Exam Name___________________________________ MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. 1)

Which

of the following is true for the modern company organization chart? A)

Frontline B)

employees are less important than top management.

Customers are at the top of the pyramid. C)

Top D)

management is at the top of the pyramid.

Customers E)

are less important than middle management.

Frontline

employees are at the top of the pyramid. Answer:

2)

In the moder

n customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid? A)

sales B)

top C)

management

front-line D)

people

customers E)

middle

management Answer:

3)

In a customer-oriented organization chart, the ________ of an organization immediately follow the modern customer segment. A)

top B)

management

marketing C)

department

middle D)

management

frontline E)

people

lower

management Answer:

4)

________ difference between the prospective customer's evaluation of all the benefits and all the costs is the of an offering and the perceived alternatives. A)

Perceived B)

usefulness

Failure C)

avoidance rate

Total D)

customer benefit

CustomerE)

perceived value

Competitors' market share rate Answer:

5)

When a mer considers a product or service, he or she will choose whichever product or service delivers consu the highest ________. A)

customerB)

perceived value

customerC)

perceived cost

customer D)

profitability analysis

customer E)

equity

customer lifetime value Answer:

6)

________ perceived monetary value of the bundle of economic, functional, and psychological benefits is the customers expect from a given market offering. A)

Total B)

customer cost

Total C)

customer benefit

Total benefits of ownership D)

Value E)

proposition

Value

delivery system Answer:

7)

The of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given bundle market offering is called the ________. A)

activityB)

based cost

customer C)

profitability analysis

total D)

customer cost

product life- cycle cost E)

direct

product profitability Answer:

C 8)

Which

of the following is true for customer-perceived value? A)

It is the perceived

B)

monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product.

It is the difference

C)

between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

It is the perceived

D)

bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering.

It is the net present value of the stream of future profits expected over the customer's lifetime purchases. E)

It is the investigating the hierarchy of attributes consumers examine in choosing a brand if they use process of phased decision strategies. Answer:

9)

Which

of the following is the first step in customer value analysis? A)

Examine how customers in a specific segment rate the company's performance. B)

Assess the company's

C)

and competitors' performances on the different customer values against their rated importance.

Identify the major attributes and benefits that customers value. D)

Monitor E)

customer values over time.

Assess the quantitative importance of the different attributes and benefits. Answer:

10)

The

final step of customer value analysis is to ________. A)

identify the B)

major attributes and benefits that customers value

assess the company's

C)

and competitors' performances on the different customer values against their rated importance

examine how customers in a specific segment rate the company's performance D)

monitor E)

customer values over time

assess the quantitative importance of the different attributes and benefits Answer:

11)

Cell phone

manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT? A)

absorbing B)

some risk by offering a warranty

improving C)

the functional aspects of the products

augmenting the psychological benefits of the products D)

training E)

service personnel to improve their skills

investing in brand building for the products Answer:

12)

________ as a deeply held commitment to rebuy or repatronize a preferred product or service in the can be future despite situational influences and marketing efforts having the potential to cause switching defined behavior. A)

Value B)

proposition

Loyalty C)

Satisfaction D)

Respect E)

Customer value Answer:

13)

TBS y introduced a series of bikes called Surami. The core positioning of TBS Bikes is "speed". Surami Bikes is a five-gear bike and apart from speed, the company promises to include other features such as has safety, good performance, and pollution control features. This describes the ________ of the bike. recentl A)

total B)

customer cost

customerC)

perceived value

valueD)

delivery system

value E)

proposition

total

customer benefit Answer:

14)

A ny's ________ includes all the experiences the customer will have on the way to obtaining and compa using the offering. A)

value B)

proposition

value C)

delivery system

customerD)

value analysis

total E)

customer benefit

total

customer cost Answer:

B 15)

Sammy food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all 's is a the experiences the customers will have on the way to obtaining their food order and eating it. fast Hence, Sammy's is focusing its marketing efforts on its ________. A)

horizontal B)

marketing system

cost versus C)

benefit system

consumption system D)

marketing E)

channel system

value

delivery system Answer:

16)

Total

customer satisfaction is measured based on the relationship of ________. A)

expected B)

value and total customer benefit

perceived C)

performance and expectation

advertised D)

outcomes and real outcomes

past E)

experience and present experience

customer attitude and salesperson's attitude Answer:

17)

Which

of the following is true for customer satisfaction? A)

Satisfaction held commitment to rebuy or repatronize a preferred product despite situational influences. is a deeply B)

Consumers C)

often form more favorable perceptions of a product with a brand that is new.

