Managing Profitable Customer Relationships Part 1

Marketing: Managing Profitable Customer Relationships Multiple Choice 1. Marketing seeks to create and manage profitable customer relationships by delivering _____ to customers. a. competitive prices b. superior value c. superior service d. superior promotion (b) 2. The marketing manager at Sunshine Car Washes is holding a training session for new employees. She stresses that perhaps the most important concept of modern marketing is _____. a. customer relationship management b. e-mail advertising c. a quality Web site d. properly trained sales people (a) 3. This business is now the best-known name on the Net. a. Barnes and Noble b. Microsoft c. Amazon.com d. America Online (c) 4. Jeff Bezos, founder of Amazon.com, wants to deliver a _____ to every customer. a. special experience b. superior value c. wide selection of products d. none of the above (a) 5. Amazon.com delivers all of the following benefits except one. Choose it. a. huge selection b. good value c. convenience d. no refund, credit only policy (d) 6. Selling on the Web presents serious challenges. Amazon.com has made large initial investments in computer systems, distribution centers, and _____. a. customer acquisition b. inventory c. employee training d. employee benefits (a) 7. Many experts predict that the future will belong to retailers who offer both “clicks” and _____. a. major discounts b. bricks c. superior locations d. superior promotion (b) 8. You have learned at work that today’s successful companies at all levels have one thing in common: they are strongly customer focused and heavily committed to _____. a. obtaining the best CEOs b. increasing wealth to stockholders c. marketing d. employee motivation (c) 9. _____ is managing profitable customer relationships. a. Management b. Control c. Marketing d. Human Resources (c) 10. The twofold goal of marketing is to attract new customers by promising superior value and to _____. a. keep and grow current customers by delivering satisfaction b. keep and grow current customers by delivering competitive pricing c. keep and grow current customers by delivering friendly service d. all of the above (a) 11. Highly successful companies know that if they take care of their customers, _____ will follow. a. frequent word of mouth b. market share c. profits d. market share and profits (d) 12. Marketing is more than _____ and advertising. a. distribution b. promotion c. selling d. customer service (c) 13. Today, marketing must be understood in terms of making a sale and _____. a. satisfying customer needs b. understanding customer value c. customers’ self images d. brilliant advertising (a) 14. Marketing is not only an exchange and managerial process, it is a _____. a. numbers game b. social process c. cultural process d. subcultural process (b) 15. You have learned from experience as well as from this course that the most basic concept underlying marketing is that of _____. a. selling and advertising b. customer satisfaction c. retaining customers d. human needs (d) 16. As a new assistant marketing manager trainee, you learn in an orientation meeting that _____ are the form human needs take as they are shaped by culture and individual personality. a. wants b. demands c. self concepts d. desires (a) 17. Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg’s want now has become a _____. a. need b. necessity c. demand d. none of the above (c) 18. What do companies call a set of benefits that they promise to consumers to satisfy their needs? a. marketing offer b. value proposition c. demand satisfaction d. need proposition (b) 19. You are preparing a combination of products, services, information, and experiences to a market to satisfy needs and wants. What are you preparing? a. value proposition b. demand satisfaction c. tactical plan d. marketing offer (d) 20. We must learn a valuable lesson in marketing. Many sellers make the mistake of paying more attention to the specific products they offer than to the _____ produced by those products. a. benefits b. experiences c. benefits and experiences d. value satisfaction (c) 21. Smart marketers look beyond the attributes of the products and services they sell. They create brand _____ and brand _____ for consumers. a. awareness; preference b. recognition; preference c. meaning; preference d. meaning; experiences (d) 22. By orchestrating several services and products, companies can create, stage, and market brand _____. a. meaning b. experiences c. awareness d. preferences (b) 23. The difference between customer value and customer satisfaction is that value is the difference between the values the customer gains from owning and using a product and the _____. a. costs of delivery of the product b. cost of obtaining the product c. cost of competing products d. cost of the lost experience (b) 24. We can safely say that when a customer’s purchase lives up to his or her expectations, the customer is experiencing this state of being. a. customer value b. self-esteem c. self-actualization d. customer satisfaction (d) 25. At work, customers decide to satisfy needs and wants through exchange. What occurs at this point? a. selling b. customer service c. marketing d. transaction marketing (c) 26. Marketing consists of actions taken to build and maintain desirable _____ with target audiences involving a product, service, idea, or other object. a. exchange transactions b. exchange relationships c. exchange processes d. exchange communications (b) 27. This group of buyers share a particular need or want that can be satisfied through exchange relationships. a. segment b. target market c. market d. buying group (c) 28. Economists use the term “market” differently than marketers. They refer to a collection of buyers and sellers who transact in a particular _____, as in the commodities or housing market. a. product class b. product division c. market segment d. target market (a) 29. Marketing is not carried on by sellers alone. _____ also carry on marketing. a. Suppliers b. Investors c. Web designers d. Buyers (d) 30. _____ means managing markets to bring about profitable exchange relationships by creating value and satisfying needs and wants. a. Selling b. Promoting c. Marketing d. Relationship marketing (c) 31. Shawn McCork has an interesting job. He is involved in getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. What is Shawn’s job? a. general manager b. supervisor c. marketing manager d. sales manager (c) 32. Marketers are not concerned with serving all customers in every way. Rather, they want to serve selected customers that they can serve_____. a. profitably b. with superior customer service c. well d. well and profitably (d) 33. Marketing managers are concerned with ways to deal with demand. They may need to find, increase, _____, or even _____ demand. a. avoid; slow b. change; reduce c. maximize; change d. change; modify (b) 34. The federal government finds it necessary at times to limit demand by reducing the number of customers or to shift their demand