Exam 7: Building Customer Relationships

According to the text, the relationships between businesses and their customers have the ability to evolve. In the first step of this evolution process, customers are identified as:

_____ arise(s) when the customer is required to pay a penalty to switch providers.

A company that uses a four-tier scheme to segment is customers by profitability:

A primary goal of firms at the friendship stage of the relationship is:

The development of strong customer relationships is strongly influenced by:

Relationship marketing essentially represents a paradigm shift within marketing-away from an acquisitions/transaction focus toward a retention/relationship focus.

Sondra has been having her haircut by Logan, a hairstylist at Dazzles, for five years. She has continued to use the same hairstylist even though the price of a haircut at Dazzles is $10 higher than at competing hair salons. Logan does an excellent job cutting her hair and staying up to date on the latest hairstyles and hair care products. Sondra realizes _____ benefits from her relationship with Logan.

The key to success in the _____ stage of the customer relationship is the firm's ability to organize and use information about individual customers more effectively than its competitors.

Mass _____ entails designing products and services to fit each customer's individual needs.

The term customer intimacy is most closely related to the establishment of _____ bonds.

The primary goal of businesses that are in the first stage of their relationship with a customer is to:

What are the three types of benefits customers enjoy through relationship marketing?

Every Thursday afternoon for almost thirty years, Margaret and Lillie have gotten a manicure at the same location. The manicure salon has changed ownership three times and has had two different names during that same period, but Margaret and Lillie still find it a convenient place to meet and share news about friends and relatives. Margaret's and Lillie's relationship with the manicure salon exemplifies how a service provider uses _____ to support its customer retention strategy.

The four-tiered system for measuring customer profitability uses usage segmentation.

Salespeople for college texts call on college instructors to sell them on using a particular text for their classes. Improvements in efficiency have led some publishers to stop making sales calls altogether on smaller colleges. It is a much better use of the sales force's time to call on schools with large classes and big adoption rates. From the customer's point of view, this application of the profitability tier:

How would a day care center operator benefit from the implementation of relationship marketing with the parents of three preschool children?

Level 1 retention strategies are very useful in creating a long-term competitive advantage.

What are three types of customer relationships may not be beneficial to the firm?

Mass customization means allows service providers to provide customers with customized products at the standardized, mass-produced price.

Members of Sam Goody's Replay Frequent Buyer Program receive a $15 gift certificate for every $150 in purchases made at Sam Goody, as well as a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. Sam Goody's Replay Frequent Buyer Program uses _____ to implement its retention strategy.