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Name:
Class:
Date:
chapter 11
Indicate whether the statement is true or false.
1. Successful internal marketing efforts create satisfied employees who spread positive word-of-mouth
messages to relatives, friends, and acquaintances.
a.
True
b.
False
2. Companies focus on building loyal relationships with existing customers as retaining customers costs must
less than acquiring new ones.
a.
True
b.
False
3. Electronic data interchange (EDI) involves computer-to-computer exchanges of invoices, orders, and other
business documents.
a.
True
b.
False
4. In relationship marketing, the focus is on enticing a buyer to make an immediate purchase based on factors
such as low price, convenience, or packaging.
a.
True
b.
False
5. Affinity marketing is a cooperative arrangement in which two or more organizations join to sell their products
in an allied marketing campaign.
a.
True
b.
False
6. A lateral partnership is a strategic relationship that involves direct buyer-seller interactions.
a.
True
b.
False
7. Customer relationship management systems are more beneficial to retailers than to B2B firms.
a.
True
b.
False
8. At the second level of relationship marketing, buyers and sellers develop a dependence on one another that
continues to grow over time.
a.
True
b.
False
9. In a buyer partnership, the supplier must meet the unique needs of the purchaser in order to make the
relationship successful.
a.
True
b.
False
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Class:
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chapter 11
10. Alken Technologies has a support team that is dedicated to provide sales and service to its largest customers
to pay attention to their special needs. This marketing technique used by Alken to show commitment to its
customers, is referred to as internal marketing.
a.
True
b.
False
11. Some of the motives for firms to enter into partnership are warding off threats of future competition, raising
or creating barriers to entry, and learning new skills.
a.
True
b.
False
12. Affinity marketing programs focus on creating extra value for consumers.
a.
True
b.
False
13. The first step in measuring customer satisfaction involves comparing actual sales to forecasted sales.
a.
True
b.
False
14. Interactive television delivers valuable data on real consumer behavior and attitudes toward brands.
a.
True
b.
False
15. As compared to happy customers, unhappy customers typically talk less about their buying experiences.
a.
True
b.
False
16. Lateral partnership is a relationship that involves customers within an organization.
a.
True
b.
False
17. A sales forecast is an important tool for marketing control because it sets standards against which actual
performance can be measured.
a.
True
b.
False
18. Research alliances between for-profit firms and colleges and universities are examples of lateral
partnerships.
a.
True
b.
False
19. The cost of acquiring a new customer is equivalent to that of retaining a loyal customer.
a.
True
b.
False
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Class:
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chapter 11
20. The jury of executive opinion not only gathers information from company executives, but also from experts
outside the firm such as academic researchers.
a.
True
b.
False
21. Companies can use database marketing to improve customer retention and referral rates.
a.
True
b.
False
22. Quantitative forecasting methods rely on subjective data that reports opinions rather than exact historical
data.
a.
True
b.
False
23. Relationship marketing views customers as equal partners in buyer–seller transactions.
a.
True
b.
False
24. One of the steps involved in measuring customer satisfaction is compiling feedback from customers
regarding present performance.
a.
True
b.
False
25. Database marketing involves the use of information technology to analyze data about customers and their
transactions.
a.
True
b.
False
26. A strategic alliance can be formed only between those firms that serve the same industry.
a.
True
b.
False
27. Firms with similar skills and resources form a partnership to reduce costs.
a.
True
b.
False
28. A company that gathers volunteers to try products and then relies on them to share their experiences with
friends and colleagues is adopting a frequency marketing approach.
a.
True
b.
False
29. Customer win-back is a customer relationship management strategy that focuses on acquiring new
customers.
a.
True
b.
False
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chapter 11
30. Transaction based marketing emphasizes retaining customers over making a sale.
a.
True
b.
False
31. A vendor-managed inventory is an inventory management system in which the seller—in an existing
agreement with a buyer—determines how much of a product is needed.
a.
True
b.
False
32. The interactions at the first level of relationship marketing are most likely to lead to a long-term relationship.
a.
True
b.
False
33. Internal marketing involves selling products to employees of the firm at a discount.
a.
True
b.
False
34. A company using exponential smoothing technique for forecasting their sales in 2015 is likely to award a 1.5
weight for sales data of 2015, 2.0 weight for sales data from 2014, and 2.5 weight for the sales data from 2012.
a.
True
b.
False
35. Customer relationship management (CRM) requires a top-down commitment to succeed and must penetrate
every aspect of a firm’s business.
a.
True
b.
False
36. The service department of an automobile firm calls its customers regularly after service to check the
performance of the car. This is an example of the first level of interaction in relationship marketing.
a.
True
b.
False
37. Customer relationship management systems help firms to simplify complex business processes.
a.
True
b.
False
38. The sale of a product to a customer via a vending machine is typical of a transaction-based relationship.
a.
True
b.
False
39. Often, the desirability of partnering in the business market is based on the fact that each firm brings to the
partnership something the other needs but cannot provide on its own.
a.
True
b.
False
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chapter 11
40. First-level relationship marketing programs typically rely on pricing and other financial incentives to
motivate the customer into a buying relationship with a vendor.
a.
True
b.
False
41. Database marketing is not effective in identifying potential customers as it increases the marketing and
promotion costs.
a.
True
b.
False
42. Quick-response merchandising is a just-in-time strategy that reduces the time merchandise is held in
inventory, resulting in substantial cost savings.
a.
True
b.
False
43. Many grocery chains require customers to have a membership card in order to receive sale prices or other
discounts. These grocery chains are practicing database marketing.
a.
True
b.
False
44. A strategic alliance is a partnership in which two or more companies combine resources and capital to create
competitive advantages in a new market.
a.
True
b.
False
45. The payback period in a customer relationship is the length of time it takes to break even on customer
acquisition costs.
a.
True
b.
False
46. The term “lifetime value of a customer” refers to revenues and intangible benefits such as referrals and
customer feedback a customer brings to the seller over an average lifetime of their relationship, less the amount
the company must spend to acquire, market to, and service the customer.
a.
True
b.
False
47. The supply chain management process has no influence on the relationship of the company with the
product’s end users.
a.
True
b.
False
48. An internal partnership consists of a relationship that involves long-term exchanges of goods or services in
return for cash.
a.
True
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b.
False
49. Marketers can use grassroots marketing approach to develop long-lasting, individual relationships with loyal
customers.
a.
True
b.
False
50. Viral marketing involves efforts that allow satisfied customers to spread the word about products to other
customers.
a.
True
b.
