Exam 5: Creating Customer Value, Satisfaction, and Loyalty

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.

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

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

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

Which of the following is the best method of recovering customer goodwill?

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

Explain customer-perceived value.

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

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

A customer ________ is any occasion on which a customer encounters the brand and product-from actual experience to personal or mass communications to casual observation.

Compare and contrast the typical traditional organization chart for an organization against the modern customer-oriented organization chart.

Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

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

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

Through ________, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data.

Bicycle store 2Wheels wants to maximize sales from each customer. The marketing team suggests that 2Wheels uses cross-selling techniques. How can the company implement this technique?

It's often easier to re-attract ex-customers than to find new ones because the company knows their names and histories.

Which of the following is true for customer satisfaction?

Econ Minimart wants to learn the strengths and weaknesses in customer service at all the Econ Minimart stores. Which of the following methods can it use for this?

Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing instead of interruption marketing. How can this benefit the company?