Exam 5: Creating Long-Term Loyalty Relationships

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

Which of the following is true for the modern company organization chart?

LZT is a cell phone manufacturer that designs its phones based on customer input. Once a new model is launched, the company monitors customer feedback and uses negative reviews to improve the next model. LZT also handles customer queries at length, and customer service is considered to be the most important function in the company. Is LZT more likely to use a traditional or modern company organization?

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

The skillful use of ________ has made catalog house Fingerhut one of the nation's largest direct-mail marketers.

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

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?

Of customers who register a complaint, ________.

Clubs that are open to everyone who purchases a product or service are good for building a customer database.

Customer churn is how rapidly a store can move customers through its checkout facility or process.

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

Explain total customer satisfaction.

Which of the following is true for customer relationship marketing?

Focusing disproportionate effort on high-profit customers will lead to lower customer profitability for those customers.

The value proposition is also known as the core positioning of the offering.

Total customer satisfaction is measured based on the relationship of ________.

Which of the following can a company do to reduce defection?

Loyal customers are the best ambassadors for a brand.

Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies.

TBS Bikes has recently introduced a series of bikes called Surami. The core positioning of TBS Bikes is "speed". Surami is a five-gear bike and apart from speed, the company promises to include other features such as safety, good performance, and pollution control features. This describes the ________ of the bike.