False
51. Companies that excel at satisfying customers provide their employees with the necessary tools to address
customer requests and problems in a timely manner.
a.
True
b.
False
52. A firm forming a partnership with another firm at the same level in the supply chain is creating a horizontal
alliance.
a.
True
b.
False
53. Buyer–seller relationships between companies involve working together to provide advantages that benefit
both parties.
a.
True
b.
False
54. At the third level of relationship marketing, buyer-seller relationships are transformed structurally into
business partnerships.
a.
True
b.
False
55. The grassroots marketing approach relies on conventional and traditional marketing strategies.
a.
True
b.
False
56. The buyer and seller exchanges in transaction-based marketing are characterized by limited communications
and little or no ongoing relationships.
a.
True
b.
False
57. Cobranding is a cooperative arrangement in which two or more businesses team up to closely link their
names on a single product.
a.
True
b.
False
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chapter 11
58. In level 1 of relationship marketing, purchasers on a company’s relationship marketing continuum receive
specialized services and value-added benefits that may not be available from another firm.
a.
True
b.
False
59. One of the main goals of internal marketing is to keep the employees informed about corporate goals,
strategies, and customer needs.
a.
True
b.
False
60. Assume that Ford has established a strategic alliance with Michelin to design an exclusive line of tires for
Ford automobiles. The Ford-Michelin strategic alliance would be a horizontal alliance.
a.
True
b.
False
61. Firms focus on acquiring new customers rather than retaining existing customers, as new customers account
for nearly 70 percent of new business for a firm.
a.
True
b.
False
62. Building and managing long-term relationships between buyers and sellers are the hallmarks of transaction-
based marketing.
a.
True
b.
False
63. One of the key criteria considered while forming a strategic alliance is the size and location of the partner
firm.
a.
True
b.
False
64. Advertising via mobile apps helps marketers gain access to users’ personal data.
a.
True
b.
False
65. Reviewing customer comments and feedback and monitoring the click-through behavior on websites help
companies to set appropriate, measurable goals for relationship programs.
a.
True
b.
False
66. Successful customer relationship management systems reduce costs by empowering customers to find the
information they need to manage their own orders.
a.
True
b.
False
67. Frequency marketing programs are promotional efforts sponsored by organizations that solicit involvement
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by individuals who share common interests and activities.
a.
True
b.
False
68. The Delphi technique is preferred by marketers because it is quick, inexpensive and works best for short-run
forecasting.
a.
True
b.
False
69. Affinity marketing consists of frequent-buyer or user marketing programs that reward customers with cash,
rebates, merchandise, or other premiums.
a.
True
b.
False
70. Planners apply qualitative sales forecasting techniques when they want judgmental or subjective indicators.
a.
True
b.
False
71. Customer satisfaction can be measured in terms of the gaps between what customers expect and what they
perceive they have received.
a.
True
b.
False
72. The term “buzz marketing” refers to a promotional effort in which a dedicated sales team is assigned to a
firm’s major customers to provide sales and service.
a.
True
b.
False
73. It is essential for an organization to build and maintain internal partnerships in order to meet the needs of its
external partnerships.
a.
True
b.
False
74. In a cooperative alliance, the partners establish a new business unit in which each takes an ownership
position.
a.
True
b.
False
75. National account selling technique is used by marketers to serve their largest and most profitable customers.
a.
True
b.
False
76. A strategic alliance formed between firms at adjacent stages in a supply chain is considered a vertical
alliance.
a.
True
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b.
False
77. Companies use knowledge obtained from databases to track customer buying patterns and to customize
offerings and sales promotions.
a.
True
b.
False
78. Strategic alliances typically include only the largest firms in any industry because of the amount of capital
required to invest in shared facilities.
a.
True
b.
False
79. Organizations must share similar values and goals for a partnership to succeed in the long run.
a.
True
b.
False
80. A partnership is an affiliation of two or more companies that help each other achieve common goals.
a.
True
b.
False
81. Marketers have discovered that when they implement relationship marketing strategies, it is more expensive
to retain satisfied customers than attracting new customers.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
82. In a salute to fans of the Olympic games, Ralph Lauren launched a complete wardrobe, inspired by the
Olympics designs, for men, women, children, and infants. This is an example of _____ marketing.
a.
distributive
b.
internal
c.
database
d.
affinity
83. Which of the following concepts forms the basis of buzz marketing?
a.
Elasticity of demand
b.
Word-of-mouth
c.
Employee empowerment
d.
Long-term product viability
84. A _____ is a strategic relationship that extends to external entities but involves no direct buyer-seller
interactions.
a.
network partnership
b.
buyer partnership
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c.
lateral partnership
d.
seller partnership
85. Revenues and intangible benefits such as referrals and feedback a consumer brings to the seller over an
average period of their relationship, less the amount the company must spend to acquire, market to, and service
the customer is known as the _____.
a.
rate of customer coverage
b.
customer turnover rate
c.
lifetime value of a customer
d.
net customer yield
86. Frito Lay and Taco Bell utilize _________, a cooperative arrangement where Taco Bell utilizes the Doritos
name and logo for several menu items under the name "Doritos Loco Tacos" including Nacho Cheese, Cool
Ranch and Fiery.
a.
cobranding
b.
comarketing
c.
internal partnership
d.
cocreation
87. Each month Costco, a warehouse membership club with locations across the United States sends a
magazine/catalog with articles about its members as well as featured products. Costco utilizes ________
marketing to create a meaningful dialog which builds relationships and encourages brand loyalty.
a.
database
b.
reciprocal
c.
affinity
d.
frequency
88. Courtney is an automotive sales representative for Sherwin Williams and works exclusively with Toyota in
order to deliver high levels of service and ensure that the products are performing as they should for Toyota.
Since Courtney only has one customer account, she is classified as a:
a.
national account representative
b.
exclusive account representative
c.
territory account representative
d.
preferred account representative
89. Which of the following marketing exchanges is most likely to be transaction-based?
a.
Golf club membership
b.
Buying property from a real estate agent
c.
Medical care for a person with a chronic illness
d.
Annual service contract with a lawn and garden company
90. A biotechnology company and a medical school have formed a partnership to develop a new class of cancer-
fighting drugs. This is an example of a(n) _____ partnership.
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a.
buyer
b.
seller
c.
internal
d.
lateral
91. The use of information technology to analyze information about customers and their transactions is referred
to as _____ marketing.
a.
frequency
b.
affinity
c.
database
d.
internal
92. Transaction-based marketing differs from relationship marketing as transaction-based marketing:
a.
ranks customer service as a high priority.
b.
encourages frequent customer contact.
c.
emphasizes on individual sales rather than long-term relationships.
d.
views customers as equal partners in buyer-seller transactions.
