Question 1

Stratford Manufacturing is interested in total quality management and wants to learn more about its principles.Which of the following elements will Stratford not address in its investigation of TQM?
A) Improving customer satisfaction
B) Purchasing lowest-cost materials
C) Increasing employee participation
D) Strengthening supplier partnerships
E) Continuous product improvements

Accepted Answer

TQM focuses on improving quality and customer satisfaction through various elements like customer focus, continuous improvement, employee involvement, and supplier partnerships. Purchasing lowest-cost materials is not a principle of TQM.

Question 2

____ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor.
A) Benchmarking
B) Internal marketing
C) Total quality management
D) Marketing implementation
E) Empowerment

Accepted Answer

Empowerment involves giving employees the authority and responsibility to make decisions without seeking approval from a supervisor. This can be beneficial in a customer service environment as employees who interact directly with customers are empowered to make decisions that can improve customer satisfaction and loyalty.

Question 3

Which of the following is false with regard to customer lifetime value?
A) It is a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts.
B) It can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific timeframe.
C) It includes not only an individual's propensity to engage in purchases but also his or her strong word-of-mouth communication about the firm's products.
D) All customers have equal value to a firm.
E) It is the only gauge that incorporates revenue,expense,and customer behavior and adopts a customer-centric approach.

Accepted Answer

This statement is false because not all customers have equal value to a firm. Some customers may provide significant revenue and profits, while others may not contribute much. Determining the value of each customer helps a company to allocate resources more strategically and focus on high-value customers.

Question 4

The term "____" describes measuring and evaluating a firm's quality in products and processes against industry leaders.
A) total quality management
B) benchmarking
C) internal marketing
D) empowerment
E) implementation

Accepted Answer

The term "benchmarking" means measuring and evaluating a firm's quality, productivity, and competitiveness against industry leaders or best practices. This process helps firms identify areas where they need to improve and learn from the best practices of industry leaders to enhance their performance. Total quality management, empowerment, and implementation are management approaches, while internal marketing refers to promoting and communicating internally the value of a firm's products or services to its employees.

Question 5

The employees of Zingerman's Deli are its ____ customers.
A) external
B) extended
C) intended
D) internal
E) domestic

Accepted Answer

Internal customers refer to the employees of an organization who rely on each other to perform their jobs effectively. Therefore, the employees of Zingerman's Deli are its internal customers.

Question 6

The most important component of customer relationship management is
A) technology.
B) profits.
C) sales.
D) share of an individual customer's purchases.
E) relationships with customers.

Accepted Answer

Customer relationship management is all about building and maintaining strong relationships with customers. While technology, profits, sales, and share of an individual customer's purchases are all important aspects, they are secondary to fostering strong connections with customers. Without strong relationships, technology and sales strategies become meaningless. Therefore, the most important component of customer relationship management is relationships with customers.

Question 7

According to the text,the 80/20 rule suggests that
A) 80 percent of profits come from 20 percent of business customers.
B) 20 percent of profits come from 80 percent of business customers.
C) 20 percent of profits come from 80 percent of customers.
D) 80 percent of profits come from 20 percent of customers.
E) 80 percent of profits come from 20 percent of sales.

Accepted Answer

The text states that the 80/20 rule suggests that 80 percent of profits come from 20 percent of customers.

Question 8

A server in a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service.This is an example of
A) benchmarking.
B) individualism.
C) good training.
D) empowerment.
E) localized authority.

Accepted Answer

Empowerment refers to giving employees the authority to make decisions and take actions to solve customer problems without having to seek approval from higher-ups. In this scenario, the server is empowered to give a complimentary dessert to a dissatisfied customer, which not only resolves the immediate problem but also creates a positive experience for the customer.

Question 9

According to the textbook,which of the following statements is most accurate?
A) A small company always should organize by products,and a large organization should organize by regions.
B) There is no single approach to organizing a marketing unit that works well in all businesses.
C) Some organizations,by nature,have no specific internal structure.
D) Organizing by type of customer works best for companies with few groups of customers.
E) Using several bases for organizing leads to uncoordinated marketing management.

