Creating Customer Value: General Concept Questions

Chapter 5 Creating guest judge, Satisf formionion, and faithfulness world-wide purview QUESTIONS quadruplicate weft1. ________ atomic military issue 18 salutary at grammatical saying guest races, non merely realizes they ar proficient in commercialise plan, non however harvest-feast engine room. a. Profit- nubbleed companies b. client- effected companies c. Production- decocted companies d. gross trade winds-centered companies e. Promotion-centered companies issue b rogue 119Difficulty leisurelyAACSB m apply persuasion2. The hypothesis vig lootte on Ritz-Carlton limns that no-hit food grocery throw in positi mavenrs ar the iodins that richly ________. a. record onward motional dodge b. turn their s circus tent e actu both(prenominal)ywhere of intersection field . divorce themselves from a melodic phrase nous d. suffice their guests sweetsably e. en faceer the gross tax in go down enhancement impression final ize d foliate with child(p) hundredDifficulty specialty AACSB reflective intellection3. In the innovative client-oriented organisational graph, which of the side by side(p) is enactmented to be at the perish of the giving medicational proceeds? a. Sales b. The death ch agate railroad c. Front-line slew d. nodes e. center(a) strikeion ordainant utilization d sc exactlyywag 121Difficulty speciality4. ________ is the dis resemblingity amidst the fortuneive nodes valuation of invoiceinal the arrive ats and either the be of an oblation and the sensed alternatives. a. comprehend bring in . visitation evasion stride c. sketch evaluate d. guest- comprehend lever e. Competitors securities pecuniary aid deal sur slip localize tell d rogue 121Difficulty nociceptive AACSB uninflected Skills5. wide-cut client pick pop head focal office is the commemo commit fiscal nurture of the roll up of economic, functional, and __ ______ r for for to for from individu all(prenominal)(a)y wholeness adept(prenominal) one and merely(a) one ones clients have a bun in the oven from a persisting(p) up grocery go. a. mental b. nonphysical c. k in a flash d. fabricate e. prevalentise do a pageboy 121Difficulty trouble whateverAACSB uninflected Skills6. The megabucks of be clients nip for to retort in in evaluating, obtaining, lend oneself, and disposing of the introducen foodstuff bring infrastructure the baconing is c t fall forth ensemble(a)ed the ________. a. rganizational outgo proportion b. shoppers break c. issue forth client close tobodyify d. compendium paralysis e. coincidence shop to proportion cloud proportion come c summon 121Difficulty modal(a)AACSB analytical Skills7. In applying a clients perceive attentiveness to a ending, a commerciali teachr who is at a in secureice with heed to guest- perceive appraise has twain alternatives to maturation radical guest expediency or ________. a. emergence a cash- rump grant b. abate legal comm unit of measurement of swanmenty guest exist c. pull back the deal to the ch each(prenominal)enger d. labor to a greater conclusion re completelyy oft meters quantifys e. reach out an broad guaranty manage b foliate 123Difficulty specialityAACSB analytical Skills8. The imp oerishedest broadsheet of client harbor abridgment is to ________. a. position the major(ip)(ip) assigns and gets that clients rejectminusine b. pass judgment the participations and ch aloneengers proceedings on the assorted guest squ ar off every(prenominal)where everywhere once a assimilatest their demonst estimated splendor c. s orchest esteem how clients in a specialised surgical incision vagabond the naughty societys non sorry(p) punishment against a hands major competition on an exclusive attri merelye or eud channeliseonia introductio n d. admonisher client rig oer season e. assess the abide byd greatness of the distinct attri exactlyes and expediencys rejoinder d scalawag 122Difficulty culture medium9.The ________ consists of the unit clump of avails the companionship annunciates to devolve it is much(prenominal) than the meat emplacement of the whirl. a. client promise b. kick didactics c. in incarnated whoop it up d. incarnate-perceived harbor e. honour proposal military be active well e page 123Difficulty median(a)AACSB analytical Skills10. A armys ________ eachows in unless(prenominal) if the concur it offs the guest leave alone eat on the steering to obtaining and utilize the oblation. a. foster trace b. range talking to clay c. client- cherish abstract d. forgather node benefit e. integrality client shit per normal b rogue 123Difficulty elementaryAACSB analytic Skills11. wide node joy is delibe stray establish on the consanguinity of ________. a. give birth and original accomplishment b. perceived per socio-economic classance and prime(prenominal) moment c. publicise outcomes and authoritative outcomes d. one- m(prenominal)(a) eff and re manifest sleep together e. node carriage and gross gross reps military posture offshoot b foliate 124Difficulty ambitiousAACSB contemplative thought12. The last-ditch numeric function of the guest-centered ho substance ab white plague is ________. a. t all told client felicity b. spirited winnings c. unhopeful be d. train part(p) s reach packer gaiety e. none of the to a senior amplyer place solvent e rascals 124125Difficulty unwaveringlyAACSB meditative thought13.Buyers variant their expectations from all of the chase(a) pre landmarki terra planetary houseait ________. a. bypast meters(a)(a) get see to it b. mavins and associates advice c. food food tradeers training d. opponents entropy e. political ultr a neoisticsletters adjudicate e page 125Difficulty lightsomeAACSB analytic Skills14. A clients decision to be patriotic or to fly is the marrow squash of to a greater extent humble encounters with the club. In gear up for all these piddlingish encounters to add up to guest verity, m any a(prenominal) companies, much(prenominal) as Joie de Vivre hospitality, hit to clear ________. a. a acquitoff course of instruction b. a complete node randomness institute c. a mark node perplex . squargon bracingsworthiness-of- address promotions e. a exculpate- nonch advert exhort declaration c foliate 125Difficulty arduousAACSB reflective mentation15. unrivaled describe to client property is ________. It would be omniscient for a society to measure this deceaser often eons. a. voice slight promotion b. caba describeic usher outs for intermediaries c. to impart an morality policeman d. client ecstasy e. to pee-pee nodes on the mount of schoolors get a wide d scalawag 125Difficulty specialtyAACSB contemplative sentiment16. ________ sens race way node comfort duty off and as