93. Long-term customers are usually more valuable assets than new ones because ________________.
a.
their lifetime value is less
b.
customer service is not as important to them
c.
they provide valuable feedback
d.
they complain less
e.
they understand the company’s products better
94. The Eddie Bauer, a clothing retail chain, partnered with Ford to produce the Eddie Bauer edition of the Ford
Explorer. This is an example of:
a.
cobranding.
b.
comarketing.
c.
lateral partnership.
d.
internal partnership.
95. A food manufacturing company that has just entered into the market is trying to attract potential customers
through marketing strategies that are unconventional, nontraditional, and extremely flexible. The company has a
relatively small budget for marketing its products. Which of the following marketing strategies is most likely
being used by this company?
a.
Affinity marketing
b.
Frequency marketing
c.
Grassroots marketing
d.
Viral marketing
96. Which of the following represents a problem associated with the use of customer relationship management
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(CRM) programs?
a.
some employees such as sales representatives are reluctant to use CRM systems
b.
it is difficult to measure the results of a CRM program
c.
CRM programs rely on decentralized data
d.
CRM programs reduce the customer's level of empowerment
97. G.J Inc., an electronic component manufacturer and supplier, has an inventory management system that
stores purchase patterns and requirements of its customers. Through this system the firm decides on the amount
of the product required by the buyers and automatically ships the supplies to the buyer based on a preexisting
agreement. This type of inventory management system is called _____.
a.
lateral management system
b.
vendor-managed inventory
c.
distributive management system
d.
symbiotic inventory
98. Which of the following is a limitation of trend analysis?
a.
It is expensive and time consuming.
b.
It can communicate marketing plans to the competitors before the firm introduces a product to the
total market.
c.
It is unable to make reliable forecasts during periods of steady growth and stable demand.
d.
It assumes that the future events will continue in the same manner as the past.
99. Which of the following is true of relationship marketing?
a.
It focuses on short-term, one-time exchanges with limited communications.
b.
Its only goal is “sell something—now.”
c.
It views customers as equal partners in buyer-seller transactions.
d.
It involves little or no ongoing relationship between the buyers and sellers.
100. A major benefit of using test markets as a quantitative forecasting method is that:
a.
they provide realistic information on actual purchases rather than intent to buy.
b.
they are quick and inexpensive.
c.
they combine and average the outlooks of top executives from such areas as marketing, finance, and
production.
d.
they solicit opinion from experts outside the firm such as academic researchers.
101. Which of following statements is true about customer satisfaction?
a.
Customer complaints should be viewed as failures, not opportunities.
b.
Customers have less loyalty after resolving a complaint or problem with the firm.
c.
Any method that makes it easier for customers to complain actually benefits the firm.
d.
Any method that makes it easier for customers to complain harms the firm.
e.
Firms should not take proactive steps like mailing customer surveys.
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102. Bradon was a loyal customer of American Eagle but once out of college, started purchasing the majority of
his clothes from J Crew preferring to shop online and in their stores which are located in stand-alone shopping
centers rather than shopping malls. Customers like Bradon who no longer purchase clothing from American
Eagle create _______ for the chain.
a.
turnover
b.
opportunities
c.
new markets
d.
lifetime value
103. With database marketing, firms use technology to analyze data about customers and their transactions. It
has many implications for firms including:
a.
It helps firms identify their most profitable customers.
b.
It eliminates the need for loyalty programs.
c.
It leads to 100% customer retention.
d.
It gets some of its data from employer records.
e.
It increases the lifetime value of each customer’s business.
104. _____ gathers volunteers to try products and then relies on them to talk about their experiences with friends
and colleagues.
a.
Grassroots marketing
b.
Frequency marketing
c.
Affinity marketing
d.
Buzz marketing
105. You've been hired to implement a CPFR system for the Core Corporation. While you recognize the benefits of such
systems, you informed the CEO not to expect:
a.
Collaborative forecasting between Core and its vendors
b.
Collaborative planning between Core and its vendors
c.
Collaborative advertising between Core and its vendors
d.
Any of the above
e.
All of the above
106. During the 2016 NBA Championship series featuring the Golden State Warriors and Cleveland Cavaliers,
Taco Bell utilized a creative promotion strategy by partnering with the NBA for its "Steal a game, steal a taco"
campaign whereby "Americans" could get one free taco at Taco Bell the day following a play-off game if the
road team won. This partnership which promotes both the NBA Finals and Taco Bell is an example of
_________.
a.
comarketing
b.
cobranding
c.
lateral partnership
d.
internal partnership
107. Because you learned so much while studying for your marketing degree, you plan to reach out to former professors
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to help forecast sales for your company's new product. All of them are recognized experts in the industry. If they
participate, you will use the qualitative forecasting approach known as:
a.
A sales force composite
b.
A jury of executive opinion
c.
The Delphi technique
d.
Trend analysis
e.
An external insight composite
108. The relationship marketing continuum has three levels. With respect to the different levels, we know that:
a.
In the third level, a social feature is introduced.
b.
In the second level, the buyer and seller develop a dependency.
c.
In the first level, the primary focus is on social interactions.
d.
In the second level, the primary focus is on price.
e.
In the first level, it is acknowledged that it takes more than a low price to create a long-term
relationship.
109. A clothing brand allows its customers to interact with each other on their website so that the customers can
share their views and opinions about the company’s products. The company has also created a Web page on a
social networking site where the customers can express their opinions. This type of marketing strategy is an
example of _____.
a.
internal marketing
b.
viral marketing
c.
societal marketing
d.
distributive marketing
110. Customers prefer to have continuing relationships with businesses or suppliers because:
a.
it helps the consumers in the process of benchmarking.
b.
by nature, customers are resistant to change and prefer preexisting relationships with businesses.
c.
the decision-making process becomes easier with the reduction in the number of choices.
d.
most businesses have low switching costs which make them attractive to have continued relationships
with.
111. At the second level of relationship marketing, the focus is on:
a.
price and other financial incentives.
b.
reaching out to the customer with social interaction.
c.
structurally transforming the relationship into an interdependent partnership.
d.
analyzing data from the initial purchase to determine the chance of a repeat sale.
112. Which of the following is a characteristic of transaction-based marketing?
a.
Frequent customer contact
b.
Emphasis on long-term relationship
c.
Customer interactions based on commitment and trust
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d.
