Question 1

When buyers make decisions which do not appear to maximise value, which of the following can be a plausible explanation?
A) The buyer may have standing decision rules in effect, such as buy the lowest priced offer.
B) The buyer may be determining value differently than is the seller.
C) The sale may be based upon an on- going relationship between buyer and seller.
D) all of the above
E) none of the above

Accepted Answer

All of the above options can be plausible explanations for buyers making decisions that do not appear to maximize value. Standing decision rules can lead buyers to choose options based on factors other than value, while differences in how buyers and sellers determine value can lead to differing perceptions of what maximizes value. On-going relationships can also lead buyers to prioritize factors beyond value, such as loyalty or personal connections with the seller.

Question 2

The best tool for a discount store to use to determine how its retail clerks respond to customers in wheelchairs would be to:
A) use role playing.
B) conduct several customer satisfaction surveys.
C) institute a complaint and suggestion system.
D) do exit interviews with customers.
E) use mystery shoppers.

Accepted Answer

Mystery shoppers would be the best tool for a discount store to use to determine how its retail clerks respond to customers in wheelchairs. This is because mystery shoppers can provide an unbiased and realistic view of the service provided to customers in wheelchairs, and can identify areas for improvement in a way that would not be possible through other methods such as customer satisfaction surveys, complaint and suggestion systems, or exit interviews. Role playing could be helpful, but it would not provide as accurate a picture of how clerks actually interact with customers in wheelchairs.

Question 3

Online retailer, Amazon.com, offers its customers music, videos, gifts, toys, consumer electronics, and office products, among other product items. Based on the customer's prior purchase history, the company recommends related CDs, books, or videos that might be of interest. This helps Amazon.com capture a greater_________ .
A) value proposition
B) customer base
C) share of customer
D) social network
E) customer ownership

Accepted Answer

By recommending related products based on the customer's prior purchase history, Amazon.com is able to capture a greater share of the customer's spending, increasing their share of customer.

Question 4

Companies derive many benefits from highly satisfied customers. According to the text, which of the following is NOT one of these benefits?
A) Satisfied customers are more likely to purchase the company's other brand offerings.
B) Satisfied customers are more likely to remain loyal for longer.
C) Satisfied customers are more efficient decision- makers.
D) Satisfied customers are less price sensitive.
E) Satisfied customers are more likely to spread favourable messages about the company or its products.

Accepted Answer

The text does not mention that satisfied customers are more efficient decision-makers as a benefit of customer satisfaction. The other options (A, B, D, and E) are all benefits listed in the text.

Question 5

Brand exchanges generated by consumers themselves are known as:
A) consumer value co- creation.
B) social networks.
C) consumer generated marketing.
D) consumer delivery value networks.
E) none of the above

Accepted Answer

Consumer generated marketing refers to any activity that involves consumers creating and sharing their own marketing materials, whether it's through social media, word of mouth, or other channels. This can include things like user-generated content, customer reviews, or consumer-created ads. It is not the same as consumer value co-creation, which refers to the process of involving customers in the design, development, and delivery of products and services, or social networks, which are online platforms that allow people to connect and interact with each other.

Question 6

A person, household or company whose revenues over time exceed by an acceptable amount the company costs of attracting, selling and servicing them is defined as a(n):
A) total quality customer.
B) appreciating customer.
C) profitable customer.
D) value- added customer.
E) none of the above

Accepted Answer

The definition given in the question describes a profitable customer, as they generate more revenue than the costs associated with acquiring and serving them. Total quality customer, appreciating customer, and value-added customer are not synonyms for this definition.

Question 7

_________with a purchase depends upon the product's performance relative to a buyer's expectations.
A) Customer loyalty
B) Customer delivered value
C) Customer satisfaction
D) Customer purchase intention
E) all of the above

Accepted Answer

Customer satisfaction is the feeling of pleasure or disappointment that results from comparing a product's perceived performance to expectations. If the product meets or exceeds expectations, the customer is satisfied; if it falls short, the customer is dissatisfied. Therefore, customer satisfaction is closely linked to the product's performance relative to the buyer's expectations.