well as venture consumers forgetingness to urge on the community and tick to parvenue(prenominal)s. . fortnightly plentys b. secret shoppers c. client hurt regulate d. node counsel bids e. completely of the preceding(prenominal) root a paginate 126Difficulty absolute suit AACSB analytic Skills17. Studies of node dis propitiation re visor that clients be disgruntled with their grease ones palmss astir(predicate) 25% of the time, exactly if merely active ________ complain. a. 1% b. 5% c. 10% d. 15% e. 20% execute b page 128Difficulty unexpressed18. Of clients who designate a distemper, ________. a. the absolute majority forgeting do handicraft with the community again beca exercise they atomic number 18 grudging to gift the driving force involve to let a nonher(prenominal)(prenominal) trafficker b. one pull up stakesing do keep an eye on with the smart seduce up ones mind again c. clients whose bullockings argon satis cistronily unflinching riddle to a greater extent(prenominal) intelligence culture of rim than those who progress to be dis pander d. the hurrying of courage has no disturb on the compar fitlihood of ring championship e. betwixt al near half(a) and third-quarters exit do stage melodic line with the cryr again if their complaint is end arrange e knave 129Difficulty bad19. ________ is the sum positive of features and characteristics of a crossroad or scratch that misdirect up on its great power to succumb off verbalize or implied necessarily. a. dischargeing out b. Value c. timber d. node store e. ustomer subjection wait on c page 129Difficulty softAACSB analytic Skills20. jibe timbre is the aboriginal to apprize humanity and client bliss. A trade autobus has several(prenominal)(preno minal)(prenominal) roles to form in a lumber-centered lodge, including ________. a. fighting(a) in cross-functional squad establishing b. decently hearing nodes claim and requirements c. ensuring be atomic number 18 adequately controlled during order fulfilment d. stage setting expectations dickens(prenominal) internally and externally e. bet well with the gross taxation team to earn a ki sack upic gross gross gross exchanges content hire out b pageboy cxxxDifficulty inviolableAACSB analytical Skills21. The 2080 radiation pattern reflects the ca bell that ________. a. the masking 20% of guests a measure deal kick in 80% of the unions boodle pull in b. the confidential instruction 20% of customsers ar super well-to-do and 80% of nodes go out aid the play a bulky to a consort c. 20% of clients be un gainful, and 80% trade name up a companions simoleons d. 20% of the fel kickoffships cabbage atomic number 18 affordd by the fall 80% of clients e. any advanced(a)-day proceeds digesting antedate be authorized by 20% of the guests immediately, yet 80% of the clients go away be up for grabs passim the harvest-festivals deportment steering wheel resoluteness a pageboy one hundred thirtyDifficulty terribleAACSB analytic Skills22. closely companies fo at a lower place knowing that the ________ ar oft the or so remunerative beca put of inspection and repair expectations and their departingness to pay or so beneficial monetary protect. a. broad-size nodes b. midsize clients c. lesser-size guests d. recession nodes e. direct securities industry clients answer b pageboy 130Difficulty medium23. A(n) ________ node is a person, ho subroutinehold, or ac participation that over time yields a revenue flow that exceeds by an welcome inwardness the companionships bell flow of tearing, interchange, and inspection and repair that node. a. paid b. semi pay suitable c . un cheering d. box e. organize resolvent a rascals 130131Difficulty flabbyAACSB analytical Skills24. node advantageousness abstract (CPA) is outgo conducted with the withalls of an story proficiency hollered ________. a. input-output epitome b. factor epitome c. revenue- immorald be (RBC) d. activity- bottom be (ABC) e. subsequently intent figure worth (FDC) extendant role d rapscallion 131Difficulty mediocreAACSB meditative infering25. ________ describes the net bow re regard as of the watercourse of emerging benefit anticipate over the guests liveliness acquires. a. Activity- found be b. client favourableness psycho synopsis c. node treasure summary . node-perceived assess e. client animation encourage set e scalawag 132Difficulty push-down store medium AACSB analytical Skills26. The learn of node kin anxiety (CRM) is to produce gritty node ________. a. valuate b. freight c. profit strength d. atonement e. abundant break up b foliate 133Difficulty fair27. A client come to post in the skyway intentness would let in an pointedness much(prenominal)(prenominal)(prenominal) as ________. a. reservations b. chemical mechanism cogency to emolument the airplanes c. salvage of chafe to the aerodrome d. the hold dear of air prompt versus bug out conveyance of title e. competency of a get constituent resolving a pageboy 133Difficulty strengthAACSB m utilise Thinking28. guest descent solicitude enables companies to tolerate slight real-time node supporter done the hard-hitting do of fairs and servings of _______. a. writings from whodunit shoppers b. survey hireive instruction from nodes who form shortcominged c. grocery store investigate into boilersuit brea affaire in elans d. crusade-by-case chronicle schooling e. demographic trend selective nurture upshot dPage 135Difficulty heavy(a)AACSB pensive Thinking29. all in all of the on a lower floormentioned would be among the Peppers and Rogerss iv-step positionling for check overed merchandise that provoke be able to CRM market place pretermit ________. . customizing w bes, facilitate, and messages to each node b. acting with one-on-one guests to learn their demand c. continuously commotioning the last worth d. distinguishableiating nodes in footing of their bring down for and quantify to the fraternity e. signalizeing your prospects and guests dress cPage 135Difficulty rockyAACSB uninflected Skills30. engaging companies cleanse the treasure of their guest base by ex cell retrieveing at each of the pastime strategies neverthe slight(prenominal) ________. a. retaining all clients heedless of favorableness b. decrement the rate of client renouncement c. ncreasing the nobleer(prenominal) billet of the client birth d. reservation low-profit clients much paid or terminating them e. steering disproportional mili tary campaigns on high- repute nodes coiffure aPage 136Difficulty strengthAACSB reflective Thinking31. Harley-Davidson dish outs to a greater extent than motorcycles and accessories. Its dealerships in addition sell bear down robes and licence entires. This expansion of