Accepted Answer

The textbook states that there is no one-size-fits-all approach to organizing a marketing unit, as different businesses have different needs and priorities. Therefore, option B is the most accurate statement. The other options either make sweeping generalizations or are not applicable to all types of organizations.

Question 10

Which of the following statements best describes total quality management?
A) A process aimed at improving product quality,increasing competition based on quality,and quality improvement among employees
B) The coordination of efforts directed at improving customer satisfaction,increasing employee participation,forming and strengthening supplier partnerships,and facilitating continuous quality improvements
C) A method of increasing overall financial benefits,emphasizing faster development of innovations,and improving customer satisfaction
D) A process directed at controlling marketing activities at a higher level of involvement among the firms' employees
E) An approach used to emphasize the need for quality among a firm's hierarchy of employees,beginning with top-level executives

Accepted Answer

Total quality management (TQM) involves the coordination of efforts to improve customer satisfaction, increase employee participation, form and strengthen supplier partnerships, and facilitate continuous quality improvements. TQM is a process-oriented approach that is aimed at achieving organizational excellence by continuously improving all processes that provide value to the customer. Option A is incorrect because it only focuses on product quality and employee improvement. Option C is incorrect because it only emphasizes financial benefits and innovation. Option D is incorrect because it relates to marketing activities rather than the overall approach to quality management. Option E is incorrect because it only focuses on the hierarchy of employees rather than the coordination of efforts to improve quality across the organization.

Question 11

Key factors in determining the best organizational structure for a marketing unit are the
A) preferences of top management.
B) fiscal resources of the firm.
C) number of employees.
D) diversity of the firm's products and the characteristics and needs of the people in the target market.
E) skill levels of employees.

Accepted Answer

The best organizational structure for a marketing unit depends on the diversity of the firm's products and the characteristics and needs of the people in the target market. This is because the marketing unit needs to be designed in such a way that it can effectively communicate with, and cater to the needs of, the target market. The preferences of top management, fiscal resources of the firm, number of employees, and skill levels of employees are all important factors, but they are secondary to the needs of the target market.

Question 12

In a traditional organization,marketing decisions are likely to be
A) very decentralized.
B) centralized at the top levels of the organization.
C) made by frontline employees.
D) made by frontline managers.
E) made only by the CEO.

Accepted Answer

In a traditional organization, marketing decisions are typically centralized at the top levels of the organization. This means that senior executives or a designated marketing department are responsible for making strategic decisions regarding product development, pricing, promotion, and distribution. While frontline employees and managers may have some input, the ultimate decision-making authority usually resides with the higher-ups.

Question 13

Customer relationship management systems cannot be effective unless they are developed as
A) market-share building tools.
B) profit-boosting tools.
C) selling tools.
D) cost-reduction tools.
E) relationship-building tools.

Accepted Answer

Customer relationship management (CRM) systems are designed to manage and improve a company's interactions and relationships with its customers. Therefore, the most effective CRM systems are those that are developed as relationship-building tools, rather than merely focusing on market share building or cost reduction. A strong emphasis on building positive relationships with customers can lead to increased customer satisfaction, loyalty, and ultimately, profits.

Question 14

If Apple measured and evaluated the quality of its goods,services,and processes as compared with those of the best-performing companies in the computer industry,it would be employing
A) uniform commitment to quality marketing.
B) internal marketing.
C) external marketing.
D) quality marketing.
E) benchmarking.

Accepted Answer

Benchmarking is the process of measuring and evaluating the quality of goods, services, and processes of an organization against the best-performing companies in the industry. Hence, if Apple measures and evaluates its products and processes compared to its top industry competitors, then it is using benchmarking as a quality improvement tool. Choices A, B, C, and D are incorrect because they do not relate to the process of benchmarking.

