1. Marketers are interested in customer satisfaction, perceptions of quality, customers’ intentions to repurchase
the same brand or purchase something else from the same provider, and the likelihood that a customer will
generate positive word-of-mouth.
a. True
b. False
2. Satisfied customers contribute to the bottom line.
a. True
b. False
3. In marketing, the abbreviation CRM represents customer relationship modeling.
a. True
b. False
4. Movie Palace is a local cinema and its management team is debating whether or not it should begin tracking
customer loyalty. Deborah is a manager who supports tracking loyalty. She should argue that Movie Palace
should track loyalty because truly loyal customers love the brand, are zealous in telling others about the brand,
and are even willing to pay more for the brand and all it means to them.
a. True
b. False
5. There are three possible outcomes of customer evaluations: (1) satisfaction, (2) delight, or (3) dissatisfaction.
a. True
b. False
6. Jonathan just bought his usual brand of chips from the grocery store without thinking much about it. The fact
that he normally doesn’t evaluate his chips purchase means that it is a higher-involvement purchase.
a. True
b. False
7. For higher-involvement purchases, the comparison process is typically quite deliberative and conscious.
a. True
b. False
8. Sara wants to buy a new bike. She evaluates the bike on color, size, price, number of gears, and other
features. The bike is an example of a credence good.
a. True
b. False
9. Maria is going on vacation, and she used a travel agent to purchase her tickets and hotel room. This is an
example of an experiential purchase.
a. True
10. Chewing Gum Co. is curious about whether or not the comparative evaluation process occurs despite the
fact that purchases of its chewing gum products are typically a routine, low involvement, repurchase. In this
scenario, the comparative evaluation process is deliberative and conscious.
a. True
b. False
11. The comparison of a purchase to expectations is thought to occur whether the item purchased is comprised
primarily of search, experience, or credence characteristics.
a. True
b. False
12. During a credence purchase, the customer will evaluate the purchase based on personal expertise.
a. True
b. False
13. If purchase experiences are judged relative to expectations, it is important to understand the mechanism of
expectations.
a. True
b. False
14. Experiences are always direct; they cannot be indirect.
a. True
b. False
15. If a consumer has little personal expertise on which to make a brand choice, a logical and trusted source of
information is friends.
a. True
b. False
16. Social media is slowing and is likely to exert less influence on customer behavior in the future.
a. True
b. False
17. Expectations generated from the marketing mix are usually trusted the most since the information comes
from an unbiased source.
a. True
b. False
18. Third-party communications help consumers form expectations based on objective ratings on issues such as
quality and value.
a. True
b. False
19. The marketer has direct and indirect control of third-party rating services.
a. True
b. False
20. Both core components and the peripheral, value-added supplemental components contribute to customer
satisfaction and dissatisfaction.
a. True
b. False
21. Core components don’t affect a customer’s satisfaction much if the core component is good.
a. True
b. False
22. Hygiene and motivating factors are analogous to core and value-added.
a. True
b. False
23. Discount Clothing Store is concerned that it is not satisfying its customers. The firm should consider
mapping the shopping experience in order to fully understand its employees’ perspective of how to best serve
customers.
a. True
b. False
24. Most customer segments’ expectations of quality are not unrealistic.
a. True
b. False
25. The wiggle room between the low, adequate level of expectations and somewhere slightly above the middle,
predicted level of expectations is referred to as a “zone of tolerance,” which is a range of performance that the
customer would deem acceptable.
a. True
b. False
26. Some marketers say that firms should seek to enhance not customer satisfaction but rather customers’
perceptions of value.
a. True
b. False
27. Jody wants to launch a CRM program as a tool that her company can use to track spending, and she tells her
boss that a CRM program does not need to segment customers into different levels of loyalty nor does it need to
reward certain customers. Jody is correct.
a. True
b. False
28. If marketers want to be listened to by the top executives, they need to translate marketing metrics into
finance metrics.
a. True
b. False
29. Recently, companies are charging their loyal customers more, figuring that the loyals like the brand so much
that they’re price insensitive.
a. True
b. False
30. The most desirable customers have low recency, high frequency, and high monetary values.
a. True
b. False
31. Taco Bell uses the RFM matrix to determine its most valuable customers. Recency is weighted at a 5,
frequency is weighted at a 4, and monetary is valued at a 3. Customer A has a score of R=2, F=9, M=1.
