Essay Questions

1. In a short essay, discuss how the Traditional view of marketing differs from the Value Creation and Delivery Sequence (VCDS).

2. Monica begins thinking strategically about her online scrapbooking store after a friend mentions that there are five core processes involved in successful business practice. In a short essay, relate the five core business processes to Monica's business.

3. What do the concepts "total customer value" and "total customer cost" mean and how are they related? Use examples to illustrate your answer.

4. Rhys runs a 10-room bed and breakfast on the Cardiff Bay Walk in Cardiff, Wales. If Rhys stresses having high customer satisfaction, how might he be rewarded by the B&B's customers?

5. Happy Days seafood restaurant in Sanya of Hainan Province has just been bought by a young and rich Chinese businessman. The new owner wants to make Happy Days stand out among the many competitors by being the highest quality restaurant. Explain at least five ways Happy Days quality could be measured.

6. Why would you ever want to "fire" a customer? What are the other options?

7. Rhys is manager of a large, privately held, luxury oceanfront hotel on the Cardiff Bay Walk in Cardiff, Wales. His bosses (the investor group) recently met with Rhys and conveyed their desire to implement a customer relationship management program. Rhys is sent to a CRM conference and comes home with a software product that is completely compatible with the hotel's existing IT system. The software tracks customer "touch points." Explain the idea of touch points and what they might be for a luxury hotel.

Mini-Case 4-1
Arno owns a fast food chain that is set to go from six shops to twelve over the next year. Because Arno's stores will double and he is still just one person, he decides it's time to get some kind of technological help with understanding and serving his customers better.

8. Refer to Mini-Case 4-1. At a foodservice trade show in Shanghai, Arno finds an affordable software-based system that will help him create an Arno's Discount Club, by managing detailed information about individual customers, such as their zip code and buying patterns. Arno's new system is an example of .
a. customer relationship management 
b. prospect identification
c. growing value equity
d. add-on selling
e. mass customization

9. Refer to Mini-Case 4-1. An independent produce supplier who provides Arno with all his vegetables would like to grow her business along with Arno. Arno and the produce supplier would be characterized as having the level of relationship marketing.
a. partnership 
b. accountable
c. reactive
d. proactive
e. basic

10. Refer to Mini-Case 4-1. With the information Arno is able to gather about his customers, he might profitably use his customer database for all of the following EXCEPT:
a. matching offers to a specific customer.
b. drawing inferences about customer lifestyles. 
c. deepening customer loyalty by remembering preferences.
d. reactivating through reminder promotional efforts.
e. avoiding sending the same customers two similar offers but with varying prices.

Mini-Case 4-2

Ahn's antiques business has been greatly affected by her move to an online store two years ago. Her sales have quadrupled and she has been able to hire a full-time, online

customer liaison that helps her with both buying and selling, as well as Web site maintenance, and is in her own right, an antiques expert.

11. Refer to Mini-Case 4-2. Long-time customer Bunny began preferring Ahn's Online store and now makes most of her purchases through that channel. She perceived Ahn's Online to be a better source because of the enhanced selection, the responsive emails she has received in answer to her queries, better pricing, and less effort compared to the travel involved in "old school' antiquing. Ahn's Online has offered Bunny a better
than did the prior channel.
a. total customer cost
b. customer perceived value
c. customer delivered value
d. total customer value 
e. customer relationship management

12. Refer to Mini-Case 4-2. Ahn's includes all the experiences her customers have on the way to obtaining and using the antiques.
a. value proposition
b. value-delivery system 
c. psychic cost
d. rational buying process
e. customer proclivity to purchase

13. Refer to Mini-Case 4-2. As a result of being highly satisfied, what is Bunny NOT likely to do?
a. Stay loyal to Ahn's.
b. Talk favorably about Ahn's with her antique friends.
c. Be less sensitive to Ahn's prices.
d. Buy more products from Ahn.
e. Cost a bit more for Ahn to serve.