Question 1

Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.
A) consumer-generated marketing
B) partner relationship management
C) customer lifetime value
D) community development around a brand
E) customer divestment

Accepted Answer

Elisandra's plan of organizing a contest calling for customers to create commercials for the restaurant is an example of consumer-generated marketing, where the customers themselves create content to promote the brand.

Question 2

A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________.
A) a frequency marketing program
B) a basic customer relationship
C) a club marketing program
D) the selling concept
E) consumer-generated marketing

Accepted Answer

This is an example of a club marketing program, where the gym equipment manufacturer offers incentives for customers to join their exclusive club on their website. This helps to build a stronger relationship between the brand and the customer, and encourages repeat purchases.

Question 3

Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.
A) societal marketing
B) the production concept
C) the selling concept
D) partner relationship management
E) consumer-generated marketing

Accepted Answer

The program in question is an example of consumer-generated marketing, as Kao Corp. is inviting teenage girls to create an advertisement for their deodorant product. This is a form of marketing that involves consumers themselves creating content related to a brand, rather than the brand creating content to be distributed through traditional advertising channels.

Question 4

Which of the following terms refers to customers who make repeat purchases and tell others about their positive experiences with a product or service?
A) barnacles
B) customer evangelists
C) butterflies
D) surrogate customers
E) market mavens

Accepted Answer

Customer evangelists refer to customers who are loyal to a brand and actively promote it to others. They are also known as brand advocates.

Question 5

Which of the following strategies would a company most likely use to increase customer satisfaction?
A) decreasing the variety of offered services
B) divesting
C) lowering prices
D) "firing" unprofitable customers
E) limiting customer experiences with a brand

Accepted Answer

Lowering prices can attract more customers and make current customers feel like they are getting a good deal, which can increase overall satisfaction. Decreasing the variety of offered services (A), divesting (B), "firing" unprofitable customers (D), and limiting customer experiences with a brand (E) are unlikely to increase customer satisfaction.

Question 6

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________.
A) customer-perceived value
B) marketing offerings
C) partner relationship management
D) customer lifetime value
E) value proposition

Accepted Answer

The statement emphasizes the importance of customer lifetime value, which refers to the total amount of money a customer is expected to spend on a brand over the course of their relationship with the brand. Losing a customer means losing all future purchases that customer would have made, resulting in a decrease in customer lifetime value. A, B, C, and E are not directly mentioned in the statement.

Question 7

At Gina's retail stores, the posted policy reads, "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.
A) managing partner relationships
B) selling new products
C) attracting "butterflies"
D) converting "barnacles" to "strangers"
E) capturing customer lifetime value

Accepted Answer

Gina and her staff prioritize making every customer a repeat customer, which aligns with capturing customer lifetime value. They aim to delight each customer and offer discounts or extra services whenever a customer is unsatisfied, which can lead to better long-term relationships with customers.

Question 8

Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.
A) share of customer
B) customer satisfaction
C) customer equity
D) customer-perceived value
E) customer lifetime value

Accepted Answer

Sally's comparison between her perception and expectations is a measurement of her customer satisfaction with Brand X lotion.

Question 9

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________.
A) a frequency marketing program
B) a basic relationship
C) a club marketing program
D) partner relationship management
E) sustainable marketing

Accepted Answer

A room upgrade offered to a frequent guest is a part of frequency marketing program, which rewards customers for their loyalty by offering incentives for repeated purchases or patronage.

Question 10

Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services.
A) supply chain management
B) direct marketing
C) customer relationship marketing
D) customized marketing
E) inventory management

Accepted Answer

Supply chain management involves managing the entire flow of goods and services, from the acquisition of raw materials to the delivery of final goods and services to the end customer. By implementing effective supply chain management practices, companies can strengthen their connections with all partners involved in the supply chain.

Question 11

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

The portion of the customer's purchasing that a company gets in its product categories is known as share of customer. This means the percentage of the customer's overall spending that goes towards a particular company's products or services. Customer-perceived value refers to the customer's evaluation of the benefits and costs associated with a company's product or service. Customer insight is the understanding of customers' needs and behaviors. Consumption function is a concept from economics that explains how changes in income affect consumption expenditures. Induced consumption is related to the consumption function and refers to the portion of consumption that is a result of changes in income.

