Exam 5: Creating Customer Value,satisfaction,and Loyalty

Shoe retail chain Berry's has noticed an increase in complaints about customer service at its stores and is beginning to lose customers to competitors.The company needs to identify the problems and rectify them.Give two methods Berry's can use to discover the problem.

________ can track customer satisfaction directly,measure repurchase intention and also gauge a consumer's willingness to recommend the company and brand to others.

Loyal customers are the best ambassadors for a brand.

The modern customer-oriented organization chart places top management at the top of the pyramid.

Customer churn is how rapidly a store can move customers through its checkout facility or process.

A company should try to retain the customer only as long as the cost to discourage defection is lower than the lost profit.

Which of the following is true for the modern company organization chart?

CJ's is a clothes retailer that grew from a single store into a chain over a few years.The key service characteristic during CJ's early years was a personalized customer relationship,and the company continues to collect information about its customers and maintain a database.Recently,however,CJ's has been losing customers to competitors as the expansion has made it difficult to personalize services.How can CJ's use its customer database to reactivate customer purchases?

A profitable customer ________.

When two brands of the same basic product deliver their respective promised quality,they are delivering ________.

A seller who is at a disadvantage has two alternatives: decrease total customer benefit or increase total customer cost.

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This helps the banks to ________.

Customer profitability analysis is best conducted with the tools of an accounting technique called activity-based costing.

The bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the given market offering is called the ________.

Customer satisfaction is the only way by which a firm can increase its profitability.

A customer database is simply a listing of a customer's name,address,and phone number for credit reference.

Rachel and John are on vacation in Hawaii.When they arrived at the hotel,they were offered chilled juice.Their check-in formalities were handled by the staff.When they entered their room,they saw that chocolates had been placed on the pillows and a flower arrangement on the table.The hotel's actions are an example of ________.

Profit rate tends to decrease over the life of the retained customer due to increased purchases,referrals,price premiums,and increased operating costs to service.

________ is based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns.

Frequency programs are designed to reward customers who buy frequently and in substantial amounts.