中山大学吴柏林教授 “广告创意”绝密资料_TIF03
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Chapter 3 – Building Customer Satisfaction, Value, and Retention
True/False Questions
1.Total customer cost is the perceived monetary value of a bundle of economic, functional, and
psychological benefits. False (moderate) p. 38
2.One way of improving a marketi ng offer is to increase the buyer’s nonmonetary costs. False
(moderate) p. 39
3.Customer satisfaction is a function of perceived performance and expectations. True (moderate) p.
40
4. A cruise line that promises a 100 percent restful time is promoting complete satisfaction. True
(moderate) p. 40
5.The key to delivering high customer satisfaction is to exceed customer expectations. True (moderate)
p. 40
6.The value proposition is the whole cluster of benefits the company promises to deliver. True (easy)
p. 40
7.The main goal of customer-centered firms is to maximize customer satisfaction. False (difficult) p.
41
8.The primary activities of the value chain include: logistics, operations, service, procurement, and
human resource management. False (moderate) p. 43, Figure 3-3
9.Customers, employees, and suppliers are all considered a firm’s stakeholders. True (easy) p. 41
10.An example of a primary activity as identified in the generic value chain is human resources. False
(moderate) p. 43, Figure 3-3
11.An example of a supporting activity in the generic value chain is operations. False (moderate) p. 43,
Figure 3-3
12.The first step in the process of calculating the customer defection rate is to define and measure the
company’s customer retention rate. True (moderate) pp. 45
13.Customer churn is the rate at which a company loses customers and must replace them. True (easy) p.
45
14.An essential step in calculating the defection rate of customers is to estimate the lifetime value of a
customer in order to figure the amount of profit lost when a customer defects. True (moderate) p. 45
15.The task of creating high customer retention is called ISO 9000 marketing. False (moderate) p. 45
16.Customer equity is the total revenue that all of a firm’s customers will provide over their buying
lifetimes. True (moderate) p. 47
17.Frequency programs add social benefits and help keep customers loyal. False (moderate) p. 49
18.A company’s largest customers are always its most profitable ones. False (moderate) p. 51
19.A profitable customer is a person, household, or company that over time yields a revenue stream that
exceeds by an acceptable amount the firm’s cost stream of attracting, selling, and servicing that
customer. True (easy) p. 51
20.The Malcolm Baldrige National Quality Award measures only customer satisfaction and firm
leadership in making its decisions. False (moderate) p. 52
Multiple Choice Questions
21.The difference between total customer value and total customer cost is _______________.
a.)satisfaction
b.)value/price ratio
c.)customer perceived value (moderate) p. 38
d.)total added value
e.)market cost
22._______________ is the bundle of costs that customers expect to incur in evaluating, obtaining, using,
and disposing of the given market offering.
a.)Customer perceived value
b.)Total customer value
c.)Absolute fixed costs
d.)High product value
e.)Total customer cost (moderate) p. 38
23.Which of the following best describes the bundle of costs that customers expect to incur in evaluating,
obtaining, using, and disposing of the product or service?
a.)customer delivered value
b.)total customer value (moderate) p. 38
c.)total customer cost
d.)value added cost
e.)total value cost
24.Rajiv is selling a $100,000 software package to a large accounting firm. As the seller, he needs to
improve his offer to close the sale. How could he enhance customer delivered value?
a.)Rajiv could minimize the training offered to accompany the system.
b.)Rajiv could make it harder to evaluate and compare his company’s product to competitors’
products, and thus, minimize unfavorable comparisons.
c.)Rajiv could lower the value/price ratio for the customer.
d.)Rajiv could explain the extraordinary quality and value of his system and then threaten to leave
the customer’s office without allowing the customer to buy.
e.)Rajiv could enhance the image of the product and offer special servicing. (difficult) p. 39
25.The main goal of the customer-centered firm is _______________.
a.)to maximize customer satisfaction
b.)to treat all stakeholders equally
c.)to deliver the highest customer satisfaction possible within the constraints of acceptable
resources (difficult) p. 40
d.)to maximize shareholder wealth
e.)to retain all or most of its customers
26.Which is not considered a stakeholder?
