Question 1

The most desirable customers have low recency, high frequency, and high monetary values.

Accepted Answer

The answer of The most desirable customers have low recency,...

Question 2

Most customer segments' expectations of quality are not unrealistic.

Accepted Answer

Most customer segments have realistic expectations of quality based on their experiences and market standards, although there may be some exceptions.

Question 3

When creating a customer satisfaction survey, questions about demographics should be located at the beginning of the survey.

Accepted Answer

Demographic questions are typically placed at the end of a survey to avoid influencing the respondent's answers to the main questions and to maintain engagement with more interesting content first.

Question 4

A customer's perception of quality and satisfaction can't be measured with precision.

Accepted Answer

Customer perception of quality and satisfaction is subjective and influenced by personal experiences, making it difficult to measure with precision.

Question 5

In calculating customer lifetime value (CLV), time inputs include: (1) a decent guesstimate at the likely retention rate from year to year and (2) a sense of the average lifespan duration for the particular product or brand.

Accepted Answer

Calculating CLV involves estimating the retention rate and the average lifespan of a customer with the product or brand to predict future revenue.

Question 6

Hygiene and motivating factors are analogous to core and value-added.

Accepted Answer

Hygiene factors are similar to core elements as they prevent dissatisfaction, while motivating factors add value and drive satisfaction, akin to value-added elements.

Question 7

Verizon is running two TV ads to attract new customers.Ad A is run once a week, and it costs $20 per showing.Ad B is run once a month and costs $100 per showing.The total annual acquisition cost is $2,240.

Accepted Answer

The total annual acquisition cost is $2,240. Ad A is run once a week, and it costs $20 per showing. So, the annual cost of Ad A is 52 * $20 = $1,040. Ad B is run once a month and costs $100 per showing. So, the annual cost of Ad B is 12 * $100 = $1,200. Therefore, the total annual acquisition cost is $1,040 + $1,200 = $2,240.

Question 8

Discount Clothing Store is concerned that it is not satisfying its customers.The firm should consider mapping the shopping experience in order to fully understand its employees' perspective of how to best serve customers.

Accepted Answer

Mapping the shopping experience should focus on understanding the customers' perspective, not just the employees', to improve customer satisfaction.

Question 9

In terms of customer dissatisfaction, when things go wrong, research suggests that the primary means to regaining the customer is through an empowered frontline employee.

Accepted Answer

Research indicates that empowered frontline employees can effectively address and resolve customer issues, leading to increased customer satisfaction and loyalty.

Question 10

Core components don't affect a customer's satisfaction much if the core component is good.

Accepted Answer

Core components are the essential features of a product or service that meet the customer's basic needs. If the core component is good, it will provide the customer with the satisfaction they are looking for, regardless of the other components.

Question 11

Surveys are ideal instruments to obtain customers' perceptions.

Accepted Answer

Surveys are designed to gather information directly from respondents, making them effective for capturing customers' perceptions, opinions, and feedback.

Question 12

Recently, companies are charging their loyal customers more, figuring that the loyals like the brand so much that they're price insensitive.

Accepted Answer

Some companies have adopted a strategy of charging loyal customers more, assuming that their brand loyalty makes them less sensitive to price changes.

Question 13

CRM databases contain demographics, lifestyle data, and Internet info, but they should not contain contact information because of privacy laws.

Accepted Answer

CRM databases can contain contact information, but they must comply with privacy laws and regulations regarding data protection and user consent.

Question 14

When calculating the acquisition cost for a new customer, a company can use the amount redeemed on coupons from past customers.

Accepted Answer

The acquisition cost for a new customer should be based on the expenses directly related to acquiring that customer, not on the amount redeemed on coupons by past customers.

Question 15

If marketers want to be listened to by the top executives, they need to translate marketing metrics into finance metrics.

Accepted Answer

Marketers need to align their metrics with financial outcomes to demonstrate the impact of marketing on the company's bottom line, which is a primary concern for top executives.

Question 16

Taco Bell uses the RFM matrix to determine its most valuable customers.Recency is weighted at a 5, frequency is weighted at a 4, and monetary is valued at a 3.Customer A has a score of R=2, F=9, M=1.Customer A's RFM score is 49.

Accepted Answer

The answer of Taco Bell uses the RFM matrix to...

Question 17

The wiggle room between the low, adequate level of expectations and somewhere slightly above the middle, predicted level of expectations is referred to as a "zone of tolerance," which is a range of performance that the customer would deem acceptable.

Accepted Answer

The "zone of tolerance" is a concept in service quality that describes the range between what customers consider the minimum acceptable level of service and the desired level of service.

Question 18

Some marketers say that firms should seek to enhance not customer satisfaction but rather customers' perceptions of value.

Accepted Answer

Enhancing customers' perceptions of value can lead to increased loyalty and differentiation in the market, which can be more beneficial than just focusing on satisfaction.

Question 19

Computing customer lifetime value (CLV) involves three kinds of components: (1) numbers about money, (2) numbers about time, and (3) a financing finesse.

Accepted Answer

Computing CLV involves monetary values (revenue, costs), time-related factors (customer lifespan, discount rate), and financial calculations (net present value) to estimate the total value a customer brings over their lifetime.

Question 20

Jody wants to launch a CRM program as a tool that her company can use to track spending, and she tells her boss that a CRM program does not need to segment customers into different levels of loyalty nor does it need to reward certain customers.Jody is correct.

Accepted Answer

The answer of Jody wants to launch a CRM program...

Quiz 14: Customer Satisfaction and Customer Relationships