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Indicate whether the statement is true or false.
1. Regardless of the nature of the business, small firms can gain a competitive edge by providing exceptional customer
service.
a. True
b. False
2. Small businesses must strive to understand post-purchase dissonance among their customers and to manage it
effectively.
a. True
b. False
3. Addressing a customer by name typically means very little to them.
a. True
b. False
4. Consumer needs can be completely satisfied by proper customer relationship management.
a. True
b. False
5. Because culture drastically affects the behavior patterns and values of people, it has tremendous impact on the purchase
and use of products.
a. True
b. False
6. An investigation of culture with a narrow definitional boundary (e.g., by age, geographic location, etc.) is called
perceptual categorization.
a. True
b. False
7. Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers
have satisfied their needs.
a. True
b. False
8. A customer complaint can be positive.
a. True
b. False
9. There must be a company-wide commitment to CRM concept if CRM is to be productive.
a. True
b. False
10. Attitudes are forces that organize and give direction to the tension caused by unsatisfied needs.
a. True
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b. False
11. It is important to keep in touch with a customer and make a sales pitch each time.
a. True
b. False
12. In some situaitons, a small business owner will have to influence need recognition; in others he may simply be able to
react to needs the consumer has indentified.
a. True
b. False
13. Only three classes of needs—social, psychological, and spiritual— can be connected to behavior through motivations.
a. True
b. False
14. In the information search and evaluation stage, the firm’s principal objective is to gain market awareness.
a. True
b. False
15. The ability to enjoy one–on–one contact with customers has always been a competitive advantage for large firms.
a. True
b. False
16. Evoked sets are features or characteristics of products or services that are used to compare brands.
a. True
b. False
17. A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given
situation.
a. True
b. False
18. An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase
problem.
a. True
b. False
19. Initial CRM support efforts should be made using the website because the web developers have the most customer
contact.
a. True
b. False
20. Lack of in-house expertise is a major justification for using outside CRM services.
a. True
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b. False
21. Customer relationship management means different things to different businesses.
a. True
b. False
22. Educational level is the most single determinant of social class.
a. True
b. False
23. Marketers create needs that offer unique motivations to consumers.
a. True
b. False
24. Every group to which an individual belongs is a reference group for that consumer.
a. True
b. False
25. In general, opinion leaders are considered to be knowledgeable, visible, and exposed in mass media.
a. True
b. False
26. Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction.
a. True
b. False
27. A transactional relationship is an association between a business and a customer that begins or ends with a purchase or
a business exchange.
a. True
b. False
28. A consumer’s recognition of a problem can be characterized as routine if the problem evolves over time.
a. True
b. False
29. Attitudes have an indirect impact on consumer behavior.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
30. Billy admires firemen. He wants to dress like them, wear a fireman’s hat, and pretend to put out fires. For Billy,
firemen are:
a. a referral group.
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b. a reference group.
c. a perceptual group.
d. an associate group.
31. Erin often shops at a retail store where her friends shop because of her desire to be affiliated with the group. The
friends are exerting ______ power over Erin.
a. expert
b. group
c. referent
d. expert
32. Jeff has concluded that his company selling professional football merchandise needs to increase its line of shirts. He
is in the ____ stage of the consumer decision making process.
a. information search and evaluation
b. need recognition
c. post-purchase evaluation
d. purchase decision
33. Diane is a loyal, long term customer at Burke’s Furniture Store. It would be expected that she would
a. be willing to pay more for Burke’s Furniture’s products.
b. have higher order-processing costs since she purchases so much.
c. potentially spend less as she purchases more products over time.
d. All of the above.
34. Linda is considering several colleges at which to finish her culinary degree. She is in the _____ stage of the consumer
decision making process.
a. information search and evaluation
b. need recognition
c. post-purchase evaluation
d. purchase decision
35. Julie’s preference for the a certain style of barbeque developed in her state is the result of which sociological
influence?
a. culture
b. opinion leaders
c. reference groups
d. social class
36. Attending a prayer breakfast is most likely an attempt to satisfy which category of need?
a. physiological
b. psychological
c. spiritual
d. social
37. The individual processes that give meaning to the stimuli confronting consumers are
a. a motivation.
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b. a perception.
c. an attitude.
d. a cognition.
38. Bob never purchases bottled water when he is thirsty even if it is available. This behavior indicates that bottled water
a. does not meet Bob’s evaluative criteria.
b. increases Bob’s cognitive dissonance.
c. is not included in Bob’s evoked set.
d. decreases Bob’s perceptual categorization.
39. CRM software programs
a. are designed to help companies gather all customer contact information into multiple data management programs.
b. are often implemented into sales departments first since this area of a company typically generates the greatest
amount of customer contact.
c. will require limited support resources for the proper implementation into the company.
d. has a finite set of user-friendly tools to assist implementation resulting in more small businesses adopting the
programs.
