Exam 5: Creating Long-Term Loyalty Relationships

To increase customer loyalty, 2Wheels wants to start a club for its dedicated customers, but wants to make sure that only members who are ready to participate in activities join the club. What can it do to ensure this?

Which of the following is a policy a store can adopt to make low-profit customers more profitable?

Which of the following gains the most benefit from introducing a frequency program?

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

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

A ________ is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.

CJ's is a clothes retailer that grew from a single store into a chain over a few years. The key service characteristic during CJ's early years was a personalized customer relationship, and the company continues to collect information about its customers and maintain a database. Recently, however, CJ's has been losing customers to competitors as the expansion has made it difficult to personalize services. How can CJ's use its customer database to reactivate customer purchases?

Which of the following is true for customer-perceived value?

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

The final step of customer value analysis is to ________.

What technique is used for customer profitability analysis?

Uncle Jim's is a brand of ready-to-eat snacks that is widely distributed in supermarkets and stores across the country. The marketing team has recently suggested that the company adopt database marketing so that it can better target its customers. Should Uncle Jim's create a database? Give reasons for your answer.

2Wheels conducts exhaustive customer surveys to discover customer preferences and attitudes towards the brand. Sally uses cluster analysis to classify the data and help the company determine the trends in the information. Sally is using the technique of ________.

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.

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

Which of the following is the first step in customer value analysis?

Explain customer-perceived value.

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

Berry's is a chain of shoe stores. The company recently reviewed its customer relations strategy and suggested that the brand communication be consistent across all customer touch points. What are the various touchpoints for Berry's?

A customer database is simply a listing of a customer's name, address, and phone number for credit reference.