Exam 5: Creating Long-Term Loyalty Relationships

Uncle Jim's is a brand of ready-to-eat snacks that is widely distributed in supermarkets and stores across the country. Should Uncle Jim's opt for one-to-one marketing? Give reasons for your answer.

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?

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

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________.

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

Unprofitable customers who defect to a competitor should be encouraged to do so.

Which of the following is true for customer satisfaction?

In the modern customer-oriented organizational chart, which of the following is considered to be at the top of the organizational pyramid?

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

Identify ways in which companies facing customer complaints can recover customer goodwill.

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

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

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

Sara is the marketing manager of a small HR consultancy firm. She is in the process of building a database to assist her company in its marketing efforts. Give five problems that can make the database less effective.

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering.

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.

The value delivery system includes all the experiences the customer will have on the way to obtaining and using the offering.

Which of the following is an example of enhancing the growth potential of each customer through cross-selling?

The 80-20 rule reflects the idea that ________.

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