40. The dress looked so cute in the store window, but after she brought it home, Victoria began having second thoughts
about her purchase. Victoria is experiencing:
a. post-purchase dissonance.
b. post-purchase satisfaction.
c. cognitive dissonance.
d. post-decisional distress.
41. Mary, an independent sales representative, is hindered in her ability to be in contact with clients because of dropped
calls on her cell phone. Her decision to purchase a cellular booster for her phone reflects Mary has just proceeded through
the _____ stage of consumer decision making.
a. purchase evaluation
b. evaluative categorization
c. need recognition
d. cognitive dissonance
42. A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs. The winery is
utilizing which sociological influence?
a. culture
b. opinion leaders
c. reference groups
d. social class
43. When Sarah decided to make an offer on a house, this action illustrated she is in the _____ stage of the consumer
decision making process.
a. information search and evaluation
b. need recognition
c. post-purchase evaluation
d. purchase decision
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44. Which consumer option for dealing with product or service dissatisfaction is the only one that is desirable to a
business?
a. complaint on social media
b. warn friends about product
c. take no action
d. privately seek redress from business
45. As an owner of a floral design business, Tim’s highest priority for the florist’s CRM program should be
a. marketing efforts to bring in customers who haven’t bought flowers recently.
b. finding the right computer software for an online floral ordering program.
c. determining if existing customers are satisfied with past floral arrangements.
d. identifying how often customers will purchase flowers.
46. The reason that a group of uniformed people walking down the street playing musical instruments is recognized as a
band is the result of
a. characteristic profiling.
b. evaluative criteria.
c. perceptual categorization.
d. problem recognition.
47. Regina is so satisfied with her pharmacist that she refers her friends and colleagues, providing a(n) _______ benefit
of maintaining relationships with current customers.
a. economic
b. marketing
c. psychological
d. social
48. Juan’s belief that all low calorie sodas taste awful is an example of
a. cognitive dissonance.
b. the elimination of an item in an evoked set.
c. perceptual categorization.
d. unilateral indifference.
49. Aspiring mystery writers study Agatha Christie to learn the art of writing that genre. In this case, Christie would be
considered:
a. how a subcultural analysis impacts marketing efforts.
b. an opinion leader with which businesses want to affiliate.
c. a reference group for mystery writers
d. a social class because of her lifestyle choices.
50. CRM is the business version of
a. the Ten Commandments.
b. the Bill of Rights.
c. the Golden Rule.
d. Maslow’s Hierarchy of Needs.
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51. Individual processes that ultimately give meaning to stimuli that confront consumers are known as
a. perceptions.
b. motivations.
c. attitudes.
d. opinions.
52. Freida used a discount coupon to purchase a new product. In which category of the customer profile should this be
recorded?
a. Personal Information
b. Lifestyle data
c. Profile of past responses
d. Transaction data
53. A customer’s email address would most likely be stored in which category of a customer profile?
a. Personal information
b. Demographics
c. Psychographic data
d. Transactions
54. June has always believed that the resale furniture store doesn’t have quality furniture as it has been used by others.
This _____ may cause her to avoid the store and shop at a store specializing in new furniture across town.
a. attitude
b. cognitive dissonance
c. motivation
d. perceptual categorization
55. Behavioral patterns and values that characterize a group of consumers in a target market are called
a. reference groups.
b. cultures.
c. social classes.
d. perceptual categories.
56. Information taken from warranty cards would be stored in which category of a customer profile?
a. Personal information
b. Complaints
c. Lifestyle data
d. Transactions
57. In what stage of the consumer decision making process is Josh when he becomes concerned whether his friends will
enjoy the video game he downloaded?
a. information search and evaluation
b. need recognition
c. post-purchase evaluation
d. purchase decision
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58. Molly has had repeated positive experiences with her local coffee shop. They suggest new flavors, call her by her first
name, and donate to a local charity that Molly supports. Molly’s experiences, as a result, contribute to the firm’s CRM
_______.
a. organizational culture
b. customer cost
c. value equation
d. customer satisfaction
59. Economic benefits associated with maintaining relationships with current customers include:
a. Small increases in customer retention can translate into large increases in profits.
b. Existing customers spend less money than new customers.
c. Order processing costs are higher for current customers.
d. All of these.
60. In general, a person can be an opinion leader even if he or she is not
a. knowledgeable.
b. visible.
c. exposed to the mass media.
d. nationally known.
61. Nikita’s decision to buy her shoes at the same shop that her boss patronizes is the result of which sociological
influence?
a. culture
b. opinion leaders
c. reference groups
d. social class
62. Most customer service problems are identified by
a. personal observation.
b. outside consultants.
c. customer complaints.
d. entries in a suggestion box.
