Exam 5: Creating Long-Term Loyalty Relationships

Customer relationship management enables companies to provide excellent real-time customer service through the effective use of ________.

Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?

________ marketing is the practice of sending messages only when consumers express a willingness to become more involved with the brand.

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

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________ system.

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections.

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

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives.

Give an example of how a hotel can generate customer loyalty at a "customer touch point."

Rade and Talion are competitors in the business of manufacturing wristwatches. While Rade promises to deliver design and quality to its customers, Talion promises to deliver durability and cost effectiveness. When both these companies deliver their respective promised qualities, they are delivering ________.

What technique is used for customer profitability analysis?

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

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

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.

Bicycle store 2Wheels notices that it has a high proportion of low-profit customers, but doesn't want to terminate the customer relationship. What can 2Wheels do to make these customers more profitable?

Which of the following was NOT part of the British Airways "Know Me" program?

All companies should practice one-to-one marketing.

A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by successful companies to improve the value of their customer base.

Of customers who register a complaint, ________.

Conformance quality and performance quality are identical in the marketing sense.