Customer Value & Marketing Metrics Quiz

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Questions and Answers

What represents the economic value of a customer to the firm?

  • Customer Loyalty
  • Customer Satisfaction
  • Customer Retention
  • Customer Value (correct)

Which term describes the difference between what a consumer paid and their maximum willingness to pay?

  • Consumer Surplus (correct)
  • Market Value
  • Profit Margin
  • Consumer Value

What does Earned Media refer to?

  • Paid promotional content
  • User-generated content through ads
  • Free publicity from neutral media (correct)
  • Coverage by paid influencers

How is Gross Margin Ratio calculated?

<p>Gross Margin compared to COGS (D)</p> Signup and view all the answers

What does Break-even Volume in Monetary Sales indicate?

<p>Sales needed to cover fixed costs (B)</p> Signup and view all the answers

Which of the following is a method of adjusting prices based on demand?

<p>Dynamic Pricing (D)</p> Signup and view all the answers

What is the formula for calculating Gross Margin Ratio on Selling Price?

<p>(P[selling] - COGS) / P[selling] (B)</p> Signup and view all the answers

What is defined as the information the firm seeks to improve marketing decision-making?

<p>Research Problem (C)</p> Signup and view all the answers

Flashcards

Customer Value

The economic value of a customer to the firm. This measures how much a customer is worth to the business over their lifetime, considering their purchases, loyalty, and other factors.

Consumer Surplus

The difference between the price a consumer paid for a product and the highest price they were willing to pay. It's the extra value a consumer gets because they paid less than they were prepared to.

Earned Media

Coverage in neutral media outlets who find your product or story interesting and relevant to their audience. It's exposure you get without directly paying for it.

Framing

The context in which consumer decisions are made. It includes factors like social influence, personal values, and the environment.

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Gross Margin Ratio

The proportion that compares the gross margin to the cost of goods sold (COGS). Gross margin is the difference between revenue and COGS.

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Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows over a period of time. It's used to evaluate investments and make decisions.

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Gross Margin Ratio per Unit

The price at which a firm sells a product to the next level in the distribution chain, like a retailer.

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Break-Even Volume in Monetary Sales

The monetary value of sales the firm must make to cover all fixed costs. It's the point where the company starts making a profit.

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Study Notes

Customer Value & Related Concepts

  • Customer Value: The economic value a customer brings to a firm.

  • Consumer Surplus: The difference between the price a consumer pays and the highest price they'd be willing to pay.

  • Earned Media: Media coverage generated by neutral sources interested in a product or story.

  • Framing: The context within which consumer decisions are made.

Marketing Metrics & Problems

  • Gross Margin Ratio per Unit: The difference between the selling price to the next distributor and the cost of goods sold (COGS) calculated per unit.

  • Gross Margin Ratio: A proportion that compares the gross margin to the cost of goods sold.

  • Marketing Problem: A decision, action, or issue a firm faces related to marketing strategy or the marketing mix.

  • Net Present Value (NPV): The difference between the present value of cash inflows and outflows over a period.

  • Price: How firms generate revenue, create cash flow, and make a profit.

  • Research Problem: Information a firm needs to make better marketing strategy decisions.

Market Share and Volume

  • Share in Monetary Value (MS[monetary]): The firm's sales value compared to the total market value.

  • Share in Units (MS[units]): The firm's unit sales compared to the total market units sold.

  • Unearned Media: Media coverage a firm pays for.

  • Unearned UGC: Paid endorsements/mentions from influencers or websites.

  • User-Generated Content (UGC): Content created by unpaid users.

  • Yield Management: Quickly adjusting prices based on predicted or current demand.

  • Break-even Volume in Monetary Sales (BEV[monetary sales]): The sales value needed to cover fixed costs.

  • Break-even Volume in Units (BEV[units]): The number of units needed to cover fixed costs.

  • Break-Even Volume in Market Share (BEV[market share]): The additional market share needed to break even.

  • S[units]: Quantity sold, expressed in units.

  • S[monetary]: Total sales revenue.

  • GM[cost]: Gross Margin ratio calculated using COGS.

  • GM[selling price]: Gross Margin ratio, based on the selling price.

  • BEV[units]: Calculation of break-even volume in units, using fixed costs and net profit margin per unit.

  • BEV[monetary sales]: Calculating break-even volume, in monetary sales, using the break-even volume in units and the selling price

  • BEV[unit market share]: break even volume expressed in market share, ( in units)

  • BEV[monetary market share]: break even volume expressed in market share (in monetary terms)

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