mkt 3340: customer relationship
management midterm exam
Assume that Kroger (a grocery store) is attempting to increase its average retention rate
from 75% to 80%. By how many months would this increase the expected customer
lifetime? - Answers -12
Which of the following is NOT a key action that can help organizations retain
customers? - Answers -Increase the customer churn rate.
H. J. Heinz Company has estimated that average customer lifetime values (CLVs) are
equally attractive for customers in two of its broad business-to-business segments:
restaurants and hospitals. Heinz believes that its restaurant customers are generally
loyal to Heinz brands, while hospitals often purchase competing brands such as Hunts
(ConAgra Foods). From the perspective of customer development, which of the
following is an important piece of information missing from the estimates of customer
lifetime value? - Answers -share of wallet
Juan and Javier are two of the most effective salespeople at XYZ Corporation in terms
of average revenue per customer. Juan tends to increase revenue per customer
through upselling, while Javier is more likely to increase revenue per customer through
cross selling. Although both approaches are effective with existing customers, cross
selling is more likely than upselling to: - Answers -improve customer retention rate
True or false: The goal of customer management is to grow the business profitability by
acquiring, retaining, and developing the right customers. - Answers -true
True or false: Acquiring customers who do not appear attractive based on customer
lifetime value (CLV) calculations should always be avoided. - Answers -false
True or false: A whale curve is a graphical representation of company profits displayed
by plotting cumulative profits against the cumulative percentage of customers. -
Answers -true
True or false: For noncontractual buying situations, it is difficult for companies to
determine retention rates because they may not know if the customer has defected or if
the customer has simply not made a purchase during the time period. - Answers -true
True or false: Because customers are the primary source of profit for a company,
customer lifetime value (CLV) is a good proxy for company value. - Answers -false
management midterm exam
Assume that Kroger (a grocery store) is attempting to increase its average retention rate
from 75% to 80%. By how many months would this increase the expected customer
lifetime? - Answers -12
Which of the following is NOT a key action that can help organizations retain
customers? - Answers -Increase the customer churn rate.
H. J. Heinz Company has estimated that average customer lifetime values (CLVs) are
equally attractive for customers in two of its broad business-to-business segments:
restaurants and hospitals. Heinz believes that its restaurant customers are generally
loyal to Heinz brands, while hospitals often purchase competing brands such as Hunts
(ConAgra Foods). From the perspective of customer development, which of the
following is an important piece of information missing from the estimates of customer
lifetime value? - Answers -share of wallet
Juan and Javier are two of the most effective salespeople at XYZ Corporation in terms
of average revenue per customer. Juan tends to increase revenue per customer
through upselling, while Javier is more likely to increase revenue per customer through
cross selling. Although both approaches are effective with existing customers, cross
selling is more likely than upselling to: - Answers -improve customer retention rate
True or false: The goal of customer management is to grow the business profitability by
acquiring, retaining, and developing the right customers. - Answers -true
True or false: Acquiring customers who do not appear attractive based on customer
lifetime value (CLV) calculations should always be avoided. - Answers -false
True or false: A whale curve is a graphical representation of company profits displayed
by plotting cumulative profits against the cumulative percentage of customers. -
Answers -true
True or false: For noncontractual buying situations, it is difficult for companies to
determine retention rates because they may not know if the customer has defected or if
the customer has simply not made a purchase during the time period. - Answers -true
True or false: Because customers are the primary source of profit for a company,
customer lifetime value (CLV) is a good proxy for company value. - Answers -false