Emphasis on individual sales
113. Which of the following is true of long-term customers?
a.
They are not effective in providing intangible benefits such as feedback and referrals.
b.
They cost more to serve than new customers.
c.
They provide a minor share in a company’s new business.
d.
They are usually more valuable assets than new ones because they buy more.
114. The marketing programs at the third level of relationship marketing usually aim to create:
a.
social interaction.
b.
financial interaction.
c.
interdependent partnership.
d.
viral advertising.
115. A leading detergent brand receives complaints from its customers that the chemicals used are too strong
and dangerous, and they do not smell good. To counter this, the company runs a series of ads showing its
experts approaching select customers with an improved detergent that addresses the concerns of the customers.
The company is engaging in:
a.
controlled experimentation.
b.
database marketing.
c.
internal marketing.
d.
customer win-back.
116. The main objective of internal marketing programs is to:
a.
share resources with business partners.
b.
encourage employees to view each other as competitors.
c.
create satisfied employees.
d.
facilitate a vertical integration.
117. Which of the following qualitative forecasting techniques is useful in predicting short-term and
intermediate sales for firms that serve selected customers?.
a.
Delphi technique
b.
Survey of buyer intentions
c.
Trend analysis
d.
Sales force composite technique
118. A _____ partnership is a relationship in which the firm purchases goods and services from one or more
providers who meet the unique needs of the firm.
a.
lateral
b.
internal
c.
seller
d.
buyer
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119. Which of the following statements is true about the benefits of buyer-seller relationships in business-to-
business marketing?
a.
They increase cash flows for both parties.
b.
They lead to improved quality and reliability.
c.
They reduce inventory management costs.
d.
They eliminate the need for transaction financing for either party.
e.
They guarantee the availability of supplies.
120. A company trying to engage in a social interaction with the customers is at the _____ level of relationship
marketing.
a.
first
b.
third
c.
second
d.
fourth
121. Mobile apps have become a multi-billion dollar industry because:
a.
They are easy to use.
b.
They are free to smartphone and tablet users.
c.
They provide advertisers with detailed consumer data.
d.
They keep user information secure.
122. A successful customer relationship management system reorganizes the business processes to deliver
superior value to the customers by:
a.
decentralizing the marketing data.
b.
bringing down a firm’s reliance on expensive word-of-mouth marketing.
c.
expanding the response time for customer queries to increase their satisfaction.
d.
empowering customers to find information they need to manage their own orders.
123. A fast food restaurant is offering various meal options at discounted prices to attract new customers. This
marketing effort indicates that the company is at the _____ level of relationship marketing.
a.
third
b.
first
c.
fourth
d.
second
124. Which of the following is true about business-to-business marketing and buyer-seller relationships?
a.
Buyers and sellers cooperate in business-to-business marketing through Web services.
b.
Manufacturers use a technique call national account selling to serve their smallest customers.
c.
EDI does not have non-commercial applications.
d.
In order for Web services to work, the firms involved must have the same or compatible software.
e.
Buyer-managed inventory has replaced vendor-managed inventory in many instances today.
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125. Carlos, CEO of Fresh Foods, wants a qualitative forecasting technique that is quick, inexpensive, and can
be effectively used to forecast sales in the short run and for new product development. Which of the following
techniques will best suit his purpose?
a.
Delphi technique
b.
Survey of buyer intentions
c.
Test markets
d.
Jury of executive opinion
126. Relationship marketing focuses on developing long-term, high-value relationships with many different
stakeholders including _______________.
a.
creditors
b.
consumer advocacy groups
c.
environmentalists
d.
distributors
e.
regulators
127. Should your cooks be considered customers of your restaurant? Why or why not?
a.
No, because they are not allowed to eat what they cook.
b.
Yes, because their family members get discounts.
c.
No, because they are employees.
d.
No, because they eat there for free.
e.
Yes, because their work impacts the overall value delivered by the restaurant.
128. Which of the following is a feature of marketing efforts at the third level of relationship marketing?
a.
They are least likely to lead to a long-term relationship between the buyer and seller.
b.
They are more likely to be focused on geographic segmentation rather than psychographic
segmentation.
c.
They try to motivate consumers to buy products by offering financial incentives.
d.
They focus on developing a dependance between buyers and sellers.
129. Cannondale Bicycles has a customers’ group called “The Chain Gang.” Members receive emails listing
cycling-related tips, as well as access to a special website dedicated to cycling. In the context of the relationship
marketing continuum, this is an example of the _____ level of relationship marketing.
a.
first
b.
second
c.
fifth
d.
fourth
130. The marketing efforts at the first level of relationship marketing:
a.
treat the buyers as true business partners while marketing products.
b.
focus on effective communication and customer service for the products.
c.
rely on pricing and other financial incentives to motivate consumers to buy products.
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d.
focus on creating long-term buyer relationships.
131. Direct TV and Dish Network often advertise introductory price promotions for new customers providing
cost savings on satellite TV and/or Internet bundles. What type of relationship marketing strategy is used in this
example?
a.
level one marketing
b.
level two marketing
c.
level three marketing
d.
level zero marketing
132. Best Buy Rewards Program tracks customer sales, and periodically issues coupons to customers based on
the values of prior purchases. This marketing effort by Best Buy can be regarded as _____ marketing.
a.
affinity
b.
database
c.
frequency
d.
societal
133. Which of the following is an important goal of internal marketing?
a.
Group polarization
b.
Vertical integration
c.
Customer desensitization
d.
Employee involvement
134. _____ is the process of rejuvenating lost relationships with customers.
a.
Customer polarization
b.
Customer acquisition
c.
Customer win-back
d.
Customer orientation
135. The term _____ describes the turnover in a company’s customer base.
a.
customer win-back
b.
customer lifetime value
c.
customer distribution pattern
d.
customer churn
136. You're convinced that it's time for your kitchen appliance store to invest in a CRM system. Your business partner,
however, has some concerns. Decide which, if any, are valid.
a.
CRM results are not measurable.
b.
CRM systems are likely to increase the costs of store management.
c.
CRM will enable you to assess customer satisfaction with your appliances, but not to reduce customer
response time if those appliances malfunction.
d.
CRM decentralizes data on buyers of particular appliance brands.
e.
None of the concerns is valid.
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137. You just bought a car dealership that has been in business for many years. The former owner trained his team in
transaction-based marketing. But you believe in a relationship marketing approach, so you plan to retrain the salespeople
to focus primarily on:
a.
Creating inducements to close the sale
b.
Succeeding in short-term exchanges
c.
Limiting communication with customers
d.
