Question 1

Which of the following is determined by a customer's personal evaluation of the benefits and costs of a market offering relative to those of competing offers?

Accepted Answer

Customer-perceived value is the value that the customer perceives in a market offering relative to the cost of acquiring that product compared to the competing offers. It is the customer's personal evaluation of the benefits and costs of a product, which is a key determinant of their buying behavior.

Question 2

Compare the selling and marketing concepts,listing the key components of each philosophy.

Accepted Answer

The answer of Compare the selling and marketing concepts,listing the...

Question 3

Members of the sales team at Dekko International visit only prospective customers who purchase a minimum of $50,000 of insulated wire per year.Dekko is using ________.

Accepted Answer

The practice of only visiting prospective customers who purchase a minimum of $50,000 of insulated wire per year indicates that Dekko International is using customer profitability analysis to prioritize their sales efforts and focus on the customers who are most valuable to their business.

Question 4

A product manager strengthens her company's connections by treating suppliers of raw materials,vendors and distributors as partners in delivering customer value.What type of management is she practicing?

Accepted Answer

The product manager is practicing supply chain management, which involves managing relationships and coordinating activities with suppliers, vendors, and distributors in order to efficiently deliver products and services to customers. By treating these partners as true collaborators in the process, the manager is strengthening the connections within the supply chain and promoting better performance overall. Options A and B are not relevant here, as they refer to partnering with outside or inside organizations that are not part of the supply chain. Option C (marketing) is only indirectly related, as the focus is on creating customer value through effective management of the supply chain. Option E (customer development) does not fit here because it involves activities like market research, product design, and marketing campaigns that are separate from the supply chain.

Question 5

You have just taken a new position in an organisation and you're learning about the job functions of your new colleagues.You observe that your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships,and frequently speaks about the need to deliver superior customer value and satisfaction.Your manager is concerned with which one of the following?

Accepted Answer

The marketing manager's focus on building and maintaining profitable customer relationships, delivering superior customer value and satisfaction, indicates a concern for Customer Relationship Management (CRM).

Question 6

Which of the following has NOT contributed to the deeper,more interactive nature of today's customer relationships?

Accepted Answer

Traditional advertising has not contributed to the deeper, more interactive nature of today's customer relationships. While advertising can help businesses reach their target audience, it is typically a one-way communication where the business is simply promoting their product or service to the customer. The other options, e-mail, websites, online social networks, and social media, all provide opportunities for two-way communication between businesses and customers, allowing for deeper and more interactive relationships.

Question 7

The ________ concept holds that consumers won't buy enough of the organisation's products unless it undertakes a large-scale selling effort as part of its promotional program.

Accepted Answer

The answer of The ________ concept holds that consumers won't...

Question 8

A recent graduate of business school has a different philosophical approach than his marketing manager,who believes in keeping customers at arm's length and using mass media advertising.He knows that today few successful firms still practice this type of true ________,and are instead turning to selective relationship management.

Accepted Answer

The phrase "mass media advertising" indicates that the marketing manager believes in mass marketing, which involves targeting a large and diverse audience through generic advertising messages. The recent graduate, however, believes in "selective relationship management," which suggests a more personalized approach to reaching and retaining customers. Therefore, the best choice is C - mass marketing - as it contrasts with the graduate's philosophy.

Question 9

Wendy purchased Brand X hand lotion.In comparing her perception of how the lotion performed to her expectations for such a lotion,she was measuring her level of ________.

Accepted Answer

Wendy's comparison of the lotion's performance to her expectations is a measurement of her satisfaction with the purchase.

Question 10

A team leader in charge of customer relationship management is planning strategies for improving 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?

Accepted Answer

The customers in question are the least profitable but loyal, indicating that they are most likely "barnacles." The team leader is looking to improve profitability for this group but also considering the option of "firing" unprofitable customers, which is a strategy often used with barnacles.

Question 11

Customer satisfaction is said to occur when ________.

Accepted Answer

Customer satisfaction occurs when a product's performance matches or exceeds customer expectations. If the product falls short of their expectations, they will not be satisfied. Price, design, and benefits versus costs are factors that can influence customer satisfaction, but they are not the sole determinants.

Question 12

Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell.By promoting a company culture that values exceptional value and service,Shania aims to create ________ by going beyond the expected.

Accepted Answer

The phrase "customer delight" indicates that Shania is striving to exceed customer expectations and create an emotional connection with the brand. This goes beyond simple satisfaction or value, and is more closely tied to loyalty and repeat business.

Question 13

Of the following,which is the most important concept of modern marketing?

Accepted Answer

Customer relationship management is the most important concept in modern marketing because it involves building long-term relationships with customers, understanding their needs and preferences, and providing personalized experiences. This approach is essential for retaining customers and generating repeat business. E-mail advertising, mass marketing, properly trained salespeople, and low prices are all important aspects of marketing, but none of them are as critical as customer relationship management.

Question 14

Contemporary marketing practice is the responsibility of which group or groups of organisational employees?

Accepted Answer

Contemporary marketing practice involves a collaborative effort among various departments within an organization that includes marketing, sales, customer support, finance, IT and general management. Therefore, all of the above options are responsible for contemporary marketing practices.

Question 15

The ________ marketing concept questions whether the pure marketing concept is adequate in the age of environmental problems,resource shortages,rapid population growth,worldwide economic problems and neglected social services.

Accepted Answer

The answer of The ________ marketing concept questions whether the...

Question 16

A CRM team leader aims to improve the overall firm profitability,and assesses her firm's most profitable and loyal customers.Which of the following customer relationship groups do these customers belong to?

Accepted Answer

True friends are the most profitable and loyal customers of a firm. They contribute the most to a firm's profitability, and thus are important for a CRM team leader to focus on in order to improve overall firm profitability.

Question 17

You are an assistant marketing manager for a firm in a market with many low-margin customers.What type of relationship would it be most profitable for you to develop with these customers?

Accepted Answer

For a market with low-margin customers, it would be most profitable to develop basic relationships, as they require the least amount of resources and investment but can still generate consistent revenue. Full partnerships and selective relationships may require more resources and time, while club programs and community relationships may not be as effective for low-margin customers. By developing basic relationships, the focus can be on maintaining and building customer loyalty while still being cost-efficient.

Question 18

It is most accurate to say that a customer will buy from the company that offers the highest ________.

Accepted Answer

Customer-perceived value refers to the customer's assessment of the benefits received from a product or service relative to the costs incurred. This includes factors such as quality, service, and overall experience. Therefore, a company that offers the highest customer-perceived value is more likely to attract and retain customers.

Question 19

A small business operator attempts to deliver customer satisfaction every day in his home entertainment installation business.The key to this goal is to match the customer-perceived performance of his products and their installation with the ________.

Accepted Answer

To achieve customer satisfaction, the small business operator needs to match the customer-perceived performance with their expectations. Customer's expectations are what they believe a product or service should provide, and if their expectations are met or exceeded, they are more likely to be satisfied with the business's performance. Therefore, the correct choice is C) customer expectations.

Question 20

Which of the following best explains why consumers have greater power and control in today's marketplace?

Accepted Answer

Through new communication technologies such as social media and online reviews, customers now have more access to information about products and services and more methods of sharing their opinions with other customers. This gives them greater power and control in the marketplace as companies must listen to and respond to their feedback in order to maintain customer loyalty and satisfaction.

Quiz 1: Marketing: Creating and Capturing Customer Value