View the step-by-step solution to:

1. Which customization activities would most likely increase a customer's long-term value?

1. Which customization activities would most likely increase a customer's long-term value? a. Expanding the need set b. Improving the quality of the product c. Improving service quality d. None of the above


2. Which of the following companies would benefit least from creating value streams? a. furniture retailer b. music instrument retailer c. wine retailer d. car dealer


3. Failing to align supply-chain management with demand-chain management results in: a. underdelivering b. overdelivering c. lost share-of-customer opportunities d. all of the above


4. One lingerie company makes a slip that a customer can cut off in a finished way to make the slip the length she wants. What customization does the company offer? a. Adaptive customization b. Cosmetic customization c. Collaborative customization d. Transparent customization


5. The two kinds of customization that provide the greatest competitive advantage are because they remember what a customer wants: a. Adaptive and cosmetic b. Collaborative and transparent c. Adaptive and collaborative



6. What primarily drives the success of mass customization? a. customer collaboration b. offering "bundled" options c. extensive inventory d. unique personalization



7. Which of the following aspects would be part of a customer's enhanced need set? a. Timing or frequency b. Promotion and marketing communication c. Related products or services d. Help lines and product support


8. What technique helps customization reduce a company's all-in costs? a. modularization b. speculative manufacturing c. make-to-forecast model d. personalization


9. Which of the following characterizes mass customization (vs. mass production)? a. economies of scale b. speculative shipping costs c. inventory carry costs d. demand chain management


10. The demand chain includes all of the following except: a. back-end production b. customer service operations c. marketing d. front-end sales


11. The difference between what customers want and what they're willing to settle for is: a. customer satisfaction b. customer sacrifice c. customer experience d. customer dissatisfaction Chapter 11


12. Predictive modeling includes all of the following steps except: a. devising an equation for LTV that includes data on measurable behaviors b. identifying the most predictive variables currently available c. generating a second equation to predict individual customer's LTV d. using transactional data to calculate LTV retrospectively


13. All of the following are leading indicators of LTV change except a. Lifetime value drivers b. Employee attitudes c. Behavioral cues d. Lifestyle changes


14. Illustrating the importance of the customer as financial asset, Amazon's Jeff Bezos has said that he prioritizes spending on all of the following except: a. advertising b. free shipping c. lower prices d. service enhancement


15. The metric that measures how well an enterprise is using customers to create short-term and longterm value is: a. return on investment b. return on customer c. return on equity d. quarterly product sales


16. Gupta and Lehmann's customer equity study showed that customer equity was measurably impacted most by: a. reducing the cost of new customer acquisition b. increasing customer retention rates c. raising product margins d. increasing stock prices


17. Traditional measures of financial success emphasize: a. prioritizing long-term value over short-term value b. prioritizing short-term value over long-term value c. balancing short-term value with long-term value d. focusing on long-term value to the exclusion of short-term value


18. The actual economic value of any business enterprise can be measured in terms of: a. the discounted net present value of the future stream of cash flow b. the future value of the net present cash flow c. the discounted net present value of average past earnings d. the future value of past net cash flow


19. Creating maximum customer value requires: a. prioritizing long-term value over short-term value b. prioritizing short-term value over long-term value c. balancing short-term value with long-term value d. focusing on long-term value to the exclusion of short-term value


20. Value creators are companies whose: a. customer value rate is below their cost of capital b. customer value rate is above their cost of capital c. customer value rate is equal to their cost of capital d. customer value rate is below zero


21. Legacy metrics include all of the following EXCEPT: a. Quarterly product sales b. customer's asset value c. number of new customers acquired d. return on investment


22. Customer equity includes the LTV of: a. past and present customers b. present and future customers c. present customers only d. past, present, and future customers Chapter 12


23. What characteristic dictates most whether a company would benefit from customer analytics? a. whether the company has a Web site b. whether the company generates large amounts of customer-specific information c. whether a company is customer-centric d. the number of employees a company has


24. The primary purpose of customer analytics is: a. develop a deeper relationship with the customer b. assign a dollar value to customer data c. reduce marketing expenses d. increase customer service