a.) a competitor (moderate) p. 41
b.) a customer
c.)an employee
d.) a supplier
e.) a distributor
27.______________ is a person’s feelings of pleasure or disappointment resulting from comparing a
product’s perceived performance in relation to his or her expectations.
a.)Satisfaction (easy) p. 40
b.)Culture
c.)Value
d.)Ethics
e.)Morals
28._______________ is a function of perceived performance and expectations.
a.)Total customer value
b.)Customer delivered value
c.)Value/price ratio
d.)Customer satisfaction (moderate) p. 40
e.)Customer service
29.A waterbed maker that advertises its mattress will provide you “With the greatest night’s sleep of
your life,” is aiming to provide its customers with _______________.
a.) a value proposition
b.)complete satisfaction (moderate) p. 40
c.) a value-delivery product
d.) a superior value chain
e.)total quality marketing
30.According to the consulting firm of Arthur D. Little, the four keys to the success of a high-
performance business are_______________.
a.)employees, management, corporate culture, and core competencies
b.)stakeholders, processes, resources, and organization (moderate) p. 41
c.)core competencies, resources, customers, and intermediaries
d.)intermediaries, resources, customers, and organization
e.)employees, resources, organization, and customers
31.A company’s core competency _______________.
a.)is a source of competitive disadvantage
b.)is easy to copy
c.)makes no contribution to perceived customer benefits
d.)is something the competitor can never take away
e.)is difficult for competitors to imitate (moderate) p. 42
32.A company’s _______________ consists of its structures, policies, and corporate culture, all of which
can become dysfunctional in a rapidly changing business environment.
a.)organization (moderate) p. 42
b.)mission
c.)vision
d.)goals
e.)chain of command
33.Which of the following is NOT an example of a primary activity as identified in the generic value
chain?
a.)human resource management (moderate) p. 43, Figure 3-3
b.)marketing and sales
c.)operations
d.)outbound logistics
e.)service
34.An example of a supporting activity in the generic value chain would be _______________.
a.)inbound logistics
b.)procurement (moderate) p. 43, Figure 3-3
c.)outbound logistics
d.)operations
e.)service
35.Nate is the Vice President of Operations for a video game manufacturer. He is responsible for
making sure the games are written according to customer expectations. The function Nate performs is what part of the value chain?
a.) a primary activity (moderate) p. 43, Figure 3-3
b.)the network
c.)total delivered customer value
d.) a logistical activity
e.) a support activity
36.As the Human Resources Director, Jolene performs in which part of the value chain?
a.)service
b.) a primary activity
c.)infrastructure
d.)operation
e.) a support activity (moderate) p. 43, Figure 3-3
37.The process of comparing one’s own costs and performance to competitors to see how to improve
one’s own performance and gross margins is called _______________.
a.)benchmarking (moderate) p. 44
b.)value-delivery networking
c.) a value analysis
d.) a flanking attack
e.) a core business evaluation
38.Which of the following is NOT an example of a core business process?
a.)customer service
b.)customer acquisition and retention
c.)promotion (difficult) p. 44
d.)inventory management
e.)new-product realization
39.Allied Signal, maker of Fram oil filters, assigned three of its employees to live near and work at
Checker Auto Parts’ headquarters to improve the speed and reduce the cost of supplying Allied Signal products to Checker branch stores. Allied Signal is trying to improve its _______________.
a.)total quality management (TQM) process
b.)value-delivery network (difficult) p. 44
c.)quick response system
d.)inbound logistics
e.)matrix relationship with Checker
40.Blizzard Entertainment provides a whole cluster of benefits to its customers, including a game server
that allows free online gaming, online and phone-based technical support, and open beta testing for valued customers. This is an example of a _______________.
a.)total quality management (TQM) process
b.)value-delivery network
c.)value proposition (difficult) p. 40
d.)strategy to reduce the value gap
e.)matrix relationship with customers
41.Customer acquisition requires substantial skills in all of the following EXCEPT:
a.)lead generation
b.)finding new customers
c.)lead qualification
d.)account conversion
e.)managerial accounting (easy) pp. 44-45
42.High customer churn means
a.)high customer defection. (easy) p. 45
b.)trolling for new customers.
c.)moving customers around between subsidiaries.
d.)qualifying customer leads.
e.)customer lifetime value.