Question 8

Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc., follows the _________concept in doing business.
A) production
B) social responsibility
C) product
D) selling
E) marketing

Accepted Answer

The marketing concept focuses on understanding and meeting the needs and wants of the customers. Johnny Inc.'s focus on achieving customer satisfaction and designing products that meet customer requirements is a clear example of the marketing concept.

Question 9

In a customer- centred organisation, one of the most difficult areas for marketing managers to measure is:
A) share of customer.
B) ROMI of sales activity.
C) ROMI of social media.
D) brand equity.
E) ROMI of advertising expenditure.

Accepted Answer

The answer of In a customer- centred organisation, one of...

Question 10

Which of the following statements BEST encapsulates the underlying logic of customer lifetime value?
A) Companies should continually strive to increase the value of its products and services for the lifetime of a defined market segment.
B) Companies should focus their efforts on locating and serving the interests of the most profitable market segments.
C) Companies should seek to profit from both individual transactions and the overall relationship with a customer.
D) Companies should use de- marketing to reduce the size of less profitable market segments.
E) Companies should be prepared to make little profit from individual transactions and instead focus on the value generated by the term of its relationship with a customer.

Accepted Answer

Customer lifetime value is the total value a customer brings to a company over the duration of their relationship. It emphasizes the importance of long-term customer relationships, rather than just focusing on individual transactions or maximizing profit from a specific market segment. Therefore, option E is the best choice as it suggests that companies should prioritize the overall value generated from maintaining long-term relationships with customers, even if it means making little profit from individual transactions.

Question 11

According to the text, employee satisfaction with a company is important because:
A) employee satisfaction is an important societal responsibility.
B) satisfied employees are less likely to engage in industrial action.
C) satisfied employees are less likely to demand salary increases.
D) employee satisfaction is associated with customer satisfaction.
E) none of the above

Accepted Answer

The text states that employee satisfaction is important because it is associated with customer satisfaction. When employees are satisfied, they are likely to provide better customer service and create a positive experience for customers, leading to higher satisfaction and loyalty.

Question 12

Totally satisfied customers are more likely to be:
A) reliable.
B) delighted.
C) complete.
D) accountable.
E) loyal.

Accepted Answer

Totally satisfied customers are more likely to be loyal, meaning they are committed to continually doing business with the company and recommending it to others.

Question 13

At its most basic level, the need for customer retention stems from the fact that:
A) market share is derived from winning new customers.
B) intrusion marketing costs more than attraction marketing.
C) low growth industries make brand switching very easy.
D) all of the above
E) none of the above

Accepted Answer

The answer of At its most basic level, the need...

Question 14

Brunswick Trucking Inc. asks its customers to fill out a form on which they are asked to list what they liked and disliked about the company's service. The trucking company also has a toll- free number its customers can call to provide immediate feedback. The trucking company is using_________ to track and measure customer satisfaction.
A) a complaint and suggestion system
B) a customer satisfaction survey
C) a value gap analysis
D) a value- assessment network
E) an exit interview

Accepted Answer

The trucking company is using a complaint and suggestion system, as they are collecting feedback through forms and a toll-free number for immediate feedback.

Question 15

Select the term that best completes the following sentence. According to a recent study reported in the text found that _________of consumers say that they would rather get the best brand than the best price.
A) 65 per cent
B) 35 per cent
C) 90 per cent
D) 55 per cent
E) 75 per cent

Accepted Answer

The answer of Select the term that best completes the...

Question 16

An evaluation comparison between a product's performance and the buyer's expectations is the basis for determining:
A) customer loyalty.
B) customer delivered value.
C) total customer value.
D) customer satisfaction.
E) none of the above

Accepted Answer

The evaluation comparison between a product's performance and the buyer's expectations is the foundation for determining customer satisfaction. Customer loyalty, customer delivered value, and total customer value may also be influenced by customer satisfaction, but they are not directly related to the evaluation comparison between product performance and buyer expectations.

