Exam 1: Customer Focus, customer Performance, and Profit Impact

A business that has a 75 percent customer retention rate has an an average customer life of 6 years.

With reference to the six-category scale,a consumer satisfaction index (CSI)of 20 denotes that the customer is ________.

Customers for whom the offerings of the current business do not fit their needs are called ________.

Customers with ________ customer satisfaction ratings are profitable but are below the average customer profitability.

Captive customers are a drain on a business's profits because the cost of acquiring them can never be recovered.

________ are customers who buy because a product is being offered at an attractive price or with a promotional incentive.

Asset turnover in an organization is an example of internal company metrics.

Explain the classification of customer loyalties and the contrasts in their range of behaviors.

An increase from 80% to 90% in customer retention would have what effect on the average customer life?

Minimal customer focus results in a reduction in the cost of marketing and sales.

Describe the process that results in "underwhelmed" customers and shareholders.

The major benefit of a strong customer focus is long-run survival.

A market-based business looks at customers as ________.

Which of the following is true of businesses with a strong customer focus?

Sally always purchases groceries at Dillard's Department store.Every time she visits the store,she spends exorbitant amounts on various items.Sally seldom recommends Dillard's Department store to her friends and acquaintances.The marketing manager at Dillard's calculates that she has a loyalty index of 50,and an average lifetime value.To Dillard's,Sally is a(n)________ customer.

MINI-CASE Your brother,Fred,owns ATZ Inc. ,a company that provides wireless telecommunications network in several cities in the Midwest region.You are taking a marketing class in college,and you asked Joe for some information about his business for a class project.You determined that one of his customers has a long customer history of 75,an above-average purchase amount of 55,a low repurchase desirability of 20,a weak product preference of 10,and the customer does not recommend ATZ services to potential customers.The customer is clearly dissatisfied,but since ATZ Inc.is the only wireless telecommunications network provider in the city he is compelled to use it. -Mini-Case Question.If the same customer has a high repurchase desirability,a strong product preference,and recommends ATZ wireless telecommunications services to his friends and acquaintances,what type of customer would he be?

A market-based management business gives its dissatisfied customers as much attention as its "very satisfied" customers.

The higher the rate of customer retention,the longer the average customer life expectancy and the greater the customer lifetime value.

Which of the following types of customers should be rewarded with special offers and services that are not offered to other customers?

The marketing cost of retaining customers is much higher than the cost of replacing them.