Question 1

Customer-perceived value depends on the product's perceived performance relative to a buyer's expectations.

Accepted Answer

The answer of Customer-perceived value depends on the product's perceived...

Question 2

Amazon.com leverages relationships with its customers by offering them 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 ________.

Accepted Answer

By recommending related products to customers based on their previous purchases, Amazon.com is able to capture a greater share of that customer's purchases, or share of customer. This means that the customer is more likely to continue buying from Amazon.com rather than seeking out other retailers, increasing the company's share of the customer's overall spending.

Question 3

The cost of attracting new customers is thought to be ________ than the cost of retaining existing customers.

Accepted Answer

The cost of attracting new customers is generally thought to be five times higher than the cost of retaining existing customers. This is a widely accepted marketing principle, emphasizing the importance of customer retention strategies.

Question 4

When the economy tightens,customer loyalty and customer retention become ________ for marketers.

Accepted Answer

When the economy tightens, customers may have less disposable income and may be more selective in their purchasing decisions. This makes customer loyalty and customer retention more important for marketers to maintain a steady revenue stream.

Question 5

________ is the total combined customer lifetime values of all the company's current and potential customers.

Accepted Answer

Customer equity is defined as the sum of the lifetime values of all a company's current and potential customers. It measures the total value of a firm's customer base, a key driver of a firm's long-term profitability.

Question 6

If a product's performance falls short of the customer's expectations,the buyer will be dissatisfied.

Accepted Answer

If a product does not meet the customer's expectations, it is likely that they will be dissatisfied with their purchase. Therefore, the statement is true.

Question 7

Customer-perceived value is defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Accepted Answer

Customer-perceived value is indeed defined as the customer's evaluation of the perceived difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Question 8

The final step in the marketing process is ________.

Accepted Answer

The final step in the marketing process is to capture value from customers, which is the process of converting a customer's purchase into revenue for the company. This involves setting prices that customers are willing to pay, delivering products or services that meet their needs, and ensuring satisfaction to encourage repeat business. Creating customer loyalty and lifetime value are important components of successful marketing strategies, but they are not the final step in the process. Understanding the marketplace and designing a customer-driven marketing strategy are earlier steps in the process that help inform the final step of capturing value from customers.

Question 9

A highly profitable,short-term customer is a ________.

Accepted Answer

A highly profitable, short-term customer is referred to as a "butterfly" because they are attracted to a company's offering for a brief period before moving on to another opportunity. While they may generate a significant amount of revenue in the short-term, they are not loyal customers and are unlikely to make repeat purchases.

Question 10

Which of the following has helped to move old marketing practices to newer,customer-engagement marketing efforts?

Accepted Answer

Digital and social media have revolutionized marketing by enabling direct and interactive engagement with customers, facilitating real-time communication, and allowing for personalized marketing strategies.

Question 11

Frequent flyer programs offered by airlines are an example of a ________.

Accepted Answer

Frequent flyer programs offered by airlines are a classic example of frequency marketing programs. These programs aim to reward loyal customers and encourage them to keep doing business with the company. In this case, airlines use frequent flyer programs to incentivize their customers to fly with them more often and earn points for rewards, such as free flights or access to exclusive lounges.

Question 12

In its broadest sense,customer relationship management (CRM)is a customer data management activity.

Accepted Answer

The answer of In its broadest sense,customer relationship management (CRM)is...

Question 13

In the contemporary environment,many companies find that they are competing for shares of flat or fading markets,and as a consequence must work to retain existing customers.Which of the following factors does NOT explain the intense competition for share of market?

Accepted Answer

All of the factors mentioned in options A to D are valid reasons for the intense competition for a share of the market. Therefore, option E is incorrect as it states that none of the factors explains the intense competition.

Question 14

The text classifies customers into four relationship groups,according to the customers' profitability and projected loyalty.________ are the customers with the highest profit potential and strong loyalty.

Accepted Answer

True friends are the customers with the highest profit potential and strong loyalty, according to the text's classification of customers into four relationship groups.

Question 15

Which of the following is one of the reasons customer-engagement marketing has become more meaningful to organisations and consumers?

Accepted Answer

With the rise of technology and access to information, consumers are becoming more informed and empowered. This means that traditional marketing methods are no longer as effective, and organisations need to engage with customers in more meaningful ways. Customer-engagement marketing allows for a two-way conversation between the organisation and the customer, creating a more personalised experience and building trust.

Question 16

A customer-centred organisation seeks to maximise customer satisfaction.

Accepted Answer

The answer of A customer-centred organisation seeks to maximise customer...

Question 17

Delivering superior customer value and customer satisfaction are the two keys to building lasting customer relationships.

Accepted Answer

Delivering superior customer value and satisfaction is essential for building strong and lasting customer relationships. A company that consistently provides its customers with great value and meets or exceeds their expectations can earn their loyalty and repeat business. Conversely, failing to deliver on these fronts can result in dissatisfied customers who may take their business elsewhere.

Question 18

Building and maintaining profitable value-laden relationships with customers of a company is called ________.

Accepted Answer

Customer relationship management (CRM) is a strategy that focuses on developing and maintaining long-term relationships with customers. It involves using data and technology to manage interactions with customers and provide personalized experiences that create value for both the customer and the company. A high level of customer lifetime value and customer perceived value can be achieved through effective CRM practices. Database marketing, on the other hand, is a tactic that involves using customer data to target specific marketing messages to individuals, while societal marketing is a concept that focuses on the ethical and social responsibility of marketing activities.

Question 19

How can an organisation increase brand engagement?

Accepted Answer

The answer of How can an organisation increase brand engagement?
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Question 20

The ultimate aim of customer relationship management is to produce ________.

Accepted Answer

The ultimate aim of customer relationship management is to build strong, long-lasting relationships with customers, leading to high levels of customer satisfaction, loyalty, and advocacy. This, in turn, results in higher customer equity, which refers to the total value of customer relationships that a company builds up over time. Customer equity takes into account not only the current sales volume but also the potential value of customers for future sales and referrals. Therefore, choice A is the best answer, as it reflects the ultimate goal of CRM.

Quiz 1: Marketing: Creating and Capturing Customer Value