Question 1

Carla, a team leader in charge of customer relationship management, is planning strategies to improve the profitability of her firm's least profitable but loyal customers. She is also examining methods for "firing" customers in this group who cannot be made profitable. To which of the following customer relationship groups do these customers belong?
A) true friends
B) strangers
C) barnacles
D) innovators
E) butterflies

Accepted Answer

Barnacles are customers who are loyal but not very profitable. They have a limited fit between their needs and the company's offerings, and efforts are often made to increase their profitability or to "fire" them if they cannot be made profitable.

Question 2

Rather than using hard-sell product pitches, Bark uses social media to share original comedic videos and stories- often without even mentioning their product- BarkBox. This is an example of _.
A) soft-sell marketing
B) public relations
C) societal marketing
D) intense social media blitzing
E) engagement marketing

Accepted Answer

The answer of Rather than using hard-sell product pitches, Bark...

Question 3

In which of the following customer relationship groups do organizations generally avoid investing?
A) barnacles
B) true friends
C) strangers
D) butterflies
E) true believers

Accepted Answer

Organizations generally avoid investing in "strangers" because these customers have low potential profitability and little loyalty, making them unlikely to provide a return on investment.

Question 4

is the total combined customer lifetime values of all the company's current and potential customers.
A) Market share
B) Customer equity
C) Share of customer
D) Customer-perceived value
E) Value proposition

Accepted Answer

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

Question 5

Which of the following is an example of consumer-generated marketing?
A) Cristal, a jewellery store, uses its page on Facebook to provide information about its upcoming products to its customers.
B) Fun & Run, a local amusement park, promotes its services by allowing consumers to upload videos and write reviews about the park.
C) Figa, a leading provider of athletic shoes, helps its customers customize their shoes on its website and choose personalized settings.
D) Barton's, a local pet supply store, rewards frequent buyers with vouchers and exclusive offers.
E) Energix, a manufacturer of soft drinks, attracts customers through televised advertisements.

Accepted Answer

Consumer-generated marketing involves customers creating content, such as videos or reviews, that promotes a brand or product.

Question 6

Customers who are classified as true believers _.
A) tell others about their good experiences with a company
B) are projected to be less loyal to any brand
C) are attracted to a company's competitor's deals and offers
D) are not very profitable for a company
E) have needs and wants that do not fit a company's offerings

Accepted Answer

True believers are highly loyal customers who are likely to advocate for a company by sharing their positive experiences with others.

Question 7

refers to a channel stretching from raw materials to components to final products that are carried to final buyers.
A) A marketing channel
B) A market segment
C) A supply chain
D) A demand chain
E) A marketing-mix channel

Accepted Answer

A supply chain refers to the entire system of production, processing, and distribution of goods, from raw materials to final products delivered to consumers.

Question 8

Companies that invite consumers play a role in shaping ads and social media (Tesla) or by offering suggestions for product design (Oreo's, Mountain Dew) are leveraging what increasingly popular marketing approach?
A) low cost marketing campaign development
B) process marketing
C) consumer-generated marketing
D) direct marketing
E) engagement marketing

Accepted Answer

Consumer-generated marketing involves inviting consumers to participate in the creation of marketing content or product design, as seen with companies like Tesla, Oreo, and Mountain Dew.

Question 9

Efforts to convert into loyal customers are rarely successful.
A) true believers
B) butterflies
C) strangers
D) laggards
E) barnacles

Accepted Answer

The answer of Efforts to convert into loyal customers are...

Question 10

refers to working closely with people inside and outside the company to jointly bring more value to customers.
A) Customer-generated marketing
B) Demand management
C) Integrated communication
D) Channel value proposition
E) Partner relationship management

Accepted Answer

Partner relationship management refers to working closely with people inside and outside the company to jointly bring more value to customers.

Question 11

The final step in the marketing process is .
A) designing a customer-driven marketing strategy
B) understanding the marketplace
C) constructing an integrated marketing program
D) capturing value from customers
E) building profitable relationships with the customers

Accepted Answer

The final step in the marketing process is capturing value from customers, which involves creating customer loyalty and retention, and ultimately, generating profits and customer equity.

Question 12

Procter & Gamble's Tide detergent does not attempt to get to know customers personally. Instead, Tide creates engagement and relationships through brand-building advertising, websites, and social media presence. Which of the following types of associations would be most profitable for the firm to develop with these customers?
A) business partnering
B) basic relationships
C) full partnerships
D) joint ventures
E) strategic alliances

Accepted Answer

Basic relationships are suitable for consumer goods like Tide, where the focus is on brand-building and mass engagement rather than personal interactions.

