Question 1. __________ is the concept that a customer will adopt an innovation only if he or she considers it to be an improvement over the current product being used to satisfy the same need.

Observability

Planned obsolescence

Relative advantage

Need recognition

Question 2. Which of the following terms best describes the set of products that the customer has no intention of buying?

Evoked set

Inert set

Purchase set

Latent set

Question 3. Economic theory suggests that rational customers will collect information only to the point at which:

the marginal benefit of obtaining the information in terms of incremental value to making a choice equals the marginal cost.

the total benefit of obtaining the information equals the total cost after purchasing the product.

they can no longer pay for syndicated information.

the marginal benefit of obtaining the information in terms of incremental value to making a choice is less than the marginal cost.

Question 4. Craig is the CMO of Speedoconnect, an Internet Services Provider that has been consistently losing market share for the past three quarters. Craig conducts a customer analysis to understand the weaknesses in the company's service operations. Which of the following groups is most critical in this customer analysis?

Competitors' customers

Former customers

Potential customers

Current customers

Question 5. The __________ model is any model in which a low score on one attribute can be offset by a higher score on another.

cluster

segmentation

compensatory

attribution

Question 6. In regard to the adoption of new technologies, the extent to which customers are uncertain about the consequences of an action is termed as:

systemic risk.

pure risk.

perceived risk.

speculative risk.

Question 7. Which external source of information provided by the marketing manager is considered to be the most credible?

Sales presentations

Advertisements

Sales orientation

Word-of-mouth

Question 8. The seller of industrial products is part of the buyer's __________ and must provide timely inventory replenishment, service and maintenance, spare parts, and efficient order handling.

supply chain

communication channel

service chain

promotional program

Question 9. __________ are the set of descriptor variables based on the newness of the purchasing situation.

Demographics

Operating variables

Situational factors

Buy classes

Question 10. When a firm markets a product or service to another organization, it is called:

consumer marketing.

industrial marketing.

market segmentation.

consumer behavior.

Question 11. Usually in this stage of the buying process, benefits rather than specific product or service characteristics are stated.

Determine the characteristics

Establish specifications

Search for and qualify potential suppliers

Request proposals

Question 12. Which of the following stages in a buying sequence will result in a specific option or set of options from which price, delivery, system compatibility, and other characteristics can be determined?

Determine the characteristics

Establish specifications

Search for and qualify potential suppliers

Request proposals

Question 13. A company recognizes the need for a new system to handle customer enquiries. During the buying process, who is most likely to be concerned with the return on investment (ROI)?

The initiator

The user

The decider

The purchaser

Question 14. According to the classification system for global organizational culture as developed by Hofstede, the degree to which employees are threatened by ambiguity is known as:
power distance.

uncertainty avoidance.

ambiguity tolerance.

long-term orientation.

Question 15. Which of the following information is contained in a customer information file (CIF)?

Description of competitors

Contact history of the customers

Rates charged by key suppliers

Rules and regulations affecting the business of the organization

Question 16. A large amount of evidence indicates that merely satisfying customers:

is not enough to keep them loyal to your company or product.

leads to increased purchase by the customers over time.

attracts more customers through word of mouth.

allows you to reduce advertising expenditure over time.

Question 17. Which of the following is a primary customer-based metric?

Market share

Sales volume

Return on investment

Lifetime duration

Question 18. Lands' End offers tailored clothing on its Web site, allowing one to choose a collar, sleeve style, pocket, etc. This is an example of:

mass customization.

niche marketing.

differential marketing.

demographic marketing.

Question 19. Retained customers __________ than switchers.

are more expensive to serve

are more profitable

have lower lifetime customer value

are more price sensitive

Question 20.A back-of-the-envelope approach to calculating lifetime customer value (LCV) is a margin "multiple," which can be used to multiply the current margin generated by each customer to estimate the LCV. This multiple is shown by the formula: r/(1 + i + r) In this formula, "r" stands for:

retention rate for the product.

failure rate for the firm's products.

rate of return of the product by the customers.

the reliability of the product.