1. For “Industrial Age” companies, competitive advantage is primarily based on:
a. product innovation
b. brands
c. customer information
d. product innovation and brands
2. For “Interactive Age” companies, competitive advantage is primarily based on:
a. product innovation
b. brands
c. customer information
d. product innovation and brands
3. Customer relationship management (CRM) is best characterised as:
a. an enterprise-wide strategy
b. a marketing strategy
c. a customer service discipline
d. a software programme
4. The core benefit of a Learning Relationship for a customer is:
a. reduced switching cost
b. lower priced products
c. higher quality products
d. increased product choice
5. Traditional marketing’s Four Ps apply to which part of the “Get, Keep, and Grow”
customer strategy?
a. Get
b. Keep
c. Grow
d. Get and Keep
6. Identify the reason why companies focus on their customers.
a. Customers create both short-term and long-term value
b. Customers are the sole source of a company’s revenue
c. Customers are scarce
d. Ensure every transaction is profitable
7. Keeping long-term customers is more beneficial than continually acquiring new
customers because: (pp. 34)
a. Long-term customers tend to pay full price for a product rather than a
discounted price.
b. Loyal customers tend to give more referrals.
c. Acquiring new customers costs more than keeping current ones.
d. All of the above
8. Examples of customer-specific behaviors include all of the following except: (pp. 8–9)
a. Fans of a product band together on social networking sites and provide service
and recommendations to others.
b. A supervisor orders more computer components by going to a Web page
that displays his firm’s contract terms, his own spending to date, and his
departmental authorizations.
c. A marketing copywriter develops a brochure aimed toward thirty something
suburban mothers and mails it out to all who fit that specific profile.
d. A car-rental customer rents a car without having to complete another
reservation profile.
9. A a. symmetric
b. transactional
c. unique
d. loyal
10. Which of the following describes a customer-share strategy? (pp. 15–18)
a. finding a constant stream of new customers
b. using mass media to build brand and announce products
c. differentiating products from competitors
d. selling as many products as possible to one customer at a time is mutual, interactive, iterative, and _________.
a. symmetric
b. transactional
c. unique
d. loyal
10. Which of the following describes a customer-share strategy? (pp. 15–18)
a. finding a constant stream of new customers
b. using mass media to build brand and announce products
c. differentiating products from competitors
d. selling as many products as possible to one customer at a time