43.Which of the following is NOT a step in monitoring and reducing the customer defection rate?
a.)Define and measure the customer retention rate.
b.)Distinguish the causes of customer attrition and identify those that can be better managed.
c.)Determine the competitive advantage that would attract customers. (difficult) p. 45
d.)Figure out how much it would cost to reduce the defection rat
e.
e.)Estimate how much profit it loses when it loses a customer.
44.The first step in the process of calculating the customer defection rate is to _______________.
a.)distinguish the causes of customer attraction
b.)estimate how much profit is lost when the company loses customers
c.)define the point at which the defection rate reduces profit by at least 2 percent
d.)calculate the lifetime value of each customer
e.)define and measure the company’s customer retention rate (moderate) p. 45
45._______________ is the present value of the profit stream that the company would have realized if
the customer had not defected prematurely.
a.)Customer lifetime value (difficult) p. 45
b.)Customer cost trends
c.)Customer value cost
d.)Customer retention rate
e.)Customer defection rate
46.Hee Haw Flat Glass Corporation has 42,000 customer accounts. It lost 10 percent of its accounts this
year due to service-related issues. The average revenue lost was $10,000. The company’s profit margin is 5 percent. How much did the company lose due to this attrition?
a.)$210,000
b.)$420,000
c.)$840,000
d.)$2,100,000 (moderate) p. 45
e.)$420,000,000
47.A small scrapbook store has 1,400 retail accounts. It lost 25 percent of those accounts this year. Each
loss represented $600 in revenue. The scrapbook store’s profit margin is 10 percent. How much did this small company lose this year?
a.)$3,500
b.)$35,000
c.)$21,000 (moderate) p. 45
d.)$210,000
e.)$6,000
48.The key to customer retention is _______________.
a.)customer satisfaction (moderate) p. 45
b.)inexpensive products
c.)expensive products
d.)customer concern
e.)customer demographics
49.Surveys of customer satisfaction _______________.
a.)indicate customers will complain when they are dissatisfied
b.)demonstrate that less than 5 percent of all customers will actively complain if dissatisfied
(difficult) p. 45
c.)are accurate measurements of the total level of satisfaction/dissatisfaction among customers
d.)use a value-gap analysis
e.)are only reliable when conducted with current customers
50.A company should commit to reducing the customer defection rate if _______________.
a.)the cost to do so is more than the potential profit
b.)it is costly to find new customers
c.)the cost is less than the lost profit (moderate) p. 45
d.)the economy is slow
e.)the economy is strong
51.Which is a highly satisfied customer not likely to do?
a.)be more aware of the competition (moderate) pp. 45
b.)be loyal longer
c.)talk favorably about the product to other consumers
d.)be less price sensitive
e.)offer ideas for product improvements
52.L.L Bean’s 100 percent Guarantee includes _______________.
a.) a pro-rated refund for products that do not work as they should
b.)only a refund to the purchaser’s credit card if the product is defective
c.)only the option to replace unsatisfactory merchandise
d.)only provisions for goods that were bought less than one year ago
e.)100 percent satisfaction in every way (easy) p. 46
53.The task of creating strong customer loyalty is called _______________.
a.)the Deming approach
b.) a value-added tactic
c.)guerilla marketing
d.)lifetime value enhancement
e.)relationship marketing (moderate) p. 46
54.Customer retention may be strengthened by _______________.
a.)erecting high switching barriers (moderate) p. 46
b.)calculating the lifetime value of the customer
c.)reducing the value/price ratio on products
d.)eliminating affinity groups
e.)enhancing the supply chain
55.After a cost analysis, a company that sells office pc networking equipment found it was spending
more to attract new customers than they were worth. How could they remedy this situation?