Customer A’s RFM score is 49.
a. True
b. False
32. CRM databases contain demographics, lifestyle data, and Internet info, but they should not contain contact
information because of privacy laws.
a. True
b. False
33. Computing customer lifetime value (CLV) involves three kinds of components: (1) numbers about money,
(2) numbers about time, and (3) a financing finesse.
a. True
b. False
34. In calculating customer lifetime value (CLV), time inputs include: (1) a decent guesstimate at the likely
retention rate from year to year and (2) a sense of the average lifespan duration for the particular product or
brand.
a. True
b. False
35. When calculating the acquisition cost for a new customer, a company can use the amount redeemed on
coupons from past customers.
a. True
b. False
36. Verizon is running two TV ads to attract new customers. Ad A is run once a week, and it costs $20 per
showing. Ad B is run once a month and costs $100 per showing. The total annual acquisition cost is $2,240.
a. True
b. False
37. Surveys are ideal instruments to obtain customers’ perceptions.
a. True
b. False
38. A customer’s perception of quality and satisfaction can’t be measured with precision.
a. True
b. False
39. When creating a customer satisfaction survey, questions about demographics should be located at the
beginning of the survey.
b. False
40. In terms of customer dissatisfaction, when things go wrong, research suggests that the primary means to
regaining the customer is through an empowered frontline employee.
a. True
b. False
41. The hierarchy of customer behavior is
a. trial, repeat, awareness, loyalty.
b. loyalty, awareness, repeat, trial.
c. trial, repeat, awareness, loyalty.
d. awareness, trial, repeat, loyalty.
42. Marketers don’t track customer evaluations because
a. they know that satisfied customers contribute to the bottom line.
b. they’re interesting.
c. new customers become loyal.
d. truly loyal customers purchase frequently.
43. Jim and Denise are executives at Jetsetters, Inc., a plane-sharing business. As they review the results of their
recent customer satisfaction survey, Jim generally notices that responses fall into three outcomes. Which of the
following outcomes is NOT one of the three outcomes on Jim’s mind?
a. Customer expectations may be confirmed, leading to judgments of satisfaction.
b. Expectations may be disconfirmed in a negative manner if the purchase fell short of expectations,
leading to feelings of dissatisfaction.
c. Expectations may be disconfirmed in a positive manner, if the purchase experience surpassed the
expectations, leading to feelings of delight.
d. Expectations are not in line with the company’s goals
44. Which of the following is a higher-involvement purchase?
a. athletic shoes
b. toothpaste
d. comb
45. The comparative evaluation process is thought to operate in which of the following types of purchases?
a. low-involvement
b. higher-involvement
c. both low- and higher-involvement
d. neither low- nor higher-involvement
46. For __________ purchases, the comparative evaluation process may be nearly instantaneous and quickly
forgotten.
a. high-involvement
b. quick
c. low-involvement
d. B2B
47. For __________ purchases, the comparative evaluation process is typically quite deliberative and conscious.
a. high-involvement
b. quick
c. low-involvement
d. B2B
48. Comparing a purchase to expectations occurs when the item purchased is comprised primarily of
__________ characteristics.
a. customer lifetime value
b. search, experience, or credence
c. quality
d. value, price, or quality
49. As Quentin checks out of a hotel, he recalls the expectations of quality and service he had upon arriving at
the hotel and realizes that based on those expectations he is not thrilled with his experience. The type of
purchase by Quentin is best described as