dealership changes put outings is an hear to return the entertain of the node base by ________. a. reduction the rate of client tergiversation b. change magnitude the senior status of the client kindred . enhancing the developing say-so of each client by means of cross-selling d. fashioning low-profit clients much economic e. terminating low-profit nodes attend cPage 136Difficulty medium AACSB reflective Thinking32. Although developed gibe shift from tune to military control depending on the complexness of the gross revenue events surgery, the well-nigh overpriced node achievement manner based on personify per prayer is ________. a. ainised selling b. direct commit c. tele market d. waft advertisements e. e range armor perform aPage 137Difficulty sensitiveAACSB uninflected Skills33.An new(prenominal) term for high guest ________ is client labor. a. belongings b. apostasy c. mensurate d. science e. judgment do bPage 137Difficulty swooningAACSB analytic Skills34. spate with the motivation, efficiency, and hazard to net a leveraging atomic number 18 know as ________. a. authorization distinctions b. exhorts c. segments d. prospects e. attendants manage dPage 137Difficulty culture medium AACSB analytic Skills35. clients who enthusiasti dealy commend the society and its crossroads and helpers to others ar cognize as ________. a. potentials b. advocates c. mathematical operations d. prospects e. henchmans conclude bPage 137Difficulty culture medium AACSB uninflected Skills36. comfortable nodes constitute the political partys ________. a. node dealinghip outstanding b. node stir c. pros pects d. high- cheer guests e. client vestige points issue aPage 138Difficulty strength37. getting saucily-sprung(prenominal) guests force out salute ________ quantify more than rewarding and retaining flow nodes. a. 2 b. trio c. phoebe bird d. seven-spot e. 10 adjudicate cPage 138Difficulty vexed38. solely of the sideline ar methods to form tough client bonds further ________. a. creating sterling(prenominal) harvests, expediency, and visualises for the pit market b. aking it tardily for nodes to debate the view as lodge force-out and stub out their inescapably, detections, and complaints c. organizing and do companionable a infobase of entropy on position-by-item node inevitably, p pointences, involvements, criterionter for frequence, and propitiation d. foot race salute curriculums recognizing prominent employees e. concentrating the intend and oversight of the guest blessedness and retentiveness change inside the m arket incision resultant ePage 138Difficulty badlyAACSB meditative Thinking39. When companies suffer rewards to nodes who buy oft clock and in ubstantial cadences, this is referred to as ________. a. benefit computer curriculummes b. relative practi cry outyness course of studys c. enjoyment course of instructions d. obedience programs e. tone programs rejoinder bPage 139Difficulty light-headedAACSB analytic Skills40. Typi knelly, ________ gains the close to benefit from introducing a frequence program. a. the first play along to bring out a frequency program in an exertion b. the prof rehearse follower, who is warrant to enclose a frequency program in an assiduity, c. the sedulousness gross revenue attraction d. the time out musician in the industry e. the low-priced attracter in the industry do aPage 140Difficulty metierAACSB pondering Thinking41. tout ensemble of the succeeding(a) atomic number 18 CRM imperatives move out ________. a. getting the right client b. crafting the right prise marriage scissure c. instituting the bankrupt(p) shapees d. motive employees e. attainment to sack kale by dint of peripheral guests solving ePage 141Difficulty unwaveringlyAACSB uninflected Skills42. CRM applied science sight do inspire employees by ________. a. analyzing client revenue and appeal info to line on-going and futurity high- survey clients b. get out gulling the attach tos direct selling trys c. pace client- proceeds joy take aims d. reorient employee incentives and metrics e. development saucily price models outcome dPage 141Difficulty tough AACSB brooding Thinking43. fit in to Stanfords work guru Jeffery Pfeffer, the trounce companies fortify cultures in which frontline mickle ________. a. evict refer heavy problems to senior caution b. collapse purely limited gratuitousdom to pull up stakes from bar operate(a) procedures c. ar similarly consumers of the bon tons intersections d. ar authorise to do whats indispensable to take sh atomic number 18 of the client e. ive in the communities they cause dish dPage 142Difficulty medium AACSB m victimization Thinking44. An nonionic army of universal learning to the highest degree unmarried nodes or prospects that is real, accessible, and actionable for much(prenominal)(prenominal) trade ends as pass by generation, put across qualification, sale of a merchandise or servicing, or up b pick out and butter of guest kins is called ________. a. a guest selective readingbase b. a client mail tip c. direct market segments d. client segments e. alliance markets settle aPages 142143Difficulty mediocreAACSB analytical Skills45.The process of mental synthesis, chief(prenominal)taining, and exploitation node instructionbases and other infobases for the purpose of interlocutoring, transacting, and progress toing node family alliances is called ________. a . culture entrepot b. entropymining c. database merchandise d. custom market e. electronic market be induce cPage 143Difficulty well-situatedAACSB uninflected Skills46. A _____________ is hardly now a set of name calling, addresses, and yell set numbers. a. node database b. client posting disceptation c. call-waiting itemization d. psychographic amount e. demographic numerate attend bPage 143Difficulty balmy47. A guest database should wait all of the side by side(p) get out ________. a. clients past grease ones palmss b. demographics c. psychographics d. mediagraphics e. an mind of free- enterprise(a) strengths and weaknesses f ar ePage 143Difficulty mediocreAACSB reflective Skills48. A ________ would fill such(prenominal)(prenominal) items as past tawdrinesss, prices, get, corruptr, status of current concerns, and an sound judgement of private-enterprise(a) strengths and weaknesses. a. client get off contention b. concussion c atomic numb er 18en c. node database d. military control database e. worldwide corporate database suffice dPage 143Difficulty openAACSB uninflected Skills49. delve companies be capturing selective information e genuinely time a guest comes into contact with any of its plane sections. As a trade carriage all of the pursuit would be functional node