Chat with AIExam 12: Developing and Maintaining Long Term Customer Relationships
Explain the overall objective of customer relationship management and the stages that customers are pulled through in the process. For each stage, identify the marketing goals during the stage as well as examples of strategies that may be used.
(38) 
VerifiedThe objective of CRM is to move customers from having a simple awareness of the firm and its product offering, through levels of increasing relationship intensity, to the point where the customer becomes a true advocate for the firm and/or its products. The stages, goals, and examples include: Awareness Goals:
1) promote customer knowledge and education about the product or company
2) prospect for new customers
Examples: product advertising, personal selling (cold calls), word of mouth Initial Purchase Goals: 1) get product or company into customers' evoked set of alternatives
2) stimulate interest in the product
3) stimulate product trial
Examples: advertising, product sampling, personal selling Repeat Customer Goals: 1) fully satisfy customers' needs and wants
2) completely meet or exceed customers' expectations or product specifications
Examples: good product quality and value-based pricing, good service before, during, and after the sale, frequent reminders and incentives Client
Goals: 1) create financial bonds that limit the customer's ability to switch products or suppliers
2) acquire more of each individual customer's business
3) personalize products to meet evolving customer needs and wants
Examples: frequent customer cards, frequent-flier programs, broad product offering Community Goals:
1) create social bonds that prevent product or supplier switching
2) create opportunities for customers to interact with each other in a sense of community Examples: membership programs, affinity programs, ongoing personal communication Advocacy Goals:
1) create customization or structural bonds that encourage the highest degree of loyalty
2) become such a part of the customer's life that he or she is not willing to end the relationship
3) think of customers as partners
Examples: customer events and reunions, long-term contracts, brand-related memorabilia
In times past, developing and implementing the "right" marketing strategy was all about _____. In today's economy, however, that emphasis has shifted to developing strategies that attract and retain customers over the long term.
(43) VerifiedB
In the purchase of a product, time, effort, risk, and opportunity costs are all examples of:
(31) VerifiedA
Discuss the strategies that can be used to enhance and maintain customer relationships. Identify the key advantages and disadvantages of each strategy, as well as examples of the marketing tactics that my be used.
(34) Meghan recently took her parents to a gourmet restaurant for their 25ᵗʰ wedding anniversary. The evening was exceptional, with everyone receiving the utmost in terms of quality and value. However, when reflecting upon the experience the next day, Meghan decided that she was not fully satisfied with the experience. Why might this happen?
(33) With respect to customer expectations, which of the following best describes the zone of tolerance?
(35) In service offerings, the core product is typically composed of three interrelated dimensions. What are these dimensions?
(37) Discuss the role of value in developing long-term customer relationships. In your discussion, explain the value formula and its component parts. How can the value formula help marketers design strategies to optimize customer value?
(37) Which of the following relationship strategies is most likely to be used by a health club as it tries to create social bonds with its clientele?
(33) Discuss the relationship between customer expectations and customer satisfaction. What might cause expectations to be higher or lower? How is the zone of tolerance a useful diagnostic tool in terms of developing strategies aimed at improving customer satisfaction?
(34) Assume a customer planning to purchase a PS3 gaming console made this statement: "Given the expense and all the hype about the new PS3, it ought to be the best gaming console ever made." What type of expectation does this customer have about the PS3?
(24) Which of the following statements is FALSE regarding the use of the 80/20 rule in managing customer relationships?
(25) With respect to the different components of the total product offering, supplemental products play the important role of:
(40) With respect to competitive advantages, many see _____ as the most important resource or asset that an organization can possess, as it stems from the value generated by the trust, commitment, cooperation, and interdependence among relationship partners.
(26) The PTL Corporation provides long-distance telephone services to consumer and business markets. The company recently initiated a marketing strategy designed to promote customer knowledge and educate customers about the company and its products. The strategy is also designed to prospect for new customers. At what stage of the customer relationship development process does PTL find itself?
(31) Larger financial institutions now offer a wide range of services under one roof, from banking to stock trading. These institutions have moved away from increasing their market share to instead focus on increasing their:
(42) In which of the following situations would a customer become more tolerable of weak or poor product performance?
(36) Which of the following IS NOT good advice with respect to leveraging customer satisfaction from a strategic point of view?
(43) What is the primary disadvantage associated with using financial incentives as a means of developing customer relationships?
(26) 
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