Question 1

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...

Question 2

How do customers determine their level of satisfaction with a product

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Question 3

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 an example of a club membership program that rewards customers for their loyalty by allowing them to accumulate points towards free future flights based on the number of flights they have taken. It is not a value proposition as it is not a statement of the benefits offered by the airline. It is also not a value delivery system or a one-to-one marketing program, as it does not relate to the way in which the airline delivers value to customers or tailors its marketing efforts to individual customers. Customer churn refers to the rate at which customers stop doing business with a company, and is not relevant to the Rapid Rewards program.

Question 4

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

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The answer of What do modern managers believe is their...

Question 5

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 6

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, as customers are likely to remain loyal to a company that consistently delivers high-quality products or services. Quality also serves as a defense against foreign competition, as it can be difficult for competitors to replicate a company's level of quality. Finally, quality is essential for sustained growth and earnings, as customers are more likely to continue to do business with a company that consistently meets or exceeds their expectations.

Question 7

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

Accepted Answer

The answer of Using European automobile giant Volvo as your...

Question 8

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 way to make low-profit customers more profitable. By implementing these fees, the company is ensuring that even customers who were previously not generating revenue still contribute to the company's revenue stream. This strategy is aimed at improving profitability by focusing on existing customers rather than acquiring new ones.

Question 9

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 has not yet purchased the Motorola phone, so she is still a potential customer or prospect.

Question 10

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

Harrah's has used effective customer relationship management to almost double its share of customers' gaming budgets by targeting offers to specific customer segments. Customer relationship management is a strategy that focuses on building and maintaining long-term relationships with customers through personalized marketing, sales, and customer service efforts. By using data and analytics to understand their customers' behaviors and preferences, Harrah's can tailor their offers to specific customer segments, resulting in increased loyalty, higher customer lifetime value, and increased revenue.

Question 11

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

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The answer of Customer-perceived value is based on two components.What...

Question 12

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 recommending their newest line of sedans to his friend who is considering buying a new car.

Question 13

What are the three ways that customer profitability can be assessed

Accepted Answer

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

Question 14

Give an example of a "branded customer experience."

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Question 15

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 16

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

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Question 17

Define the term quality.

Accepted Answer

The answer of Define the term quality....

Question 18

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 customers are typically the least profitable and may even cost the company money, making them the most likely to be dropped.

Question 19

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 the skillful use of database marketing and relationship building as factors that have contributed to Fingerhut's success as a direct-mail marketer. The other options are not mentioned as factors contributing to Fingerhut's success in this sentence.

Question 20

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...

Quiz 5: Creating Customer Value, Satisfaction, and Loyalty

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 ________.

How do customers determine their level of satisfaction with a product

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

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

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

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."

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

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

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.

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

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

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.

What are the three ways that customer profitability can be assessed

Give an example of a "branded customer experience."

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

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

Define the term quality.

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

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

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.