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Market Based Managment Quiz

Autor:   •  March 4, 2012  •  Exam  •  1,192 Words (5 Pages)  •  2,057 Views

Page 1 of 5

2 out of 2 points

Estimate the net present value of the customer cash flow with an 80% customer retention rate and a 10% discount rate if the initial cost to acquire this customer is $50, and the business receives $30 in revenues in the first year, $40 in the second, $45 in the third, $50 in the fourth, $55 in the fifth, and $0 in the sixth.

Answer

Selected Answer:

$112

Correct Answer:

$112

• Question 2

2 out of 2 points

What three components combine to form the customer loyalty index (CLI)?

Answer

Selected Answer:

customer satisfaction, customer retention and customer recommendation

Correct Answer:

customer satisfaction, customer retention and customer recommendation

• Question 3

2 out of 2 points

Time Works, Inc. incurs $400 in variable costs and $60 in marketing expenses for each $800 in sales revenue generated by a retained customer. If there are 150,000retained customers, what is Time Works, Inc.'s net marketing contribution from these customers?

Answer

Selected Answer:

$51,000,000

Correct Answer:

$51,000,000

• Question 4

2 out of 2 points

New customers _____.

Answer

Selected Answer:

are usually less profitable than retained customers

Correct Answer:

are usually less profitable than retained customers

• Question 5

2 out of 2 points

The strength of a manager's customer focus is correlated to their level of ____.

Answer

Selected

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