BUSI 438 EXAM 3

  

Question 1 

1. Describe the VALS framework. 

  

Question 2 

1. Which of the following major      objectives of customer relationship management relates to increased      individual customer margins, while offering the right products at the      right time? 

  

customer retention 

 

customer service 

 

customer acquisition 

 

customer profitability 

 

customer loyalty 

3 points   

Question 3 

1. Which of the following statements      is TRUE of geographic segmentation? 

  

It divides consumer groups based on a   variety of readily measurable descriptive factors about the group. 

 

In most instances, it is an   insufficient criterion in and of itself. 

 

It does not consider climate while   segmenting markets. 

 

It does not consider the size of   population while segmenting markets. 

 

It is useful because the demand for   all kinds of products is determined by where a person lives. 

3 points   

Question 4 

1. For many marketing managers,      segmentation by benefit sought is the best place to start the process of      market segmentation. 

True 

False 

3 points   

Question 5 

1. In the context of change drivers      impacting the future of marketing, the way a firm looks at strategy and      tactics is reflected in the ________. 

  

shift to product glut and customer   shortage 

 

shift in power from marketer to   customer 

 

shift in generational values and   preferences 

 

shift to distinguishing Marketing   (Big M) from marketing (little m) 

 

shift to justifying the relevance and   payback of the marketing investment 

3 points   

Question 6 

1. When a salesperson calls on a      prospect and meets face to face, it is an example of an interactive      touchpoint. 

True 

False 

3 points   

Question 7 

1. Hannah’s alterations business      works around the needs of the customer by providing hours of operation      that vary throughout the week, including some evening and weekend hours. It      could be said that Hannah’s business is ___________. 

  

differentiated 

 

customer-centric 

 

market oriented 

 

product oriented 

 

socially responsible 

3 points   

Question 8 

1. When a company tries to make the      product or service significantly easier to obtain than the competition, it      is trying to achieve ________ leadership as a source of differentiation. 

  

service 

 

image 

 

price 

 

personnel 

 

convenience 

3 points   

Question 9 

1. The 4Ps of marketing refer to      ________. 

  

product, price, place, and promotion 

 

policy, production, plan, and   preference 

 

promotion, plan, place, and procedure   

 

price, policy, program, and position 

 

place, production, provision, and   plan 

3 points   

Question 10 

1. In order for Marketing (Big M) to      succeed, firms should create ________ strategies. 

  

predatory pricing 

 

market-driving 

 

diversification 

 

vertical integration 

 

market-driven 

3 points   

Question 11 

1. American credit card companies      would like to offer their services to people in a country in East Africa. However,      they are finding it difficult because of language barriers and      infrastructure challenges. These issues are related to which of the      following questions about market segmentation? 

  

Do the people in this market segment   have access to sufficient financial resources? 

 

Is the segment of sufficient size to   warrant investing in a unique value-creating strategy for that segment as a   target market? 

 

Is the segment readily identifiable   and can it be measured? 

 

Can the segment be reached in order   to deliver the value of the product, and subsequently can it be effectively   and efficiently managed? 

 

Is the segment clearly differentiated   on one or more important dimensions when communicating the value of the   product? 

3 points   

Question 12 

1. From a customer's perspective,      what is defined as a ratio of the bundle of benefits a customer receives      from an offering, compared to the costs incurred by the customer in      acquiring that bundle of benefits? 

  

Exchange 

 

Strategy 

 

Sustainability 

 

Value 

 

Power 

3 points   

Question 13 

1. In the context of positioning      errors, when consumers have only a vague idea about the company and its      products, and do not perceive any real differentiation, it is called      ________. 

  

repositioning 

 

overpositioning 

 

underpositioning 

 

uninformed positioning 

 

fuzzy positioning 

3 points   

Question 14 

1. ________ include a set of methods      facilitated by technology that utilize individual-level and market-level      data to identify and communi­cate meaningful patterns within the data for      the purpose of improving marketing-related decisions. 

  

Customer decision systems 

 

Computer management systems 

 

Marketing databases 

 

Structured surveys 

 

Marketing analytics 

3 points   

Question 15 

1. Microsoft’s revolution of the      information field and Disney’s creation of the modern theme park industry      are classic examples of ________. 

  

marketing mix 

 

marketing (little m) 

 

pro-social marketing 

 

green marketing 

 

market creation 

3 points   

Question 16 

1. Occupation segmentation and income      segmentation are essentially the same thing. 

True 

False 

3 points   

Question 17 

1. In the context of change drivers      impacting the future of marketing, marketing (little m) is also known as      ________ marketing. 

  

pro-social 

 

tactical 

 

strategic 

 

predatory 

 

green marketing 

3 points   

Question 18 

1. Increasing formalization of      customer analysis processes is a component of a customer-centric culture. 

True 

False 

3 points   

Question 19 

1. The ________ phase of the customer      relationship management process is where organizational learning occurs      based on customer response to the implemented strategies and programs. 

