A) true friend
B) butterfly
C) stranger
D) barnacle
E) market maven
Answer: B
AACSB: Application of knowledge
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Easy
107) Customers can be classified into four relationship groups based on their profitability and projected loyalty. Which customer type is associated with high profitability and long-term loyalty?
A) barnacles
B) strangers
C) butterflies
D) true friends
E) cash cows
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Easy
108) A company should not always target all possible customers. Which kind of customer is not the most valuable to a company, but, can over time, contribute to the firm's success?
A) butterflies
B) shooting stars
C) barnacles
D) true friends
E) strangers
Answer: A
AACSB: Application of knowledge
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Moderate
109) A financial services firm has several loyal customers who conduct business with them exclusively. However, the company has noticed that this customer group is the least profitable for the company, and in some cases, it increases their losses when engaging in business with this group. Which of the following customer groups is being referred to in this scenario?
A) butterflies
B) true friends
C) strangers
D) barnacles
E) cash cows
Answer: D
AACSB: Application of knowledge
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Moderate
110) Digital technology allows companies to reach out to customers in numerous ways. Which of the following is NOT the purpose of a company reaching out using digital and social media?
A) solving consumer problems
B) building customer relationships
C) helping customers shop
D) providing product information
E) working with suppliers
Answer: E
AACSB: Information technology
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Moderate
111) A seller pursues a basic relationship with what kind of customers?
A) many customers regardless of profitability
B) many high-margin customers
C) many low-margin customers
D) a few high-margin customers
E) a few low-margin customers
Answer: C
AACSB: Analytical thinking
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Easy
112) A seller pursues a full partnership with what kind of customers?
A) many customers regardless of profitability
B) many high-margin customers
C) many low-margin customers
D) a few high-margin customers
E) a few low-margin customers
Answer: D
AACSB: Analytical thinking
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
Difficulty: Easy
113) A marketer wants to increase its "share of customer." It can do this by offering a greater variety to customers, or by ________.
A) decreasing prices
B) increasing discounts and coupons
C) sending samples directly to customers
D) introducing customers to "brand evangelists"
E) creating programs to cross-sell and up-sell to market more products and service to existing customers
Answer: E
AACSB: Reflective thinking
Skill: Concept
Objective: LO 1.4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.