Question 15

Kate is upset because the bank did not credit her account with a deposit,which resulted in a returned check to Kate's landlord.When she was told the branch manager was on vacation,Kate resigned herself to waiting two weeks to have the matter resolved.To her surprise,though,the receptionist apologized for the error and drafted a letter to Kate's landlord while Kate waited.The bank was engaging in which type of decision-making strategy?
A) Employee empowerment
B) Centralized management
C) Structured
D) Immediate-focused
E) Product-focused

Accepted Answer

The bank is engaging in employee empowerment, where the receptionist took immediate action to resolve the issue without having to wait for the branch manager's approval.

Question 16

Meredith knows that whether she decides to interact with her customers in person,on the telephone,online,or by fax,that ____ should ultimately drive the marketing strategy.
A) marketing research
B) polite responsiveness
C) her customers
D) product availability
E) company goals

Accepted Answer

The sentence states that Meredith should base her marketing strategy on her customers regardless of the method of interaction. Therefore, the correct answer is C, her customers.

Question 17

Customer relationship management is facilitated by gathering useful data from
A) telephone interactions with customers.
B) personal interactions with customers.
C) online interactions with customers.
D) all customer-contact points.
E) all exchange transactions.

Accepted Answer

Customer relationship management involves managing customer interactions and relationships across all touchpoints, including phone, in-person, online, and transactional. Therefore, data gathered from all customer-contact points is crucial for effective CRM.

Question 18

A marketing unit can be organized according to functions,products,regions,and
A) sales.
B) target markets.
C) competitive units.
D) types of customers.
E) product features.

Accepted Answer

The answer of A marketing unit can be organized according...

Question 19

At Mrs.Fill's Cookie Co.,top-level managers delegate very little authority to lower-level employees.Mrs.Fill's is a(n)____ organization.
A) centralized
B) decentralized
C) empowered
D) marketing-oriented
E) total quality management

Accepted Answer

Mrs.Fill's Cookie Co. is a centralized organization as the top-level managers have little delegation of authority to lower-level employees. Centralized organizations have decision-making power at the top levels of management, and lower-level employees have less autonomy to make decisions.

Question 20

The Acme Corporation is expanding operations into countries outside the United States.To improve local managers' responsiveness to local conditions,Acme's senior management has decided to delegate decision-making authority further down the chain of command.Acme is
A) building a marketing-oriented organization.
B) empowering employees.
C) centralizing.
D) decentralizing.
E) making a serious error.

Accepted Answer

Delegating decision-making authority further down the chain of command is a characteristic of decentralization. This approach allows local managers to respond more effectively to local conditions, improving the overall performance of the organization in different regions.

Quiz 2: Developing and Implementing Marketing Strategies

Stratford Manufacturing is interested in total quality management and wants to learn more about its principles.Which of the following elements will Stratford not address in its investigation of TQM?

____ involves giving customer-contact employees the authority and responsibility to make marketing decisions without seeking the approval of a supervisor.

Which of the following is false with regard to customer lifetime value?

The term "____" describes measuring and evaluating a firm's quality in products and processes against industry leaders.

The employees of Zingerman's Deli are its ____ customers.

The most important component of customer relationship management is

According to the text,the 80/20 rule suggests that

A server in a fine restaurant has the authority to give a complimentary dessert to a dissatisfied customer when the customer complains about the meal or service.This is an example of

According to the textbook,which of the following statements is most accurate?

Which of the following statements best describes total quality management?

Key factors in determining the best organizational structure for a marketing unit are the

In a traditional organization,marketing decisions are likely to be

Customer relationship management systems cannot be effective unless they are developed as

If Apple measured and evaluated the quality of its goods,services,and processes as compared with those of the best-performing companies in the computer industry,it would be employing

Meredith knows that whether she decides to interact with her customers in person,on the telephone,online,or by fax,that ____ should ultimately drive the marketing strategy.

Customer relationship management is facilitated by gathering useful data from

A marketing unit can be organized according to functions,products,regions,and

At Mrs.Fill's Cookie Co.,top-level managers delegate very little authority to lower-level employees.Mrs.Fill's is a(n) ____ organization.

The Acme Corporation is expanding operations into countries outside the United States.To improve local managers' responsiveness to local conditions,Acme's senior management has decided to delegate decision-making authority further down the chain of command.Acme is