Nova Southeastern University

MKT 5070

1)A customer_is any occasion on which a customer encounters the brand and product—from actual experience to personal or mass communications to casual observation.

1. 1. touch point
   2. point of order
   3. point of difference
   4. pivot point
   5. point of parity
2. A customer touch point for Abacus Airlines would be an item such as                                         .
   1. ease of access to the airport
   2. a mechanic's ability to service the airplanes
   3. the reservations desk
   4. the value of air travel versus surface transportation
   5. competency of a travel agent

3. Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were offered chilled juice. Their check-in formalities were handled by the staff. When they entered their room, they saw that chocolates had been placed on the pillows and a flower arrangement on the table. The hotel's actions are an example of  .
   1. customer lifetime value
   2. customer perceived value
   3. customer value analysis
   4. customer profitability analysis
   5. a customer touch point

4. Another term for high customer                           is customer churn.
   1. retention
   2. defection
   3. value
   4. perception
   5. belief

5. Customer relationship management enables companies to provide excellent real-time customer service through the effective use of                                                                .
   1. reports from mystery shoppers
   2. survey data from customers who have defected
   3. market research
   4. individual account informtion
   5. demographic trend data

6. Which of the following can a company do to reduce defection?
   1. Attract new customers to try out the company's products.
   2. Increase customer lifetime value by increasing the non-monetary costs of products.
   3. Enhance the growth potential of existing customers through cross-selling and upselling.
   4. Distinguish the causes of customer attrition and identify those that can be managed better.
   5. Make low-profit customers more profitable or terminate the relationship.

7. Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also keen to try out other stores in the neighborhood. He is in the        stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.
   1. aware
   2. open to trial
   3. most often used
   4. nonrejecter
   5. regular user

8. Amy is in the "aware" stage of the marketing funnel when she says                              .
   1. she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood
   2. she was informed about VeggiesNmore by her colleague at work
   3. she regularly shops from VeggiesNmore
   4. she shops from VeggiesNmore as far as the store is easily accessible
   5. she was happy with the experience of shopping at VeggiesNmore

9. Sapphire Toys actually sells more than toys. It also sells branded clothing, music CDs, and books for children. This expansion of dealership sales offerings is an attempt to increase the value of the customer base by             .
   1. reducing the rate of customer defection
   2. increasing the longevity of the customer relationship
   3. enhancing the growth potential of each customer through cross-selling
   4. making low-profit customers more profitable
   5. terminating low-profit customers

10. LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors. This is an example of                                                                   .
    1. trying to increase the retention rate for low-profit customers
    2. terminating the relationship with low-profit customers
    3. enhancing the growth potential of each customer through up-selling
    4. increasing the longevity of the customer relationship
    5. reducing the rate of customer defection

11. Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to                                                                     .
    1. reduce the rate of customer defection
    2. make low-profit customers more profitable
    3. enhance the growth potential for each customer through cross-selling
    4. increase the longevity of the customer relationship
    5. focus disproportionate effort on high-value customers

12. Which of the following is an example of focusing disproportionate effort on high- profit customers?
    1. In addition to bicycles, 2Wheels sells biking gear such as helmets, bottles, jackets and other accessories.
    2. 2Wheels has a club for its regular customers, organizing cycling events and parties for them.
    3. Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city.
    4. 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model.
    5. 2Wheels encourages customers to send in their suggestions for product improvement.

13. Which of the following is an example of enhancing the growth potential of each customer through cross-selling?
    1. In addition to bicycles, 2Wheels stocks biking gear such as helmets, bottles, jackets and other accessories.
    2. 2Wheels has a club for its regular customers, organizing cycling events and parties for them.
    3. Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city.
    4. 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model.
    5. 2Wheels encourages customers to send in their suggestions for product improvement.

14. Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as                                                                        .
    1. benefit programs
    2. frequency programs
    3. satisfaction programs
    4. profitability programs
    5. quality programs

15. Which of the following gains the most benefit from introducing a frequency program?
    1. the first company to introduce a frequency program in an industry
    2. the fast follower, the second to introduce a program in an industry
    3. the industry sales leader
    4. the niche player in the industry
    5. the low-cost leader in the industry

16. Club membership programs that are open to everyone who purchases a product or service               .
    1. are more powerful long-term loyalty builders than limited-membership clubs.
    2. will not help a company attract customers from competitors
    3. prevent those with only a fleeting interest in a company's products from joining
    4. are useful for building a database of customers but are not very good as long-term loyalty builders
    5. are useless unless there are fees and membership conditions

17. Southwest Airlines offers a Rapid Rewards program that allows customers to count flights they have taken toward free future flights. This is an example of a(n)                                                                               .
    1. cross-selling program
    2. value delivery system
    3. club membership program
    4. activity-based costing program
    5. up-selling program

18. A                         is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.
    1. customer database
    2. customer mailing list
    3. customer-performance scorecard
    4. customer profitability analysis
    5. customer-value hierarchy

19. The process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships is called      .
    1. data warehousing
    2. data mining
    3. database marketing
    4. participatory marketing
    5. permission marketing

20. Using the information in his company's                              lets a telemarketer respond to customer inquiries more effectively because he or she can see a total picture of the customer relationship.
    1. data warehouse
    2. call back list
    3. call rejection list
    4. bibliographic database
    5. customer-value hierarchy

21. Through                        , marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data.
    1. data governance
    2. data modeling
    3. data mining
    4. data maintenance
    5. data marketing

22. 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?
    1. to deepen customer loyalty
    2. to reactivate customer purchases
    3. to avoid serious customer mistakes
    4. to determine if up-selling is appropriate
    5. to identify prospects

23. 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?
    1. to identify prospects
    2. to decide which customers should receive a new sales offer
    3. to deepen customer loyalty
    4. to avoid serious customer mistakes
    5. to beat the competition to a sale

24. The skillful use of                            has made catalog house Fingerhut one of the nation's largest direct-mail marketers.
    1. everyday low prices
    2. expanded home delivery options
    3. database marketing
    4. under-the-line promotions
    5. retailer alliances