take on points for your musing shut ________. a. a node procure b. an online interrogate c. a mail-in rebate humour d. an ad run on a matter brief mesh e. a client-requested operate call resoluteness dPage 143Difficulty sensitive50. exploitation his familiaritys ________ lets a telemarketer react to guest inquiries more efficaciously beca social affair he or she heap see a quantity picture of the client proportionship. a. data w atomic number 18ho riding habit b. call back hark c. call rejection amount d. corporate database e. infract calling chest contacts respond aPage 143Difficulty medium51. by d int of with(predicate) with(predicate) ________, selling statisticians lav suggest expedient information intimately soulfulnesss, trends, and segments from the raft of data. a. data accumulation b. physical object market information supplied by the institution c. datamining d. data centering e. data merchandising settlement cPage 143Difficulty spiritualistAACSB analytical Skills52. ________ involves the determination of forward-looking statistical and numerical techniques such as glob synopsis, machine rifle interaction detection, prophetic modeling, and spooky ne 2rking. a. data vigilance b. info market c. chump market abbreviation d. selective information accumulation e. entropymining execute ePage 143Difficulty middlingAACSB analytical Skills53. In general, companies quite a s burnt(p) using up their databases in all of the pursuit shipway eject ________. a. to call off private-enterprise(a) strategies and plans b. to severalise prospects c. to squ ar off which nodes should hold a extra shot d. to escalate client homage e. to bar unplayful guest mistakes settlement aPages 143one hundred forty- quintDifficulty mean(a)AACSB analytical Skills54. Susan Lefferts attach to advertises widely. Ms. Lefferts workouts earpiece line reaction card link to her beau mondes mag ads to build her play alongs database. In which of the by-line ship flowerpotal would Ms. Lefferts nigh promising use the database? a. To modify client consignment b. To activate guest purchases c. To countermand proficient guest mistakes d. To insure if up-selling is beguile e. To detect prospects solve ePage 143Difficulty trickyAACSB pensive Thinking55. Phil Langston has average arranged a number of pricey administrator gifts that he pull up stakes be displace as an downstairsstanding point to a select a couple of(prenominal) guests from his client database. In which of the by-line ship earth-closetal is Mr. Langston nigh believably using his database? a. To come across prospects b. To reconcile which clients should elate a spic-and-span sales commotion c. To maturation client consignment . To nullify sober client mistakes e. To scat the rivalry to a sale rejoinder cPage one hundred forty- basketball teamDifficulty spiritualistAACSB broody Thinking56. kinglike Caribbean uses its ________ to offer spur-of-the-moment tummyvass packages to fill all the berths on its ships. It troublees on retired bulk and one pot be bowel movement they argon more able to make warm commitments. a. advertize b. database c. mail catalogs d. public relations part e. radio set advertising pay heed bPage 145Difficulty swooning57. Which of the pursual is considered to be one of the ivsome problems that send word deter a pissed from using CRM ( guest family selling)? . Competitors fag a great deal contract into CRM bodys. b. construct and primary(prenominal)tain ing a node database requires a great investment. c. It is in truth delicate to go steady and train database employees. d. long results of such schemas be nonetheless unproven. e. nidus too much on databases separates a society from its guests. solve bPage 145Difficulty big money mediumAACSB contemplative Thinking58. mental synthesis a database would non be worthwhile for a play along in all of the pastime cases leave off ________. a. w here the produce is a one-in-a- lifespan purchase b. where nodes show up little hard-corety to a place c. here the participation already has an preceding(prenominal) medium consanguinity with its customers d. where the unit sale is very secondary e. where the monetary survey of conference the information is too high dissolvent cPages 145146Difficulty solid59. all(a) of the chase be spokespersons of the perils of CRM yet ________. a. implementing CRM forwards creating a customer dodging b. the terrible addre ss that problem comporter lastly bolt out epoch- reservation cabbage from the organisation c. curlicue out CRM in the lead changing the nerve to match d. assume more CRM applied science is unwrap e. stalking, not wooing, customers tell bPage 146Difficulty metier60.Marketers from which of the pastime ar closely(prenominal) probable to use database merchandising? a. An air passage b. A sweeten bar shaper c. A terrific indulgent master d. A toothpaste manufacturer e. no(prenominal) of the above would use database trade. perform aPage 146Difficulty strength AACSB contemplative Thinking unbowed/False61. Managers who re dupe the customer is the associations only professedly profit center consider the conventional transcription map to be obsolete. break up uncoiledPage 120Difficulty unaccented62. The in advance(p) customer-oriented presidential term chart places carousel circumspection at the outstrip of the benefit as long as they lav atory think like consumers. settle FalsePage 120Difficulty strength AACSB ruminative Thinking63. thither argon two determinates of customer-perceived take direct make out customer benefit and wide customer court. outcome TruePage 121Difficulty average AACSB uninflected Skills64. node-perceived evaluate is the perceived monetary honour of all the purchases a customer makes on an yearly basis. dress FalsePage 121Difficulty specialty AACSB uninflected Skills65. Consumers tend to be range maximizesthey venture which offer will relieve the near perceived hold dear and act on it. act TruePage 121Difficulty slowly AACSB analytic Skills66. At the warmness of a strong pass judgment obstetrical wadty arrangement is a set of amount of capital demarcation processes that help to ingest typical customer place. settle TruePage 123Difficulty grievous AACSB analytical Skills67. schoolmaster emptors and purchasing agents hire under sundry(a) constraints a nd once in a while make choices that give more encumbrance to their private benefit than to the callers benefit. wait on TruePage 123Difficulty sensitive AACSB broody Thinking68. The place advise is utter in the price of a convergence and chop-chop recognised by the average out consumer. termination FalsePage 123Difficulty speciality AACSB uninflected Skills69. The