MBA 706 Test 2: Questions With Precise Solutions
Traditional Organizational Structure Correct Answer - pyramid with the
president at the top, man- agement in the middle, and frontline people and
customers at the bottom
Customer Perceived Value (CPV) Correct Answer - the difference
between the prospective customer's evaluation of all the benefits and all the
costs of an offering and the perceived alternatives
Total Customer Benefit Correct Answer - the perceived monetary value
of the bundle of economic, functional, and psychological benefits customers
expect from a given market offering because of the product, service, people,
and image
total customer cost Correct Answer - the perceived bundle of costs
customers expect to incur in evaluating, obtaining, using, and disposing of the
given market offering, including monetary, time, energy, and psychological
costs
Customer value analysis Correct Answer - reveals 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
majorcompetitoronanindividualattributeorbenefitbasis
5. Monitor customer values over time
Loyalty Correct Answer - A deeply held commitment to rebuy or
repatronize a preferred product or service in the future despite situational
influences and marketing efforts having the potential to cause switching
behavior.
, value proposition Correct Answer - consists of the whole cluster of
benefits the company promises to deliver; it is more than the core positioning
of the offering.
value delivery system Correct Answer - includes all the experiences the
customer will have on the way to obtaining and using the offering
Satisfaction Correct Answer - is a person's feelings of pleasure or disap-
pointment that result from comparing a product's perceived per- formance
(or outcome) to expectationS
-depends on product and service quality
Periodic surveys Correct Answer - 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.
quality Correct Answer - Is the totality of features and characteristics of
a product or service that bear on its ability to satisfy stated or implied needs.
profitable customer Correct Answer - a person, household, or company
that over time yields a revenue stream exceeding by an acceptable amount the
company's cost stream for attracting, selling, and serving that customer.
customer profitability analysis Correct Answer - Is best conducted with
the tools of an accounting technique called activity based costing(ABC) The
company estimates all revenue coming from the customer, less all costs
(including the direct and indirect costs of serving each customer)
*Companies that fail to measure their costs correctly are also not measuring
their profit correctly are most likely to misallocate their marketing efforts.
Customer Lifetime Value (CLV) Correct Answer - describes the net
present value of the stream of future profits expected over the customer's
lifetime purchases.
CLV calculations provide a formal quantitative framework for planning
customer investment and help marketers adopt a long-term perspective
Traditional Organizational Structure Correct Answer - pyramid with the
president at the top, man- agement in the middle, and frontline people and
customers at the bottom
Customer Perceived Value (CPV) Correct Answer - the difference
between the prospective customer's evaluation of all the benefits and all the
costs of an offering and the perceived alternatives
Total Customer Benefit Correct Answer - the perceived monetary value
of the bundle of economic, functional, and psychological benefits customers
expect from a given market offering because of the product, service, people,
and image
total customer cost Correct Answer - the perceived bundle of costs
customers expect to incur in evaluating, obtaining, using, and disposing of the
given market offering, including monetary, time, energy, and psychological
costs
Customer value analysis Correct Answer - reveals 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
majorcompetitoronanindividualattributeorbenefitbasis
5. Monitor customer values over time
Loyalty Correct Answer - A deeply held commitment to rebuy or
repatronize a preferred product or service in the future despite situational
influences and marketing efforts having the potential to cause switching
behavior.
, value proposition Correct Answer - consists of the whole cluster of
benefits the company promises to deliver; it is more than the core positioning
of the offering.
value delivery system Correct Answer - includes all the experiences the
customer will have on the way to obtaining and using the offering
Satisfaction Correct Answer - is a person's feelings of pleasure or disap-
pointment that result from comparing a product's perceived per- formance
(or outcome) to expectationS
-depends on product and service quality
Periodic surveys Correct Answer - 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.
quality Correct Answer - Is the totality of features and characteristics of
a product or service that bear on its ability to satisfy stated or implied needs.
profitable customer Correct Answer - a person, household, or company
that over time yields a revenue stream exceeding by an acceptable amount the
company's cost stream for attracting, selling, and serving that customer.
customer profitability analysis Correct Answer - Is best conducted with
the tools of an accounting technique called activity based costing(ABC) The
company estimates all revenue coming from the customer, less all costs
(including the direct and indirect costs of serving each customer)
*Companies that fail to measure their costs correctly are also not measuring
their profit correctly are most likely to misallocate their marketing efforts.
Customer Lifetime Value (CLV) Correct Answer - describes the net
present value of the stream of future profits expected over the customer's
lifetime purchases.
CLV calculations provide a formal quantitative framework for planning
customer investment and help marketers adopt a long-term perspective