Succeeding in one-time exchanges
e.
Prioritizing customer service
138. Which of the following is a just-in-time strategy that helps in reducing the time a retailer must hold
products in the inventory?
a.
Lateral partnership
b.
Quick-response merchandising
c.
Symbiotic merchandising
d.
Vertical strategic alliance
139. You just inherited the family business from your uncle who ran it successfully or over twenty-five years.
You worked in the business during those years, and always vowed to change things once you took over
ownership. Specifically, you came to realize that your uncle ran the business with a transaction-based mindset
that produced good results, but not optimal results. You vowed to shift the business towards a relationship-
based approach when you took over.
Based on your philosophy, which of the following characteristics do you plan to instill in the company’s new
approach to doing business?
a.
Treat customers as equal partners in the buyer-seller exchange.
b.
Limit communications with customers.
c.
Focus on selling products and selling them quickly.
d.
Have a short-term focus in the interactions with customers.
e.
Focus on new sales rather than repeat sales.
140. A consumer goods company is trying to develop a relationship with its customers by implementing
marketing strategies that focus on developing interdependence between the company and its customers. These
marketing strategies indicate that the company is at the _____ level of relationship marketing.
a.
third
b.
second
c.
first
d.
fourth
141. Managerial actions that enable all members of an organization to understand, accept, and fulfill their
respective roles in implementing marketing strategy are collectively referred to as _____.
a.
social referencing
b.
social loafing
c.
internal marketing
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d.
strategic positioning
142. In the context of the levels of relationship marketing, which of the following is an example of a level 1
relationship marketing program?
a.
An electronics firm setting up a worldwide technical support system to assist customers.
b.
A cheese shop organizing a cooking contest for customers.
c.
An automobile company offering a club membership to owners of high-end cars.
d.
An airline offering special discounts to its customers for early bookings.
143. During the 2016 Grammy music awards program, the technology company Intel partnered with Lady Gaga
to enable her to integrate technology into her musical tribute to David Bowie. Intel brought a series of robots
— like the "dancing piano" — and a motion sensory chip that helped the visual effects match Gaga's
movements onstage. Matt Kauffman, Intel head of events and experiences stated,“We want to demonstrate how
technology transforms people’s lives, and how Intel is the technology behind it.” Which marketing term best
applies to the case of Lady Gaga and Intel?
a.
comarketing
b.
cobranding
c.
technology partnership
d.
internal partnership
144. Marketers reward their top customers with cash, rebates, merchandise and premiums in order to keep them.
Which of the following best describes this strategy?
a.
Grassroots marketing
b.
Affinity marketing
c.
Database marketing
d.
Customer churn
e.
Frequency marketing
145. YouTube offers viewers the option to share a video they have watched by sending it to one or more
contacts in their email address books. Which of the following types of marketing is being used this case?
a.
Frequency marking
b.
Viral marketing
c.
Internal marketing
d.
Lateral marketing
146. The term customer relationship management refers to a combination of strategies and tools that attempts to:
a.
create good relationships between all wholesalers and/or retailers in the distribution channel.
b.
retain customers by offering lower prices on the purchase of specific products or services.
c.
develop a network of interconnected businesses involved in the ultimate provision of products and
services required by end customers.
d.
reorient an entire organization to a concentrated focus on satisfying customers.
147. _____ involves connecting directly with existing and potential customers through nonmainstream channels.
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a.
Viral marketing
b.
Interactive marketing
c.
Grassroots marketing
d.
Buzz marketing
148. Which of the following statements represents a key consideration in internal marketing?
a.
It focuses primarily on customers who also work for the firm.
b.
Employee satisfaction is critical.
c.
Customer knowledge and involvement are important goals.
d.
Internal customer satisfaction is not related to customer satisfaction.
e.
Retaining employees in not a focus.
149. Your company has experienced quite a bit of volatility in its sales results over the last few years. The head
of finance tells you that the volatility is the result of customer churn. You are planning to sell the business in a
few years, so you want eliminate the volatility because it makes the business less desirable to a potential buyer.
Which of following should you pursue in order to eliminate some of your sales volatility?
a.
Grassroots marketing
b.
Co-marketing
c.
Seller partnerships
d.
Buyer partnerships
e.
Affinity marketing
150. A major drawback associated with customer relationship management systems is that:
a.
they are not effective in reducing the marketing and distribution costs for the products.
b.
the strategy needs to be thought out in advance, and everyone in the firm must be committed to it.
c.
they cannot provide a complete picture of the customers in order to understand their needs.
d.
they complicate simple business processes while trying to reorganize the focus on customer
satisfaction.
151. _____ is a cooperative arrangement in which two or more businesses team up to closely link their names on
a single product.
a.
Lateral partnership
b.
Cobranding
c.
Comarketing
d.
Symbiotic marketing
152. A marketing program that enables satisfied customers to spread the word about products to other
consumers is called _____ marketing.
a.
grassroots
b.
viral
c.
frequency
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d.
affinity
153. Your company is in the midst of implementing a relationship marketing approach across the company. You
are leading the project and following the traditional three-level, relationship marketing continuum as your
guide. You are in the final level of the continuum.
Which of the following statements is true about what you are doing in the final level of the continuum?
a.
You are focusing on the pricing element of your relationship with customers.
b.
You focus on developing a mutually-beneficial dependence between the firm and its customers.
c.
You introduce a social feature in order to strengthen relationships with customers.
d.
You place a lot of emphasis on customer service.
e.
You place a lot of emphasis on communications with your customers.
154. A marketing effort sponsored by an organization that solicits responses from individuals who share
common interests and activities is called _____ marketing.
a.
frequency
b.
affinity
c.
internal
d.
inclusive
155. With reference to relationship marketing, which of the following is an example of a typical third-level
relationship marketing program?
a.
A health-awareness campaign organized by a food-supplement manufacturer
b.
A frequent flyer program introduced by an airline
c.
A courier company enabling its users to track the status of their deliveries on its website
d.
A company offering a product at a discounted price
156. One of the motives that prompt firms to enter into partnerships is:
a.
creating longer distribution channels.
b.
raising barriers to entry.
c.
promoting the use of technology to facilitate customer orientation.
d.
avoiding vertical and horizontal integration.
157. The first step in measuring customer satisfaction is:
a.
testing market response for new products through controlled experiments.
b.
hiring a first-rate market research firm.
c.
finding out what customers need, want, and expect.
d.
searching the blogs and discussion groups on the Internet to obtain customer feedback.
158. Which of the following is true of customer relationship management systems?
a.
