general business data bank

104. Nike lets consumers customize athletic shoes for $10 more. A shopper with two different size feet can even get a non-matching pair. This would be an example of which of the following?

a. Mass marketing.

b. Environmental marketing.

c. Mass customization.

d. Individualization.

e. Niche marketing.

105. 3M makes it easy for dialog to occur with its customers. 3M claims that over two-thirds of its product improvement ideas come from listening to ________.

a. customer suggestions

b. entrepreneurial product ideas

c. customer complaints

d. media feedback

e. customer reactions to competitive products

106. With respect to the CRM Imperative, “you get it” when ________.

a. you eliminate all your strong competitors

b. you have selected the most beneficial promotion channels

c. you have learned how to outsource

d. you develop a Web presence

e. you have identified your most valuable customers

107. The skillful use of database marketing and ________ has made catalog house Fingerhut one of the nation’s largest direct-mail marketers.

a. everyday low prices

b. expanded home delivery options

c. relationship building

d. competitor’s mistakes

e. retailer alliances

108. What do managers believe is their company’s only true “profit center”?

109. Customer delivered value is based on two components. What are those components?

110. What is the definition for customer perceived value (CPV)?

.

111. Using European automobile giant Volvo as your illustration, create a value proposition for the company. Be sure to base your proposition on established company core positions and values.

135. Define the termquality.

136. Sherden suggests amending the 20-80 rule to read “the 20-80-30 rule.” Interpret the meaning of “20-80-30.”

137. What are the three ways that customer profitability can be assessed?

138. What are the four classifications (tiers) of customers in customer profitability analysis using Activity-Based Costing?

139. According to Rust, Zeithaml, and Lemon, what are the three drivers of customer equity?

140. Explain the concept of mass customization.

Level of difficulty: Easy

141. What is a customer touch point?

142. If characteristics of mass marketing were average customer, share of market, and customer attraction, what would be the associated one-to-one marketing characteristics that would match?

143. Markets can be characterized by their long-term buying dynamics and how easily and often customers can enter and leave. List and briefly characterize three such markets.

144. Explain the concept of proactive marketing.

145. Explain how a company frequency program might work.

146. Using information provided in the text, create three suggestions for creating structural ties with a customer.

147. Describe the process of database marketing.

148. According to information provided in the text, give one of the three forms of estimate with respect to increasing customer share of requirements.

149. Give an illustration of how a company can use a customer database to reactivate customer purchases.

150. According to information provided in the text, what are the four main perils of CRM?