What is the value of calculating a customers lifetime value


Question 1: Why is it important to understand the differences between consumer markets and business markets?

Because business markets are only concerned with the price of their business purchases

Because you will likely have a career selling to other businesses

Because business marketing principles are significantly different than consumer marketing principles

Because more money is spent on B2B markets than B2C markets and most career opportunities are B2B

Question 2: In B2B marketing, the more complex the item being sold, the _________.

more people are involved in the RFP process.

more the price of the item is important.

longer it takes for the sale to be made.

less time it takes to make a purchase decision

Question 3: The promotion mix tool that is most often used in B2B marketing is ____________.

public relations.

sales promotion.

professional selling.

advertising.

Question 4: The type of demand that springs from a source other than the primary buyer of a product is called __________.

fluctuating demand.

primary demand.

derived demand.

joint demand.

Question 5: What type of B2B buyer is the biggest purchaser of goods in the world?

institutions

resellers

producers

government

Question 6: In addition to the professional buyers in a buying center at a company, who else might be involved in the purchase decision for a business product or service?

consumers, deciders, and influencers

users, consumers and human resources

users, influencers, gatekeepers

accounting, finance and users

Question 7: Which of the following statements about B2B market segmentation is MOST true?

B2B markets share many of the same segmentation bases with B2C markets.

Selling to other businesses is fraught with unethical practices since most purchases require some kind of bribery.

B2B markets don't need to be segmented because they are only interested in lowest price for the best quality in all purchases.

B2B markets are irrational in their purchasing decisions.

Question 8: For complex B2B purchases, at which stage of the decision-making process are potential vendors asked to complete a request for proposal?

proposal evaluation

Search for potential suppliers

Need recognition

Invitation to submit bids

Question 9: A marketing information system is ___________.

Question 9 options:

a process of systematizing primary market research.

a way to manage the vast amount of information to turn it into useful information for decision making.

software designed to accumulate industry data.

the data a company gathers on consumers to track their behaviors.

Question 10: What element of a marketing information system is designed to pull and make sense of internally generated information?

data mining

analytics software

intranet

marketing intelligence

Question 11: Which of the following are good sources of information on competitors?

Infiltrating the competitor with one of your own employees wearing a hidden microphone

Scanning newspapers, trade magazines, economic data

Reverse engineer competitor products

Asking friends who use a competitive product to check out competitors' websites

Question 12: When should a company use primary market research?

Just before a product or service offering is launched

When deciding on which target markets to pursue with a new offering

When the research will answer questions not available in existing data and the benefits of having those answers outweighs the cost of the research

At the beginning of the new product development process

Question 13: What is the most common measure of financial performance to judge the effectiveness of marketing activities?

break-even analysis

balance sheet

return on investement or return on marketing investment

profit and loss statement

Question 14: What is the value of calculating a customer's lifetime value?

Because customers with a high lifetime value can influence other customers to purchase the product.

Because low lifetime value customers can be dropped

Because the company can plan on reaching more customers with similar characteristics

Because the higher the customer lifetime value is the more the company should focus on meeting their needs

Question 15: What is the advantage of using dashboards to measure the performance of marketing activities?

Dashboards allow managers to see performance data in real time and quickly make changes, if needed, to improve the performance.

Dashboards merge financial metrics with performance metrics.

Dashboards make decisions about modifications needed to marketing activities

Dashboards relieve managers of the responsibility of monitoring data.

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Marketing Management: What is the value of calculating a customers lifetime value
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