Name:
Class:
Date:
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Page 1
1. Sponsoring sports teams is one way a bank can help create a favorable impression with the public.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.3.1 – LO: 12.3.1
2. A public relations campaign includes activities associated with areas such as customer relations, marketing, and
advertising.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.3.2 – LO: 12.3.2
3. A press release describing an employee’s promotion would not typically be part of a bank’s public relations activities.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.3.1 – LO: 12.3.1
4. Most modern, sophisticated customers no longer expect employees to use phrases such as “thank you” and “excuse
me.” They only want to transact their business as quickly as possible.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
5. It is acceptable to argue with a customer when you are absolutely certain that you are correct.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.2 – LO: 12.4.2
6. If a problem arises with a customer, employees need to follow up on the situation to make sure that it has been
corrected.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.2 – LO: 12.4.2
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 2
7. Marketing is only about advertising and selling goods.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
8. Marketing objectives for a bank should be measurable, flexible, and complement its financial objectives.
a.
True
b.
False
ANSWER:
True
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
9. A market in which many competitors are already present is usually very easy to enter because the customer base is
already established.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
10. The most effective advertising campaigns usually select one type of media—such as print, broadcast, or the Internet—
and stick with it exclusively.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
11. A bank website that presents information by focusing on specific products offered by the bank is using a demographic
approach for marketing products.
a.
True
b.
False
ANSWER:
False
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.1.2 – LO: 12.1.2
12. The first step a bank should take to create a favorable impression to the public is to
a.
determine its current image.
b.
define its goals in creating its image.
c.
analyze the image it wants to present.
d.
determine its target audience.
Name:
Class:
Date:
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Page 3
ANSWER:
c
POINTS:
1
LEARNING OBJECTIVES:
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13. A bank’s public relations activities
a.
are addressed to the general public and stockholders.
b.
should be limited to only one type of media—television, radio, or print, but not all.
c.
would usually include a press release about a major scandal involving a vice president.
d.
all of the above are true.
ANSWER:
a
POINTS:
1
LEARNING OBJECTIVES:
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14. Which of the following would probably NOT be considered an example of good customer service?
a.
All the staff members of Deerfield Bank have the skills to explain the bank’s products and services accurately
and clearly.
b.
Second National Bank is open from 10 A.M. until 3 P.M. Monday through Thursday.
c.
Integrity Bank promises that it will never make a mistake on your account; if it does, it will pay you a $25
“oops” fee.
d.
Mega Bank offers its customers online banking services.
ANSWER:
b
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
15. Bank employees who are dressed too casually
a.
should be fired on the spot.
b.
have no impact on the bank’s public image.
c.
are considered friendlier and more reliable by most customers.
d.
can often project an apathetic image to customers.
ANSWER:
d
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
16. The first thing you should do when a problem arises with a customer is to
a.
tell the customer you’re having a bad day too, in an attempt to calm the situation.
b.
call your supervisor over to handle the situation.
c.
apologize for the situation.
d.
point out how the customer created the problem, to make sure it never happens again.
ANSWER:
c
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.2 – LO: 12.4.2
17. “Talking down” to a customer
a.
is a perfect example of doing business from the customer’s perspective.
Name:
Class:
Date:
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Page 4
b.
can be an effective way to gain and keep control of a difficult situation.
c.
is likely to insult and embarrass the customer.
d.
can help secure business by emphasizing to the customer just how smart and qualified the employee is.
ANSWER:
c
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.2 – LO: 12.4.2
18. Which of the following is one of the “4 Ps” of marketing?
a.
performing
b.
pricing
c.
prioritizing
d.
presenting
ANSWER:
b
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
19. Columbia Bank has targeted teenagers as a potential market. Which of the following is probably an inappropriate
advertising campaign for Columbia to use?
a.
Ads that promote low mortgage rates and home equity loans.
b.
Ads that promote online banking services.
c.
Ads that emphasize savings accounts that can be established with only a small initial deposit.
d.
