Ch.13 Strategy And Metrics Complete Test Bank 4th Edition

Chapter 13: Strategy and metrics

Test Bank

Type: multiple choice question

Title: Chapter 13 Question 01

1) Which of the following is not a metric used for market performance measures related to the allocation of marketing resources?

a. Awareness

b. Satisfaction

c. Follower numbers

d. Market share

Type: multiple choice question

Title: Chapter 13 Question 02

2) As per Day and Wensley (1988) there are only two sources of competitive advantage for a firm - it either has _____ or ______ or both.

a. value, costs

b. superior skills, money

c. superior skills, superior resources

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 13 Question 03

3) Porter (1985) maintains that a firm can either have a low cost or a differentiation position. Recent examples of Dell and Amazon.com have shown that_______

a. his theory was right.

b. a third strategy is required.

c. firms may need to strive for both positions.

d. None of the options given are correct.

Type: multiple choice question

Title: Chapter 13 Question 04

4) Successful performance will be manifest in

a. market share.

b. ROI.

c. customer satisfaction.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 13 Question 05

5) Satisfied customers tend to remain _____ to the firm that really fulfills them.

a. ambivalent

b. unloyal

c. prone

d. loyal

Type: multiple choice question

Title: Chapter 13 Question 06

6) Managers spend a lot of time evaluating hard data for productivity; however, the problem is that it is ______

a. historical.

b. fuzzy.

c. current.

d. true.

Type: multiple choice question

Title: Chapter 13 Question 07

7) The problem with most measures of customer satisfaction and loyalty is that they are _____ but they are about the ______

a. soft, future.

b. hard, current.

c. hard, historical.

d. soft, historical.

Type: multiple choice question

Title: Chapter 13 Question 08

8) The logic of the process model of competitive advantage is that astute firms will reinvest the _______ outcomes of competitive advantage into the __________ of the competitive advantage.

a. emotional, financial

b. financial, emotional

c. financial, sources

d. resources, financial

Type: multiple choice question

Title: Chapter 13 Question 09

9) The ideal marketing control variable would be one that would be single and both hard and for the future. ______ which leads to ______ is that single appropriate outcome.

a. ABCD, loyalty

b. CLV, loyalty

c. CLV, image

d. CLV, equity

Type: multiple choice question

Title: Chapter 13 Question 10

10) CLV is the ______ of the profits that a firm stands to realize on the average new customer during a given number of years in the future.

a. PLC

b. amount

c. range

d. NPV

Type: multiple choice question

Title: Chapter 13 Question 11

11) CLV can be increased by

a. increasing retention rates.

b. increasing customer life.

c. increasing sales of the same product.

d. All of the options given are correct.

Type: multiple choice question

Title: Chapter 13 Question 12

12) It has been argued that the Day and Wensley (1988) competitive advantage process model is powerful; the outcomes it recommends are not sufficient control metrics. This has been driven by _____

a. consumers.

b. buyers.

c. producers.

d. IT.

Type: multiple choice question

Title: Chapter 13 Question 13

13) As per Blattberg and Deighton (1996) customer equity is

a. unmeasurable.

b. fuzzy.

c. sum of the CLV of all consumers.

d. sum total of all consumers.

Type: multiple choice question

Title: Chapter 13 Question 14

14) Blattberg and Deighton (1996) argue that rather than merely allocating marketing budgets according to variables such as media selection, future managers must split the budgets on the bases of

a. sales and marketing needs.

b. TV, PR.

c. branding, selling.

d. customer acquisition, customer retention.

Type: multiple choice question

Title: Chapter 13 Question 15

15) The margin measure reflects the

a. profitability and efficiency of management.

b. cash flow.

c. intensity to which total assets are employed.

d. combination of cost and pricing structures.

Type: multiple choice question

Title: Chapter 13 Question 16

16) The final point of all financial interactions amongst companies is

a. growth.

b. dividends.

c. profit.

d. shareholder return.

Type: multiple choice question

Title: Chapter 13 Question 17

17) The main advantage of a market organization is

a. greater management attention to detail.

b. specialization in task activities.

c. fast reaction to market change.

d. greater integration.

Type: multiple choice question

Title: Chapter 13 Question 18

18) One of the issues which need to be considered in the context of financial measures and marketing strategy is

a. profits and long-term profitability.

b. assets and cash flows.

c. businesses who owe money.

d. shareholder liabilities.

Type: multiple choice question

Title: Chapter 13 Question 19

19) Return on total assets (ROTA) is calculated by

a. dividing operating profit by total assets.

b. dividing operating profit by revenues.

c. dividing revenues by total assets.

d. dividing debt by equity.