Question 1

The primary objective of providing value to customers continuously and more effectively than the competition is ________.
A) to monopolize the market
B) to produce a compelling advertising message
C) to help recruit a dedicated workforce
D) to avoid government regulation of the industry
E) to create and to retain highly satisfied customers

Accepted Answer

The primary objective of continuously providing value to customers more effectively than the competition is to create and retain highly satisfied customers. This approach helps in building loyalty, encouraging repeat business, and fostering positive word-of-mouth, which are crucial for a business's long-term success.

Question 2

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by an attractive site design; enjoyable shopping at the site; and an inviting, comfortable site?
A) trust
B) engagement
C) network
D) interactivity
E) adaptation

Accepted Answer

Engagement is characterized by an attractive site design, enjoyable shopping experience, and an inviting, comfortable site, which are all factors that contribute to customer satisfaction with online websites and merchants.

Question 3

Customers have different expectations when they purchase a Lexus than when they purchase a Hyundai. These expectations affect ________.
A) market segmentation
B) the value proposition
C) customer satisfaction
D) the corporate vision
E) the market targeting

Accepted Answer

Customer satisfaction is directly influenced by their expectations, which vary significantly between brands such as Lexus and Hyundai, reflecting differences in perceived quality, luxury, and value.

Question 4

Which of the following is NOT one of the benefits of retaining loyal customers?
A) Loyal customers are more likely to purchase high margin supplemental products.
B) Loyal customers are more price-sensitive.
C) It is less expensive to service existing customers.
D) Loyal customer refer other customers and engage in positive word-of-mouth.
E) Loyal customers make employees' jobs easier and more satisfying.

Accepted Answer

Loyal customers are generally less price-sensitive because they value the relationship and trust they have built with a brand, making them willing to pay a premium for the products or services they are loyal to. This contrasts with the notion that loyal customers are more price-sensitive, which is not typically considered a benefit of customer loyalty.

Question 5

Antoine is in charge of customer acquisition and retention. He allocates more of his budget to customer retention than customer acquisition. Why does Antoine's decision make sense?
A) Low customer turnover is correlated with higher profits.
B) High customer turnover is correlated with higher profits.
C) Low customer acquisition is correlated with higher profits.
D) Low customer acquisition is correlated with higher employee satisfaction.
E) High customer acquisition is correlated with higher employee satisfaction.

Accepted Answer

Low customer turnover, which means retaining customers over time, is often more cost-effective than acquiring new ones. Retained customers tend to buy more from a company over time and can also provide valuable referrals. This can lead to higher profits due to reduced marketing and sales costs, as well as the potential for increased sales volumes.

Question 6

Researchers have identified two interrelated forms of customer engagement with marketers: ________ and ________.
A) customer satisfaction; commercial exchange
B) social exchange; commercial exchange
C) emotional bonds; customer satisfaction
D) customer satisfaction; transaction-based relationships
E) emotional bonds; transaction-based relationships

Accepted Answer

The answer of Researchers have identified two interrelated forms of...

Question 7

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by the customer's willingness to count on the merchant to successfully complete the purchase transaction and feeling the merchant is reliable and honest?
A) trust
B) engagement
C) network
D) interactivity
E) adaptation

Accepted Answer

Trust is characterized by the customer's willingness to rely on the merchant to successfully complete the purchase transaction and feeling the merchant is reliable and honest. This involves the belief in the merchant's integrity and reliability in transactions.

Question 8

________ is turning individual consumer transactions into long-term customer relationships by making it in the best interests of customers to stay with the company rather than switch to another firm.
A) Market segmentation
B) Customer satisfaction
C) Market targeting
D) Customer retention
E) Product promotion

Accepted Answer

Customer retention focuses on turning individual consumer transactions into long-term customer relationships by incentivizing customers to remain with the company rather than switch to competitors.

Question 9

Social media transformed ________ by giving companies a way to easily collect input and customers' preferences.
A) photography
B) television commercials
C) market trust
D) market research
E) customer bias

Accepted Answer

Social media has revolutionized market research by providing companies with a straightforward platform to gather feedback and understand the preferences of their customers.

Question 10

Norman dislikes the health insurance plan provided by his employer, but is unwilling to switch to a different health insurer because obtaining private health insurance would be significantly more expensive than the employer-subsidized plan in which he is currently enrolled. With regard to health insurance, Norman is best described as a(n) ________.
A) loyalist
B) apostle
C) hostage
D) terrorist
E) mercenary

Accepted Answer

Norman is best described as a "hostage" because he continues to use the health insurance plan provided by his employer not out of loyalty or satisfaction, but because he feels he has no better, affordable alternatives.

Question 11

Which of the following is an example of how the Internet affects prices and distribution?
A) Consumers use smart phones to compare prices as they shop, leading to price matching guarantees from retailers.
B) Apple distributes iBooks via its digital bookstore, reducing prices of high school textbooks by almost 90%.
C) Marketers are using smartphone apps to target shoppers in stores who are looking for information about products.
D) Amazon installed Amazon Lockers in grocery, convenience and drugstores that accept packages for customers to pick up later.
E) all of the above

Accepted Answer

All options illustrate how the Internet and digital technologies influence prices and distribution. A) shows how price transparency affects retailer strategies. B) demonstrates digital distribution's impact on product pricing. C) highlights targeted marketing through apps. D) exemplifies an innovative distribution method facilitated by the Internet.

Question 12

Which is NOT one of the benefits of highly satisfied customers?
A) They keep purchasing the same products.
B) They provide word-of-mouth to others.
C) They become customers for life.
D) They switch to competitors if offered a somewhat lower price.
E) They repeatedly buy the same brand.