63. An approach that recognizes that, with every interaction, customers learn something about a company that will affect
their desire to do business there in the future is known as
a. perceptual categorization.
b. cognitive dissonance.
c. transactional relationship.
d. customer experience management.
64. To establish an effective customer service program, what should be completed first?
a. customer service quotient
b. mystery shopper visit
c. survey on customer attitudes
d. Jezek’s Zone analysis
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65. A basic idea forming the foundation of customer loyalty for small firms includes the notion that
a. superior customer service always leads to customer purchases.
b. customer loyalty will mean constant customer satisfaction.
c. small firms possess great potential for providing superior customer service.
d. customer satisfaction is being ignored by large firms.
66. Which of the following is true about Yelp.com?
a. It is an online forum where customers can post reviews.
b. Only negative reviews have any impact.
c. Once a customer posts a negative review, the business is helpless to respond.
d. All of the above are true about Yelp.com.
67. According to consumer information-processing theory, _____ is the final stage through which consumers progress.
a. cognitive dissonance
b. evaluative categorization
c. post-purchase evaluation
d. purchase decision
Match the term with its definition
a. 80/20 Principle
b. Customer database
c. Customer segmentation strategy
d. Evaluative criteria
e. Evoked set
f. Perception
g. Perceptual categorization
h. Post-purchase dissonance
i. Recency-frequency-monetary analysis
j. Touch point
k. Transactional relationship
68. A process of identifying customers that fit into smaller, more homogeneous groups
69. An analysis that reveals customers most likely to buy from a firm in the future because they have made purchases
recently, frequently, and in amounts that exceed some established minimum
70. An interaction between a business and its customers
71. The features or charactistics of a product or service that customers use afor comparison
72. The individual processes that give meaning to the stimuli confronting consumers
73. A collection of information about a customer, inlcuding demographic data, attitudes, preferences, and other behavioral
characteristics, as defined by CRM goals
74. A principle that maintains that 80 percent of a company’s sales will come from 20 percent of its customers
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75. A group of brands that a consumer is both aware of and willing to conisder as a solution to a purchase need
76. The psychological tension or anxiety that occurs when a customer has second thoughts immediately following a
purchase
77. An association between a business and a customer that begins (or ends) with a purchase or a business deal
Match the term with its definition.
a. Attitude
b. Culture
c. Customer experience management
d. Customer Lifetime Value
e. Customer relationship management
f. Motivations
g. Needs
h. Opinion leader
i. Perception
j. Perceptual categorization
k. Reference group
l. Social classes
78. A small group that an individual allows to influence his or her behavior
79. Goal-oriented forces that organize and give direction to the tension caused by unsatisfied needs
80. Behavioral patterns and values that characterize a group of consumers in a target market
81. A group member who plays a key communication role
82. Divisions within a society having different levels of social prestige
83. An approach that recognizes that, with every interaction, customers learn something about a company that will affect
their desire to do business there in the future
84. The process of grouping things that are perceived as being similar
85. A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing
on specific customer groups
86. An enduring opinion based on a combination of knowledge, feelings, and behavioral tendencies
87. The starting point for all behavior
88. The total profit expected from all future sales to a customer
89. Identify five outcomes of customer satisfaction.
90. Compare CRM marketing efforts between current customers and new customers.
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91. Aly’an is a country rock band that has a new CD and is gaining a fan base. The band wants to connect with their fans,
increase CD sales and have more shows. What are tools they could use to drive more people to their website?
92. Briefly describe each stage of the customer decision making process.
93. Identify and explain the importance of five indicators of extraordinary customer service.
94. How can technology improve customer relationships?
95. Mandy is shopping for a new car. She is visiting a privately owned lot in her hometown and describes to Jane, the
salesperson, that she wants a four-door sedan with high fuel economy and a leather interior. Jane then shows her three cars
that she thinks may fit Mandy’s preferences. What stage of the decision making process is Mandy in and what should Jane
understand about Mandy’s search to complete the sale?
96. Caleb owns a small deli and is focusing on developing his business relationship with customers. What four underlying
beliefs should Caleb consider in order to develop and provide great customer service?
97. List the five major economic benefits of maintaining relationships with current customers.
98. Greg is a retired NBA basketball player who has returned to his small hometown to open a basketball gym. There are
no other businesses in his area like his concept and he wants to reach his customers. What psychological influences on his
consumers does Greg need to consider before opening his location and how will they apply to the basketball gym?
99. Sally is a new customer at Fit and Strong, a training facility for marathon athletes. Upon entering the business, the
receptionist asked Sally to fill out a customer profile questionnaire in order to collect data for company files. What
information is likely to be asked of Sally?
100. Discuss the importance of why small businesses should offer personal attention. What are suggestions for
implementing such procedures.
101. What should entrepreneurs understand about sociological influences on customers?
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Answer Key
1. True
2. True
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