ESB Domain 2 Quiz

What is a value proposition?

• A statement that explains to customers why they should do business with a company

• A statement that explains the estimated value of a company

• A statement that explains the estimated value of a product or service

• A statement that explains to investors why these should do business with a company

A company's______may play a role in pricing.

Which two choices are considered secondary data?

• company newsletter

• statistical data

• focus group

• internet articiles

_________marketing is accomplished by companies using specific technical elements to ensure that search engine crawlers easily find and index the content, placing their article in the top search results.

A sandwich shop wants to send out a coupon to people and plans to utilize the United States Postal Service age and income demographics to determine who will receive a coupon. Which marketing method is the sandwich shop using?

• Newspaper Marketing

• Internet Marketing

• Television Marketing

• Mail Marketing

Which two aspects of a company's customers could a high customer acquisition cost (CAC) indicate?

• The marketing is ineffective

• The demographic has shifted

• The marketing is effective

• The customers are unreliable in terms of purchases

What formula is used to determine a company's customer acquisition cost (CAC)?

• Marketing expenses + Sales expenses + the number of new customers for the period

• Marketing expenses - Sales expenses / the number of new customers for the period

• Marketing expenses + Sales expenses / the number of new customers for the period

• Marketing expenses - Sales expenses X the number of new customers for the period

Barry owns a small business. He spent $15,000 on marketing expenses and $5,000 in sales costs last year. He obtained 1,000 new customers. What is his customer acquisition cost (CAC)?

• $10

• $8

• $20

• $12

What formula is used to determine a company's customer retention rate?

• (the number of new customers during the period + the number of customers at the end of that period) / the number of customers at the start of the period X 100

• (the number of new customers during the period - the number of customers at the end of that period) X the number of customers at the start of the period X 100

• (the number of new customers during the period - the number of customers at the end of that period) / the number of customers at the start of the period X 100

• (the number of customers at the end of the period - the number of new customers acquired during the period) / the number of customers at the start of the period X 100

Jean owns a printing company. She had 100 customers at the end of the 3rd quarter, 101 customers at the beginning of the 3rd quarter, and five new customers in the 3rd quarter. What is her customer retention rate for the 3rd quarter?

• 91%

• 96%

• 90%

• 94%