a.)decrease the company profit margin, thereby lowering costs to the customer
b.)determine how it can spend less per sales calls (difficult) p. 51
c.)increase the number of sales calls per conversion of each customer
d.)engage in transfer marketing
e.)reduce its promotional efforts
56.Anyone who might conceivably buy the product or service is called _______________.
a.) a suspect (moderate) p. 47
b.) a prospect
c.) a customer
d.)an advocate
e.) a partner
57.The salesclerk at the video store takes your order and your money for a DVD rental. This is an
example of _______________marketing.
a.)accountable
b.)basic (moderate) p. 48
c.)partnership
d.)reactive
e.)proactive
58.The assistant manager at Best Buy gives you his card and tells you to call him if you can’t program
your new DVD player. This is an example of _______________marketing.
a.)reactive (moderate) p. 48
b.)basic
c.)partnership
d.)accountable
e.)proactive
59.The physician’s ass istant at the clinic where you sought treatment for an ear infection calls you the
next day to see if you are feeling better. He also asks you if you are satisfied with the clinic’s service.
This is an example of _______________marketing.
a.)accountable (moderate) p. 48
b.)basic
c.)partnership
d.)proactive
e.)reactive
60.Three months after you bought your new Honda Accord Hybrid car, the salesperson that sold it to you
calls to inform you that Honda has developed an electronic mobile car security system that should alleviate any concerns you might have about the car being stolen. This is an example of
_______________marketing.
a.)reactive
b.)accountable
c.)basic
d.)partnership
e.)proactive (moderate) p. 49
61.Morton Buildings, a manufacturer of agricultural out-buildings, works closely with a large hog
processing plant that subcontracts to various local farmers to raise the animals it slaughters. Morton Buildings works with the processing plant’s research and development team to design animal housing that meets all the requirements necessary to ensure healthy livestock. This is an example of
_______________marketing.
a.)reactive
b.)basic
c.)accountable
d.)partnership (moderate) p. 49
e.)proactive
62._______________reward customers who buy frequently and/or in substantial amounts.
a.)Frequency programs (moderate) p. 49
b.)Club membership programs
c.)Point-of-purchase programs
d.)Sampling programs
e.)Trade shows
63.Frequency marketing programs _______________.
a.)cheapen the company image
b.)are acknowledgements that 20 percent of a company’s customers probably account for 80
percent of its business (moderate) p. 49
c.)tempt customers into buying more than they can afford
d.)can result in a decrease in quality as the company tries to increase its efficiency
e.)seldom, if ever, become a financial burden to the companies that operate them
64.There are many levels of relationship marketing. When a company has many customers and
distributors, _______________marketing produces the lowest margins.
a.)basic or reactive (difficult) pp. 48
b.)basic or accountable
c.)proactive or reactive
d.)reactive
e.)accountable or reactive
65.A _______________is a person, household, or company that over time yields a revenue stream that
exceeds by an acceptable amount the company’s cost stream of attracting, selling, and servicing that customer.
a.)profitable customer (moderate) p. 51
b.)nonprofitable customer
c.)prospect
d.)lifetime customer
e.)reactive account
66.The 80-20 rule suggests that _______________.
a.)every company loses money on some of its customers
b.) a company could improve its profits by “firing” its worst customers
c.)the top 20 percent of customers might generate 80 percent of the profits, half of which are lost
serving the bottom 30 percent of unprofitable customers
d.)midsize customers are often the most profitable
e.)all of the above are suggested by the 80-20 rule (difficult) p. 50-51
67._______________is an organization-wide approach to continuously improving the quality of the
organization’s processes, products, and services.
a.)Customer service
b.)Core competency development
c.)Total quality marketing
d.)Total quality management (moderate) p. 52
e.)Conformance quality
68.According to the text, a company that satisfies most of its customers’ needs most of the time is called
a _______________.
