Question 1

Database marketing is not effective in identifying potential customers as it increases the marketing and promotion costs.

Accepted Answer

Database marketing is effective in identifying potential customers by analyzing their demographic and behavioral data. This helps in targeting the right audience with personalized marketing messages, leading to higher conversion rates and lower promotional costs.

Question 2

The grassroots marketing approach relies on conventional and traditional marketing strategies.

Accepted Answer

The grassroots marketing approach relies on non-traditional, unconventional strategies that utilize word-of-mouth marketing, community engagement, and social media to promote and spread awareness about a product or service.

Question 3

Quick-response merchandising is a just-in-time strategy that reduces the time merchandise is held in inventory,resulting in substantial cost savings.

Accepted Answer

Quick-response merchandising is a just-in-time strategy that aims to reduce the time merchandise is held in inventory in order to lower costs. Thus, the statement is true.

Question 4

Viral marketing involves efforts that allow satisfied customers to spread the word about products to other customers.

Accepted Answer

Viral marketing is a technique used to spread information about a product or service through word-of-mouth or online platforms. This is done by creating content that is interesting or entertaining enough to be shared with others, resulting in an increase in brand awareness and customer loyalty. The concept is based on the idea that satisfied customers are more likely to recommend a product to others, which will lead to an increase in sales and revenue. Hence, the statement is true.

Question 5

Marketers can use grassroots marketing approach to develop long-lasting,individual relationships with loyal customers.

Accepted Answer

Grassroots marketing focuses on building relationships with customers through community involvement, personal connections, and word-of-mouth promotion. This approach can result in stronger, more loyal customer bases and deeper connections between businesses and their customers.

Question 6

An internal partnership consists of a relationship that involves long-term exchanges of goods or services in return for cash.

Accepted Answer

An internal partnership is a relationship between two or more departments or teams within the same organization. It involves collaboration and sharing of resources, skills, and knowledge to achieve common goals, but it does not necessarily involve exchanges of goods or services for cash.

Question 7

The supply chain management process has no influence on the relationship of the company with the product's end users.

Accepted Answer

The supply chain management process does have an influence on the relationship of the company with the product's end users. This is because the supply chain process includes activities such as marketing, distribution, and customer service which all directly affect the end user's satisfaction and perception of the product and the company. A well-managed supply chain can enhance customer experience and build brand loyalty, while a poorly managed one can lead to dissatisfaction and negative reviews.

Question 8

The term "lifetime value of a customer" refers to revenues and intangible benefits such as referrals and customer feedback a customer brings to the seller over an average lifetime of their relationship,less the amount the company must spend to acquire,market to,and service the customer.

Accepted Answer

The definition provided accurately describes the term "lifetime value of a customer."

Question 9

A strategic alliance is a partnership in which two or more companies combine resources and capital to create competitive advantages in a new market.

Accepted Answer

This is the definition of a strategic alliance. Companies come together to combine forces and resources in order to achieve competitive advantages in a new or existing market.

Question 10

Many grocery chains require customers to have a membership card in order to receive sale prices or other discounts.These grocery chains are practicing database marketing.

Accepted Answer

Database marketing is a strategy that involves collecting customer data in a database and using that information to personalize marketing efforts, such as offering discounts or promotions to specific customers based on their purchase history. By requiring customers to have a membership card to receive sale prices or discounts, grocery chains are able to collect data on their customers and use it to inform their marketing tactics.

Question 11

Companies that excel at satisfying customers provide their employees with the necessary tools to address customer requests and problems in a timely manner.

Accepted Answer

Empowering employees with the tools they need to address customer needs is a key factor in delivering excellent customer service.

Question 12

Cobranding is a cooperative arrangement in which two or more businesses team up to closely link their names on a single product.

Accepted Answer

Cobranding is indeed a cooperative arrangement in which multiple businesses come together and associate their brand names with a single product or service.

Question 13

The payback period in a customer relationship is the length of time it takes to break even on customer acquisition costs.

Accepted Answer

The payback period in a customer relationship is indeed the length of time it takes to break even on customer acquisition costs. This means that after this period, the revenue generated from the customer should exceed the amount spent to acquire them.

Question 14

One of the main goals of internal marketing is to keep the employees informed about corporate goals,strategies,and customer needs.

Accepted Answer

Internal marketing is the process of promoting the company's values, vision, and goals to its employees. It aims to help employees understand how their roles contribute to achieving broader company objectives, which can boost employee motivation and job satisfaction.

Question 15

​At the third level of relationship marketing,buyer-seller relationships are transformed structurally into business partnerships.

Accepted Answer

At the third level of relationship marketing, a strategic alliance is formed between buyer and seller where the relationship is transformed into a partnership to achieve mutual benefits.

Question 16

Buyer-seller relationships between companies involve working together to provide advantages that benefit both parties.

Accepted Answer

Buyer-seller relationships are built on mutual benefits, where companies work together to create advantages that help both parties achieve their goals. This includes things like cost savings, improved efficiencies, increased sales, and other advantages that come from collaborating closely with suppliers or customers. Ultimately, buyer-seller relationships are designed to create sustainable value over the long term, and both parties need to be committed to achieving this outcome.

Question 17

The buyer and seller exchanges in transaction-based marketing are characterized by limited communications and little or no ongoing relationships.

Accepted Answer

In transaction-based marketing, the focus is on a single transaction and there is usually limited communication and no ongoing relationship between the buyer and seller.

Question 18

​In level 1 of relationship marketing,purchasers on a company's relationship marketing continuum receive specialized services and value-added benefits that may not be available from another firm.

Accepted Answer

Level 1 of relationship marketing focuses on basic transactional exchanges and does not typically involve specialized services or value-added benefits, which are more characteristic of higher levels of relationship marketing.

Question 19

Assume that Ford has established a strategic alliance with Michelin to design an exclusive line of tires for Ford automobiles.The Ford-Michelin strategic alliance would be a horizontal alliance.

Accepted Answer

A horizontal alliance typically occurs between companies in the same industry and at the same stage of production. Ford and Michelin operate in different industries (automobile manufacturing and tire manufacturing, respectively), making this a vertical alliance.

Question 20

A firm forming a partnership with another firm at the same level in the supply chain is creating a horizontal alliance.

Accepted Answer

A horizontal alliance involves firms at the same level in the supply chain forming a partnership.

Quiz 11: Relationship Marketing and Customer Relationship Management Crm