25. "Dirty" data can mean all of the following except: a. private b. expired c. irrelevant d. nonsequential


26. According to the case study presented in Chapter 12, Verizon Wireless discovered which of the following benefits from customer analytics? a. short-term revenue increase b. reduced marketing costs c. reduced customer service costs d. easier and faster transactions


27. Preparing customer data for analysis (the analysis process) includes which of the following steps? a. classification, estimation, regression, prediction, and clustering b. identification, differentiation, interaction, customization c. collecting, defining, analyzing, comparing d. ranking, modeling, simulating, learning


28. The second stage in the evolution of CRM software is: a. SaaS CRM b. CRM in the cloud c. Open-source CRM d. Enterprise CRM Chapter 13


29. The lowest level of consciousness in the development of the organization is: a. Internal cohesion b. External cohesion c. Transformation d. Self-esteem


30. What is the biggest obstacle for most companies making the transition to becoming a customerstrategy enterprise? a. Transforming employee culture b. Establishing new and consistent criteria and metrics for success in a customer-centric environment c. Appointing capabilities managers d. Relationship governance


31. Customer relationship managers will be directly responsible for: a. customer portfolios b. product lines c. capabilities managers d. product managers


32. All of the following are ways a customer-strategy enterprise might meet the goal of maximizing the customer base except: a. retaining profitable customers and growing them b. acquiring as many new customers as possible c. eliminating unprofitable customers d. customizing products, prices, services, and/or communications for each customer


33. Which of the following statements is true about using satisfaction as a proxy for measuring loyalty? a. Loyal customers are likely to be satisfied, and satisfied customers are likely to be loyal. b. Loyal customers are likely to be satisfied, but not all satisfied customers will be loyal. c. Not all loyal customers are satisfied, but satisfied customers are likely to be loyal. d. Not all loyal customers will be satisfied, and not all satisfied customers will be loyal.


34. All of the following are key questions for a company transitioning to a customer-strategy enterprise except: a. Who will be responsible for keeping and growing each customer? b. Who will be responsible for building short-term and long-term customer value? c. What authority will the chief executive have to change how the enterprise treats customers individually? d. By what criteria will success be measured, reported, and used for compensation?


35. Competitive advantage in using customer information means outperforming rivals in each of the following steps except: a. Collaborating b. Utilizing c. Collating d. Sharing Chapter 14


36. The picket fence strategy is best suited for: a. small-to-medium businesses b. large businesses c. businesses who already identify customers individually and differentiate them by value d. businesses who do not yet identify or differentiate their customers individually


37. All of the following agreements would likely ease the sales department's transition except: a. addressing ways salespeople can save time and earn higher commissions b. phasing out the use of sales force automation software c. specifying which information is for enterprise use and which is for their use only d. prioritizing which information is needed about customers


38. In the transition to a customer-strategy enterprise, the human resources department plays all of the following roles except: a. evaluating whether the company has the capability to change b. addressing all key recruiting, training, and ongoing support issues c. creating new career path opportunities d. aligning technology implementation with business strategy


39. The greatest competitive advantage in managing employees in a customer-strategy organization lies in: a. Using technology to automate more routine jobs. b. Equalizing salaries to value lower-tier employees. c. Making the most talented employees more productive. d. Setting clear rules about personal use of company resources.


40. For the customer service department, when considering self-service options for customers, what is the best approach? a. prioritizing direct CSR contact with the customer whenever possible b. prioritizing self-service for the customer whenever possible c. balancing CSR contact and self-service d. having all options available to all customers, and allowing the customer to choose  CSR: Customer Service Representative


41. One of the challenges in a sales department's transition to customer strategy is: a. more sales reps have fewer responsibilities b. it becomes more difficult to share information across the firm c. commissions often decrease d. sales reps' work becomes more visible


42. Segment management is best suited for: a. small-to-medium businesses b. large businesses c. businesses who already identify customers individually and differentiate them by value d. businesses who do not yet identify or differentiate their customers individually

Top Answer

1.       a ). Expanding the need se t : This is because when an organization expands the need set, the customers will... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online