Accepted Answer

Studies have shown that it can cost up to five times more to acquire a new customer than to retain an existing one. Therefore, it is generally more cost-effective to focus on keeping current customers happy and satisfied rather than constantly chasing new ones.

Question 13

Club marketing programmes offer customer members special benefits and create member communities.

Accepted Answer

Club marketing programmes often offer exclusive benefits and perks to customers who become members, which can in turn create a sense of community and loyalty among those members.

Question 14

Internal marketing refers to in- house market analysis.

Accepted Answer

Internal marketing refers to the process of promoting and creating a positive workplace culture and environment for employees, not in-house market analysis.

Question 15

To increase share of customer, companies can offer greater variety to current customers or they can create programmes to cross- sell and up- sell to market more products and services to existing customers.

Accepted Answer

This statement is true. By offering greater variety or cross-selling/up-selling to existing customers, companies can increase their share of customer.

Question 16

List and describe any two (2) methods for assessing customer satisfaction.

Accepted Answer

The answer of List and describe any two (2) methods...

Question 17

Customer satisfaction is an excellent predictor of customer loyalty.

Accepted Answer

The answer of Customer satisfaction is an excellent predictor of...

Question 18

Traditional thinking was that marketing is done only by marketing, sales and customer- support people. However, modern thinking is that every functional area can interact with customers and therefore have some role to play in the company's marketing responsibilities.

Accepted Answer

Modern thinking is that every functional area can interact with customers and therefore have some role to play in the company's marketing responsibilities.

Question 19

Customer satisfaction is a measure used to evaluate services but is not normally used to evaluate products.

Accepted Answer

Customer satisfaction can be used to evaluate both services and products.

Question 20

It is accurate to say that for customer centred companies, marketing is responsible for designing and managing a superior value- delivery system to reach target customer segments.

Accepted Answer

Marketing plays a crucial role in understanding customer needs and designing a value delivery system that meets those needs. They are responsible for identifying target customer segments, developing marketing strategies, and managing customer relationships to ensure a superior customer experience. Ultimately, marketing's goal is to create value for the customer and drive business growth for the company.

Quiz 2: Marketing: Delivering and Capturing Value