Question 1

Customer equity refers to ________.
A) a firm's current sales
B) the share a firm earns of a customer's purchasing in their product categories
C) the amount a customer is spending each year on certain products
D) the total combined customer lifetime value of all of the company's current and potential customers
E) a firm's market share

Accepted Answer

Customer equity refers to the total combined customer lifetime value of all of the company's current and potential customers. It takes into account the future potential of customers and the value they bring to the company over time. It is not just based on current sales or market share, but rather the long-term value of customers to the company.

Question 2

"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

Customer lifetime value refers to the total value or worth of a customer over the entire duration of their relationship with a company. This includes all the potential purchases the customer may make in the future. If a company loses a customer, it loses out on all the potential revenue that customer could have generated over time, resulting in a loss of customer lifetime value.

Question 3

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 means finding ways to create long-term profitable relationships with customers and maximizing the value that the customer provides to the company. This involves delivering superior customer value and satisfaction, creating customer loyalty, and retaining profitable customers for the long term. Creating customer delight, creating customer lifetime value, understanding the marketplace, and designing a customer-driven marketing strategy are all important elements of the marketing process, but they do not represent the final step of capturing value from customers.

Question 4

The primary key to delivering customer satisfaction is to match product performance with ________.
A) the performance of competitive products
B) competitive prices
C) aggressive advertising
D) limited customer services
E) customer expectations

Accepted Answer

Customer satisfaction is achieved when a company meets or exceeds customer expectations. Therefore, matching product performance with customer expectations is key to delivering customer satisfaction. A) Is not enough as competitive products may not necessarily meet customer expectations. B) Competitive prices may attract customers, but if the product does not meet their expectations, they will not be satisfied. C) Aggressive advertising can attract customers, but if the product does not meet their expectations, they will not be satisfied. D) Limited customer services may cause frustration and dissatisfaction if customers' expectations are not met.

Question 5

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 of her perception of the lotion to her expectations is an indication of her level of satisfaction with the product, making B the correct answer. The other options are not related to the comparison Sally is making.

Question 6

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 refer to a scenario where customers have a greater say in their interactions with brands, from product design to communication. With many platforms available for consumers to share their opinions about brands, marketers must embrace customer-managed relationships to stay in tune with their audience and provide value.

Question 7

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

Greater consumer control means that companies can no longer rely on marketing by intrusion, which refers to marketing tactics that interrupt or invade consumers’ personal or digital spaces. This can include unsolicited marketing emails, pop-up ads or cold calls. With consumers now having more control over the marketing messages they receive, companies need to focus on marketing by attraction, where they create engaging content or experiences that pull consumers in rather than pushing messages out to them.

Question 8

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

The gym equipment manufacturer is providing exclusive benefits to customers who become members of their club or community, which is a club marketing program. This program aims to build long-term relationships with customers and encourage repeat purchases.

Question 9

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

The term "customer evangelists" specifically refers to customers who are highly satisfied and passionate about a product or service, leading them to make repeat purchases and promote it to others. Option A ("barnacles") refers to customers who are loyal but not necessarily vocal advocates, option C ("butterflies") refers to customers who are fickle and not likely to make repeat purchases, option D ("surrogate customers") refers to individuals hired to evaluate or make purchases on behalf of others, and option E ("market mavens") refers to individuals who are knowledgeable and influential in a particular market.

Question 10

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.
A) objective value
B) perceived value
C) customer lifetime value
D) company image
E) society's interests

Accepted Answer

Customers make purchasing decisions based on their perceived value of a product, which includes both the benefits they anticipate from using the product and the costs associated with obtaining it. Perceived value is subjective and can vary from person to person. Objective value refers to the actual worth of a product, regardless of how customers perceive it. Customer lifetime value refers to the total value a customer brings to a company over their lifetime as a customer, and is not related to the specific purchase decision at hand. Company image and society's interests may influence purchasing decisions indirectly, but they are not the primary factors customers use to judge values and costs.

Question 11

Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?
A) customer divestment
B) customer-managed relationships
C) the societal marketing concept
D) partner relationship management
E) customer relationship management

Accepted Answer

Customer relationship management (CRM) is the marketing strategy that focuses on managing detailed information about individual customers and carefully managing customer touchpoints to maximize customer loyalty. It involves using data and technology to understand customers’ needs and behaviors and tailoring marketing efforts to meet those needs. CRM also involves ongoing communication and relationship building with customers to keep them engaged and loyal to the brand.

Question 12

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 the coordination and management of all activities involved in the production and delivery of goods and services, including relationships with suppliers and partners. This includes managing the flow of materials, information, and finances both within a company and between companies in the supply chain. Therefore, supply chain management is the best choice for strengthening connections with all partners.

Question 13

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 capturing customer lifetime value by aiming to delight each customer and make them a repeat customer. They offer discounts and extra services to ensure customer satisfaction and prioritize customer loyalty over individual transactions.

Question 14

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 guest who often stays in the hotel is an example of a frequency marketing program. This program rewards and encourages loyalty from customers who frequently use the hotel's services.

Question 15

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

This program is an example of consumer-generated marketing, where the company is inviting its consumers to create ads and be a part of the marketing process.

Question 16

________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.
A) Customer-perceived value
B) Customer lifetime value
C) Share of customer
D) Customer-managed relationship
E) Brand value proposition

Accepted Answer

Customer-perceived value refers to how customers perceive the value of a product or service. This is based on their evaluation of the benefits and costs of the offering relative to those of competing offers. The perceived value helps customers make purchasing decisions and can influence their long-term loyalty to a brand or company.

Question 17

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

Basic relationships are most profitable in markets with many low-margin customers because they minimize the cost of maintaining these relationships, which is crucial when profit margins are thin.

Question 18

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.
A) customer lifetime value
B) customer-perceived value
C) customer relationship management
D) partner relationship management
E) customer equity

Accepted Answer

Customer relationship management (CRM) involves building and maintaining profitable customer relationships through delivering superior customer value and satisfaction. It is a process that companies use to understand, anticipate, and respond to the needs of customers, with the ultimate goal of building strong, long-lasting relationships that benefit both the customer and the company. Options A, B, D, and E are related concepts, but they are not the same as CRM.

Question 19

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 often lead to increased customer satisfaction as customers perceive they are getting more value for their money.

Question 20

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 involves inviting customers to create commercials, which is an example of consumer-generated marketing. This type of marketing involves engaging customers in creating content for a brand, which can lead to increased loyalty and brand recognition. Partner relationship management involves managing relationships with business partners, customer lifetime value involves measuring the long-term value of a customer to a business, community development around a brand involves building a community of loyal customers, and customer divestment involves cutting ties with unprofitable customers.

Quiz 1: Marketing: Creating Customer Value and Engagement

Customer equity refers to ________.

"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 ________.

The final step in the marketing process is ________.

The primary key to delivering customer satisfaction is to match product performance with ________.

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 ________.

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.

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

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 ________.

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

It is most accurate to say that when customers purchase products they act on ________ as they judge values and costs.

Which of the following marketing strategies should marketing managers focus on to manage detailed information about individual customers and carefully manage customer touchpoints to maximize customer loyalty?

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 room upgrade offered by a hotel to a guest who often stays in the hotel 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 ________.

________ is determined by a customer's evaluation of the benefits and costs of a market offering relative to those of competing offers.

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?

Building and maintaining profitable customer relationships by delivering superior customer value and satisfaction is called ________.

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

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 ________.