IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1181:

  The drivers of customer equity are value equity, brand equity, and relationship equity. The sub driver most closely related to brand equity is

  A. Quality.

  B. Price.

  C. Customer awareness.

  D. Loyalty programs.

  Correct Answer: C

  Brand equity is a subjective evaluation. Sub drivers are the customer's awareness of 1 and attitude toward, the brand and the customer's belief about brand ethics. Brand equity is most significant when the product is not differentiated but has emotional appeal.

• Question 1182:

  The firm should emphasize customer retention

  A. By creating low switching costs.

  B. By maximizing customer churn.

  C. Although new customers are less costly than old customers.

  D. Because the customer base is an intangible asset.

  Correct Answer: D

  Firm should seek to minimize customer churn (customer loss) because customer retention through customer satisfaction is a key to profitability'. The firm should emphasize customer retention because the customer base is an important intangible asset. The firm benefits from customer retention because it is far less costly than customer attraction. Indeed, increasing the retention rate increases profits exponentially. Moreover, the longer the 1customer relationship, the more profitable it is.

• Question 1183:

  Customer relationship management is best defined as

  A. Coordination with members of the firm's supply chain.

  B. Attracting and sati sing customers.

  C. Market sensing.

  D. Maximizing customer loyalty by managing customer "touch points."

  Correct Answer: D

  Philip Kilter (Marketing Management) defines customer relationship management as "the process of managing detailed information about individual customers and carefully managing all the customer `touch points' with the aim of maximizing customer loyalty." Its purpose is to create optimal customer equity. Thus, the process involves more than merely attracting customers (through media advertising, direct mail, etc.) and satisl\ting them (something competitors also may do).

• Question 1184:

  In Michael F. Porter's model of the value creation chain1 the primary activities include

  A. Logistics, operations, marketing and sales, and service.

  B. Procurement, infrastructure, operations, and service.

  C. Procurement, infrastructure, operations, and technology development.

  D. Procurement, infrastructure, human resources, and technology development.

  Correct Answer: A

  The model consists of primary and supporting activities. The primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. Inbound logistics activities involve the firms' capture of materials to be processed. Operations activities are conversion processes. Outbound logistics activities include shipment of products. Marketing and sales activities are the promotion and sale of final products. Service activities provide customer service. The four support activities are infrastructure (e.g., administration, finance, and planning), procurement, human resources, and technology development.

• Question 1185:

  Customer satisfaction is related to the degree of customer loyally. High customer loyally

  A. Requires a high degree of satisfaction of other stakeholders.

  B. Results when quality, service, and price increase.

  C. Depends on the effectiveness of the firm's core business processes.

  D. Is directly proportional to customer expectations.

  Correct Answer: C

  High customer loyally is an emotional as well as rational bond that develops when a firm provides high customer value. To obtain such loyally, the firm needs to develop a value proposition that has superior competitiveness in the target market segment. Crucially, it must be supported by an effective value delivery system, the accumulation of all the experiences the customer has with the offering. Thus, brand value must be supported by core business processes that actually deliver the promised customer value.

• Question 1186:

  Customer lifetime value for a particular customer is the

  A. Net present value of the cash flows related to a particular customer.

  B. Sum of the customer's purchases from the firm.

  C. Undiscounted amount of the net cash flows related to a particular customer.

  D. Customer equity.

  Correct Answer: A

  A firm should estimate customer lifetime value, the net present value of the cash flows (purchases -- costs of acquiring, selling to, and serving the customer) related to a particular customer. This amount indicates whether a given investment in a customer is justified.

• Question 1187:

  A marketer states a value proposition to

  A. Create customer needs.

  B. Influence customer wants.

  C. Make the offering tangible.

  D. Define customer value and customer cost.

  Correct Answer: B

• Question 1188:

  In marketing research, basic decisions about whether to gather information from surveys or from observing customers' behaviors are part of which stage of the research process?

  A. Defining the problem and research objectives.

  B. Developing the research plan.

  C. Collecting the information.

  D. Analing the information.

  Correct Answer: B

  The six phases of marketing research are define the task, develop a research plan, collect data, anal we the data, report the relevant findings, and make a decision. Deciding on the appropriate tools for data gathering is part of developing the research plan.

• Question 1189:

  Members of a firm's sales force should

  A. Be a prima source of intelligence regarding the marketing environment.

  B. Not be expected to gather information regarding developments in the marketplace because their close contact with customers impairs their objectively.

  C. Be used as a source of intelligence regarding the market environment only if no other source is available.

  D. Be trained to communicate marketing intelligence to the firm's intermediaries.

  Correct Answer: A

  Philip Kilter (Marketing Management) defines marketing intelligence system as "a set of procedures and sources used by managers to obtain everyday information about developments in the marketing environment." The members of the firm's sales force should be a primary source of intelligence because of their close contact with customers. Sales agents should be trained to gather relevant information and communicate into appropriate people in the firm.

• Question 1190:

  Which marketing research instrument is based on follow-up questioning?

  A. Articulate interviewing.

  B. Customer prototyping.

  C. Closed-end questions.

  D. Laddering.

  Correct Answer: D

  Laddering entails posing an initial question to a subject and then a series of follow-up questions to determine the individual's ultimate motivation. Its a common psychological research instrument.