Question

Marketing at Pepe’s Pizzeria focuses on the development, growth, and maintenance of cost-effective, high-value relationships with each of its customers. This type of marketing is known as _____.

a. direct marketing b. relationship marketing c. transaction-based marketing d. value-based marketing

The relationship between Pepe’s Pizzeria and its customers functions at which level of the relationship marketing continuum?

a. Fourth Level b. Third Level c. Second Level d. First Level

Pepe’s Pizzeria indulges in social interaction and interactive marketing with its customers on Twitter and Facebook. Thus, Pepe’s Pizzeria builds buyer–seller relationships through _____.

a. grassroots marketing b. database marketing c. frequency marketing d. interactive television

If Pepe’s Pizzeria built its brand equity by letting satisfied customers get the word out about its pizzas to other consumers, the type of marketing initiative used is known as _____.

a. affinity marketing b. ambush marketing c. viral marketing d. direct marketing

How can Pepe’s Pizzeria determine the costs it incurs to serve each customer and thus develop ways to increase its profitability?

a. By calculating the customer churn b. Through the payback method c. Through tracking rebates, coupons, and credit card purchases d. By calculating the lifetime value of its customers

Answer 1

1) Solution: relationship marketing

Explanation: The relationship marketing refers to the growth, development, and maintenance of high-value and cost-effective relationships with individual buyers, suppliers, and other partners over time

2) Solution: second

Explanation: At second level the relationship of the marketing continuum there are interactions between Pepe’s Pizzeria and its customer’s functions

3) Solution: grassroots marketing

Explanation: The grassroots marketing through social media such as facebook and twitter is most efficient.

4) Solution: Viral marketing

Explanation: Viral marketing refers to marketing concepts that spread information about a service or product from person to person by sharing via the internet or email; or word of mouth.

5) Solution: By calculating the lifetime value of its customers

Explanation: Lifetime value of a company helps to determine the cost of customer acquisition because it tells the value of a customer to an entity over the period of time