Creating Customer Value, Satisfaction, and Loyalty: General Concept Questions

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Chapter 5:
Creating Customer Value, Satisfaction, and Loyalty

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. ________ are adept at building customer relationships, not just products; they are skilled in market engineering, not just product engineering. a. Profit-centered companies
b. Customer-centered companies
c. Production-centered companies
d. Sales-centered companies
e. Promotion-centered companies
Answer: bPage: 119Difficulty: EasyAACSB: Reflective Thinking

2. The opening vignette on Ritz-Carlton shows that successful marketers are the ones that fully ________. a. understand promotional strategy
b. diversify their product line
c. divorce themselves from a production mentality
d. satisfy their customers profitably
e. understand the sales concept
Answer: dPage: 120Difficulty: Medium AACSB: Reflective Thinking

3. In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid? a. Sales
b. The president
c. Front-line people
d. Customers
e. Middle management
Answer: dPage: 121Difficulty: Medium

4. ________ is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. a. Perceived usefulness
b. Failure avoidance rate
c. Report rating
d. Customer-perceived value
e. Competitors’ market share rate
Answer: dPage: 121Difficulty: Medium AACSB: Analytic Skills 5. Total customer benefit is the perceived monetary value of the bundle of economic, functional, and ________ benefits customers expect from a given market offering. a. psychological

b. intangible
c. realized
d. fabricated
e. advertised
Answer: aPage: 121Difficulty: HardAACSB: Analytic Skills

6. The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering is called the ________. a. organizational expense ratio
b. shopper’s fatigue
c. total customer cost
d. analysis paralysis
e. comparison shopping to comparison buying ratio
Answer: cPage: 121Difficulty: MediumAACSB: Analytic Skills

7. In applying a customer’s perceived value to a decision, a seller who is at a disadvantage with respect to customer-perceived value has two alternatives: to increase total customer benefit or ________. a. increase a cash-back bonus

b. decrease total customer cost
c. lose the sale to the competitor
d. advertise more frequently
e. offer an extended warranty
Answer: bPage: 123Difficulty: MediumAACSB: Analytic Skills

8. The final step of customer value analysis is to ________. a. identify the major attributes and benefits that customers value b. assess the company’s and competitors’ performances on the different customer values against their rated importance c. examine how customers in a specific segment rate the company’s performance against a specific major competitor on an individual attribute or benefit basis d. monitor customer values over time

e. assess the quantitative importance of the different attributes and benefits Answer: dPage: 122Difficulty: Medium

9. The ________ consists of the whole cluster of benefits the company promises to deliver; it is more than the core positioning of the offering. a. customer promise
b. mission statement
c. corporate pledge
d. corporate-perceived value
e. value proposition
Answer: ePage: 123Difficulty: MediumAACSB: Analytic Skills 10. A company’s ________ includes all the experiences the customer will have on the way to obtaining and using the offering. a. value proposition

b. value delivery system
c. customer-value analysis
d. total customer benefit
e. total customer cost
Answer: bPage: 123Difficulty: EasyAACSB: Analytic Skills

11. Total customer satisfaction is...
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