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c. search
d. experiential
50. Mary visits her local shopping mall to purchase some much needed additions to her wardrobe. In selecting
the items she wants to purchase, Mary is concerned primarily with factors such as color, size, style, and price.
Clothing items can best be described as __________ goods.
a. qualitative
b. search
c. experience
d. credence
51. Evan visits a travel website to book a trip to Europe. While he is fairly certain he has selected good flights
and exciting destinations, he cannot fully evaluate his trip until he actually arrives. The components of Evan’s
trip can best be described as __________ goods.
a. qualitative
b. search
c. experience
d. credence
52. Susan visits the office of a local attorney to have a will drawn up. She has never hired an attorney before,
but thinks that this particular attorney is doing a good job based on his professional demeanor and fancy office.
Susan’s hiring of the attorney is best described as a __________ purchase.
a. qualitative
b. search
c. experience
d. credence
53. The most trusted source of expectations is
a. word-of-mouth.
b. a consumer’s own experience.
c. friends.
d. family.
54. When a consumer does not have much personal experience with a realtor (e.g., a first-time home buyer), he
will form expectations from
a. an extrapolation of past experiences with professional service providers.
b. newspaper articles.
c. his last visit with his doctor.
d. an extrapolation of past experiences with service industry staff.
55. When we have a situation where we do not have much experience with a brand, we seek people
a. who are brand ambassadors.
b. who are smart.
c. who we are related to.
d. who we trust.
56. Information originating from the marketing mix of a company that contributes to a consumer’s expectations
may include
a. positioning claims made in advertising.
b. suggestions of quality based on the price of a product.
c. trust worthy data on product quality.
d. positioning claims made in advertising and suggestions of quality based on the price of a product.
57. What do customers evaluate when making a purchase?
a. core
b. service
c. core and service
d. core, service, and motivation
58. If the core part of the purchase is
a. good it decreases satisfaction.
b. good it increases satisfaction.
c. bad it does not affect satisfaction.
d. bad it increases dissatisfaction.
a. Motivating
b. Hygiene
c. Extra
d. Bonus
60. The VP of Customer Experience at an international hotel chain is constantly looking for ways to improve
customer service, whether it be at check-in, room service, concierge services, check-out, etc. This is important
because customers generally evaluate companies and brands based on
a. time components.
b. search effort.
c. points of interaction.
d. value-added supplemental components.
61. Marketers talk of three kinds of expectations. Which of the following is NOT one of them?
a. predicted
b. adequate
c. real
d. ideal
62. __________ is defined as the trade-off of the quality of the purchase received compared with the price paid
and other costs incurred.
a. Recovery
b. Marketing
c. Value
d. Expectations
63. __________ cultures are more likely to be satisfied when the quality of reliability and service provider
responsiveness are strong.
a. Collectivistic
b. Individualistic
c. Optimistic
d. Pessimistic
64. __________ cultures appreciate the relational aspects of front-line employees more.
a. Collectivistic
b. Pessimistic
c. Individualistic
d. Optimistic
65. Marketers are interested in customers’ perceptions and conduct surveys in order to understand those
perceptions. Although these surveys may result in imperfect measures, the numbers do allow marketers to
gauge their performance relative to certain __________, such as past or competitive performance.
a. ideals
b. credence
c. statistics
d. benchmarks
66. Quality and satisfaction are
a. not important for a company to be successful.
b. opposites.
c. not the same thing.
d. the same.
67. When customers become dissatisfied, what is the primary means of regaining the customer?
a. through an empowered frontline employee
b. a free sample
c. a discount
d. through interviews
68. Chase and Nathan are in charge of tracking customer evaluations for their employer. They are considering
which measure to employ to track customer evaluation data. There are many measures that capture customer
evaluations. Which of the following is one of the measures?
a. price
b. purchase intentions
c. time spent on research
d. quality
69. Research shows that satisfied customers result in
a. a better bottom line.
b. a more diverse company.
c. happier employees.
d. word-of-mouth sales.
70. CRM programs are tools used by companies to track spending by collecting information, such as customer
identification and contact information, and some form of information on the RFM of the customers’ purchase
history. What does RFM represent?
a. recency, frequency, monetary
b. recency, financial, monetary
c. retention, frequency, memory
d. retention, financial, memory
71. Scoring models are traditionally comprised of three factors. Which of the following is NOT one of them?
a. high frequency
b. high recency
c. high monetary value
d. high purchase intention
72. Verizon uses the RFM matrix to determine its most valuable customers. Recency is weighted at a 3,
frequency is weighted at a 9, and monetary is valued at a 7. Customer A has a score of R=1, F=5, M=6. What is
Customer A’s RFM score?
a. 15
b. 31
c. 90
d. 100
73. Which of the following is NOT typically in a CRM database?
a. complaints
b. market share data
c. rate of response to marketing offers
d. contact information
74. Customer lifetime value assessments involve which three types of components?
a. segmentation, targeting, and positioning
b. numbers about money, time, and financing finesse
c. targeting, retention, and money
d. acquisition, retention, and add-on selling
75. The money inputs we need for CLV include all of the following EXCEPT
a. estimates of retention costs.
b. estimates of acquisition costs.
c. estimates of company.
d. average contributions for the segment(s) under consideration.
76. The time inputs we need for CLV include
a. estimates of retention rate and average lifespan of particular product.
b. estimates of retention rate.
c. average lifespan of particular product.
d. average age for the segment under consideration.
77. Bic Inc. has a new ad to attract new customers. This ad is categorized as a(n)
a. retention cost.
b. discount rate.
c. average contribution.
d. acquisition cost.
78. Retention rates __________ over time.
a. always increase
b. always drop
c. always remain the same
d. can change or remain the same
a. when production is tied to marketing
b. when sales-people go on call
c. when implementing plans to create CRM databases
d. when computing CLV
80. Honda offers a line of cars from less expensive to more expensive. What is Honda’s goal with regard to this
line?
a. the line will extend the customer’s lifetime with Honda
b. sales will increase
c. the line will get Honda into new markets
d. the line will create market buzz
81. List three of the four different forms of customer evaluations. Also, give an example of each form.
1. Customer satisfaction. Example: John bought a new car and it is running well. He is satisfied with his
2. Perceptions of quality. Example: Scott perceives Apple computers to have high quality.
3. Customers' intention to purchase same brand. Example: Alex bought an HP printer previously and he plans to
4. Likelihood that a customer will generate word-of-mouth speaking favorably to friends, family, and co-
82. Identify and discuss the three possible outcomes of customer evaluations.
83. What is the difference between low-involvement purchases and high-involvement purchases? Give an
example of each type.
84. List the various sources of expectations and when you would typically use each one.
85. Michael stayed at a Hampton Inn last weekend. What are the two categories of the purchase that he
considers? Give an example of each category.
86. Marketers talk of three kinds of expectations. What are they?
87. Newport Country Club has a few unhappy members. They were not treated well at their last dinner at the
club. What can Newport Country Club do to prevent these members from leaving the club for another club or
quitting the country club lifestyle altogether?
88. Describe what a CRM program is and the types of information used.
89. Science Tech Inc. is a company that provides lab supplies like scales and beakers. In order to find its most
valuable customers, it has implemented a CRM program with RFM. One of its customers is Virginia Tech Labs
(VT Labs). Science Tech has decided to weight recency with a 4, frequency with a 2, and monetary with a 7.
VT Labs scored a 9 on recency, a 3 on frequency, and an 8 on monetary. What is VT Labs’ RFM score?
90. Explain the concept of customer lifetime value.
