Question 1

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 (CMR) refers to a marketing approach where customers have greater control over the brand's marketing activities. With the rise of social media and other communication platforms, consumers have become more empowered to express their opinions and share their experiences with others. This has compelled marketers to adopt a more customer-centric approach, where they engage in ongoing conversations with consumers and allow them to help shape the brand's marketing activities. This approach can help build stronger customer loyalty and ultimately drive sales.

Question 2

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 3

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 aim to make every customer a repeat customer, which means they are prioritizing capturing customer lifetime value rather than focusing on each individual transaction, managing partner relationships, selling new products, attracting "butterflies," or converting "barnacles" to "strangers."

Question 4

________ 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 a customer's assessment of the benefits and costs of a product or service in relation to those of its competitors. It is determined by the customer's own perception of the product's value proposition and the overall experience of using the product or service.

Question 5

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 is a strategy that forces consumers to pay attention to advertisements through techniques like pop-up ads or telemarketing calls. Instead, companies need to focus on marketing by attraction, which is a strategy that creates engaging content that consumers actively seek out and are drawn to.

Question 6

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 all aspects of the flow of goods and services, from the procurement of raw materials to the delivery of the final product or service. By focusing on supply chain management, companies can establish stronger connections and relationships with their partners, ensuring that they receive high-quality inputs and efficiently deliver final products and services to customers. Direct marketing, customer relationship marketing, customized marketing, and inventory management are all important strategies for companies, but they do not necessarily focus specifically on strengthening connections with partners in the supply chain.

Question 7

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 a profitable relationship with customers by building customer loyalty and creating customer lifetime value. This is where the company earns revenue from satisfied customers who are willing to pay a premium price for the product or service. Creating customer delight, understanding the marketplace, and designing a customer-driven marketing strategy are important steps in the overall marketing process, but they are not the final step.

Question 8

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 are customers who are so satisfied with a product or service that they promote it to others through word-of-mouth advertising. They are also likely to make repeat purchases.

Question 9

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 a prime example of measuring customer satisfaction.

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 don't always act based on objective value, as their perception of value is subjective and may differ from person to person. Therefore, they act on perceived value - their subjective perception of the utility and worth of a product or service. Customer lifetime value is a measure of how much a customer is expected to spend over their lifetime with a company, and while it may influence their purchasing decisions, it is not the primary factor that determines those decisions. Company image and society's interests may also have some impact on customer behavior, but they are not always the most important considerations.

Question 11

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

Meeting or exceeding customer expectations is key to achieving customer satisfaction. Customers have certain expectations about product performance, and if a product meets or exceeds those expectations, it is more likely to satisfy them.

Question 12

"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 (CLV) measures the total amount of revenue that a customer generates for a business over the duration of the relationship. Losing a customer means losing all of the revenue that they would have potentially generated, which can have a significant impact on long-term profits for the business.

Question 13

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, which involves consumers in creating and sharing marketing content for a brand or product. In this case, Kao Corp. is leveraging the creativity and influence of teenage girls to promote their deodorant product.

Question 14

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 a marketing strategy that focuses on managing detailed information about individual customers and carefully managing customer touchpoints to maximize customer loyalty. The goal of CRM is to build strong, long-term relationships with customers by delivering personalized experiences and tailored messages throughout the customer journey. By using CRM software, marketing managers can track customer behavior, preferences, and interactions with the brand, allowing them to deliver relevant communications and offers that resonate with each customer.

Question 15

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 managing and analyzing customer interactions and data throughout the customer lifecycle with the goal of improving customer retention and driving sales growth. By delivering superior customer value and satisfaction, businesses can strengthen their customer relationships and increase customer lifetime value and customer equity. Partner relationship management (PRM) refers to managing relationships with business partners and suppliers rather than customers. Customer-perceived value and customer lifetime value are related concepts but do not encompass the full scope of customer relationship management.

Question 16

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 be an effective strategy to increase customer satisfaction by making products or services more affordable and accessible to a wider range of customers. This can also create a perception of value and increase customer loyalty.

Question 17

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 customers creating commercials for the restaurant, which is a form of consumer-generated marketing. This type of marketing relies on customers to create content about the brand or product, which can be shared on social media or other platforms to create buzz and engagement.

Question 18

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 past, present, and future value of the customer to the company. It is a valuable metric for companies to measure, as it helps them understand the long-term value of their customer base and inform their marketing and customer retention strategies.

Question 19

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 by a hotel to a guest who often stays in the hotel is an example of a frequency marketing program, which is aimed at rewarding repeat customers and encouraging them to continue doing business with the company.

Question 20

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, as the manufacturer is encouraging customers to become members of their website and providing them with exclusive benefits such as exercise tips and discounts.

Quiz 1: Marketing: Creating Customer Value and Engagement

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?

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

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

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 final step in the marketing process is ________.

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

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 ________.

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

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

"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 ________.

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

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 ________.

Customer equity refers to ________.

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