1. Susan Leffertsâ?? company advertises widely. Ms. Lefferts uses business reply cards attached to h
1.
Susan Lefferts’ company advertises widely. Ms. Lefferts uses business reply cards
attached to her company’s magazine ads to build her company’s database. In which of the following ways would Ms.
Lefferts most likely use the database?
Phil Langston has just ordered a
number of expensive executive gifts that he will be sending as an appreciation
token to a select few customers from his client database. In which of the
following ways is Mr. Langston most likely using his database?
a. To identify prospects
b. To decide which customers should receive a
new sales offer
c. To deepen customer loyalty
d. To avoid serious customer mistakes
e. To beat the competition to a sale
2. Royal Caribbean
uses its ________ to offer spur-of-the-moment cruise packages to fill all the
berths on its ships. It focuses on retired people and single people because
they are more able to make quick commitments.
a. advertising
b. database
c. mail catalogs
d. public relations department
e. radio advertising
3. Which of the following is considered to be
one of the four problems that can deter a firm from using CRM (customer
relationship marketing)?
a. Competitors can often hack into CRM
systems.
b. Building and maintaining a customer
database requires a large investment.
c. It is very difficult to find and train
database employees.
d.
Long-term
results of such systems are still unproven.
e.
Focusing too much on databases separates a
company from its customers.
4. Building a database would not be worthwhile
for a company in all of the following cases EXCEPT ________.
a. where the product is a one-in-a-lifetime
purchase
b. where customers show little loyalty to a
brand
c. where the company already has an above
average relationship with its customers
d. where the unit sale is very small
e. where the cost of gathering the information
is too high
5. All of the following are examples of the
perils of CRM EXCEPT ________.
a. implementing CRM before creating a customer
strategy
b. the enormous cost that might eventually
drain significant profits from the organization
c. rolling out CRM before changing the
organization to match
d. assuming more CRM technology is better
e. stalking, not wooing, customers
Marketers from which of the following are most likely to use database marketing?
f. An airline
g. A candy bar manufacturer
h. A grand piano maker
i.
A
toothpaste manufacturer
j.
None
of the above would use database marketing.
True/False
6. Managers who believe the customer is the
company’s only true “profit center†consider the traditional organization chart
to be obsolete.
7. The modern customer-oriented organization
chart places top management at the top of the pyramid as long as they can think
like consumers.
8. There are two determinates of
customer-perceived value: total customer benefit and total customer cost.
9. Customer-perceived
value is the perceived monetary value of all the purchases a customer makes on
an annual basis.
10. Consumers tend to
be value maximizes—they estimate which offer will deliver the most perceived
value and act on it.
11. At the heart of a
good value delivery system is a set of core business processes that help to
deliver distinctive customer value.
12. Professional buyers and purchasing agents
operate under various constraints and occasionally make choices that give more
weight to their personal benefit than to the company’s benefit.
13. The value proposition is stated in the price of a product and
readily recognized by the average consumer.
14. The value delivery system includes all the
experiences the customer will have on the way to obtaining and using the
offering.
15. P
For a consumer to be delighted with a product or service he or she must
perceive that performance exceeds expectations.
16. The ultimate goal of the customer-centered
firm is to create high customer satisfaction.
17. One key to
customer retention is customer satisfaction.
18. Consumers’
expectations result exclusively from past buying experiences.
19. A highly
satisfied customer generally stays loyal longer, pays less attention to
competing brands, and is less sensitive to price.
20. Price perception is the totality of
features and characteristics of a product or service that bear on its ability
to satisfy stated or implied needs.
21. Conformance quality and performance quality
is essentially the same thing in a marketing sense.
22. Two products with
very different performance qualities can have the same conformance quality if
both products deliver their respective promised quality.
23. Marketers have found that pricing plays the
most essential role in defining and delivering high-quality goods and services
to target customers.
24. The midsize customers for most
organizations receive good service, pay nearly full price for the products and
services they purchase, and are often the most profitable.
25. A profitable customer is a person,
household, or company that over time yields a revenue stream that exceeds by an
acceptable amount the company’s cost stream of attracting, selling, and
servicing the customer.
26. The best thing a
company can do in the face of company mistakes is to discourage the customer
from complaining.
Quality is the key to value creation and customer
satisfaction.
27. The least
profitable 10% to 20% of customers can reduce profits by 50% to 200% per
account.
28. Most companies measure customer
satisfaction and individual customer profitability.
29. Unprofitable customers who defect to a
competitor should be encouraged to do so.
30. Customer profitability analysis (CPA) is
best conducted with the tools of an accounting technique called activity-based
costing (ABC).
31. According to customer profitability
analysis (CPA), platinum customers spend the most money with the organization,
thereby making them valuable.
32. Customer lifetime value (CLV) describes the
net present value of the stream of future profits expected over the customer’s
lifetime purchases.
33. A good illustration of a personal touch in
the hotel business would be if the hotel employees (e.g., registration, maid
service, et cetera) call a guest by his or her name.
34.
A
customer touch point is the time when the customer makes a purchase.
35. The aim of customer relationship management
is to keep the costs of meeting and tracking consumers as low as possible.
36. All companies
should practice one-to-one marketing.
37. A key driver of shareholder value is the
aggregate value of the customer base.
38. Customer churn is how rapidly a store can
move customers through its checkout facility or process.
39. The average company loses 25% of its customers each year.
40.
A customer database is simply a
listing of a customer’s name, address, and phone number for credit reference.
41.
It’s often easier to reattract
ex-customers (because the company knows their names and histories) than to find
new ones.
Answer: True
42.
Cluster
analysis is a good example of a statistical technique that might be employed in
datamining.
43.
It always costs less to serve
loyal customers than to attract new ones.
44.
Database
marketing is most frequently used by business marketers and service providers
(hotels, banks, airlines, and insurance, credit card, and telephone companies)
that normally and easily collect a lot of customer data.
Essay
45.
Compare and contrast the
traditional organization chart for an organization against the modern
customer-oriented organization chart.
46.
Provide
a customer-centered definition of the term quality.
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