What is the customer retention for a company

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Reference no: EM132018324

Part A -

Question 1 - Which one of the following events occur when there is minimal focus on customers?

high customer loyalty

reduction in customer turnover

below-average profits

long-run strategies to improve sales

low cost of marketing and sales

Question 2 - Which of the following is an example of a company's external metrics?

return on sales

employee turnover

manufacturing defects

late deliveries

retaining customers

Question 3 - Which of the following is a forward-looking indicator of business success?

customer satisfaction

shareholder dividends

sales

market share

ROI

Question 4 - Which of the following is a component of a customer loyalty index?

customer satisfaction

average customer life

customer's income level

desire to repurchase

customer's demographic details

Question 5 - What is the customer retention for a company given an average customer life of four years?

40%

50%

75%

80%

100%

Question 6 - In general, it costs ____ times more to replace a customer than it costs to keep a customer.

Question 7 - To estimate the lifetime value of a customer at a given rate of customer retention, you need to compute the _____.

net present value of the customer's cash flow

customer satisfaction index

future customer value

customer loyalty index

gross percent margin of the company

Question 8 - Which of the following is considered an external performance benchmark for a product's performance in the market?

sales revenue

net profits

return on sales

relative product quality

assets as a percentage of sales

Question 9 - Net marketing contribution is equal to _____.

profits

profits - (other operating expenses)

gross profit - (marketing and sales expenses)

(all revenues) - (aII expenses)

(sales revenues) - (cost of goods sold)

Question 10 - Which of the following is true of the net marketing contribution of a firm?

It sets a benchmark to gauge improving or deteriorating marketing profitability.

General and administrative expenses are included to assess the net marketing contribution.

It is an internal in-process financial metric. It is equal to the revenues of the firm.

It includes all operating expenses.

Question 11 - Marketing Return on Investment is equal to ____.

profits/marketing & sales expenses x 100%

net marketing contribution/marketing and sales expenses x 100%

gross margin/total expenses x 100%

net marketing contribution/operating expenses x 100%

sales revenues/marketing and sales expenses x 100%

Question 12 - What is the marketing return on sales (marketing ROS) for a product line that generates $40 million in sales revenues with a net marketing contribution of $32 million?

75%

80%

100%

125%

150%

Part B -

Question 1 - A software manufacturer received permission from first-time buyers to observe their initial experience with the software in their homes, allowing the product developers to learn about what other software applications are running on the customer's system and how that software can interfere with or complement the product. This manufacturer is using the ____ design approach to understanding customer needs and discovering customer problems and frustration that arise when using their product.

ethnographic

empathic

observational

lead user

"stapie yourself to an order"

Question 2 - Three key sources of customer-perceived performance include perceived product performance, perceived service quality, and perceived company or brand reputation.

True

False

Question 3 - Market-based businesses differ from product-focused businesses in that market-based businesses _____.

focus on products and services

are providers of solutions

have a narrow view of customers' underlying problems

lack a strong customer focus

lack knowledge of customer usage

Question 4 - The purpose of needs-based segmentation is to offer product benefits that satisfy the needs of target customers.

True

False

Question 5 - A recent Consumer Reports study analyzed toasters and found that the average performance rating for all toasters tested was 70 with an average price of $33. Krups is a brand of toaster that sells for $32 and received an overall performance rating of 84. What is Krup's relative performance against other toasters tested?

83.5

98.5

120

Question 6 - Perceived customer value is determined by ________.

subtracting relative cost of purchase from relative performance

adding performance to enhancement value

dividing product performance by average performance

multiplying the marketing mix's four P's added to the service element

comparing the price-performance matrix entries

Question 7 - Calculate the perceived customer value if the relative performance of the product is 100 and its relative cost of purchase is 75.

100

125

175

Question 8 - Which of the following is true of needs-based market segments?

Relevant demographics that cause differences in needs include investments, size of investment portfolio, and portfolio diversification.

To make the segments actionable, the observable demographics and behaviors have to be determined.

The main advantage is that individual customers who fall into each segment can be identified.

The main advantage is that the segments are not directly based on specific customer needs.

The usage behaviors that cause difference in needs include income and assets.

Question 9 - Which of the following is used to determine a segment's marketing profitability?

customer retention index

net profit (after taxes)

gross profit

net marketing contribution

gross revenue

Question 10 - Dell Computers allows each customer to build a custom product to meet his or her specific needs, personal constraints and price considerations. By doing so, Dell also obtains important information about which features customers prefer, how preferences differ across demographic market segments and how they change over time. Dell is using which type of customer relationship marketing strategy?

mass-personalization

mass-customization

customer relationship management

sub-segment

multi-segment

Question 11 - Which of the following segmentation strategies involves using a highly targeted marketing effort directed at an overlooked, small group of target customers?

Mass market strategy

Adjacent segment strategy

Multi segment strategy

Large segment strategy

Niche segment strategy

Part C -

Question 1 - The maximum number of customers who can enter the market given a specific served market definition is known as _____.

a vertical market

current market demand

rate of entry

market potential

market penetration

Question 2 - Three fundamental forces that capture the shape of the market growth curve and the rate of market growth are market potential, market penetration, and the rate at which new customers enter the market.

True

False

Question 3 - Major sources of competitive advantage are cost advantage, differentiation advantage, and marketing advantage.

True

False

Question 4 - The market development index is equal to the ______.

product of market potential and market growth.

ratio of current market demand to market potential.

ratio of current market demand to net marketing expenditure.

ratio of market potential and market growth.

product of current market demand and market potential.

