M&A Modeling Exam Answers from Wall Street Prep
Which of the following terms refers to a customer's evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of
competing offers?
a. Customer-perceived value
b. customer equity
c. customer lifetime value
d. share of customer
e. customer profitability - ANSWER a. customer-perceived value
Abel now has the buying power to purchase the computer that he wanted to buy six
months ago. Abel's want has most likely become a ________.
a. market offering
b. value
c. need
d. demand
e. desire - ANSWER d. demand
________ refers to the portion of the customer's purchase that a company gets in its
product categories.
a. brand equity
b. customer lifetime value
c. value proposition
d. share of customer
e. customer equity - ANSWER d. share of customer
Carla, a team leader in charge of customer relationship management, is planning
strategies to improve the profitability of her firm's least profitable but loyal customers.
She is also examining methods for "firing" customers in this group who cannot be
made profitable. To which of the following customer relationship groups do these
customers belong?
a. true friends
b. butterflies
c. barnacles
d. strangers
e. innovators - ANSWER c. barnacles
Which of the following marketing management orientations may yield the unintended
consequence of aggressive selling by creating short term sales transactions rather
than on building long-term relationships?
a. marketing concept
b. selling concept
,c. product concept
d. production concept
e. direct marketing concept - ANSWER b. selling concept
Dollarama profitably appeals to families with more modest means. The retailer's
approach is most likely referred to as ________.
a. cost leadership
b. mass distribution
c. consumer-generated marketing
d. undifferentiated marketing
e. target marketing - ANSWER e. target marketing
Cosmetic retailer Lush knows that doing what's right benefits both customers and the
company. Their premium beauty products are made by hand from the freshest
possible natural ingredients. This is an example of the ________ concept.
A. marketing
B.production
C.product
D.selling
E.societal marketing - ANSWER e. Societal marketing
Which of the following transforms marketing strategies into real values for
consumers?
Select one:
A.share of customer
B.customer equity
C.a firm's value proposition
D.customer satisfaction surveys
E.the four Ps of marketing - ANSWER e. the four Ps of marketing
Ritz-Carlton is fervently dedicated to anticipating customers' slightest needs. Without
ever asking, they seem to know when customers want a king-size bed, non-
allergenic pillow, extra body gel, or the blinds open upon arrival. An amazing 95
percent of departing guests report that their stay has been a truly memorable
experience. This is an example of ________.
Select one:
A.customer delight
B.customer lifetime value
C.customer equity
D.customer share
E.customer-perceived value - ANSWER a. customer delight
Amazon, like many other successful companies, is driven by one primary objective,
namely ________.
Select one:
A.acquiring companies in order to add to its many product offerings.
, B.value creation for the customers.
C.fast and reliable delivery.
D.providing shareholders with healthy returns on their investments.
E.acquiring market share from industry leader, Walmart. - ANSWER b. value
creation for the customers
________ refers to working closely with people inside and outside the company to
jointly bring more value to customers.
Select one:
A.Partner relationship management
B.Channel value proposition
C.Demand management
D.Customer-generated marketing
E.Integrated communication - ANSWER a. partner relationship management
Marketers are said to suffer from marketing myopia when they ignore underlying
consumer needs and focus excessively on ________.
Select one:
A.consumers' existing wants
B.consumers' brand experiences
C.consumers' future demands
D.competitors' threats
E.competitors' strengths - ANSWER a. consumers existing wants
Which of the following is an example of consumer-generated marketing?
Select one:
A. Fun & Run, a local amusement park, promotes its services by allowing consumers
to upload videos and write reviews about the park.
B. Figa, a leading provider of athletic shoes, helps its customers customize their
shoes on its website and choose personalized settings.
C. Barton's, a local pet supply store, rewards frequent buyers with vouchers and
exclusive offers.
D. Energix, a manufacturer of soft drinks, attracts customers through televised
advertisements.
E. Cristal, a jewelry store, uses its page on Facebook to provide information about its
upcoming products to its customers. - ANSWER a. Fun & Run, a local amusement
park, promotes its services by allowing consumers to upload videos and write
reviews about the park.