Question 13

The ultimate aim of customer relationship management is to _ .
A) produce high customer equity
B) turn "strangers" into "butterflies"
C) divide markets into distinct segments
D) evaluate current sales share
E) evaluate customer lifetime value

Accepted Answer

The ultimate aim of customer relationship management (CRM) is to produce high customer equity, which refers to the total combined customer lifetime values of all the company's customers. This involves building strong relationships with customers to maximize their value to the company over time.

Question 14

are customers who show low potential profitability and little projected loyalty.
A) Butterflies
B) True friends
C) True believers
D) Strangers
E) Barnacles

Accepted Answer

Strangers are customers who show low potential profitability and little projected loyalty, making them the least desirable segment for businesses to focus on.

Question 15

A consumer who is potentially profitable but not loyal to a firm's offerings is referred to as a _.
A) butterfly
B) barnacle
C) true friend
D) true believer
E) stranger

Accepted Answer

Butterflies are consumers who are profitable but not loyal, meaning they may switch to competitors if they find a better offer.

Question 16

refers to the portion of the customer's purchase that a company gets in its product categories.
A) Brand equity
B) Value proposition
C) Customer equity
D) Share of customer
E) Customer lifetime value

Accepted Answer

Share of customer refers to the portion of the customer's purchase that a company gets in its product categories.

Question 17

Amazon Prime strives to convert casual shoppers into loyal customers. An Amazon Prime customer can be classified as a .
A) barnacle
B) butterfly
C) stranger
D) laggard
E) true believer

Accepted Answer

A "true believer" is a customer who is highly loyal and committed to a brand, which aligns with the goal of Amazon Prime to convert casual shoppers into loyal customers.

Question 18

Stew Leonard's has created what has been the "Disneyland of Dairy Stores," complete with costumed characters, scheduled entertainment, and a petting zoo. It's built 30 additions onto the original store, which now serves more than 300,000 customers each week. This legion of loyal shoppers is largely a result of the store's passionate approach to customer service. Instead of focusing on individual transactions, Stew and his staff are putting a priority on _ .
A) attracting "butterflies"
B) decreasing customer-perceived value
C) capturing customer lifetime value
D) managing partner relationships
E) converting "strangers" into "butterflies"

Accepted Answer

Stew Leonard's focuses on building long-term relationships with customers, which aligns with capturing customer lifetime value rather than just focusing on individual transactions.

Question 19

A customer who is both loyal and profitable is referred to as a .
A) laggard
B) barnacle
C) stranger
D) butterfly
E) true believer

Accepted Answer

A "true believer" is a customer who is both loyal and profitable, indicating a strong and ongoing relationship with the company.

Question 20

Various government agencies have launched campaigns to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. This illustrates marketing.
A) social
B) consumer-generated
C) ambush
D) multi-level
E) for-profit

Accepted Answer

Social marketing involves using marketing principles to influence behaviors that benefit individuals and communities for the greater social good, such as encouraging energy conservation and discouraging smoking.

Quiz 1: Marketing: Creating Customer Value and Engagement

Rather than using hard-sell product pitches, Bark uses social media to share original comedic videos and stories- often without even mentioning their product- BarkBox. This is an example of _.

In which of the following customer relationship groups do organizations generally avoid investing?

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

Which of the following is an example of consumer-generated marketing?

Customers who are classified as true believers _.

refers to a channel stretching from raw materials to components to final products that are carried to final buyers.

Companies that invite consumers play a role in shaping ads and social media (Tesla) or by offering suggestions for product design (Oreo's, Mountain Dew) are leveraging what increasingly popular marketing approach?

Efforts to convert into loyal customers are rarely successful.

refers to working closely with people inside and outside the company to jointly bring more value to customers.

The final step in the marketing process is .

The ultimate aim of customer relationship management is to _ .

are customers who show low potential profitability and little projected loyalty.

A consumer who is potentially profitable but not loyal to a firm's offerings is referred to as a _.

refers to the portion of the customer's purchase that a company gets in its product categories.

Amazon Prime strives to convert casual shoppers into loyal customers. An Amazon Prime customer can be classified as a .

A customer who is both loyal and profitable is referred to as a .

Various government agencies have launched campaigns to encourage energy conservation and concern for the environment as well as discourage smoking, illegal drug use, and obesity. This illustrates marketing.