Accepted Answer

Highly satisfied customers are less likely to switch to competitors, even if offered a somewhat lower price, because their satisfaction typically leads to brand loyalty.

Question 13

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by the merchant's ability to match purchase recommendations to one's needs and customize products and advertisements so the customer feels unique and valued?
A) trust
B) engagement
C) network
D) interactivity
E) adaptation

Accepted Answer

Adaptation refers to the ability of online merchants to tailor their offerings and marketing efforts to the individual needs and preferences of their customers. This includes personalized recommendations, customized products, and targeted advertisements, making the customer feel unique and valued.

Question 14

When Gary buys ice cream, he typically buys whichever brand is on sale that week. With regard to ice cream, Gary is best described as a(n) ________.
A) brand advocate
B) apostle
C) hostage
D) terrorist
E) mercenary

Accepted Answer

Gary's behavior of buying whichever ice cream brand is on sale, rather than showing loyalty to a single brand, best fits the description of a "mercenary." This term is used in marketing to describe consumers who are not loyal to a brand and instead make purchasing decisions based primarily on price promotions, discounts, or convenience.

Question 15

Walmart's use of Twitter chatter to inform their decision to sell cake pops is an example of social media's impact on ________.
A) photography
B) television commercials
C) market trust
D) market research
E) customer bias

Accepted Answer

Walmart's use of Twitter chatter to inform their decision to sell cake pops is an example of leveraging social media for market research. This approach allows companies to analyze consumer preferences and trends directly from social media conversations, enabling them to make informed decisions about product offerings.

Question 16

________ is defined as the ratio between the customer's perceived benefits and the resources used to obtain those benefits.
A) Customer satisfaction
B) Customer value
C) Customer relationship management
D) Consumer decision making
E) Consumer marketing

Accepted Answer

Customer value is defined as the ratio between the customer's perceived benefits (what they believe they are getting) and the resources (such as time, money, and effort) they used to obtain those benefits. This concept is crucial in understanding why customers choose one product or service over another, as they are looking for the best value for their resources.

Question 17

Megan uses Bed Head hair products and enthusiastically recommends them to others any time she receives complements on her hair. With regard to hair products, Megan is best described as a(n) ________.
A) ambivalent consumer
B) apostle
C) hostage
D) terrorist
E) mercenary

Accepted Answer

Megan is best described as a "B) apostle" because she actively and enthusiastically recommends Bed Head hair products to others, showing a high level of satisfaction and loyalty to the brand. Apostles are customers who are not only loyal but also actively promote the product or brand to others.

Question 18

Which of the following describes Amazon's customers with high bonds and modest purchase levels?
A) inertia-driven customers
B) transactional customers
C) loyal customers
D) delighted customers
E) fans

Accepted Answer

The answer of Which of the following describes Amazon's customers...

Question 19

An individual's perception of the performance of a product or service in relation to one's expectations is known as ________.
A) market segmentation
B) customer satisfaction
C) market targeting
D) product placement
E) product promotion

Accepted Answer

Customer satisfaction is the term that describes an individual's perception of the performance of a product or service in relation to their expectations.

Question 20

Based on the three criteria for successful customization, which of the following is least likely to be effectively customized?
A) running shoes
B) fountain pens
C) sunglasses
D) laundry detergent
E) an automobile

Accepted Answer

Laundry detergent is least likely to be effectively customized based on the three criteria for successful customization because its usage and performance are less influenced by individual preferences or specific requirements compared to the other options. Running shoes, fountain pens, sunglasses, and automobiles can all be significantly tailored to fit personal tastes, physical needs, or performance specifications, making them more suitable for customization.

Quiz 1: Consumer Behavior: Information-Driven Consumer Behavior

The primary objective of providing value to customers continuously and more effectively than the competition is ________.

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by an attractive site design; enjoyable shopping at the site; and an inviting, comfortable site?

Customers have different expectations when they purchase a Lexus than when they purchase a Hyundai. These expectations affect ________.

Which of the following is NOT one of the benefits of retaining loyal customers?

Antoine is in charge of customer acquisition and retention. He allocates more of his budget to customer retention than customer acquisition. Why does Antoine's decision make sense?

Researchers have identified two interrelated forms of customer engagement with marketers: and .

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by the customer's willingness to count on the merchant to successfully complete the purchase transaction and feeling the merchant is reliable and honest?

________ is turning individual consumer transactions into long-term customer relationships by making it in the best interests of customers to stay with the company rather than switch to another firm.

Social media transformed ________ by giving companies a way to easily collect input and customers' preferences.

Which of the following is an example of how the Internet affects prices and distribution?

Which is NOT one of the benefits of highly satisfied customers?

Which of the following determinants of customer satisfaction with online websites and merchants while shopping online is characterized by the merchant's ability to match purchase recommendations to one's needs and customize products and advertisements so the customer feels unique and valued?

When Gary buys ice cream, he typically buys whichever brand is on sale that week. With regard to ice cream, Gary is best described as a(n) ________.

Walmart's use of Twitter chatter to inform their decision to sell cake pops is an example of social media's impact on ________.

________ is defined as the ratio between the customer's perceived benefits and the resources used to obtain those benefits.

Megan uses Bed Head hair products and enthusiastically recommends them to others any time she receives complements on her hair. With regard to hair products, Megan is best described as a(n) ________.

Which of the following describes Amazon's customers with high bonds and modest purchase levels?

An individual's perception of the performance of a product or service in relation to one's expectations is known as ________.

Based on the three criteria for successful customization, which of the following is least likely to be effectively customized?