1.Net Promoter Score (NPS) is arguably the most widely used customer metric for loyalty today. A strongly positive NPS indicates that customers are extremely satisfied and delighted---happy, if you will--- with the companys product or service and are willing to promote it to others. Company X conducted a survey in order to find out its NPS. 400 consumers answered the survey question on how likely is it that you would recommend our company to a friend or colleague. 200 consumers gave a score between 0 and 6; 100 consumers gave a score of 7 or 8; and the rest consumers gave a score of 9 or 10. Which of the following is the NPS of company X?

a. 20%b. -25%c. 25%d. -50%e. 50%

2.Barry Schwartz studied the paradox of choice and concluded that being able to choose might not always have enormous important positive effects on us. He proposed that up to a point, as the number of choices we face increases, the psychological benefits we derive start to level off. Therefore we should all be better off if our choices were severely restricted, even eliminated.

Select one:True/False

3.Comparing to other measurement such as customer retention rates and customer satisfaction, why net promoter score (NPS) is better?

a.The NPS measurement is complex and reliable.

b.The NPS measurement links to profitability, which is a good indication of customer loyalty.

c.The NPS measurement substitutes a single question for the complex black box of typical customer satisfaction survey. Companies can actually put consumer survey results to use and focus employees on the task of stimulating growth.

4.It is Emilys first visit to Montreal. She decides to go bar-hopping tonight. She is walking along Crescent street and doesnt know which bar to choose. She then realizes that choosing well is difficult and most decisions have several different dimensions. The process of her choice and decision making begins with the question: what do I want? Knowing what do I want means being able to anticipate accurately how choosing a specific bar will make Emily feel. Which of the following is right if Emily eventually makes a good choice and has a great time in the bar?

a.Emilys experienced utility being matched by prospected utility

b.Emilys experienced utility being matched by remembered utility

c.Emilys remembered utility being matched by prospected utility

d.Emilys expected utility being matched by remembered utility

e.Emilys expected utility being matched by experienced utility

5.System 1 processing, popularized by Daniel Kahneman is really about whats happening automatically, in your mind, without your conscious control. System 1 is fast and is often emotional in nature.

Select one:

True

False