a.)quality company (moderate) p. 53
b.)performance company
c.)customer company
d.)profitable company
e.)competitive company
69.Both Daisy and Bosch make vacuum packaging machines. If when delivered to their buyers, each
brand of machine performs exactly what its salesperson promised it would, then both manufacturers are said to have delivered the same _______________.
a.)total quality
b.) a competitive advantage
c.)performance quality
d.) a core competency
e.)conformance quality (moderate) p. 53
70.Many customers have the perception that a Seiko watch will outperform a Casio watch because a
Seiko watch has higher _______________.
a.)performance latitude
b.)quality maximization
c.)performance quality (moderate) p. 53
d.)substitutability
e.)transferable quality
Essay Questions
71.ERP Delinquent Collections Services has been challenged lately by significant customer churn,
customers seem to be defecting to competitors. In a short essay, discuss how ERP may be able to reduce customer defections and retain its existing customers.
Answer:
There are four steps in attempting to reduce the defection rate. First, ERP must define and measure its retention rate. Second, ERP must distinguish the causes of customer attrition and identify those that can be managed better. Third, ERP needs to estimate the amount of profit it loses when it loses customers. Fourth, ERP needs to calculate the cost of reducing the defection rate. As long as the cost is less than the lost profit, the company should spend that amount to reduce the defection rate. The most effective method for reducing customer defections is simply listening to the customers. This creates loyalty and customer satisfaction and turns defecting customers into retained customers.
Listening is not enough, however. ERP must also be ready to respond quickly and constructively to customer complaints. There are two ways for ERP to strengthen customer retention. One is to erect high switching costs. For ERP this could amount to free replacement liners if the customer buys all supplies from Water’s Edge. The better approach is to deliver high customer service. To do this, ERP must involve every employee in delivering service and engage in relationship marketing.
(difficult) “Marketing Skills: Winning Back Lost Customers” section p. 48
72.In a short essay, discuss the following statement: “The ultimate goal of a customer-centered
organization is to maximize its customer satisfaction.”
Answer:
The company that is customer-oriented seeks to create high customer satisfaction—not to maximize customer satisfaction. If the company increases customer satisfaction by lowering its price or
increasing its service, the results may be lost profits. The company might be able to replace this lost profit by making its manufacturing process more efficient or by investing more in promotion. The company, like most companies, has many stakeholders including employees, dealers, suppliers, and stockholders. Spending more to increase customer satisfaction might divert funds from increasing the
satisfaction of the company’s other “partners.” Ultimately, the company must operate on the
philosophy that it is trying to deliver a high level of customer satisfaction to the other stakeholders within the constraints of its total resources. (moderate) p. 41
73.In 1964 Truett Cathy developed a fried boneless chicken filet, which he began selling as a sandwich
under the brand name of Chick-fil-A. In 1997 the company had $800 million in sales. The company has consistently produced a satisfying product and that consistent product quality is what it has built its reputation on. In recent years, McDonald’s, Burger King, Wendy’s and other fast-food restaurants have introduced chicken sandwiches. In a short essay, discuss what Chick-fil-A should do in the face of this new competition?
Answer:
Students will suggest the company expand its product lines. Some may suggest that the company offer a delivery service or change its store format. The higher quality answers will realize that the chicken sandwich sold at Chick-fil-A restaurants represents a core competency for the firm.
(moderate) p. 42
74.In a short essay, discuss how the nine activities of the Porter’s Value Chain work t ogether to create
value for customers.
Answer:
Students might end up drawing and labeling the Value Chain, which demonstrates a superficial
understanding. The five Primary value-creating activities are: inbound logistics, operations, outbound logistics, marketing and sales, and service. The four Support activities include: firm infrastructure, human resource management, technology development, and procurement. Stronger answers will discuss how the firm cannot do many of these activities in the absence of the others. For example, procurement is integral to the marketing and sales function—you can’t sell what you do not have.
(moderate) p. 43, Figure 3-3
75.In a short essay, discuss the concept of customer lifetime value and why marketers should pay
attention to this concept.
