Exam 5: Creating Long-Term Loyalty Relationships

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

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

The aim of customer relationship management is to produce high customer ________.

Rade and Talion are competitors in the business of manufacturing wrist watches. 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 ________.

Customer satisfaction is the only way by which a firm can increase its profitability.

The best thing a company can do in the face of company mistakes is to discourage the customer from complaining.

Cluster analysis is a statistical technique that can be employed in data mining.

Which of the following statements demonstrates behavioral loyalty towards a brand?

In which of the following cases is building a database worthwhile for the company?

A profitable customer ________.

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.

A customer's profitability is judged on the basis of the lifetime stream of revenue and cost, not the profit from a particular transaction.

Activity-based costing does not consider indirect, variable and overhead costs.

A ________ is simply a set of names, addresses, and telephone numbers.

Sara is the marketing manager of a small HR consultancy firm. She is in the process of implementing the use of a database to assist her company in its marketing efforts. List five ways in which she might be able to use the database for marketing efforts.

Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also keen to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned.

In which of the following cases is building a database worthwhile for the company?

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

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

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?