Which of the following terms refers to a customer's evaluation of the difference
between all the benefits and all the costs of a market offering relative to those of
competing offers?
a. Customer-perceived value
b. customer equity
c. customer lifetime value
d. share of customer
e. customer profitability - ANSWER a. customer-perceived value
Abel now has the buying power to purchase the computer that he wanted to buy six
months ago. Abel's want has most likely become a ________.
a. market offering
b. value
c. need
d. demand
e. desire - ANSWER d. demand
________ refers to the portion of the customer's purchase that a company gets in its
product categories.
a. brand equity
b. customer lifetime value
c. value proposition
d. share of customer
e. customer equity - ANSWER d. share of customer
Carla, a team leader in charge of customer relationship management, is planning
strategies to improve the profitability of her firm's least profitable but loyal customers.
She is also examining methods for "firing" customers in this group who cannot be
made profitable. To which of the following customer relationship groups do these
customers belong?
a. true friends
b. butterflies
c. barnacles
d. strangers
e. innovators - ANSWER c. barnacles
Which of the following marketing management orientations may yield the unintended
consequence of aggressive selling by creating short term sales transactions rather
than on building long-term relationships?
a. marketing concept
b. selling concept
,c. product concept
d. production concept
e. direct marketing concept - ANSWER b. selling concept
Dollarama profitably appeals to families with more modest means. The retailer's
approach is most likely referred to as ________.
a. cost leadership
b. mass distribution
c. consumer-generated marketing
d. undifferentiated marketing
e. target marketing - ANSWER e. target marketing
Cosmetic retailer Lush knows that doing what's right benefits both customers and the
company. Their premium beauty products are made by hand from the freshest
possible natural ingredients. This is an example of the ________ concept.
A. marketing
B.production
C.product
D.selling
E.societal marketing - ANSWER e. Societal marketing
Which of the following transforms marketing strategies into real values for
consumers?
Select one:
A.share of customer
B.customer equity
C.a firm's value proposition
D.customer satisfaction surveys
E.the four Ps of marketing - ANSWER e. the four Ps of marketing
Ritz-Carlton is fervently dedicated to anticipating customers' slightest needs. Without
ever asking, they seem to know when customers want a king-size bed, non-
allergenic pillow, extra body gel, or the blinds open upon arrival. An amazing 95
percent of departing guests report that their stay has been a truly memorable
experience. This is an example of ________.
Select one:
A.customer delight
B.customer lifetime value
C.customer equity
D.customer share
E.customer-perceived value - ANSWER a. customer delight
Amazon, like many other successful companies, is driven by one primary objective,
namely ________.
Select one:
A.acquiring companies in order to add to its many product offerings.
, B.value creation for the customers.
C.fast and reliable delivery.
D.providing shareholders with healthy returns on their investments.
E.acquiring market share from industry leader, Walmart. - ANSWER b. value
creation for the customers
________ refers to working closely with people inside and outside the company to
jointly bring more value to customers.
Select one:
A.Partner relationship management
B.Channel value proposition
C.Demand management
D.Customer-generated marketing
E.Integrated communication - ANSWER a. partner relationship management
Marketers are said to suffer from marketing myopia when they ignore underlying
consumer needs and focus excessively on ________.
Select one:
A.consumers' existing wants
B.consumers' brand experiences
C.consumers' future demands
D.competitors' threats
E.competitors' strengths - ANSWER a. consumers existing wants
Which of the following is an example of consumer-generated marketing?
Select one:
A. Fun & Run, a local amusement park, promotes its services by allowing consumers
to upload videos and write reviews about the park.
B. Figa, a leading provider of athletic shoes, helps its customers customize their
shoes on its website and choose personalized settings.
C. Barton's, a local pet supply store, rewards frequent buyers with vouchers and
exclusive offers.
D. Energix, a manufacturer of soft drinks, attracts customers through televised
advertisements.
E. Cristal, a jewelry store, uses its page on Facebook to provide information about its
upcoming products to its customers. - ANSWER a. Fun & Run, a local amusement
park, promotes its services by allowing consumers to upload videos and write
reviews about the park.
