Question 1

Customers will always select the product that provides the greatest value at the lowest price.

Accepted Answer

While price and value are certainly factors in a consumer's decision-making process, other factors such as brand reputation, customer service, and personal preferences can also play a significant role in their product selection. Therefore, it is not always true that customers will choose the product that offers the greatest value at the lowest price.

Question 2

Customer satisfaction is based on a comparison of the consumer's pre- purchase expectations and their actual perceptions of the product or service.

Accepted Answer

This statement is true. Customer satisfaction is determined by whether the actual product or service received met or exceeded the customer's expectations before their purchase.

Question 3

When Campbell Soup sets high standards for suppliers and then selects only those few who are willing to meet those standards, their joint effort to constantly improve performance is an example of a(n):
A) horizontally integrated manufacturing.
B) customer value delivery network.
C) joint venture.
D) value added production synergy.
E) integrated production operations management.

Accepted Answer

Campbell Soup's approach of setting high standards for suppliers and selecting only those who can meet them is an example of creating a strong customer value delivery network. By ensuring that its suppliers meet certain standards, Campbell Soup can deliver high-quality products to its customers, which helps to strengthen its reputation and competitive position in the market. This approach also promotes joint effort between the company and its suppliers to constantly improve performance, which is key to long-term success.

Question 4

The factors that influence customer satisfaction include: past buying experiences; the information and promises made by marketing organisations and what customers think is fair value based on the price they paid.

Accepted Answer

Past buying experiences, marketing communication, and perceived value are among the top factors that influence customer satisfaction according to research in the field.

Question 5

Customer satisfaction refers to an objective measure of a product's fitness for purpose.

Accepted Answer

Customer satisfaction is a subjective measure that reflects how a product or service meets or exceeds customer expectations, not an objective measure of the product's fitness for purpose.

Question 6

The customer's conscious evaluation of a product or service feature, or of the product or service itself is known as customer satisfaction.

Accepted Answer

Customer satisfaction refers to the conscious evaluation made by a customer regarding a product or service feature or the product or service itself.

Question 7

Basically, there is no cost difference between retaining current customers and acquiring new ones.

Accepted Answer

Acquiring new customers often involves marketing and advertising costs, while retaining current customers involves efforts in customer service and loyalty programs. Therefore, there may be a cost difference between the two.

Question 8

Activities typically associated with internal marketing include: training, empowerment and employee incentives.

Accepted Answer

Internal marketing is focused on ensuring employees are motivated, engaged and committed to the organization's goals, therefore common activities associated with internal marketing include providing training and development opportunities, empowering employees to make decisions and offering incentives to encourage desired behaviors.

Question 9

A company that enjoys high levels of loyalty, especially among its most profitable customers would be said to enjoy high levels of customer equity.

Accepted Answer

Customer equity refers to the total lifetime value of a company's customer base, taking into account factors such as loyalty, profitability, and retention. A company with high levels of loyalty, particularly among its most valuable customers, would therefore be said to have high levels of customer equity.

Question 10

More companies today are patnering with external organisations such as suppliers and distributors to improve the performance of the value delivery network.

Accepted Answer

This statement is true. Companies are increasingly recognizing the importance of collaborating with their suppliers, distributors, and other external partners to create a more efficient and effective value delivery network. By working together, these organizations can streamline processes, reduce costs, and improve overall performance.

Question 11

Partners in the value delivery network comprise the company, its suppliers, its distributors and its customers.

Accepted Answer

Partners in the value delivery network include the company, its suppliers, its distributors, and its customers. They all work together to create value and deliver products or services to end-users.

Question 12

When product performance exceeds customer expectations, there are two possible outcomes: the customer may be either highly satisfied or highly dissatisfied.

Accepted Answer

When product performance exceeds customer expectations, the customer is typically highly satisfied, not dissatisfied.

Question 13

Frequeny marketing programmes offer customers membership of a club which enables them to access special services and are designed to recognise the customer's worth to the business.

Accepted Answer

The answer of Frequeny marketing programmes offer customers membership of...

Question 14

If a customer has very high expectations and the product falls short of those expectations, the customer will always be dissatisfied.

Accepted Answer

Customer satisfaction is influenced by a variety of factors including how a company responds to and resolves issues, the customer's initial expectations, and the perceived value of the product or service. Even if a product falls short of very high expectations, a customer may not always be dissatisfied if other aspects of the product or service experience are positive.

Question 15

Just as brand equity is a measure of the company's accumulated investment in building a brand identity, consumer equity is a measure of the company's accumulated investment in developing new market segments.

Accepted Answer

Consumer equity is a measure of the total lifetime value of the company's customer base, taking into account factors such as customer loyalty, satisfaction, and retention. It is not directly related to developing new market segments.

Question 16

If a customer feels that no product offers real value, one option is that the customer may forgo the purchase altogether.

Accepted Answer

If a customer perceives that no product offers real value, they are likely to not make a purchase rather than buying a product they do not find valuable.

Question 17

A customer's lifetime value can be considered as the sum total of all profits a given customer provides for the company over the entire length of time that the customer buys from the company.

Accepted Answer

Customer lifetime value (CLV) is indeed the sum total of all profits generated by a customer over the entire duration of their relationship with a company. This includes all purchases, repeat business, and referrals they bring in over time. Understanding CLV is important for companies because it helps them allocate their resources effectively to retain high-value customers and acquire new ones.

Question 18

Total customer satisfaction is mainly an image- based promotional device, since it costs no more to recruit new customers than to retain satisfied ones.

Accepted Answer

Total customer satisfaction is not just an image-based promotional device, but it also leads to customer loyalty and repeat business. It may cost more to recruit new customers than to retain satisfied ones.

Question 19

Which of the following is NOT one of the alternative philosophies or orientations under which organisations design and carry out marketing activities?
A) societal philosophy
B) natural philosophy
C) selling philosophy
D) marketing philosophy
E) production philosophy

Accepted Answer

The natural philosophy is not one of the alternative philosophies or orientations under which organisations design and carry out marketing activities. The other four are commonly recognized and studied in marketing literature: production philosophy, product philosophy, selling philosophy, and societal philosophy. The marketing philosophy, which emphasizes customer satisfaction through the creation of value, is the most widely accepted and practiced approach in modern marketing.

Question 20

While marketers must ensure that customer's orders are filled and delivered correctly, it is not up to marketers to follow- up on customer satisfaction.

Accepted Answer

It is important for marketers to follow-up on customer satisfaction as it helps in building a long-term relationship with customers and retaining them.

Quiz 2: Marketing: Delivering and Capturing Value