Question 5 - The market share index is an indicator of _____.

actual market share relative to potential market share

current product awareness

a product's sales at a given stage of the product life cycle

what market share should be given certain expected levels of market performance

factors that influence market share

Question 6 - Share development index is the ratio of ______.

current market demand and market potential

volume sold and market share

market demand and market share

current performance and potential performance

market share index and share potential index

Question 7 - Calculate the market development index if the current market demand of the product is 240 million and the potential for market growth is 400 million.

640

166.67

160

Question 8 - Which of the following is a type of differentiation advantage?

product line advantage

operating cost advantage

channel advantage

market share advantage

service advantage

Question 9 - Which of the following is a type of marketing advantage?

service quality

operating expenses

variable costs

marketing expenses

product line advantage

Question 10 - Brand reputation advantage is a type of _____ advantage.

marketing cost

operating cost

channel

differentiation

variable cost

Question 11 - Which of the following formulas is used to calculate a company's relative market share?

total sales of the largest competitor - company's total sales

(company's market share/total share of the three largest competitors) x 100

company's targeted sales - company's net sales

(company's total sales/total sales of the largest competitor) x 100

(company's market share/company's potential market share) x 100

Question 12 - A software manufacturer received permission from first-time buyers to observe their initial experience with the software in their homes, allowing the product developers to learn about what other software applications are running on the customer's system and how that software can interfere with or complement the product. This manufacturer is using the ____ design approach to understanding customer needs and discovering customer problems and frustration that arise when using their product.

observational

lead user

"staple yourself to an order"

empathic

ethnographic

Question 13 - Three key sources of customer-perceived performance include perceived product performance, perceived service quality, and perceived company or brand reputation.

True

False

Question 14 - Market-based businesses differ from product-focused businesses in that market-based businesses _____.

have a narrow view of customers' underlying problems

lack a strong customer focus

lack knowledge of customer usage

are providers of solutions

focus on products and services

Question 15 - The purpose of needs-based segmentation is to offer product benefits that satisfy the needs of target customers.

True

False

Question 16 - Perceived customer value is determined by _____.

dividing product performance by average performance

multiplying the marketing mix's four P's added to the service element

comparing the price-performance matrix entries

adding performance to enhancement value

subtracting relative cost of purchase from relative performance

Question 17 - Which of the following is true of needs-based market segments?

The main advantage is that individual customers who fall into each segment can be identified.

The main advantage is that the segments are not directly based on specific customer needs.

The usage behaviors that cause differences in needs include income and assets.

To make the segments actionable, the observable demographics and behaviors have to be determined.

Relevant demographics that cause differences in needs include investments, size of investment portfolio, and portfolio diversification.

Question 18 - Which of the following is used to determine a segment's marketing profitability?

gross profit

net marketing contribution

gross revenue

net profit (after taxes)

customer retention index

Question 19 - Dell Computers allows each customer to build a custom product to meet his or her specific needs, personal constraints and price considerations. By doing so, Dell also obtains important information about which features customers prefer, how preferences differ across demographic market segments and how they change over time. Dell is using which type of customer relationship marketing strategy?

customer relationship management

sub-segment

multi-segment

mass-customization

mass-personalization

Question 20 - Which one of the following events occur when there is minimal focus on customers?

low cost of marketing and sales

long-run strategies to improve sales

below-average profits

reduction in customer turnover

high customer royalty

Question 21 - Which of the following is an example of a company's external metrics?

retaining customers

late deliveries

manufacturing defects

employee turnover

return on sales

Question 22 - Which of the following is a forward-looking indicator of business success?

ROI

market share

sales

shareholder dividends

customer satisfaction

Question 23 - Which of the following is a component of a customer loyalty index?

customer's demographic details

desire to repurchase

customer's income level

average customer life

customer satisfaction

Question 24 - What is the customer retention for a company given an average customer life of four years?

100%

80%

75%

50%

40%

Question 25 - In general, it costs _____ times more to replace a customer than it costs to keep a customer.

Question 26 - To estimate the lifetime value of a customer at a given rate of customer retention, you need to compute the _____.

gross percent margin of the company

customer loyalty index

future customer value

customer satisfaction index

net present value of the customer's cash flow

Question 27 - Which of the following is considered an external performance benchmark for a product's performance in the market?

assets as a percentage of sales

relative product quality

return on sales

net profits

sales revenue

Question 28 - Net marketing contribution is equal to ______.

(sales revenues) - (cost of goods sold)

(all revenues) - (all expenses)

gross profit - (marketing and sales expenses)

profits - (other operating expenses)

profits

Question 29 - Which of the following is true of the net marketing contribution of a firm? It includes all operating expenses.

It is equal to the revenues of the firm.

It is an internal in-process financial metric.

General and administrative expenses are included to assess the net marketing contribution.

It sets a benchmark to gauge improving or deteriorating marketing profitability.

References - Chapter 1-6 of this book: Market Based Management: Strategies for Growing Customer Value & Profitability, 6e -Roger J. Best ISBN: 0130387754.

Reference no: EM132018324

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len2018324

6/14/2018 1:42:38 AM

How many Questions will come? 30-40. Type of Questions- multiple choice / short answer. Please share the Topics OR lecture notes which are related to your exam- I have attached review and the book name is below - Chapter 1-6 of this book: Market Based Management: Strategies for Growing Customer Value & Profitability, 6e -Roger J. Best.

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