general business data bank

Question # 00003441 Posted By: spqr Updated on: 11/12/2013 01:19 AM Due on: 11/30/2013
Subject Marketing Topic Marketing Tutorials:
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76. Marketers have found that the most essential role to be played in defining and delivering high-quality goods and services to target customers is that of price (e.g., price it right and it will sell).

77. The midsize customers for most organizations receive good service, pay nearly full price for the products and services they purchase, and are often the most profitable.

78. A profitable customer is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company’s cost stream of attracting, selling, and servicing the customer.

79. Most companies measure customer satisfaction and individual customer profitability.

80. Unprofitable customers who defect to a competitor should be encouraged to do so.

81. Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called Activity-Based Costing (ABC).

82. According to customer profitability analysis (CPA), platinum customers spend the most money with the organization thereby making them valuable.

83. Any competitive advantage must be seen by customers as a customer advantage.

84. Customer lifetime value (CLV) describes the net present value of the stream of future profits expected over the customer’s lifetime purchases.

85. Carl Sewell, in Customers for Life, estimated that a customer entering his car dealership for the first time represents a potential lifetime value of over $300,000.

86. The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Answer: False

87. Brand equity is the customer’s objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs.

88. Customer equity is driven by three components: acquisition, retention, and add on selling.

89. A good illustration of a personal touch in the hotel business would be if the hotel employees (e.g., registration, maid service, et cetera) call a guest by his or her name.

90. A customer touch point is the time when the customer makes a purchase.

91. A key driver of shareholder value is the aggregate value of the customer base.

92. One of the characteristics of mass marketing is using a one-way message in promotions.

93. Customer churn is how rapidly a store can move customers through its checkout facility or process.

94. Ninety-six percent of dissatisfied customers don’t complain; they just stop buying.

95. The average company loses 25 percent of its customers each year.


96. A good description of a permanent capture marketwould be “once a customer, always a customer.”

97. In proactive marketing the salesperson simply sells the product.

98. A customer database is simply a listing of a customer’s name, address, and phone

number for credit reference.

99. Cluster analysis is a good example of a statistical technique that might be employed in datamining.

100. Database marketing is most frequently used by business marketers and service providers (hotels, banks, airlines, and insurance, credit card, and telephone companies) that normally and easily collect a lot of customer data.

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