The ultimate goal of a customer-centered firm is to create high customer satisfaction. D)

Only E)

increased customer satisfaction can help a company increase its profits.

Greater

customer satisfaction has also been linked to higher returns and lower risk in the stock market. Answer:

18)

________ track customer satisfaction directly, measure repurchase intention and also gauge a can consumer's willingness to recommend the company and brand to others. A)

Periodic B)

surveys

Mystery C)

shoppers

Customer D)

loss rates

Customer E)

focus statements

Sales

summary reports Answer:

19)

Field y wants to learn the strengths and weaknesses in customer service at all the Field Grocery Grocer stores. Which of the following methods can it use for this? A)

group buyers B)

buyer C)

brokers

mystery D)

shoppers

personal E)

shoppers

buying

agents Answer:

20)

Of

customers who register a complaint, ________. A)

all will do the company again because they are unwilling to dedicate the effort required to find another business with vendor B)

none will do business with the company again C)

customers whose

D)

complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied

the speed of resolution has no impact on the likelihood of repeat business E)

some will do business with the company again if their complaint is resolved Answer:

21)

Satisfie d customers constitute the company's ________. A)

customer B)

relationship capital

customer C)

churn

target D)

audience

high-value E)

customers

customer touch points Answer:

22)

LifeTim Insurance screens its customers and tries to get unprofitable customers to buy services e from competitors. This is an example of ________. A)

trying to B)

increase the retention rate for low-profit customers

terminating the relationship with low-profit customers C)

enhancing D)

the growth potential of each customer through up-selling

increasing E)

the longevity of the customer relationship

reducing the rate of customer defection Answer:

B 23)

Which

of the following statements demonstrates behavioral loyalty towards a brand? A)

2Wheels has very customer-friendly return policies for its products. B)

I always buy 2Wheels products when I'm looking for bike accessories. C)

Most of my D)

friends agree that 2Wheels is the best place for durable biking gear.

2Wheels has the friendliest customer service people I've ever met. E)

I think that 2Wheels products are the highest-quality products in their price range. Answer:

ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1)

Compar contrast the typical traditional organization chart for an organization against the modern customere and oriented organization chart. Answer:

The traditional organization chart is a pyramid with the president at the top, management in the middle, and frontline people and customers at the bottom. In this case, the top management is the most important part of an organization. Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart obsolete. In the modern customeroriented organization chart, customers are at the top, followed by frontline people, then middle management, and, lastly, top management.

3)

What

are the steps in a customer value analysis? Answer:

Managers conduct a customer value analysis to reveal the company's strengths and weaknesses relative to those of various competitors. The steps in this analysis are: 1. Identify the major attributes and benefits customers value. 2. Assess the quantitative importance of the different attributes and benefits. 3. Assess the company's and competitors' performances on the different customer values against their rated importance. 4. Examine how customers in a specific segment rate the company's performance against a specific major competitor on an individual attribute or benefit basis. 5. Monitor customer values over time.

4)

Explain total customer satisfaction. Answer:

In general, satisfaction is a person's feelings of pleasure or disappointment that result from comparing a product's perceived performance (or outcome) to expectations. If the performance falls short of expectations, the customer is dissatisfied. If it matches expectations, the customer is satisfied. If it exceeds expectations, the customer is highly satisfied or delighted. Customer assessments of product performance depends on many factors, especially the type of loyalty relationship the customer has with the brand. Consumers often form more favorable perceptions of a product with a brand they already feel positive about.

5)

What

are the measurement techniques for monitoring satisfaction? Answer:

Many companies are systematically measuring how well they treat customers, identifying the factors shaping satisfaction, and changing operations and marketing as a result. Periodic surveys: These can track customer satisfaction directly and ask additional questions to measure repurchase intention and the respondent's likelihood or willingness to recommend the company and brand to others. Customer loss rate: Companies need to monitor their competitors' performance too. They can monitor their customer loss rate and contact those who have stopped buying or who have switched to another supplier to find out why. Mystery shoppers: Companies can hire mystery shoppers to pose as potential buyers and report on strong and weak points experienced in buying the company's and competitors' products. Managers

enter company and competitor sales situations where they are unknown and experience firsthand the treatment they receive, or they can phone their own company with questions and complaints to see how employees handle the calls.

6)

Identify ways in which companies facing customer complaints can recover customer goodwill. Answer:

Given the potential downside of having an unhappy customer, it is critical that marketers deal with negative experiences properly. Beyond that, the following procedures can help to recover customer goodwill. 1. Set 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 responsibility for the customer's disappointment 4. Use customerservice people who are empathic. 5. Resolve the complaint swiftly and to the customer's satisfaction.