Test Bank Docx Chapter 24 Brand and Customer Metrics

Test Bank

Chapter 24 Brand and Customer Metrics

True-False

1. A market based competitive assessment is a direct comparison with

few target competitors.

2. A process based competitive assessment is evaluating the processes

employed by the company to compete in the marketplace.

3. Brand equity is defined as a set of brand assets and liabilities

linked to a brand that add to or subtract from the value provided by

a product or service to the firm's customers and/or to that firm's customers.

4. Satisfaction research should be conducted at planned intervals

so as to track satisfaction over time

5. Customer satisfaction measures attempt to provide a quantitative

interpretation of customers' feelings and attitudes in response to

their experiences with a company's products/services.

6. Brand-equity assets don’t have the potential to provide a brand with a price premium

7. The SERVQUAL score for a product is the difference between the perception of the

dimension and the expectation.

8. Price premium for a brand is the only way to quantify brand equity

9. Loyal customer are necessarily profitable customers

10. Customer-centric marketing that would build mutually beneficial

relationships over time using all points of interaction.

11. A delighted customer costs less to service, stays longer and buys more.

12. Delighted customers need an incentive to repurchase

product or service.

13. Marketing Intelligence increases potential value of a customer

who has a positive customer service experience.

14. Buyer-centric organizations focus only on maximizing sales

and margins.

15. In Buyer-centric marketing, buyers take center-stage and they spell

out their needs.

16. Marketing Intelligence tools provide a wealth of information

related to track customers’ buying patterns, individual

preferences and satisfaction levels.

17. Efficiency and profitability of corporations do not always

translate into corresponding value addition for consumers.

18. In addition to increased value and profits, Buyer-centric

companies focus on consumer information, attention and emotional commitment.

19. Perceived quality is a dimension of brand equity

20. In order to maximize profit companies need to target its loyal customers as they are

always profitable

21. Prevention of attrition of customers is an equally important task like customer

acquisition in a firm’s customer management strategy

Multiple Choice

1. Which one of the following does not pertain to a market based method

of assessing competitive advantage?

a. Market share

b. Recall share

c. R&D share

d. Relative cost comparison

e. Advertising share

2. Which one of the following does not pertain to a process based

method of assessing competitive advantage?

a. Marketing skills audit

b. Recall share

c. Comparison of winning versus losing competitors

d. Relative costs comparison

e. Identifying high leverage phenomena

3. Which one of the following does not represent an asset underlying

the equity of a brand?

a. Brand loyalty

b. Name awareness

c. Perceived quality

d. Cost of the brand

e. Proprietary assets such as patents, trademarks, etc.

4. A survey that provides a direct measure of the brand name’s value is called

1. Excess-price approach
2. Market-based assessment
3. Dollarmetric scale
4. Trade off analysis
5. None of these

5. Which of the following are benefits of Buyer-centric marketing?

• 1. Opportunities from new growth sectors
  2. Increased value of the corporation and its assets
  3. Reduced marketing research expense since customers specify needs
  4. Enhanced trust with customers
  5. All of the above

6. A Buyer-centric organizations’ approach to offering products and services include

1. Providing solutions that empower customers to make informed decisions.
2. Providing solutions that closely reflect customer preferences
3. Helping customers to maximize efficiency, productivity and marketable

value of personal assets

1. All of the above

7. The percentage of customers who name the brand that comes to their mind when

considering buying a particular type of product is referred to as

a. Market share

b. Recall share

c. Advertising share

d. R&D share

8. Which of the following deals with the analysis of strategic and tactical organizational

applications to ensure the effective actions of design, sampling, and reporting?

a. Discovering what is important to customers and employees

b. Measuring critical needs

c. Defining goals and how information will be used

d. Acting on the information

e. Measuring performance over time

9. Which one of the following is a process-based method of assessing competitive

advantage?

a. Market share

b. Recall share

c. R&D share

d. Marketing skills audit

e. Advertising share

10. Based on loyalty and profitability, customers can be segmented into four groups.

Which of the b following groups represents customers who are profitable but not loyal?

a. Barnacles

b. Butterflies

c. True Friends

d. Strangers

11 Which of these is not one of the general approaches proposed to assess the

value of brand equity?

1. Excess‐Price Approach
2. Replacement‐Cost Approach
3. Stock‐Price Approach
4. Future‐Earnings Approach
5. TQM Approach

12. Which is the first step in customer satisfaction measurement process?

1. Measure critical needs
2. Act on the information
3. Define goals and specify how information will be used
4. Discover what is important to customers and employees
5. Measure performance over time

13. Which is the final step in customer satisfaction measurement process?

1. Measure critical needs
2. Act on the information
3. Define goals and specify how information will be used
4. Measure performance over time
5. Discover what is important to customers and employees

14. Buyer‐centric companies help consumers maximize the value they realize

within the marketplace by doing all the following except:

1. Provide services that help customers make informed decisions on buying better and cheaper products more easily
2. Help buyers to buy rather than help sellers to sell
3. Help consumers maximize the efficiency, productivity, and marketable value of personal assets as money, time, information, attention and emotional commitment
4. Maximizing the efficiency, productivity, and marketable value of corporate assets such as money, property, raw materials, technology, skills, and know‐how
5. Present offerings relevant to the buyer’s unique individual characteristics and that recognize what customers currently seek to achieve

15. Which is the first step in customer lifetime value (CLV) maximization cycle?

1. Pitching the Right Product to the Right Customer at the Right Time
2. Managing Loyalty and Profitability Simultaneously
3. Customer Selection
4. Optimal Allocation of Resources
5. Preventing Customer Attrition