Exam 5: Creating Customer Value,satisfaction,and Loyalty

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty.

A ________ is a person,household,or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting,selling,and servicing that customer.

The value proposition is stated in the price of a product and readily recognized by the average consumer.

Susan Lee's company advertises widely.Ms.Lee uses business reply cards attached to her company's magazine ads to build her company's database.In which of the following ways would Ms.Lee most likely use the database?

Explain permission marketing.

Unprofitable customers who defect to a competitor should be encouraged to do so.

The aim of customer relationship management is to keep the costs of meeting and tracking consumers as low as possible.

Which of the following is true for activity-based costing (ABC)?

Uncle Jim's is a brand of ready-to-eat snacks that is widely distributed in supermarkets and stores across the country.The marketing team has recently suggested that the company adopt database marketing so that it can better target its customers.Should Uncle Jim's create a database? Give reasons for your answer.

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.

In which of the following cases is building a database worthwhile for the company?

Sara is the marketing manager of a small HR consultancy firm.She is in the process of implementing the use of a database to assist her company in its marketing efforts.List five ways in which she might be able to use the database for marketing efforts.

Which of the following is true for customer-perceived value?

The management of Keiko has learned that the company risks losing a long-time customer,LZT,to a competitor.How can Keiko make it more difficult for LZT to switch to another customer?

Explain total customer satisfaction.

Which of the following is an example of focusing disproportionate effort on high-profit customers?

Companies provide rewards to customers who buy often and in substantial amounts.These reward schemes are referred to as ________.

LifeTime Insurance screens its customers and tries to get unprofitable customers to buy services from competitors.This is an example of ________.

Total customer cost consists of only the non-monetary costs in evaluating,obtaining,using,and disposing of the given market offering.

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.