Question 1

How do customers determine their level of satisfaction with a product?

Accepted Answer

The answer of How do customers determine their level of...

Question 2

Using European automobile giant Volvo as your illustration,create a value proposition for the company.

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Question 3

The skillful use of database marketing and ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.
A)everyday low prices
B)expanded home delivery options
C)relationship building
D)competitor's mistakes
E)retailer alliances

Accepted Answer

The sentence mentions "skillful use of database marketing and relationship building" as a contributing factor to Fingerhut's success.

Question 4

What are the three ways that customer profitability can be assessed?

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The answer of What are the three ways that customer...

Question 5

What is the definition for customer-perceived value (CPV)?

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Question 6

With respect to customer profitability analysis,________ customers are the most likely dropped as customers because of poor profitability.
A)granite
B)wood
C)iron
D)plastic
E)lead

Accepted Answer

Lead is often used to refer to customers who are not profitable for the company. These customers may require a lot of attention, resources, and discounts, but do not generate enough revenue to justify the costs. Therefore, lead customers are the most likely to be dropped as customers due to poor profitability.

Question 7

Southwest Airlines offers a Rapid Rewards program,an example of a ________ that allows customers to count flights they have taken toward free future flights.
A)value proposition
B)value delivery system
C)club membership program
D)one-to-one marketing program
E)customer churn

Accepted Answer

The Rapid Rewards program offered by Southwest Airlines is a club membership program that allows customers to earn points for each flight they take, which can be redeemed for free future flights. The program rewards customer loyalty and encourages repeat business.

Question 8

Define the term quality.

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Question 9

Give an example of a "branded customer experience."

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Question 10

Carol is currently considering buying a Motorola cell phone offered by her service provider in conjunction with a two-year service contract.Carol is best characterized as a(n)________ for Motorola.
A)first-time customer
B)member
C)partner
D)advocate
E)prospect

Accepted Answer

Carol is considering buying a Motorola cell phone and has not yet made a purchase, making her a prospect. She is not yet a first-time customer, member, partner, or advocate.

Question 11

What do modern managers believe is their company's only true "profit center"?

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Question 12

According to GE's former chairman,John F.Welch Jr. ,"________ is our best assurance of customer allegiance,our strongest defense against foreign competition,and the only path to sustained growth and earnings."
A)Quality
B)Customer satisfaction
C)True value
D)Sustainable enterprise
E)Motivation

Accepted Answer

According to John F. Welch Jr., quality is the best assurance of customer allegiance, strong defense against foreign competition, and the only path to sustained growth and earnings. Therefore, choice A is the best option.

Question 13

Customer-perceived value is based on two components.What are those components?

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Question 14

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This is an example of ________.
A)reducing the rate of customer defection
B)making low-profit customers more profitable
C)enhancing the growth potential for each customer through cross-selling
D)increasing the longevity of the customer relationship
E)focusing disproportionate effort on high-value customers

Accepted Answer

Charging fees for once-free services is a strategy to make low-profit customers more profitable. By charging these fees, banks and phone companies can increase their revenue from customers who were previously not generating much revenue for them.

Question 15

Identify three ways companies with customer complaints can recover customer goodwill.

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The answer of Identify three ways companies with customer complaints...

Question 16

Harrah's has used effective ________ to almost double its share of customers' gaming budgets by targeting offers to specific customer segments.
A)customer relationship management
B)customer lifetime value
C)customer profitability analysis
D)customer satisfaction analysis
E)customer-value delivery

Accepted Answer

Customer relationship management (CRM) is a strategy that helps businesses build and maintain lasting relationships with their customers. It involves collecting and analyzing customer data to gain insights into their needs and preferences, and using this information to tailor marketing efforts and offer personalized experiences. Harrah's success in targeting specific customer segments and nearly doubling its share of customers' gaming budgets suggests that the company has effectively implemented a CRM strategy.

Question 17

Companies need to be especially concerned today with their customer satisfaction level.Why?

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The answer of Companies need to be especially concerned today...

Question 18

When Bob found out his friend was thinking about buying a new car,he strongly recommended that his friend look into the newest line of Ford sedans.Bob is best characterized as a(n)________ for Ford.
A)first-time customer
B)member
C)partner
D)advocate
E)prospect

Accepted Answer

Bob is advocating for Ford by strongly recommending their newest line of sedans to his friend who is considering buying a new car.

Question 19

Jim is a residential construction contractor.Although one particular realtor provides Jim with a large volume of work,the realtor frequently demands discounts for sending him customers.This realtor is best described as a(n)________ customer.
A)platinum
B)gold
C)lead
D)iron
E)ivory

Accepted Answer

The answer of Jim is a residential construction contractor.Although one...

Question 20

3M makes it easy for dialog to occur with its customers.3M claims that over two-thirds of its product-improvement ideas come from listening to ________.
A)customer suggestions
B)entrepreneurial product ideas
C)customer complaints
D)media feedback
E)customer reactions to competitive products

Accepted Answer

The answer of 3M makes it easy for dialog to...

Quiz 5: Creating Customer Value, satisfaction, and Loyalty

How do customers determine their level of satisfaction with a product?

Using European automobile giant Volvo as your illustration,create a value proposition for the company.

The skillful use of database marketing and ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

What are the three ways that customer profitability can be assessed?

What is the definition for customer-perceived value (CPV)?

With respect to customer profitability analysis,________ customers are the most likely dropped as customers because of poor profitability.

Southwest Airlines offers a Rapid Rewards program,an example of a ________ that allows customers to count flights they have taken toward free future flights.

Define the term quality.

Give an example of a "branded customer experience."

Carol is currently considering buying a Motorola cell phone offered by her service provider in conjunction with a two-year service contract.Carol is best characterized as a(n) ________ for Motorola.

What do modern managers believe is their company's only true "profit center"?

According to GE's former chairman,John F.Welch Jr. ,"________ is our best assurance of customer allegiance,our strongest defense against foreign competition,and the only path to sustained growth and earnings."

Customer-perceived value is based on two components.What are those components?

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This is an example of ________.

Identify three ways companies with customer complaints can recover customer goodwill.

Harrah's has used effective ________ to almost double its share of customers' gaming budgets by targeting offers to specific customer segments.

Companies need to be especially concerned today with their customer satisfaction level.Why?

When Bob found out his friend was thinking about buying a new car,he strongly recommended that his friend look into the newest line of Ford sedans.Bob is best characterized as a(n) ________ for Ford.

Jim is a residential construction contractor.Although one particular realtor provides Jim with a large volume of work,the realtor frequently demands discounts for sending him customers.This realtor is best described as a(n) ________ customer.

3M makes it easy for dialog to occur with its customers.3M claims that over two-thirds of its product-improvement ideas come from listening to ________.