Question 17

_________involves creating, maintaining and enhancing strong relationships with customers and other stakeholders.
A) Just- in- time marketing
B) Turbomarketing
C) Relationship marketing
D) Customer Relations
E) Product value marketing

Accepted Answer

Relationship marketing involves creating, maintaining and enhancing strong relationships with customers and other stakeholders. Just-in-time marketing is a strategy that involves delivering marketing messages to consumers at the right time. Turbomarketing is a term that does not exist in marketing literature. Customer Relations is a term that is often used interchangeably with customer service, but it is not a specific marketing strategy. Product value marketing is a strategy that involves emphasizing the value proposition of a product or service.

Question 18

Acme company has organised a series of seminars for its employees. These seminars are designed to educate staff about the company's new mission and strategic plan. These seminars are BEST described as:
A) capacity planning and development.
B) employee education programmes
C) human resource development.
D) internal marketing.
E) corporate promotion and advertising.

Accepted Answer

The answer of Acme company has organised a series of...

Question 19

Many companies partner with external organisations such as suppliers and distributors in their efforts to deliver their brand offerings to the market. Collectively, these partnerships are known as:
A) horizontally integrated network.
B) value delivery network.
C) external marketing network.
D) vertically integrated network.
E) none of the above

Accepted Answer

The partnerships between companies and external organizations such as suppliers and distributors collectively form a value delivery network. This network is focused on delivering customer value and satisfying their needs through the various partners involved in the process. The other options (A, C, D, E) are not accurate descriptions of this type of network.

Question 20

One reason for emphasising total customer satisfaction is that:
A) customers who are merely satisfied may easily switch suppliers.
B) even failing to meet high goals will lead to better products and better customer satisfaction.
C) it costs much more to satisfy customers but generally gives firms good reputations.
D) all of the above
E) none of the above

Accepted Answer

Customers who are only satisfied may easily switch to a competitor, so emphasising total customer satisfaction is important to retain them.

Quiz 2: Marketing: Delivering and Capturing Value

When buyers make decisions which do not appear to maximise value, which of the following can be a plausible explanation?

The best tool for a discount store to use to determine how its retail clerks respond to customers in wheelchairs would be to:

Companies derive many benefits from highly satisfied customers. According to the text, which of the following is NOT one of these benefits?

Brand exchanges generated by consumers themselves are known as:

A person, household or company whose revenues over time exceed by an acceptable amount the company costs of attracting, selling and servicing them is defined as a(n) :

_________with a purchase depends upon the product's performance relative to a buyer's expectations.

Marketers at Johnny Inc. believe in putting their customers ahead of everything else. Their products are carefully designed to meet customer requirements and the entire focus is on achieving customer satisfaction. Johnny Inc., follows the _________concept in doing business.

In a customer- centred organisation, one of the most difficult areas for marketing managers to measure is:

Which of the following statements BEST encapsulates the underlying logic of customer lifetime value?

According to the text, employee satisfaction with a company is important because:

Totally satisfied customers are more likely to be:

At its most basic level, the need for customer retention stems from the fact that:

Select the term that best completes the following sentence. According to a recent study reported in the text found that _________of consumers say that they would rather get the best brand than the best price.

An evaluation comparison between a product's performance and the buyer's expectations is the basis for determining:

_________involves creating, maintaining and enhancing strong relationships with customers and other stakeholders.

Acme company has organised a series of seminars for its employees. These seminars are designed to educate staff about the company's new mission and strategic plan. These seminars are BEST described as:

Many companies partner with external organisations such as suppliers and distributors in their efforts to deliver their brand offerings to the market. Collectively, these partnerships are known as:

One reason for emphasising total customer satisfaction is that: