Marketing week 2 mc questions
Marketing - Week 2 MC Questions
- Which method for building experiential value is most likely to have the most variability for consumer-based service organizations such as hotels and restaurants?
- Customer Service
- Customers’ perceptions of value and satisfaction are explained by the service-quality model, which highlights gaps between __________ and __________.
- perceived value; economic value
- perceived value; price sensitivity
- customer expectations; perceived value of service
- external communications; actual delivery of service
- customer expectations; actual delivery of service
- A 2006 experiment studied how social influence affected a user’s preference for music by randomly assigning participants to one of two experimental conditions: independent, where they saw only the names of the bands and songs, and social, where they also saw how many times a particular song was downloaded by previous participants. The number of previous downloads was experimentally manipulated so that different songs were shown to be more popular in different tests. The study found that “popular” songs (as manipulated by the researchers) became even more popular, regardless of which song was artificially made popular. What element of social value was explored in this study?
- Network effects
- Social relationships
- Social capital
- Preference formation
- Increasing return to scale
- The social value of a social network such as Facebook or Twitter depends on the number of users. For many social networks, the value of the product or service increases significantly as more customers adopt it. This is referred to as _________.
- a network effect
- social relationship benefit formation
- social capital
- preference formation
- a negative externality
- Which of the following statements about economic value to the customers (EVC) is FALSE?
- EVC is the maximum price that a customer should be willing to pay for a product.
- EVC is calculated as the total life cycle cost or cost of ownership over the entire life of a product.
- A firm generally charges less than EVC in order to provide some incentive to the customer to switch.
- When comparing two products, it is important to compare them on the same time frame.
- Any two customers will derive the same EVC for the same product.
- In blind taste tests, consumers may be unable to distinguish among bottled spring waters (e.g., Poland, Deer Park, and Nestlé), yet they may have very strong preferences for a specific type of spring water. Assuming little to no difference in actual taste, bottle size, or price, preferences are most likely a function of _______.
- customer service
- customer management
- Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer B is more expensive, with a $1,500 purchase price. Printer B increases productivity by $100, and reduces the maintenance and operations costs by half. The expected lifetime value is one year. What is the economic value to the customer (EVC) of Printer B?
- After researching several brands, Ashok decided that refrigerators at a similar price point offered the same basic functions. During a recent visit to a store, Ashok bought a Whirlpool refrigerator simply because he thought the look (style and color) was more visually appealing than the other models. Based on the information in this scenario, which of the following statements is most likely TRUE?
- Ashok purchased a Whirlpool based on its economic value compared to the competitors.
- Ashok purchased a Whirlpool because it offered superior functional value.
- Ashok purchased a Whirlpool based on experiential value created through its design.
- Ashok should not have made a purchase without more research.
- Ashok should have delayed his purchase until he identified a product with superior total customer value.
- A coffeemaker manufacturing company is planning a new coffeemaker that features 12 cup sizes, five brew strengths, three auto-timer settings, an espresso option, and a latte option. Concept testing suggests that the number of functions that the coffeemaker can perform is causing many customers to complain about the usability of the product. It is likely that the complaints are a result of _______.
- the functional value
- the function-benefit ratio
- feature fatigue
- experiential value
- capability capacity
- Which of the following statements about the service-profit chain is FALSE?
- The basic tenet is that employee satisfaction is a necessary condition for delivering superior customer service.
- The service-profit chain links employee satisfaction to customer satisfaction, customer loyalty, and customer profitability.
- Employee satisfaction results from high-quality support services and policies that enable employees to deliver value to the customer.
- To improve customer service and experience, organizations should consider attending to the needs of their front-line employees instead of their product offering or how they manage customers.
- All of these statements are TRUE. – XXX
- Which of the following is NOT a limitation of the multi-attribute model?
- The model is compensatory; that is, a high rating on an attribute can compensate for a low rating on another attribute.
- The model does not account for the relative importance of attributes from the customer’s perspective.
- Consumers implicitly make trade-offs between a product’s attributes, but they often find it difficult to articulate them in the form of a multi-attribute matrix.
- The model may not account for the difference between features and benefits.
- Focusing on the trade-off between features may create a “features war” among competitive products.
- The functional value of a product to a customer is BEST understood by understanding the product’s
- -- XXX
- emotional value.
- economic value to the customer (EVC).
- minimum thresholds.
- Anika plans to purchase a Janome embroidery machine. The retail price for the Janome 12 model is $10,000 plus $500 for lifetime maintenance and $1,500 per year (for five years) in operating expenses. The Janome 15 model retails for $12,000 and has the same lifetime maintenance fee. However, the Janome 15 model increases productivity by $500 annually and reduces operating expenses by $500 per year for five years. Assuming a five-year horizon, what is the economic savings (customer inducement) for purchasing the Janome 15 model?
- Procter & Gamble’s “Thank You, Mom” advertising campaign featured mothers of Olympic athletes who were participating in the London 2012 Summer Olympics. The campaign highlighted mothers’ commitment to encourage and support their children in pursuit of their athletic achievements. This is an example of what aspect of experiential value?
- Customer experience
- Customer service
- Emotional benefits
The cost of owning a product, including the initial purchase price of the product and its setup cost, operational cost, maintenance cost, and disposal cost over its entire useful life, is known as:
A) life cycle cost.
B) total cost of ownership.
C) functional value to the customer.
a) A only
b) B only
c) C only
d) A and B
e) A, B, and C
Assume that a customer is comparing the total cost of ownership of two cars for a five-year period. The purchase price for Car A is $25,000, with an estimated annual maintenance cost of $2,000 per year. The purchase price for Car B is $28,000, with an estimated annual maintenance cost of $1,000 per year. Both cars have the same gas mileage and have a similar resale value. The dealer’s cost of Car A is $20,000; the dealer’s cost of Car B is $24,000. What is the difference in the total cost of ownership to the customer?
The process by which a firm understands the needs of its customers through market research is described as ________; by contrast, the process by which a firm creates its own products based on its own vision of the future is described as ________.
a) market-driving; market-driven
b) value-driven; value-driving
c) market-driven; market-driving
d) feature-driven; benefit-derived
e) customer-driven; market-driven
A brand manager has recently conducted a customer survey to measure the importance of select attributes of a product, as well as the ratings of the company’s offering and of its competitors on those attributes. Results indicate that the company’s offering is not the preferred choice. Generally, which of the following is NOT a possible course of action for improving preference for the company’s product?
a) Change customers’ minds about the importance of one or more attribute
b) Change customers’ perceptions about its competitors’ performance on one or more attribute
c) Change customers’ perceptions about the product on one or more attribute
d) All of these are possible courses of action.
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