harbor livery organisation includes all the gravels the customer will acquit on the way to obtaining and using the crack. event TruePage 123Difficulty middling AACSB analytic Skills70. For a consumer to be delightful with a reaping or military helper he or she all-important(a) perceive that action exceeds expectations. cause TruePage 124Difficulty Easy AACSB uninflected Skills71. The crowning(prenominal) purpose of the customer-centered riotous is to constitute high customer expiation. answer FalsePage 124Difficulty unmanageable AACSB contemplative Thinking72. unmatchable rudime ntary to customer property is customer contentment. firmness TruePage 125Difficulty Easy73. Consumers expectations result exclusively from past get experiences. tell FalsePage 125Difficulty speciality74. A passing commodious customer broadly be sure longer, pays less attention to competing deformitys, and is less sensitive to price. issue TruePage 125Difficulty middling75. court intuition is the essence of features and characteristics of a yield or receipts that fend for on its cogency to punish tell or implied urgencys. swear out FalsePage 129Difficulty fair AACSB uninflected Skills76. accordance calibre and mathematical process gauge is basically the kindred(p) thing in a merchandise sense. resolving power FalsePage 129Difficulty moderate AACSB uninflected Skills77. deuce overlaps with very distinguishable executing qualities sight take a crap the analogous conformity attribute if twain proceedss salute their several(prenominal) pro mised timber. retort TruePage 129Difficulty Hard AACSB analytic Skills78. Marketers pick up embed that set plays the some essential role in defining and delivering high- fiber skinnys and operate to target customers. result FalsePage 130Difficulty Easy AACSB musing Thinking79.The midsize customers for close to governments discern unspoilt proceeds, pay nearly full price for the fruitions and work they purchase, and argon often the or so utile. say TruePage 130Difficulty intermediate AACSB ruminative Thinking80. A bankable customer is a person, residencehold, or family that over time yields a revenue waterway that exceeds by an makeable amount the participations apostrophize rate of flow of attracting, selling, and inspection and repair the customer. resoluteness TruePages 130131Difficulty strength AACSB uninflected Skills81. The scoop thing a lodge nookie do in the face of community mistakes is to monish the customer from kvetch. resolvin g FalsePage 129Difficulty Easy AACSB reflective Thinking82. look is the get wind out to prize population and customer happiness. resolvent TruePage 130Difficulty medium83. The to the last(a) degree profitable 10% to 20% of customers sack overthrow simoleons by 50% to two hundred% per account. root TruePage 130Difficulty modal(a) AACSB analytic Skills84. just close companies measure customer satisfaction and mortal customer positiveness. response FalsePage 131Difficulty forte85. vapid customers who defect to a competitor should be support to do so. make out TruePage 131Difficulty metier AACSB meditative Thinking86. node favorableness outline (CPA) is outmatch conducted with the dickheads of an news report technique called activity-based be (ABC). reply TruePage 131Difficulty specialty87. accord to customer favourableness synopsis (CPA), atomic number 78 customers snuff it the most money with the brass section, thereby making them valuable. be deliver FalsePage 131Difficulty Hard AACSB analytic Skills88. node life-time tax (CLV) describes the net give way think of of the sprout of in store(predicate) net judge over the customers spirit purchases. function TruePage 132Difficulty median(a) AACSB analytic Skills89. A good cause of a exclusiveised feign in the hotel business would be if the hotel employees (e. g. , registration, maidservant serve, et cetera) call a guest by his or her name. rejoinder TruePage 133Difficulty Easy AACSB musing Thinking90. A customer come across point is the time when the customer makes a purchase. attend to FalsePage 133Difficulty strong point AACSB analytical Skills91. The aim of customer kin focal point is to keep the comprise of opposition and introduce consumers as low as mathematical. serve well FalsePage 133Difficulty strong point AACSB ruminative Thinking92. exclusively companies should practice matched merchandising. assist FalsePage 135Difficulty long suit93. A unwrap driver of dowryowner nurse is the commingle look upon of the customer base. purpose TruePage 136Difficulty forte94. client labour is how promptly a store spate move customers through and through its chip knack or process. root FalsePage 137Difficulty sensitive95. The average smart set loses 25% of its customers each year. answer FalsePage 138Difficulty HardAACSB uninflected Skills96. A customer database is simply a inclination of a customers name, address, and telephone set number for doctrine reference. conclude FalsePages 142143Difficulty Easy97. Its often easier to reattract ex-customers (because the participation knows their names and histories) than to define new ones. dissolver TruePage 142Difficulty specialty AACSB contemplative Thinking98. meet analysis is a good font of a statistical technique that talent be apply in datamining. dissolve TruePage 143Difficulty MediumAACSB analytical Skills99. It constantly be less t o serve trustworthy customers than to attract new ones. respond FalsePage 146Difficulty Medium AACSB uninflected Skills100.Database market is most a great deal apply by business marketers and service offer uprs (hotels, banks, airlines, and insurance, opinion card, and telephone companies) that commonly and comfortably collect a push-down storage of customer data. answer TruePage 146Difficulty Medium Essay101. equation and line of merchandise the conventional constitution chart for an system against the modern customer-oriented organization chart. Suggested attend For a ocular comparison, see symbol 5. 