temporarily or permanently. Name the term for this type of action. a. debugging b. deregulation c. demarketing d. gray marketing (c) 35. The five alternative concepts under which organizations conduct their marketing activities include the production, _____, selling, marketing, and societal marketing concepts. a. promotion b. pricing c. distribution d. product (d) 36. After surveying all 3,500 customers by e-mail, Best Value Stores learned that its customers favor high quality, performance, and innovative features. Best Value’s customers were surveyed about _____. a. product concept b. production concept c. marketing concept d. promotion concept (a) 37. We have learned by sad experience that the product concept can lead to marketing _____. a. failures b. myopia c. problems d. incongruences (b) 38. Jolene’s firm believes that consumers will not buy enough of the firm’s products unless the firm undertakes a large-scale selling and promotion effort. Jolene’s firm is practicing the _____. a. production concept b. marketing concept c. selling concept d. relationship concept (c) 39. Most firms practice the selling concept when they face _____. a. a crisis b. a recession c. fierce competition d. overcapacity (d) 40. To practice the marketing concept, an organization must deliver the _____ better than competitors. a. desired satisfactions b. attractive prices c. level of service d. advertising campaign (a) 41. One of the following is the call of the Information Age where the customer asks: a. “This is what I want, will you make it safer?” b. “This is what I want, won’t you please make it?” c. “Can you make it safer and sell it cheaper?” d. “This is what I want, can you provide more options?” (b) 42. Jonathan Nash works in sales for a telemarketing firm. His firm uses the selling concept which takes a (an) _____ approach. a. outside-in b. myopic c. inside-out d. marketing concept (c) 43. Herb Kelleher of Southwest Airlines uses the marketing concept in his successful organization. His perspective of having a customer department uses a (an) _____ perspective. a. outside-in b. external c. inside-out d. modern (a) 44. Customer-driven marketing usually works well when _____ and when customers _____. a. a clear need exits; are easy to identify b. customers know what they want; can afford it c. a firm can deliver the goods desired; are thoroughly researched d. a clear need exists; know what they want (d) 45. Marie Ortiz enjoys her work at Futuristic Designs, Inc. Her organization understands customer needs even better than customers themselves do and creates products and services that will meet existing and latent needs, now and in the future. Marie’s firm practices _____ marketing. a. customer-driven b. customer-driving c. relationship d. none of the above (b) 46. Now many companies are beginning to think of _____ interests as well as their own customers’ needs. a. society’s b. stockholders’ c. investors’ d. lenders’ (a) 47. The societal marketing concept seeks to establish a balance between consumer shortrun wants and consumer_____. a. short-run costs and profits b. short-run ethics c. long-run welfare d. health (c) 48. You find yourself in a new job. Your marketing manager is heavily involved in the process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Your manager is concerned with which one of the following? a. database management b. Web site hits c. relationship management d. customer relationship management (d) 49. Companies today face some new marketing realities that mean there are fewer customers to go around. Changing demographics, _____, and overcapacity in many industries are great concerns. a. more sophisticated competitors b. higher unemployment c. slowing incomes d. 9/11 (a) 50. _____ is an important concept when we realize that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. a. Heuristics b. Net profit c. Customer lifetime value d. Relationship marketing (c) 51. Experience has taught us that the key to building lasting customer relationships is to create superior customer value and _____. a. satisfaction b. great service c. competitive prices d. long-term relationships (a) 52. Customers buy from stores and firms that offer the highest _____. a. value for the dollar b. customer perceived value c. level of customer satisfaction d. both b and c (b) 53. Since customers tend to act on perceived values, they often do not judge product values and costs _____. a. reliably b. accurately c. objectively d. accurately or objectively (d) 54. Tommy Gray attempts to deliver customer satisfaction every day in his Audio Expressions installation business. He is a smart operator who knows that the key to this goal is to match _____ with _____. a. customer expectations; competitive prices b. company performance; competitive prices c. customer expectations; company performance d. company performance; unique products (c) 55. You have just read a report that alarms you. According to the American Customer Satisfaction Index, which of the following conditions exists relative to overall customer satisfaction with U.S. manufacturing and service industries? a. It has increased slightly. b. It has increased very much. c. It has remained steady. d. It has decreased slightly. (d) 56. All of the following are associated with highly satisfied customers except one. a. They are less price sensitive. b. They remain loyal for a longer period. c. They spend a higher percentage of their discretionary income on personal items. d. They talk favorably to others about the company and its products. (c) 57. Shania works hard with her Internet customers to create an emotional relationship for her customers with the products and services she and her staff sell. She and her staff have created _____. a. customer delight b. customer satisfaction c. customer value d. customer loyalty (a) 58. Beyond simply retaining good customers, marketers want to constantly increase their “share of customer.” Describe what this means in marketing terms. a. Marketers want to increase their market share. b. Marketers want to increase the share they get of the customer’s purchasing in their product categories. c. Marketers want to increase the profit margin with this target market. d. none of the above (b) 59. _____ is one of the best ways to increase share of customer. a. Selling up b. Using bait and switch c. Cross selling d. Relationship selling (c) 60. Karrie Romanov wants to capture the full essence of customer relationship management. Which of the following will Karrie take into consideration? a. own the customers for life b. capture their lifetime value c. build overall customer equity d. all of the above (d) 61. Is the following statement true? Clearly, the more loyal the firm’s customers, the higher the firm’s customer equity. a. no b. yes c. maybe d. cannot tell accurately (b) 62. Surveys show that in markets with few customers and high margins, sellers want to create _____ with key customers. a. basic relationships b. relationship marketing c. extreme partnerships d. full partnerships (d)