  

analysis and refinement 

 

supplier interface 

 

marketing planning 

 

knowledge discovery 

 

customer interaction 

3 points   

Question 20 

1. Which of the following questions      about market segmentation relates to creation and execution of different      marketing strategies to the different submarkets identified? 

  

Can the segment be reached in terms   of physical product? 

 

Is the segment of sufficient size to   warrant investing in a unique value-creating strategy for that segment as a   target market? 

 

Is the segment readily identifiable   and can it be measured? 

 

Can the segment be reached in order   to deliver the value of the product, and subsequently can it be effectively   and efficiently managed? 

 

Is the segment clearly differentiated   on one or more important dimensions when communicating the value of the   product? 

3 points   

Question 21 

1. An approach to segmenting consumer      markets is ________ segmentation, which relies on consumer variables such      as personality and AIOs (activities, interests, and opinions) to segment a      market. 

  

occupational 

 

psychographic 

 

geographic 

 

educational 

 

gender 

3 points   

Question 22 

1. Offering credit cards to high      school seniors is an example of ________ segmentation. 

  

income 

 

occupational 

 

educational 

 

lifestyle 

 

gender 

3 points   

Question 23 

1. One major objective of CRM is      customer replacement. 

True 

False 

3 points   

Question 24 

1. A(n) ________ is a person’s belief      that understanding and satisfying customers, whether internal or exter­nal      to the organization, is central to the proper execution of his or her job.      

  

personal values system 

 

organizational buy-in 

 

consumer practice 

 

work philosophy 

 

customer mind-set 

3 points   

Question 25 

1. To significantly enhance customer      choices, Levi combines flexible manufacturing with flexible marketing.      Customers may visit the Levi's clothing website or some company-owned      stores and order a pair of jeans that will be made especially for them.      Levi's has adopted a ________ orientation approach. 

  

market 

 

mass customization 

 

differentiation 

 

product 

 

relationship 

3 points   

Question 26 

1. Customer satisfaction is defined      as ________. 

  

the degree to which an individual   will resist switching from one offering to another 

 

the level at which the offering meets   or exceeds a customer’s expectations 

 

retaining satisfied and loyal   profitable customers and channels 

 

increasing the likelihood that a   customer becomes a buzz marketer 

 

the number of purchases in a defined   period of time 

3 points   

Question 27 

1. Into the Abyss is an outdoor      clothing company that is just starting to conduct analyses on new data.      Which approach would be the appropriate first step before employing more      complex analyses? 

  

descriptive analytics 

 

predictive analytics 

 

prescriptive analytics 

 

diagnostic analytics 

 

determinant analytics 

3 points   

Question 28 

1. The region, the density of the      population, and the size of the population are various approaches to use      in ________. 

  

positioning 

 

differentiation 

 

democratic segmentation 

 

population parameter estimation 

 

geographic segmentation 

3 points   

Question 29 

1. The local sandwich shop has always      sold calorie-laden sandwiches and recently introduced six new sandwiches      featuring vegetables and lower-calorie meats and cheeses to appeal to      health-conscious customers. What strategy is the sandwich shop pursuing? 

  

repositioning 

 

one-to-one marketing 

 

concentration 

 

tertiary target marketing 

 

80/20 rule 

3 points   

Question 30 

1. Which of the following action      elements is NOT desired for successful Marketing (Big M)? 

  

Ensuring that everyone in an   organization, regardless of their position or title, understands the concept   of customer orientation 

 

Aligning all internal organizational   processes and systems around the customer 

 

Finding somebody at the top of the   firm to consistently champion this Marketing (Big M) business philosophy 

 

Remembering the fact that the   marketing department is where Marketing (Big M) takes place 

 

Creating market-driving, not just   market-driven, strategies 

3 points   

Question 31 

1. A commonly held misconception      about marketing is that it is all about advertising and selling. 

True 

False 

3 points   

Question 32 

1. Redefining the selling role within      the firm to focus on customer business consultation and solutions is one      way that CRM ________. 

  

increases profits for the firm 

 

keeps its costs down 

 

increases the formalization of   customer analysis processes 

 

maintains customer loyalty 

 

facilitates a customer-centric   culture 

3 points   

Question 33 

1. The Girl Scouts introduced a      cookie finder app in 2013. In the context of change drivers impacting the      future of marketing, this reflects the ________. 

  

shift to product glut and customer   shortage 

 

shift in power from marketer to   customer 

 

shift in generational values and   preferences 

 

shift to distinguishing Marketing   (Big M) from marketing (little m) 

 

shift to justifying the relevance and   payback of the marketing investment