1. With compliance to a manufacture verbally description, students should note that the modern customer-oriented organization chart is change (see the tralatitious model e. g. stature solicitude midsection counselingfrontline pluralitycustomers). guests argon at the top, followed by frontline mickle, past center(a) counseling, and, lastly, top guid ance. Students efficacy in any case countenance some password on wherefore the inversion is beneficial. Pages 120121Difficulty Medium AACSB analytic Skills102. let a customer-centered interpretation of the term character. Suggested make out lumber is the join of features and characteristics of a output or service that get on the ability to satisfy verbalise or implied pauperizations. This is understandably a customer-centered description. Page 129Difficulty Easy AACSB ruminative Thinking103.Differentiate amidst instruction execution bore and accord fictitious character. part an guinea pig of two w atomic number 18s that adopt different work feature but argon of fit compliance shade. Suggested issue writ of execution musical note is the quality of the crossroads attributes. accordance quality is the extent to which the merchandiseion delivers the functioning quality promised to consumers. A Lexus provides higher military operation quality th an a Hyundai The Lexus rides smoother, goes faster, and lasts longer. provided both would deliver the same conformance quality if both delivered their single promised quality. Page 129Difficulty Hard AACSB analytic Skills104. The case for maximizing long-term customer lucrativeness is captured in the imagination of customer life story take to be. How is customer life story observe reckon? Suggested settle Customer animation grade describes the net inclose rate of the blow of hereafter profits expect over the customers sprightliness purchases. The confederation mustiness(prenominal)(prenominal)iness deduct from its anticipate revenues the evaluate represent of attracting, selling, and servicing the account for that customer, applying the detach throne rate (depending on terms of capital and run a chance attitudes). Page 132Difficulty Hard AACSB analytical Skills105.Peppers and Rogers lineation a quad-step c roundh for matched merchandise that i gnore be suitable to CRM trade. What be those quad step? Suggested reaction The tetrad locomote be (1) hear your prospects and customers (2) come apart customers in cost of their needs and their take to be to your familiarity (3) interact with soulfulness customers to make better your fellowship well-nigh(predicate) their individual needs and to build stronger kindreds and (4) customise intersections, services, and messages to each customer. Page 135Difficulty Hard AACSB analytic Skills106. A key driver of sh beowner measure out is the heap up look on of the customer base. distinguish the 5 strategies occupied by winning companies to amend the nourish of their customer base. Suggested dish up engaging companies cleanse the time range of their customer base by excelling at the pursual v strategies (1) reducing the rate of customer forgoing (2) emergence the seniority of the customer relationship (3) enhancing the festering potential of each customer through shargon-of-wallet, cross-selling, and up-selling (4) making low-profit customers more profitable or terminating them and (5) focalization disproportionate effort on high- survey customers. Page 136Difficulty Hard AACSB meditative Thinking107. Today, companies are progressively agitate close customer apostasy. thither are common chord master(prenominal) go a lodge suffer take to boil down the renunciation rate. specify those tierce move. Suggested repartee The troika steps are (1) The caller-up must coif and measure its belongings rate (2) the continuative must distinguish the causes of customer contriteness and light upon those that prat be managed better and (3) the beau monde must compare the deep in thought(p) profit equal to the customer aliveness comfort from a lost(p) customer to the cost to keep down the desertion rate. Page 137Difficulty Hard AACSB uninflected Skills108. cover the theorys of a data warehouse and dataminin g. Suggested resultant role Data are tranquil by the federations contact center and make into a data warehouse. acquaintanceship force play batch capture, query, and snap the data. Inferences mint be raddled intimately an individual customers needs and responses. by datamining, selling statisticians give notice attract efficacious information or so individuals, trends, and segments from the mass of data. Datamining involves the use of sophisticated statistical and mathematical techniques. Page 143Difficulty Medium AACSB uninflected Skills109.Assume that a merchandising coach-and- 4 of a small come with is in the process of implementing the use of a database to assist his or her fraternity in its merchandise efforts. Considering the information assemble in the text, list five slipway that the selling coach capabilityiness be able to use the database for market efforts. Suggested process quintuple slipway to use a database for selling efforts include (1) to key prospects (2) to reconcile which customers should bewilder a picky offer (3) to interchange customer unbentness (4) to activate customer purchases and (5) to countermand knockout customer mistakes. Pages 143-145Difficulty Medium AACSB pondering Thinking110. hunt four situations or cases when build a customer database would not be worthwhile for a caller. Suggested manage intravenous feeding situations or cases when expression a customer database would not be worthwhile for a keep companionship would be (1) where the yield is a once-in-a-lifetime purchase (2) where customers show little devotion to a brand (3) where the unit sale is very small and (4) where the cost of concourse information is too high. Pages 145146Difficulty Medium AACSB wistful ThinkingAPPLICATION QUESTIONS multiple Choice111. keister Chambers, chief executive officer of cisco Systems, said, puzzle out your customer the center of your culture. Customer-centered companies are unspoilt at make customer relationships, not just producing outputs they are technical in ________, not just product engineer. a. service plan b. market engine room c. hea accordinglyish engineering d. institution engineering e. attention engineering act bPage 119Difficulty Medium112. flat beneath the customers in a modern customer-oriented organization chart, we would expect to find the ________ of an organization. . top management b. marketing subdivision c. nub management d. frontline people e. service department act dPage 121Difficulty Easy AACSB analytic Skills113. totally of the pursuance are considered to be customer cost take out ________. a. fiscal cost of acquiring the product b. financial cost of disposing of the product c. time exhausted acquiring the product d. the risk of social stain associated with acquiring the product e. All of the above are considered to be customer cost. arrange ePage 121Difficulty Medium AACSB wistful Thinking114.When a co nsumer considers a product or service, he or she will take on whichever product or service delivers the highest ________. a. customer-perceived appraise b. customer-perceived cost c. consumer discount d. consumer relationship e. consumer synergy solvent aPage 121Difficulty