Exam 5: Creating Customer Value, satisfaction, and Loyalty

Today,companies are increasingly concerned about customer defection.There are three main steps a company can take to reduce the defection rate.Characterize those three steps.

It always costs less to serve loyal customers than to attract new ones.

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

One key to customer retention is customer satisfaction.

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels.This is an example of ________.

A profitable customer 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 the customer.

The final step of customer value analysis is to ________.

According to GE's former chairman,John F.Welch Jr. ,"________ is our best assurance of customer allegiance,our strongest defense against foreign competition,and the only path to sustained growth and earnings."

The opening vignette on Ritz-Carlton shows that successful marketers are the ones that fully ________.

Differentiate between performance quality and conformance quality.Give an example of two products that have different performance quality but are of equal conformance quality.

Identify three ways companies with customer complaints can recover customer goodwill.

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering.

A _____________ is simply a set of names,addresses,and telephone numbers.

Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete.

Typically,________ gains the most benefit from introducing a frequency program.

Which of the following is considered to be one of the four problems that can deter a firm from using CRM (customer relationship marketing)?

Whether the buyer is satisfied after purchase depends on the offer's performance in relation to the ________.

The process of building,maintaining,and using customer databases and other databases for the purpose of contacting,transacting,and building customer relationships is called ________.

Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

The skillful use of database marketing and ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.