Question 1

Percentage or number of customers who move from one level to next level in buying decision process is called
A)conversion rates
B)marketing rates
C)shopping rates
D)loyalty rates

Accepted Answer

Conversion rates measure the percentage of customers who take a desired action, moving from one stage of the buying process to the next, such as from viewing a product to making a purchase.

Question 2

Customized products and services for customers and interaction to individual customers are part of
A)retailers management
B)customer relationship management
C)company relationship management
D)supplier management

Accepted Answer

Customer Relationship Management (CRM) involves strategies, practices, and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle. This includes customizing products and services to meet individual customer needs and maintaining a personalized interaction with each customer to enhance customer satisfaction and loyalty.

Question 3

Company's 'customer relationship capital' is another name of
A)satisfied customers
B)dissatisfied customers
C)customer retention
D)customer conversion

Accepted Answer

A

Question 4

Company's monetary, time and energy cost, all are included in
A)total customer cost
B)psychological cost
C)personal benefits
D)image benefits

Accepted Answer

Total customer cost includes not just the monetary cost, but also the time, energy, and psychological costs associated with purchasing and using a product or service.

Question 5

A person or company that yields a revenue more than incurred costs of selling and serving is called
A)dissatisfaction
B)superior value
C)profitable customers
D)satisfied customers

Accepted Answer

Profitable customers are those who yield a revenue that exceeds the costs associated with selling to and serving them. This means they generate more income for the company than what it costs the company to maintain the relationship, making them financially beneficial to the business.

Question 6

Customers lifetime purchases that generate net present value of future profit streams is called
A)customer lifetime value
B)customer purchases value
C)customer cost incurred
D)customer relationships

Accepted Answer

Customer lifetime value refers to the total worth to a business of a customer over the whole period of their relationship. It's an important metric because it helps businesses understand the value a customer brings over time, allowing for better allocation of marketing resources and strategies to retain valuable customers.

Question 7

'total customer benefits' includes
A)product benefits
B)services benefit
C)image benefit
D)all of above

Accepted Answer

Total customer benefits include product benefits, services benefits, and image benefits, encompassing all aspects of a product or service that provide value to the customer.

Question 8

Programs designed for customers which is limited to any affinity group are classified as
A)club membership programs
B)royalty programs
C)loyalty programs
D)group membership programs

Accepted Answer

Club membership programs are designed for customers limited to a specific affinity group, offering exclusive benefits to members.

Question 9

First step in analysis of customer value is to
A)identify customers value attributes
B)assessing attributes importance
C)assessing company\s performance
D)assessing competitors performance

Accepted Answer

Identifying customers' value attributes is the first step in analyzing customer value, as it involves understanding what aspects or features of a product or service are valued by customers.

Question 10

Difference between customers evaluation including all costs incurred and benefits is called
A)customer perceived value
B)company market value
C)customer affordability
D)customer reliability

Accepted Answer

Customer perceived value refers to the difference between the total customer value (all the benefits a customer expects from a product) and the total customer cost (the sum of all costs a customer expects to incur from a product). This concept is crucial in understanding how customers evaluate products and make purchasing decisions.

Question 11

Process of building, organizing and using databases of customers to build customer relationship is classified as
A)database marketing
B)customer database
C)detailed database
D)company database

Accepted Answer

Database marketing involves the process of building, organizing, and using databases of customers specifically to build and enhance customer relationships, making it the correct choice.

Question 12

Perceived monetary value of all benefits which customers expect from a given product because of brand image is called
A)total customer benefit
B)total customer cost
C)total economic cost
D)total functional cost

Accepted Answer

Total customer benefit encompasses the perceived monetary value of the economic, functional, and psychological benefits customers expect from a product or service, influenced significantly by the brand's image.

Question 13

System includes all experiences while using market offering is classified as
A)customer proposition
B)value delivery system
C)product proposition
D)distinctive proposition

Accepted Answer

The term "value delivery system" refers to the comprehensive process and experience a customer goes through when interacting with a market offering. This includes everything from product discovery, evaluation, purchase, use, and post-purchase support. It's a holistic view that encompasses all aspects of how value is delivered to the customer, making choice B the correct answer.

Question 14

Number of customers or potential customers who will help in company's growth is classified as
A)customer base
B)retailer base
C)distributors base
D)marketers base

Accepted Answer

Customer base refers to the group of customers or potential customers who are likely to contribute to a company's growth through their continued patronage or potential for future transactions.

Question 15

Any occasion on which brand or product is encountered by end customers is called
A)customer touch point
B)company touch point
C)retailers touch point
D)relationship touch point

Accepted Answer

Customer touch point refers to any interaction or point of contact between a brand (or product) and its customers. This can include a wide range of encounters, from in-store experiences and customer service interactions to digital engagements through websites, social media, or email communications.

Question 16

Technique which tries to identify real cost of serving an individual customer is called
A)activity based accounting
B)cost based accounting
C)price based accounting
D)turnover based accounting

Accepted Answer

Activity-based accounting (also known as activity-based costing) is the technique that tries to identify the real cost of serving an individual customer by analyzing all activities performed for that customer and assigning a cost to each activity based on actual consumption.

Quiz 2: Customer Value and Relationship Management

Percentage or number of customers who move from one level to next level in buying decision process is called

Customized products and services for customers and interaction to individual customers are part of

Company's 'customer relationship capital' is another name of

Company's monetary, time and energy cost, all are included in

A person or company that yields a revenue more than incurred costs of selling and serving is called

Customers lifetime purchases that generate net present value of future profit streams is called

'total customer benefits' includes

Programs designed for customers which is limited to any affinity group are classified as

First step in analysis of customer value is to

Difference between customers evaluation including all costs incurred and benefits is called

Process of building, organizing and using databases of customers to build customer relationship is classified as

Perceived monetary value of all benefits which customers expect from a given product because of brand image is called

System includes all experiences while using market offering is classified as

Number of customers or potential customers who will help in company's growth is classified as

Any occasion on which brand or product is encountered by end customers is called

Technique which tries to identify real cost of serving an individual customer is called