Ads that stress friendly employees who can teach customers how to manage their accounts and write checks.
ANSWER:
a
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.1.2 – LO: 12.1.2
20. In 2015 the media type that received the most advertising revenue from U.S. businesses was
a.
radio.
b.
television.
c.
magazines.
d.
newspaper.
ANSWER:
b
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
21. A form of advertising that delivers advertising materials individually to a target market via the U.S. mail or
telemarketing is called
a.
print media.
b.
cybermarketing.
c.
direct marketing.
d.
outdoor media.
ANSWER:
c
POINTS:
1
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Class:
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LEARNING OBJECTIVES:
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22. A public ____________________ is the concept the public has of a business.
ANSWER:
image
POINTS:
1
LEARNING OBJECTIVES:
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23. Public ____________________ is the planned and sustained effort to establish and maintain goodwill between an
organization and its public.
ANSWER:
relations
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.3.2 – LO: 12.3.2
24. Customer ____________________ involves the activities and programs a seller provides to make the relationship with
its customers satisfying.
ANSWER:
service
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
25. The degree of caring and individual attention a bank shows its customers is known as ____________________.
ANSWER:
empathy
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
26. The concept of ____________________ refers to a bank’s ability to provide you what it promised in a dependable
and accurate manner.
ANSWER:
reliability or reliable service
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
27. ____________________ is the process of planning and executing the conception, pricing, promotion, and distribution
of goods, services, and ideas to create exchanges that satisfy individual and organization objectives.
ANSWER:
Marketing
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
28. Customer ____________________ is the process of dividing a market into subgroups that have specific preferences or
needs.
ANSWER:
segmentation
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.1.1 – LO: 12.1.1
29. A(n) ____________________ market is a preselected group of buyers for whom a product or service is created and to
whom a marketing campaign is directed.
ANSWER:
target
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Class:
Date:
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POINTS:
1
LEARNING OBJECTIVES:
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30. ____________________ is the paid description or presentation of a product, service, idea, or organization to
encourage individuals to buy, support, or approve of it.
ANSWER:
Advertising
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
31. ____________________ is a carefully planned effort to advertise a company through the Internet by using the most
practical, effective, and up-to-date strategies.
ANSWER:
Cybermarketing
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
32. ____________________ states that the most profitable way to view customers is in terms of their present and future
value to a bank.
ANSWER:
Customer Relationship Management (CRM)
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.2.1 – LO: 12.2.1
33. ____________________ is the most effective way to drive Internet business to your website.
ANSWER:
Search engine optimization (SEO)
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
34. Smalltown Bank budgeted $80,000 to spend on newspaper ads. The return to the bank in the first year is
expected to be $10,000. What is the return on investment (ROI) Smalltown Bank can expect from its newspaper
ads?
ANSWER:
12.5%
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
35. First National Bank spent $250,000 on a series of television commercials. Determine the ROI assuming the ads are
expected to have a $35,000 return in the first year.
ANSWER:
14%
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
36. The bank in your small community wishes to have a 20% ROI on the Internet advertising campaign it is rolling out. If
its goal is an expected return of $10,000 in the first year, how much should it budget for the campaign?
ANSWER:
$50,000
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
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Class:
Date:
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Page 7
37. The bank in your small community has $42,000 to spend on an advertising campaign this year. It expects a return of
$7,500 in the first year. What would be the ROI on this ad campaign? (Round your answer to the nearest whole percent.)
ANSWER:
18%
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
38. Morgantown Bank is considering two different advertising campaigns. The first is an integrated campaign consisting
of radio, Internet, and direct mail advertising. The total cost of this campaign is $75,000 and it is expected to have a
$12,000 return in the first year. The second campaign will consist of television advertising only. It will cost $180,000 and
is expected to have a $25,000 return in the first year. Which campaign should it choose?