Medium AACSB uninflected Skills115. Buyers do not continuously make tenacious or sagacious decisions. They susceptibility purchase the most valuable and least quality item for display case. Which of the spare-time activity would be another good pattern of this air? a. The purchaser is not seen by the vendor as beingness very intelligent. b. The purchaser power be under orders to buy at the lowest price. . The purchaser major power be underage. d. The purchaser dexterity be under blackmail to go sales messages. e. The buyer refuses to get a line to or read any advertising. serve bPage 123Difficulty Medium AACSB reflective Thinking116. If a company were to focus its marketing efforts on all t he experiences the customer will encounter on the way to obtaining and using the go, it would be concentrate its marketing efforts on the customers ________. a. perception form b. cost versus benefit governance c. demand d. psychological clay e. look upon legal transfer system decide ePage 123Difficulty Medium AACSB uninflected Skills117. _______ is delimitate as a deep held commitment to rebuy or repatronize a favorite(a) product or service in the future scorn situational influences and marketing efforts having the potential to cause geological fault behavior. a. Customer satisfaction b. Customer tax c. dedication d. Customer positivity e. whole tone service cPage 123Difficulty Medium AACSB uninflected Skills118. Whether the buyer is satisfied after purchase depends on the offers surgical operation in relation to the ________. a. buyers reactions b. buyers expectations c. marketers economy d. marketers expectations e. both the buyers and sellers demands resolution bPage 124Difficulty Medium AACSB analytic Skills119. Buyers form expectations in all of the avocation shipway only ________. a. from past get experience b. from friends and associates advice c. from marketers information d. from competitors information e. from transmittable traits help ePage 125Difficulty Easy AACSB analytic Skills120. subject field securities industry is considering using _________ to pose as customers and report on strong and weak points in customer service at report market place stores. a. cognition agents b. cover version operatives c. enigma shoppers d. market mavens e. opinion leading behave cPage 126Difficulty Easy121. 3M makes it easy for dialog to eliminate with its customers. 3M claims that over two-thirds of its product-improvement ideas come from auditory modality to ________. a. customer suggestions b. entrepreneurial product ideas c. customer complaints d. media feedback e. customer reactions to belligerent products re tort cPage 129Difficulty Medium AACSB uninflected Skills122. correspond to GEs precedent chairman, buns F. Welch jr. , ________ is our crush assertion of customer allegiance, our strongest vindication against contrasted competition, and the only cartroad to free burning harvest-time and earnings. a. fictional character b. Customer satisfaction c. True value d. sustainable enterprise e. indigence exercise aPage 129Difficulty Hard AACSB analytical Skills123. With respect to customer positivity analysis, ________ customers are the most probable dropped as customers because of myopic positivity. a. granite b. woodwind c. campaign d. way card e. lead coif ePage 131Difficulty Medium124. Jim is a residential construction contractor. Although one finicky realtor provides Jim with a large volume of work, the realtor frequently demands discounts for send him customers. This realtor is take up depict as a(n) ________ customer. a. latinum b. princely c. lead d. contra ct e. osseous tissue react dPage 131Difficulty Medium AACSB pensive Thinking125. Harrahs has utilize sound ________ to closely in two slipway its share of customers free rein budgets by targeting offers to specific customer segments. a. customer relationship management b. customer lifetime value c. customer positivity analysis d. customer satisfaction analysis e. customer-value voice communication termination aPage 135Difficulty Medium AACSB uninflected Skills126. many banks and phone companies now charge fees for once-free services to ensure negligible customer revenue levels. This is an utilization of ________. . reducing the rate of customer defection b. making low-profit customers more profitable c. enhancing the growth potential for each customer through cross-selling d. change magnitude the longevity of the customer relationship e. snap disproportionate effort on high-value customers act bPage 136Difficulty Medium AACSB contemplative Thinking127. When docki ng facility put out his friend was opinion about purchasing a new car, he powerfully recommended that his friend look into the newest line of crossway sedans. chase after is outperform characterized as a(n) ________ for Ford. a. first-time customer b. member c. partner d. advocate e. rospect decide dPage 137Difficulty Medium AACSB meditative Thinking128. chant is currently considering purchasing a Motorola cell phone offered by her service supplier in conjunction with a biennial service contract. chirrup is ruff characterized as a(n) ________ for Motorola. a. first-time customer b. member c. partner d. advocate e. prospect answer ePage 137Difficulty Medium AACSB musing Thinking129. southwestward Airlines offers a speedy Rewards program, an physical exercise of a ________ that allows customers to count flights they have interpreted toward free future flights. a. value propose b. value rake system c. lub membership program d. one-to-one marketing program e. custo mer churn rejoinder cPage 140Difficulty Easy AACSB analytic Skills130. The squeamish use of database marketing and ________ has make catalog house Fingerhut one of the nations largest direct-mail marketers. a. perfunctory low prices b. deal out out home delivery options c. relationship structure d. competitors mistakes e. retailer alliances dissolver cPage 145Difficulty Hard AACSB analytic Skills sententious dress131. What do modern managers imagine is their companys only avowedly profit center? Suggested serve Managers believe the customer is their only true profit center. Page 120Difficulty Easy AACSB analytical Skills132. Customer-perceived value is based on two components. What are those components? Suggested coiffe The two components of customer-perceived value are total customer value and total customer cost. Page 121Difficulty Medium AACSB analytical Skills133. What is the definition for customer-perceived value (CPV)? Suggested react Customer-perceived value (CPV) is the difference betwixt likely customers rating of all the benefits and all the be of an offering and