Purchasing a CRM system allows a firm to expand and customize, whereas hosted systems are more
limited.
b.
Customer relationship management systems tend to complicate simple business processes.
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c.
They focus on decentralizing the marketing data.
d.
They are more beneficial to the retailers compared to business firms in B2B markets.
159. While forming partnerships in business-to-business markets, organizations primarily look for companies
that:
a.
are focused on product-orientation.
b.
have shorter distribution channels than their competitors.
c.
can add value to the relationship.
d.
differ from them in the core values and goals.
160. In the context of relationship marketing, the primary bond created by a second-level relationship marketing
program is usually _____ in nature.
a.
social
b.
financial
c.
structural
d.
notional
161. Clayten Technologies has set up a sales team exclusively to serve one of its clients who account for a major
share of its business. This strategy is an example of:
a.
vertical supply chain integration.
b.
vendor-managed selling.
c.
quick-response merchandising.
d.
national account selling.
162. An Internet service provider (ISP) loses approximately 12 percent of its existing customers every year.
According to this information, the ISP is experiencing:
a.
market reorganization.
b.
customer churn.
c.
group polarization.
d.
social referencing.
163. The Nielsen Co. carefully tracks Super Bowl viewership each year to help the network that airs the game
and other football broadcasters determine ad rates for the following year. This is an example of:
a.
frequency marketing.
b.
buzz marketing.
c.
database marketing.
d.
internal marketing.
164. Your marketing assistant has developed recommendations for increasing customer loyalty to your wine bar. You note
that most are based on frequency marketing. Choose the recommendation(s) based on affinity marketing.
a.
Top customers get a free bottle of wine.
b.
Customers receive 10 percent off their check when they visit more than twice a week.
c.
Top customers get flowers on their birthdays.
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d.
Your wine bar becomes a sponsor of the state university's basketball team.
e.
Your wine bar advertises big discounts in the local newspaper.
165. Which of the following is true regarding relationship marketing compared to transaction marketing?
a.
it is based in cooperation and trust between parties
b.
ranks profitability as a high priority
c.
is focused on the short-term
d.
emphasizes achieving sales goals
166. The Voice has gained a loyal viewer base as customers enjoy the reality vocal competition show featuring
recording artists Blake Shelton, Pharrell Williams, Adam Levine and Christina Aguilera as judges in its 11th
season. Viewers were able to vote for their favorite artists using social media such Facebook or Twitter as well
as the Voice App available for Android or Apple customers. The ability to vote for a viewer's favorite
performer created higher levels of interaction between the audience and the show and led to higher viewership
ratings. NBC has demonstrated the successful use of level _____ marketing.
a.
two
b.
one
c.
zero
d.
four
167. A popular frozen yogurt chain has agreed to sell your brand of fresh juices. The chain's ads will feature your juices,
and your juice bar will promote the yogurt. This type of business marketing arrangement is known as:
a.
A seller partnership
b.
An internal partnership
c.
Cobranding
d.
Comarketing
e.
Long-term marketing
168. _____ is a relationship involving long-term exchanges of goods or services in return for cash or other
valuable consideration.
a.
Buyer partnership
b.
Seller partnership
c.
Internal partnership
d.
Lateral partnership
169. Mike is a sales representative for Fastenal and calls on manufacturer accounts in his territory. Most of the
manufacturers utilize a just-in-time inventory system whereby they rely on suppliers like Fastenal to maintain
appropriate levels of stock so they can minimize their inventory carrying costs and strive to balance the
inventory in order to ensure they have the right levels of inventory for their production. Mike provides value-
added services to assist these customers in identifying their inventory needs and tracks the inventory levels to
ensure the customer's goals are met. This value-added service is known as a(n):
a.
vendor-managed inventory
b.
key account selling
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c.
quick-response inventory management
d.
customer relationship management
170. You are the new head of marketing for a large consumer products company in Texas. You have spent your
first two months on the job observing what the company does well and not so well in terms of marketing. One
area that you recognize is a major deficiency is the company’s internal marketing approach and emphasis. You
are a strong proponent of effective internal marketing and you plan to emphasize it in your new role. You are
making a presentation to the executive management team on what internal marketing is and how it will benefit
the company.
Which of the following statements are you going to make in your presentation to the executive management
team about internal marketing?
a.
It is the same as integrated marketing.
b.
It emphasizes quick short-term results that investors like.
c.
It guarantees a firm’s profitability.
d.
Employee knowledge and involvement are important goals.
e.
It is a replacement for e-marketing.
171. When partners in a strategic alliance form a new business unit in which each takes an ownership position,
they have created a:
a.
joint venture.
b.
collusion organization.
c.
development team.
d.
merged organization.
172. A video renting outlet offers free movies for customers, if they rent a certain number of movies within a
specified time periods, in order to encourage them to spend more on renting movies from the outlet. This type
of marketing strategy is an example of _____.
a.
frequency marketing
b.
viral marketing
c.
internal marketing
d.
buzz marketing
173. Which of the following is the most important measure of relationship marketing programs in both
consumer and business-to-business markets?
a.
Cost of the marketing program
b.
Click-through behavior on websites
c.
Lifetime value of a customer
d.
Debt to equity ratio
174. A electronics company has hired some product experts who have sufficient following on social media sites
to spread a word about their products. The company provides the products to these individuals and requests
them to post their opinion which helps in promoting the products. This is an example of:
a.
buzz marketing.
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b.
internal marketing.
c.
lateral marketing.
d.
distributive marketing
175. You own a manufacturing business in Texas, and you are concerned because a large percentage of your
annual sales are dependent on about five large customers spread out across the country. You know that the life
of your business rests on your continued success with these customers. So, you have decided to take a proactive
approach to solidifying your relationship with these customers, and their satisfaction with your products and
services. You are committed to improving and enhancing your relationships with these key customers.
Which of following actions should you take to solidify your relationship with these key customers?
a.
Establish lateral partnerships
b.
Implement a national account selling program
c.
Offer these key customers more product discounts
d.
Launch a grassroots marketing campaign
e.
Launch an affinity marketing campaign
176. The 2016 results of the ACSI for limited service fast-food restaurants show a 2 point increase from 2015 to
2016 - from an average score of 77 to 79. Chick-fil-A scored the highest with an index rating of 87 compared
to a 69for McDonald's. The ACSI is a measure of customer _________.
a.
satisfaction
b.
retention
c.
loyalty
d.
engagement
177. In the context of strategic alliances, a cooperative relationship formed between businesses:
a.
typically involves forming a new business unit.
b.
involves partners taking ownership positions.
c.
is usually less formal than a joint venture.
d.
is not flexible or easily adaptable to changing market conditions.