ANSWER:
Based on ROI, the bank should go with the first campaign, which will have an ROI of 16%
compared to the 14% ROI of the second campaign.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.2 – LO: 12.5.2
39. What is the final step a bank should take in its efforts to create a public image?
ANSWER:
The final step a bank takes to create a public image is to track the results of the PR campaign
and determine whether the bank achieved its objectives and goals.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.2.2 – LO: 12.2.2
40. Name at least three ongoing products that individual customers typically need from a bank.
ANSWER:
Individual banking customers typically need ongoing products such as checking accounts,
savings accounts, certificates of deposit, and online banking. They also need lending products
such as mortgage, car, and home-equity and students loans. They may also seek credit cards,
wealth management assistance, retirement planning, and trust planning from their bank.
POINTS:
1
LEARNING OBJECTIVES:
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41. Give at least five examples of inappropriate behavior an employee should never exhibit toward a customer.
ANSWER:
Inappropriate behavior includes being rude to customers, arguing with customers, ignoring
customers, making excuses, criticizing or condemning customers or the employer, being
condescending toward customers, or leaving customers on the telephone.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.2.1 – LO: 12.2.1
42. What does empathetic service demonstrate to a customer?
ANSWER:
Empathetic service demonstrates a commitment to understanding the customers’ needs and
finding the answer to exactly what they need. Such service is caring and individualized.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.4.1 – LO: 12.4.1
43. What are the “4 Ps” of marketing?
ANSWER:
The “4 Ps” of marketing are production, pricing, promotion, and placement.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
Name:
Class:
Date:
adequate in size.
44. What is social responsibility? Why is it especially important for banks?
ANSWER:
Social responsibility is the obligation to profitably serve employees and customers in an
ethical and law-abiding way. This is especially important for banks because they provide
somewhat of a public service.
POINTS:
1
LEARNING OBJECTIVES:
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45. Name two competitive threats to traditional banking.
ANSWER:
(1) Automotive manufacturers offering products traditionally offered by banks including car
loans, credit cards, and insurance products. (2)Peer–to-peer lending which facilitates
borrower and lender matchmaking via the Internet.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.2.2 – LO: 12.2.2
46. Explain how corporate image and reputation affect a company’s profits.
ANSWER:
Corporate image and reputation attract customers and investors and determine how
successfully a company can recover from a crisis. Customers choose the businesses they
frequent and the products/services they purchase based on their image of the company.
Corporate image and reputation also are important in attracting top-quality employees.
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.3.1 – LO: 12.3.1
47. What are four questions that should be asked during the planning phase of a public relations campaign?
ANSWER:
Students will cite four of the following questions: What objectives will the PR program aim
to accomplish? Has the audience been carefully defined? Is there a clear definition of the
targeted audience or public? Have the methods to reach the targeted audience been clearly
defined and described? Are employees prepared and able to support the activity? Will they
need training? Do current forces—such as local, state, national, or international events—
affect the message? What are the organization’s current PR programs—do they fit the new
plan? What does the budget allow? Who will implement the plan? Will outside help be
needed?
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.3.2 – LO: 12.3.2
48. What does it mean for a bank to do business “from the customer’s perspective”?
ANSWER:
Banking customers want their bank to communicate with them in clear, concise language that
doesn’t use banking jargon. They don’t want to decipher a great deal of technical
terminology. Bank employees can operate from the customer’s perspective by making sure
that customers have a clear understanding of the bank’s products and services.
POINTS:
1
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49. What are some guidelines a bank should follow when it selects its target market?
Name:
Class:
Date:
POINTS:
1
LEARNING OBJECTIVES:
BNKG.CFFT.3.LO: 12.5.1 – LO: 12.5.1
50. What is an entrenched customer? How should a bank view an entrenched customer?
ANSWER:
An entrenched customer is someone who uses bank services that require administrative time
to set up and which, once established, streamline performing many routine financial needs.
These services include automatic payroll deposit, online bill pay, and automatic monthly
payments. As these customers have an incentive to stay with a bank (to avoid taking the
administrative time to change these services), they represent a potential steady customer base
for banks.
POINTS:
1
LEARNING OBJECTIVES:
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