Q&A Marketing consumer behaviour
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Question 1
Which of the following business settings are examples of continuous, non-contractual customer relationships? (check all that apply) Group of answer choices
Prescription Refills
Grocery Purchasing
Credit Card Usage
Charity Fund Drives
Cable TV Subscription
Insurance Policy Renewal
Doctor’s Office/Hospital Visits
Health Club Membership
Question 2
The most difficult element of the RFM model to use in targeting customers is…
Group of answer choices
Frequency
Recency
Monetary Value
All of these are equally difficult
Question 3
In non-contractual settings… (check all that apply)Group of answer choices
The underlying process for monetary value appears to be firmly tied to recency and frequency
There is a highly nonlinear relationship between recency/frequency and future transactions
None of the answers are correct
Iso-value curves can be used to identify customers with different purchase histories but similar RLVs
All of the answers are correct
Question 4
In a non-contractual setting, “Gold” customers will tend to be… (check all that apply)
Group of answer choices
Short-profitable in lifetime or long and sparse in lifetime
None of the answers are correct
Long in lifetime, but average in spend per transaction
High recency, high frequency, and high spend
Occasional buyers but huge spenders when they buy
Question 5
In a contractual setting, which of these effects tends to have the strongest effect on retention dynamics?
Acquiring the best customers
The paradox of increasing frequency
Effective targeting strategies
The sorting effect of heterogeneity
The within-customer differences over time
Question 6
Once a customer-centric firm has segmented and profiled its customers, the next step is to…
Understand their unique needs and adjust offerings accordingly
Develop the right brand positioning message
Understand their unique needs and calculate CLV
Calculate CLV and adjust marketing spending accordingly
Calculate CLV and begin migrating customers between segments
Question 7
_________ customers have low retention rates and provide economies of scale in contractual settings, and _________ customers have a long life but less monetary value per transaction in a non-contractual setting. Group of answer choices
Iron, Iron
Platinum, Iron
Iron, Platinum
Gold, Iron
Iron, Gold
Lead, Iron
Question 8
Which of the following exemplifies smart “customer alchemy”? (check all that apply)
Group of answer choices
An airline adding a-la-carte meals for Lead customers
A wireless company offering Lead customers pre-paid plans
A rental car company offering all-inclusive packages to Iron customers
A hotel chain giving Iron customers early check-in
Question 9
Which of the following is/are true about Lead customers? (check all that apply)
Group of answer choices
In order to maximize firm value, they should be gently removed from the customer base
If they are acquired organically, there is a chance some of them may be profitable in the future
Fixed costs should be allocated to them to ensure profitability is properly measured and to avoid a “death spiral”
All of the answers are correct
They may have indirect value to the firm
None of the answers are correct
Question 10
When applying CLV, firms should remember to… (check all that apply)
Group of answer choices
Determine the “average customer” to help plan marketing activities
Embrace 1:1 marketing as the most profitable strategy
Reduce spending on branding efforts
Use well-defined customer tiers
All of the answers are correct
None of the answers are correct
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Q&A Marketing consumer behaviour