178. Which of the following is true of a vertical strategic alliance created by firms in B2B markets?
a.
It is created among the firms at the same level of the supply chain.
b.
It can only be formed between companies that serve different industry.
c.
It is formed when firms that are at adjacent states in the supply chain.
d.
It cannot be formed between two firms if their annual revenues are significantly different.
179. _____ is a promotional effort that involves assigning a dedicated sales teams to a firm’s major customers to
provide sales and service.
a.
National account selling
b.
Quick-response merchandising
c.
Vendor-managed selling
d.
Collaborative planning
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180. Jackie works in the custom lens department of Maui Jim sunglasses and prepares lenses for prescription
sunglasses that the company receives from its network of specialty eyeglass retailers. Based on relationship
marketing principles, which term best classifies Jackie?
a.
internal customer
b.
external customer
c.
integrated customer
d.
support customer
181. _____ describes the extent to which buyers of a product or a service are content with their purchases.
a.
Average propensity to consume
b.
Customer satisfaction
c.
Customer lifetime value
d.
Market cognizance
182. An estimate of a firm’s revenue for a specified future period is known as a _____.
a.
revenue cluster
b.
market cap
c.
sales forecast
d.
sales boundary
183. Proactive methods a firm might use to assess customer satisfaction would include:
a.
visiting, calling, or mailing written surveys to clients.
b.
setting up customer service help lines to receive customer complaints.
c.
offering gifts and reward points to appease a dissatisfied customer.
d.
quickly replacing defective products with new products after receiving complaints from customers.
184. Strategic alliances are partnerships formed among firms in B2B markets to:
a.
decrease the value of debt service coverage ratio.
b.
avoid problems related to anti-trust legislation.
c.
create a competitive advantage.
d.
present a united front to labor unions.
185. _____ is a cooperative arrangement in which two or more businesses jointly promote each other’s products.
a.
Internal marketing
b.
Cobranding
c.
Comarketing
d.
Seller lock-in
186. In the context of the levels of relationship marketing, which of the following is a drawback associated with
the efforts that focus on pricing and other financial incentives to attract customers?
a.
It makes advertising and promotional expenses worthless.
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b.
It leads to hostile relationships with the suppliers.
c.
It does not encourage creativity in advertising.
d.
It is least likely to lead to a long-term relationship.
187. Which of the following is an example of affinity marketing?
a.
University of Iowa branded credit card
b.
Hallmark’s Gold Crown card
c.
Blockbuster Rewards video card
d.
United Airlines Mileage Plus program
188. One of the advantages of national account selling is:
a.
a decrease in the value of risk adjusted return on capital.
b.
a strengthened buyer-seller relationship through collaboration.
c.
an increased inventory turnover for the firm.
d.
lowered switching costs for a firm’s loyal customers.
189. The most successful CRM systems share common qualities including:
a.
They increase response time.
b.
They eliminate the need for customer service by centralizing data.
c.
They lead to 100% customer retention rates.
d.
They reduce costs by empowering customers with information.
e.
They guarantee profitable customer relationships.
190. _____ marketing is the development, growth, and maintenance of cost-effective, high-value associations
with individual customers, suppliers, and other partners over time.
a.
Relationship
b.
Transaction-based
c.
Substitutive
d.
Associative
191. Which of the following firms is most likely to enter into a vertical strategic alliance with Boeing?
a.
Airbus, a European consortium of aircraft manufacturers
b.
Pratt & Whitney, an aircraft engine manufacturer
c.
Cessna, an American airplane manufacturer
d.
Gulfstream Aerospace, a jet aircraft producer
192. Which of the following statements is true regarding the interaction between a company and its customers?
a.
Marketers must adhere to traditional performance measures to formulate customer-based missions
and goals.
b.
Customers have greater loyalty to a company after a conflict has been resolved than if they had never
complained at all.
c.
As happy customers typically talk about their buying experiences more than unhappy customers do,
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the cost of dissatisfaction incurred by a company tends to be low.
d.
Any method that makes it easier for customers to complain ends up demonstrating the ineptitude of a
firm.
193. _____ is a quantitative forecasting technique that assigns weights to historical sales data, giving the greatest
weight to the most recent data.
a.
Delphi technique
b.
Test market
c.
Exponential smoothing
d.
Jury of executive opinion
194. _______________ refers to the revenues and intangible benefits a customer brings to the seller over the
long-term.
a.
Customer loyalty
b.
Customer churn
c.
Customer lifetime value
d.
Customer satisfaction
e.
Customer retention
195. The grassroots marketing approach relies on marketing strategies that are:
a.
traditional.
b.
conventional.
c.
expensive.
d.
flexible.
196. Which of the following statements is true about CRM systems?
a.
They do not allow for centralized data.
b.
They create partnerships with customers.
c.
Customers are not empowered.
d.
Customer retention and loyalty is diminished.
e.
They are usually successful even without sales and service employees input.
197. Firms that value customer satisfaction understand that:
a.
Customer satisfaction can be measured in terms of how much the customer paid for the firms’
products.
b.
Any method that makes it easier for customers to complain is counterproductive.
c.
Firms should only employ reactive methods for collecting customer feedback.
d.
Customer satisfaction must be continually monitored.
e.
Knowing the customers’ lifetime value is a central concern of building relationships.
198. Bill's Restaurant is owned and operated by Chef Bill who oversees all aspects of his business. He opened
the restaurant 6 years ago and has been able to retain 90% of his staff. His wait staff and kitchen support staff
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enjoy their work, are loyal to Bill and believe it's one of the best restaurants in Owensboro, Kentucky. Their
enthusiasm is contagious and is one of the many reasons why Bill has continued to see steady increases in sales
- mostly from repeat customers. This example highlights the importance of _________ to today's businesses.
a.
employee satisfaction
b.
customer retention
c.
customer satisfaction
d.
transaction marketing
199. _________________ are strategic alliances with other companies or with not-for-profit organizations.
a.
Co-marketing
b.
Internal partnerships
c.
Buyer partnerships
d.
Lateral partnerships
e.
Co-branding
200. _______ customers are _____ likely to share information about their buying experiences.
a.
Unhappy; more
b.
Happy; more
c.
Unhappy; less
d.
