Question 1

Which of the following is not a metric used for market performance measures related to the allocation of marketing resources?&#10;A) Awareness&#10;B) Satisfaction&#10;C) Follower numbers&#10;D) Market share

Accepted Answer

Awareness, satisfaction, and market share are all common metrics used to measure market performance and the effectiveness of marketing strategies. Follower numbers, however, are typically a metric used to measure social media engagement and may not necessarily be directly related to the allocation of marketing resources. Market metrics refers to performance measures related to the allocation of marketing resources such as awareness, satisfaction, and market share.

Question 2

As per Day and Wensley (1988) there are only two sources of competitive advantage for a firm - it either has _____ or ______ or both.&#10;A) value, costs&#10;B) superior skills, money&#10;C) superior skills, superior resources&#10;D) None of the options given are correct.

Accepted Answer

Day and Wensley (1988) identify two main sources of competitive advantage for a firm: superior skills (which relate to the firm's ability to perform in some way that is better than competitors) and superior resources (which relate to the firm having access to a unique or difficult-to-copy set of resources that allow it to outperform competitors).

Question 3

Porter (1985) maintains that a firm can either have a low cost or a differentiation position. Recent examples of Dell and Amazon.com have shown that_______&#10;A) his theory was right.&#10;B) a third strategy is required.&#10;C) firms may need to strive for both positions.&#10;D) None of the options given are correct.

Accepted Answer

Dell and Amazon.com have both successfully pursued both low cost and differentiation strategies simultaneously. Dell has achieved low cost through its direct-to-consumer model and efficient supply chain, while also differentiating itself through customization options and superior customer service. Amazon.com has achieved low cost through economies of scale and efficient operations, while also differentiating itself through a wide selection, convenience, and personalized recommendations. Therefore, recent examples suggest that firms may need to strive for both positions rather than solely focusing on one.

Question 4

Successful performance will be manifest in&#10;A) market share.&#10;B) ROI.&#10;C) customer satisfaction.&#10;D) All of the options given are correct.

Accepted Answer

Successful performance can be measured and seen through various factors, such as an increase in market share, a positive return on investment (ROI), and high levels of customer satisfaction. Therefore, all of the options given are correct. Performance will manifest itself in financial productivity, measured by ROI-or for that matter, any of a number of financial acronyms.

Question 5

Satisfied customers tend to remain _____ to the firm that really fulfills them.&#10;A) ambivalent&#10;B) unloyal&#10;C) prone&#10;D) loyal

Accepted Answer

Satisfied customers are more likely to remain loyal to a company that meets their needs and exceeds their expectations. They have a positive experience with the company and are more likely to continue using its products or services.

Question 6

Managers spend a lot of time evaluating hard data for productivity; however, the problem is that it is ______&#10;A) historical.&#10;B) fuzzy.&#10;C) current.&#10;D) true.

Accepted Answer

Hard data is typically historical, meaning it reflects past performance and may not accurately reflect current or future productivity.

Question 7

The problem with most measures of customer satisfaction and loyalty is that they are _____ but they are about the ______&#10;A) soft, future.&#10;B) hard, current.&#10;C) hard, historical.&#10;D) soft, historical.

Accepted Answer

Most measures of customer satisfaction and loyalty are subjective or "soft" because they are based on customers' perceptions and attitudes. However, they are typically focused on future behavior (e.g. likelihood to recommend or repurchase), rather than current or historical behavior.

Question 8

The logic of the process model of competitive advantage is that astute firms will reinvest the _______ outcomes of competitive advantage into the __________ of the competitive advantage.&#10;A) emotional, financial&#10;B) financial, emotional&#10;C) financial, sources&#10;D) resources, financial

Accepted Answer

The logic of the process model of competitive advantage suggests that smart firms will reinvest the financial outcomes (profits or savings) of competitive advantage back into the sources (capabilities, assets, or processes) that generated the competitive advantage in the first place, thereby sustaining or enhancing their competitive position.

Question 9

The ideal marketing control variable would be one that would be single and both hard and for the future. ______ which leads to ______ is that single appropriate outcome.&#10;A) ABCD, loyalty&#10;B) CLV, loyalty&#10;C) CLV, image&#10;D) CLV, equity

Accepted Answer

The answer of The ideal marketing control variable would be...

Question 10

CLV is the ______ of the profits that a firm stands to realize on the average new customer during a given number of years in the future.&#10;A) PLC&#10;B) amount&#10;C) range&#10;D) NPV

Accepted Answer

CLV, or Customer Lifetime Value, is the Net Present Value (NPV) of the profits that a firm expects to earn from an average new customer over a specified period in the future.

Question 11

CLV can be increased by&#10;A) increasing retention rates.&#10;B) increasing customer life.&#10;C) increasing sales of the same product.&#10;D) All of the options given are correct.

Accepted Answer

The answer of CLV can be increased by&#10;A) increasing retention...

Question 12

It has been argued that the Day and Wensley (1988) competitive advantage process model is powerful; the outcomes it recommends are not sufficient control metrics. This has been driven by _____&#10;A) consumers.&#10;B) buyers.&#10;C) producers.&#10;D) IT.

Accepted Answer

The answer of It has been argued that the Day...

Question 13

As per Blattberg and Deighton (1996) customer equity is&#10;A) unmeasurable.&#10;B) fuzzy.&#10;C) sum of the CLV of all consumers.&#10;D) sum total of all consumers.

Accepted Answer

The answer of As per Blattberg and Deighton (1996) customer...

Question 14

Blattberg and Deighton (1996) argue that rather than merely allocating marketing budgets according to variables such as media selection, future managers must split the budgets on the bases of&#10;A) sales and marketing needs.&#10;B) TV, PR.&#10;C) branding, selling.&#10;D) customer acquisition, customer retention.

Accepted Answer

The answer of Blattberg and Deighton (1996) argue that rather...

Question 15

The margin measure reflects the&#10;A) profitability and efficiency of management.&#10;B) cash flow.&#10;C) intensity to which total assets are employed.&#10;D) combination of cost and pricing structures.

Accepted Answer

The answer of The margin measure reflects the&#10;A) profitability and...

Question 16

The final point of all financial interactions amongst companies is&#10;A) growth.&#10;B) dividends.&#10;C) profit.&#10;D) shareholder return.

Accepted Answer

The answer of The final point of all financial interactions...

Question 17

The main advantage of a market organization is&#10;A) greater management attention to detail.&#10;B) specialization in task activities.&#10;C) fast reaction to market change.&#10;D) greater integration.

Accepted Answer

The answer of The main advantage of a market organization...

Question 18

One of the issues which need to be considered in the context of financial measures and marketing strategy is&#10;A) profits and long-term profitability.&#10;B) assets and cash flows.&#10;C) businesses who owe money.&#10;D) shareholder liabilities.

Accepted Answer

The answer of One of the issues which need to...

Question 19

Return on total assets (ROTA) is calculated by&#10;A) dividing operating profit by total assets.&#10;B) dividing operating profit by revenues.&#10;C) dividing revenues by total assets.&#10;D) dividing debt by equity.

Accepted Answer

The answer of Return on total assets (ROTA) is calculated...

Deck 13: Strategy and Metrics