Chapter 4 - Creating Customer Value and Customer Relationship
True/False Questions
1. The task of any business is to deliver customer value at a profit.
2. Companies that subscribe to the traditional view of marketing have the bets chance of succeeding in markets where the consumer faces abundant choice.)
3. According to the value chain, every firm is a synthesis of activities performed to design, produce, market, deliver, support, and recycles its products.
4. The core business process called market sensing consists of all activities involved in gathering marketing intelligence, disseminating it within the firm, and acting on it.
5. The question "How can a company use its capabilities to deliver value offerings more efficiently?" is part of the Value Creation portion of the Holistic Marketing Framework.
6. Customer perceived value is defined as the difference between the prospective customer's evaluation of all the benefits of an offering and the perceived alternatives.
7. Product value, service value, and image value are all determinants of total customer cost.
8. Business and organizational customers always choose the highest delivered value when making an industrial product purchase.
9. Loyalty is defined as a deeply held commitment to re-buy or re-patronize a preferred product or service in the future, even in the face of situational or marketing influences with the potential to cause switching behavior.
10. Experts have defined quality in different ways.
11. A product can have conformance quality without having performance quality.
12. The 20-80-30 rule suggests that a company makes 80 percent of its profit from just 20 percent of its customers, about 30 percent of the time.
13. Figuring out your average customer lifetime value is one step toward understanding long-term customer profitability.
14. The more loyal the customers, the higher the customer equity.
15. Brand equity is the customer's tendency to stick with the brand, above and beyond the objective and subjective assessment of its worth.
16. Developing one-to-one marketing through a CRM program might include not pursuing all customers.
17. According to some marketing experts, it is no longer enough to produce satisfied customers.
About 60 percent of dissatisfied customers don't complain.
18. The customer development process begins with first-time customers.
19. The highest level of investment in customer relationship building is called partnership marketing.
20. The first step to reducing customer defection is to distinguish the causes of customer irritation and identify those that can be managed better.
21. American Airlines pioneered frequent flier programs to get more loyalty from its customers. Frequency marketing is an acknowledgement that a minority of customers provides a majority of profits
22. Database marketing is the process of building, maintaining, and using a customer mailing list.
23. Data warehousing involves the use of sophisticated statistical and mathematical techniques to extract meaning from large customer data sets.
24. One problem with CRM programs is that not all customers want a "relationship" with the marketer.