Loyal; more
201. You and your business partner own a chain of restaurants in the Midwest. You started out with one
restaurant over twenty years ago, and thru smart acquisitions, you now own 35 establishments in the area. You
are currently in discussions to buy a profitable steakhouse in the Chicago area from an owner who is getting
ready to retire. One of the most important things you focus on when considering an acquisition is the customer
base of the acquisition target company. You want to make sure that you are buying a business that has a loyal
base of customers who have a long-term association with the business. You have instructed your financial
advisors to give extra consideration to the quality and quantity of the customer base in their assessment of the
business.
Given your acquisition strategy, which of the following metrics should you use to assess the quality of the
acquisition target’s customer base?
a.
The company’s gross profit margin
b.
The company’s return on investment
c.
The company’s sales growth percent over the last five years
d.
The average customer lifetime value
e.
The company’s net income over the last five years
202. The term “internal partnership” refers to the relationship of an organization that involves:
a.
customers within the organization.
b.
competitors who form a monopoly.
c.
partner firms in the supply chain.
d.
ultimate customers who are the end users of the product.
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203. _____ marketing programs are designed to reward top customers with cash, rebates, merchandise, or other
premiums.
a.
Frequency
b.
Social
c.
Internal
d.
Affinity
204. Some of the key elements of business-to-business alliances include:
a.
They are less formal partnership arrangements.
b.
They are best formed between businesses of the same size.
c.
For efficiency purposes, the partners should be located near each other.
d.
They are flexible, short-term partnership arrangements.
e.
The partners can establish a new business unit in which each takes an ownership interest.
Indicate one or more answer choices that best complete the statement or answer the question.
205. Like most companies, yours relies on reactive methods of collecting customer feedback. You hope to change this by
introducing the proactive element(s) of:
a.
Monitoring social media sites
b.
Compiling online customer comments
c.
Answering customer emails
d.
Emailing satisfaction surveys to customers
e.
Calling customers after a sale
206. You can easily identify the long-term customers who bring the most value to your babysitting service. They are the
ones who:
a.
Buy more babysitting hours
b.
Cost less in travel time
c.
Refer other parents
d.
Do not complain
e.
Cost less in cancelled bookings
207. Large United States cities have many dentists who use relationship marketing at different levels to compete for
patients. Choose the approach(es) reaching the second level.
a.
Discounts offered on certain procedures
b.
Free services offered in return for patient referrals
c.
Follow up calls made to patients to ask how they feel
d.
Small toys given to young patients on their birthdays
e.
None of these reaches the second level.
Match each item with the correct statement below.
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a.
strategic alliance
b.
relationship marketing
c.
cobranding
d.
frequency marketing
e.
value chain
f.
database marketing
g.
exponential smoothing
h.
customer relationship management
i.
trend analysis
j.
internal customers
k.
comarketing
l.
quick-response merchandising
m.
affinity program
n.
lifetime value of a customer
o.
Delphi technique
p.
national account selling
q.
transaction-based marketing
r.
customer churn
s.
buzz marketing
t.
grassroots marketing
208. _____ involves buyer seller exchanges characterized by limited communications and little or no ongoing
relationship between the parties.
209. _____ is the development, growth, and maintenance of cost-effective, high-value relationships with
individual customers, suppliers, distributors, retailers, and other partners for mutual benefit over time.
210. The employees or departments within an organization whose success depends on the work of other
employees or departments are referred to as _____.
211. The term _____ refers to the turnover in a company’s customer base.
212. _____ focuses on a company’s best customers with the goal of increasing their motivation to buy even
more of the same or other products from the seller by rewarding them with cash, rebates, or other premiums.
213. A(n) _____ is a marketing effort sponsored by an organization that solicits responses from individuals who
share common interests and activities.
214. The use of information technology to analyze data about customers and their transactions, to identify and
target messages toward specific group of potential customers is referred to as _____.
215. _____ is a forecasting technique that assigns weights to historical sales data, giving the greatest weight to
the most recent data.
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216. _____ are marketing efforts that connect directly with existing and potential customers through
nonmainstream channels.
217. _____ is a marketing effort that gathers volunteers to try products and then relies on them to talk about
their experiences with their friends and colleagues.
218. _____ is a combination of strategies and tools that drives relationship programs, reorienting the entire
organization to a concentrated focus on satisfying consumers.
219. _____ is a sales forecasting method that gathers and redistributes several rounds of anonymous forecasts
until participants reach a consensus.
220. A cooperative arrangement in which two businesses jointly market each other’s products is called _____.
221. _____ is a cooperative arrangement in which two or more businesses team up to closely link their names on
a single product.
222. _____ is a just-in-time strategy that reduces the time for which products are held in inventory, resulting in
substantial cost savings.
223. _____ is a promotional effort in which a dedicated sales team is assigned to a firm’s major customers to
provide sales and service.
224. _____ is a sales forecasting method that estimates future sales through statistical analyses of historical sales
patterns.
225. The _____ is a sequence of suppliers that contribute to the creation and delivery of a product.
226. A(n) _____ is a partnership in which two or more companies combine resources and capital to create
competitive advantages in a new market.
227. The _____ is defined as the revenues and intangible benefits that a customer brings to the seller over an
average lifetime of their relationship, less the amount the company must spend to acquire, market to, and serve
the customer.
228. Discuss the various ways in which database marketing can help a company to build relationships with the
customers.
229. Briefly explain the various types of relationship marketing efforts that focus on turning customers from
passive partners into active proponents of a product.
230. Explain cobranding and comarketing. Give an example of each.
231. What are the problems associated with customer relationship management systems?
232. What is electronic data interchange? What are its applications?
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233. What is internal marketing? Why is internal marketing important for a firm?
234. What are some of the qualities shared by successful CRM systems?
235. Explain how interactive television helps marketers collect data required for database marketing.
236. List out the four basic elements that help firms to build long-term relationships.
237. How do marketers measure customer satisfaction? How can they avoid unfavorable service gaps while
marketing their products?
238. Briefly explain the three levels of relationship marketing.
239. Identify the four types of B2B partnerships.
240. Explain the differences between frequency marketing and affinity marketing programs. Give an example of
each.
241. How can firms build customer loyalty?
242. Differentiate between transaction-based marketing and relationship marketing.
243. What is a strategic alliance? Explain the two ways in which strategic alliances are structured.
244. Discuss national account selling. List some of its advantages.
245. What are the different methods employed by marketers to obtain customer feedback?
246. In addition to examining the lifetime value of a customer and the payback from a customer relationship,
what other techniques can a firm use to evaluate its relationship marketing programs?
247. Explain the differences between qualitative and quantitative forecasting methods and give examples of
each.
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Answer Key
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