Answer:
When a customer continues to buy from the same company over time, the profitability of that
customer continues to rise. The text mentions that a loyal Taco Bell customer brings in $11,000 in revenue to the company. Contrast this with a customer who has a bad experience with a fast food provider as a teen and vows to never return to that provider again. The stream of revenue is a very important way of measuring success and a very important thing for front-line service employees to remember. (moderate) p. 45
Mini-Cases
Mini-Case 3-1
Under the management of Garrison Cox, ComfortEase Mattress Company, Inc. has been losing business for several years to its competitors. Cox was recently replaced by Fred Wilson as CEO of the 78-year-old firm. Wilson implemented a new corporate-wide focus on the customer and on quality and the new CEO began by challenging his marketing team to increase customer value through product improvement while lowering customer costs in terms of time, psychic energy, and money. His second step was to focus on his company’s primary activities; logistics, operations, service, etc. He also asked for a review of the company’s procurement process, technological development, and other supporting activities. Third, he wanted to know how satisfied ComfortEase’s customers really were. Wilson was especially interested in learning what mattress former customers were now using. After a great deal of work and a careful analysis of the information gathered, his marketing team recommended that ComfortEase implement a program offering rewards to their most profitable customers. Wilson was pleased.
76.Refer to Mini-Case 3-1. Which of the following describes the purpose of the challenge the new CEO
made to the ComfortEase marketing team?
a.)It was intended to implement total quality marketing.
b.)It was intended to measure customer profitability.
c.)It was intended to increase customer perceived value. (difficult) p. 38
d.)It was an effective way to launch a customer retention program.
e.)It was an ef ficient way to determine the company’s defection rate.
77.Refer to Mini-Case 3-1. Based on what the CEO wanted to know about his customers’ satisfaction,
which is the best tool to use to measure it?
a.)sales force surveys
b.)customer satisfaction surveys
c.)SWOT analysis
d.)ghost shopping
e.)customer retention analysis (moderate) p. 45
78.Refer to Mini-Case 3-1. Since this company has been in operation for 78 years, what is the most
difficult hurdle Wilson is likely to face as he tries to make the company more customer-centered?
a.)the retention of customers
b.)the reduction of the defection rate
c.)maintaining the satisfaction level of the company’s stakeholders
d.)changing the company’s corporate culture (moderate) p. 42-43
e.)operating in a mature market
Mini-Case 3-2
Bernardo Sampson owns a sandwich shop in Bullhead City, Arizona. The recipe is a family one. He refuses to cut corners on the quality of his products and hence has had to raise the price more often than he would like. He finds that his older customers complain about the price increases and have even tried to bargain prices with him. Some customers will buy a sandwich to share and do not buy chips or sodas, but instead request water. Bernardo does not make much money on these customers. Bernardo will often take the time to explain the price-to-quality relationship in the restaurant business. Some customers are sympathetic to that argument, but some others leave angry and vow they will not patronize Bernardo’s shop anymore, that they intend to buy their lunch at Burger King across the street. No one has ever complained about the food itself, something that Bernardo is quite proud of.
79.Refer to Mini-Case 3-2. When Bernardo explains his logic behind price increases to a complaining
customer, he may reduce _______________.
a.)customer churn (moderate) p. 45
b.)customer lifetime value
c.)customer retention
d.)customer satisfaction
e.)customer equity
80.Refer to Mini-Case 3-2. The high quality sandwiches that customers buy at Bernardo’s shop
represent _______________.
a.)Bernardo’s value proposition
b.)Bern ardo’s commitment to maximize customer satisfaction
c.)Bernardo’s core competency (difficult) p. 42
d.)Bernardo’s value chain
e.)Bernardo’s corporate culture
81.Refer to Mini-Case 3-2. The 20-80 Rule suggests that _______________.
a.)Bernardo is losing money on some of his customers
b.)Bernardo is making money on some of his customers
c.)Bernardo’s “best” customers are subsidizing his “worst” customers
d.)a, b, and c are all suggested by the 20-80 Rule in Bernardo’s case (difficult) p. 50-51
e.)none of the above are correct, related to the 20-80 Rule。