Question 12

The final step in the marketing process is ________.
A) capturing value from customers
B) creating customer delight
C) creating customer lifetime value
D) understanding the marketplace
E) designing a customer-driven marketing strategy

Accepted Answer

The final step in the marketing process is capturing value from customers, which involves creating customer loyalty and maximizing profits. This is the end goal of all marketing efforts. While creating customer delight, customer lifetime value, understanding the marketplace, and designing a customer-driven marketing strategy are all important steps in the marketing process, they are not the final step.

Question 13

________ 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 one of the most effective ways to increase share of customer. By offering relevant and complementary products or services to existing customers, businesses can increase their value to the customer while also increasing their own revenue. This can lead to increased customer loyalty and repeat business. Targeting new customers, using bait and switch, and divesting are not effective ways to increase share of customer. Partnership marketing can be effective, but it is not the best choice in this scenario.

Question 14

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 suggesting additional products to customers based on their current purchases. This means that he is encouraging customers to buy more from his store rather than from competitors, thereby increasing his share of their overall spending on similar products.

Question 15

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, meaning they are likely to fly away quickly to another company or brand after making a purchase.

Question 16

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 a customer's purchasing in a specific product category that a marketer is able to capture. Therefore, marketers who want to increase their "share of customer" aim to increase the amount of products or services that a customer purchases from their brand in a specific category.

Question 17

Greater consumer control means that companies can no longer rely on ________.
A) promoting brand-consumer interaction
B) marketing by intrusion
C) creating market offerings and messages that involve consumers
D) developing marketing concepts with an outside-in perspective
E) marketing by attraction

Accepted Answer

Marketing by intrusion, which refers to forcing advertising and promotional messages upon consumers even when they are not interested or ready to receive them, is no longer effective due to greater consumer control. Consumers can now choose to block ads, opt-out of marketing communications, and use ad-free services. Companies need to find new ways to attract and engage consumers without being intrusive.

Question 18

The marketing world is most likely embracing ________ because consumers wield greater power now with many platforms for airing and sharing their brand views with other consumers.
A) partner relationship management
B) supply chain management
C) customer-managed relationships
D) market segmentation
E) consumer ethnocentrism

Accepted Answer

Customer-managed relationships is the strategy that allows consumers to actively participate in creating and maintaining the relationship with a brand. With the rise of social media and other platforms for sharing opinions, consumers have more power to influence other consumers, and this strategy is becoming increasingly important for brands to adopt.

Question 19

Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him?
A) full partnerships
B) basic relationships
C) causal relationships
D) club marketing programs
E) inverse relationships

Accepted Answer

The answer of Hank is an assistant marketing director for...

Question 20

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 percentage of a customer's purchases in a product category that goes to a particular company. Marketing mix refers to the set of controllable marketing variables that a company uses to pursue its marketing objectives in a target market. Target market refers to a specific group of customers that a company aims to serve. Customer-perceived value refers to the customer's evaluation of the benefits and costs of a marketing offer in relation to competitors' offers.

Quiz 1: Marketing: Creating Customer Value and Engagement

Elisandra, a marketing manager at a regional chain restaurant, has decided to organize a contest calling for customers to create commercials for the restaurant. Winning entries will be posted on the organization's home page. Elisandra's plan is an example of ________.

A gym equipment manufacturer encourages customers to become members of the firm's Web site. Membership provides customers with exercise tips as well as discounts on gym equipment and workout apparel. This is an example of ________.

Kao Corp., a deodorant manufacturer, invited teenage girls to make an ad that would encourage other girls to buy the product. This program is an example of ________.

Which of the following terms refers to customers who make repeat purchases and tell others about their positive experiences with a product or service?

Which of the following strategies would a company most likely use to increase customer satisfaction?

"Losing a customer once means losing the entire stream of possible purchases that the customer would make over an extended period of patronage." This statement specifically indicates loss in terms of ________.

Sally recently purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations about Brand X lotion, Sally was measuring her level of ________.

A room upgrade offered by a hotel to a guest who often stays in the hotel is an example of ________.

Through ________, companies today are strengthening their connections with all partners, from providers of raw materials and components to those involved in the delivery of final goods and services.

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

The final step in the marketing process is ________.

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

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

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

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

Greater consumer control means that companies can no longer rely on ________.

The marketing world is most likely embracing ________ because consumers wield greater power now with many platforms for airing and sharing their brand views with other consumers.

Hank is an assistant marketing director for a firm in a market with many low-margin customers. What type of relationship with these customers would be the most profitable for him?

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