Question 1

Harley-Davidson sells more than motorcycles and accessories.Its dealerships also sell branded clothing and licensed goods.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Accepted Answer

A)  reducing the rate of customer defection
B)  increasing the longevity of the customer relationship
C)  enhancing the growth potential of each customer through cross-selling
D)  making low-profit customers more profitable
E)  terminating low-profit customersF) A) and B)
G) A) and D)

Question 2

What are the four classifications (tiers)of customers in customer profitability analysis using activity-based costing?

Accepted Answer

The tiers would be platinum cu...

Question 3

Cluster analysis is a good example of a statistical technique that might be employed in datamining.

Accepted Answer

A) True 
 B)False

Question 4

In general,companies can use their databases in all of the following ways EXCEPT ________.

Accepted Answer

A)  to predict competitive strategies and plans
B)  to identify prospects
C)  to decide which customers should receive a particular offer
D)  to deepen customer loyalty
E)  to avoid serious customer mistakesF) B) and E)
G) B) and C)

Question 5

The least profitable 10% to 20% of customers can reduce profits by 50% to 200% per account.

Accepted Answer

A) True 
 B)False

Question 6

Buyers form expectations in all of the following ways EXCEPT ________.

Accepted Answer

A)  from past buying experience
B)  from friends' and associates' advice
C)  from marketers' information
D)  from competitors' information
E)  from inherited traitsF) A) and C)
G) D) and E)

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Accepted Answer

A) True 
 B)False

Question 9

The ultimate goal of the customer-centered firm is ________.

Accepted Answer

A)  high customer satisfaction
B)  high profits
C)  low costs
D)  maximum stakeholder satisfaction
E)  none of the aboveF) B) and E)
G) A) and B)

Question 10

The 20-80 rule reflects the idea that ________.

Accepted Answer

A)  the top 20% of customers often generate 80% of the company's profits
B)  the top 20% of customers are highly satisfied and 80% of customers will recommend the company to a friend
C)  20% of customers are unprofitable,and 80% make up a company's profits
D)  20% of the company's profits are generated by the top 80% of customers
E)  any new product offering will be accepted by 20% of the customers immediately,but 80% of the customers will be up for grabs throughout the product's life cycleF) A) and B)
G) A) and C)

Question 11

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.

Accepted Answer

A)  first-time customer
B)  member
C)  partner
D)  advocate
E)  prospectF) A) and B)
G) B) and E)

Question 12

Marketers have found that pricing plays the most essential role in defining and delivering high-quality goods and services to target customers.

Accepted Answer

A) True 
 B)False

Question 13

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called activity-based costing (ABC).

Accepted Answer

A) True 
 B)False

Question 14

A key driver of shareholder value is the aggregate value of the customer base.Identify the five strategies employed by winning companies to improve the value of their customer base.

Accepted Answer

Winning companies improve the value of t...

Question 15

According to customer profitability analysis (CPA),platinum customers spend the most money with the organization,thereby making them valuable.

Accepted Answer

A) True 
 B)False

Question 16

Peppers and Rogers outline a four-step framework for one-to-one marketing that can be adapted to CRM marketing.What are those four steps?

Accepted Answer

The four steps are: (1)Identify your pro...

Question 17

The aim of customer relationship management (CRM) is to produce high customer ________.

Accepted Answer

A)  value
B)  loyalty
C)  profitability
D)  satisfaction
E)  equityF) None of the above
G) B) and E)

Question 18

Describe the process of database marketing.

Accepted Answer

Database marketing is the process of bui...

Question 19

Satisfied customers constitute the company's ________.

Accepted Answer

A)  customer relationship capital
B)  customer churn
C)  prospects
D)  high-value customers
E)  customer touch pointsF) A) and B)
G) A) and E)

Question 20

People with the motivation,ability,and opportunity to make a purchase are known as ________.

Accepted Answer

A)  potentials
B)  advocates
C)  members
D)  prospects
E)  partnersF) B) and E)
G) C) and D)

Exam 5: Creating Customer Value, satisfaction, and Loyalty

Peppers and Rogers outline a four-step framework for one-to-one marketing that can be adapted to CRM marketing.What are those four steps?

Correct AnswerverifiedThe four steps are: (1)Identify your pro...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

The aim of customer relationship management (CRM) is to produce high customer ________.

Correct AnswerverifiedShow Answer

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Correct AnswerverifiedShow Answer

Cluster analysis is a good example of a statistical technique that might be employed in datamining.

Correct AnswerverifiedShow Answer

In general,companies can use their databases in all of the following ways EXCEPT ________.

Correct AnswerverifiedShow Answer

Buyers form expectations in all of the following ways EXCEPT ________.

Correct AnswerverifiedShow Answer

The 20-80 rule reflects the idea that ________.

Correct AnswerverifiedShow Answer

What are the four classifications (tiers)of customers in customer profitability analysis using activity-based costing?

Correct AnswerverifiedThe tiers would be platinum cu...View AnswerShow Answer

Customer profitability analysis (CPA)is best conducted with the tools of an accounting technique called activity-based costing (ABC).

Correct AnswerverifiedShow Answer

People with the motivation,ability,and opportunity to make a purchase are known as ________.

Correct AnswerverifiedShow Answer

The ultimate goal of the customer-centered firm is ________.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A key driver of shareholder value is the aggregate value of the customer base.Identify the five strategies employed by winning companies to improve the value of their customer base.

Correct AnswerverifiedWinning companies improve the value of t...View AnswerShow Answer

The least profitable 10% to 20% of customers can reduce profits by 50% to 200% per account.

Correct AnswerverifiedShow Answer

According to customer profitability analysis (CPA),platinum customers spend the most money with the organization,thereby making them valuable.

Correct AnswerverifiedShow Answer

Marketers have found that pricing plays the most essential role in defining and delivering high-quality goods and services to target customers.

Correct AnswerverifiedShow Answer

Describe the process of database marketing.

Correct AnswerverifiedDatabase marketing is the process of bui...View AnswerShow Answer

Harley-Davidson sells more than motorcycles and accessories.Its dealerships also sell branded clothing and licensed goods.This expansion of dealership sales offerings is an attempt to increase the value of the customer base by ________.

Correct AnswerverifiedShow Answer

Satisfied customers constitute the company's ________.

Correct AnswerverifiedShow Answer

Correct Answer
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The four steps are: (1)Identify your pro...
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The tiers would be platinum cu...
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Winning companies improve the value of t...
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Correct Answer
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Database marketing is the process of bui...
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Correct Answer
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