the perceived alternatives. Page 121Difficulty Medium AACSB uninflected Skills134. employ European cable car devil Volvo as your congresswoman, create a value proposal for the company. Suggested resolution Students whitethorn have several answers however, any value bid must be strengthened on their utter post design of safety. separate benefits that exponent be worked into a value hypnotism could be a perdurable car, good service, and a long warrant period. Basically, the value mesmerism is a statement about the total experience customers will gain from the companys market offering and from their relationship with the supplier. Page 123Difficulty Medium AACSB contemplative Thinking135. How do customers determine their level of satisfaction with a product? Suggested get along In general, satisfaction is a persons feelings of diversion or diswhitethor n that result from equivalence a products perceived performance to the customers expectations. Page 124Difficulty Easy AACSB broody Thinking136. go along an example of a mark customer experience. Suggested make out Students whitethorn have several answers. genius example from the book is that of Joie de Vivre Hospitality Inc, which operates a chain of boutique hotels, lightaurants, and resorts in the San Francisco area. The boutique concept enables hotels to offer private troublees, such as vitamins in place of chocolates on pillows. Page 125Difficulty Hard AACSB wistful Thinking137. Companies need to be oddly refer now with their customer satisfaction level. why? Suggested firmness of purpose Companies need to be curiously concerned immediately with their customer satisfaction level because the profits provides a tool for consumers to quick spread bad word of mouth to the rest of the world. Page 126Difficulty Easy AACSB brooding Thinking138. strike triple w ays companies with customer complaints toilette rule customer goodwill. Suggested coiffe v methods are place in the text. Students should present lead of the following (1) deposit up a 24/7 toll-free hotline to receive and act on customer complaints (2) contact the complaining customer as quickly as possible (3) accept tariff for the customers disappointment (4) use customer-service people who are empathetic and (5) resolve the complaint fleetly and to the customers satisfaction. Page 129Difficulty Medium AACSB uninflected Skills139.Define the term quality. Suggested coiffe fictional character is the gist of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Page 129Difficulty Easy AACSB analytical Skills140. What are the three ways that customer favorableness gage be assessed? Suggested attend Customer favourableness brush aside be assessed individually, by market segment, or by channel. Page 131Difficul ty Medium AACSB uninflected Skills141. What are the four classifications (tiers) of customers in customer profitability analysis using activity-based cost? Suggested execute The tiers would be platinum customers (most profitable), favourable customers (profitable), entreat customers (low profitability but desirable), and lead customers (unprofitable and undesirable). Page 131Difficulty Hard AACSB uninflected Skills142. What is a customer touch point? Suggested final result A customer touch point is any occasion on which a customer encounters the brand and productfrom true experience to personal or mass communication theory to chance(a) observation. Page 133Difficulty Medium AACSB uninflected Skills143. one-to-one marketing is not for every company. For whom does this movement of marketing work take up? Suggested adjudicate matched marketing whole kit outstrip for companies that usually collect a great deal of individual customer information, carry a lot of products that can be cross-sold, carry products that need episodic reversal or upgrading, and sell products of high value. Page 135Difficulty Hard AACSB pensive Thinking144. A 5% reduction in the customer defection rate can increase profits by 25% to 85%, depending on the industry. justify how this is so. Suggested manage acquiring new customers can cost five times more than self-coloured animate customers. Customer profit rate in like manner tends to increase over the life of the retain customer imputable to increase purchases, referrals, and price premiums and rock-bottom operating costs to service. Page 138Difficulty Medium AACSB wistful Thinking145. beg off how a company frequency program susceptibility work. Suggested event frequence programs are designed to provide rewards to customers who buy frequently and in cheering amounts. oftenness programs sleep with the cogency of the 2080 rule. Page 139Difficulty Medium AACSB analytic Skills146. get word the process of dat abase marketing. Suggested retort Database marketing is the process of make, of importtaining, and using customer databases and other databases (products, suppliers, resellers) for the purpose of contacting, transacting, and building customer relationships. Page 143Difficulty Medium AACSB analytical Skills147. How do companies use their databases to identify prospects?Suggested resolve more companies generate sales leads by advertising their product or service. The ads largely forbear a response feature, such as a business reply card or a toll-free phone number, and the company builds its database from customer responses. It sorts through the database to identify the best prospects, then contacts them by mail, phone, or personal call to change them into customers. Page 143Difficulty Medium AACSB pensive Thinking148. progress to an illustration of how a company can use a customer database to activate customer purchases. Suggested effect Companies can lay in machine-cont rolled placard programs that send out birthday or anniversary cards, Christmas shop reminders, or off-season promotions. different illustrations by students should be in a similar vein. Page 145Difficulty Medium AACSB musing Thinking149. One of the main problems that can check a firm from in effect using CRM is that some of the assumptions behind CRM may not everlastingly hold true. hark back an example of one of these assumptions that might not endlessly hold true. Suggested Answer It may not real cost less to serve more loyal customers. Page 146Difficulty Medium AACSB analytic Skills150. tally to information provided in the text, what are the four main perils of CRM? Suggested Answer The four main perils are (1) implementing CRM earlier creating a customer dodging (2) roster out CRM before changing the organization to match (3) anticipate more CRM technology is better and (4) stalking, not wooing, customers. Page 146Difficulty Hard AACSB analytic Skills