Exam 4: Creating Long-Term Loyalty Relationships

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 touch points for Berry's?

Customer-perceived value is the perceived monetary value of all the purchases a customer makes on an annual basis.

One of the ways a company like Caterpillar could increase the customer-perceived value of an offer, relative to a competitor like Komatsu, is to increase the total customer benefit by improving psychological benefits of its product, services, people, and/or image.

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 ________.

Consumers' expectations result exclusively from past buying experiences.

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

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________ programs.

Today, companies are increasingly concerned about customer defection. There are three main steps a company can take to reduce the defection rate. Identify those three steps.

The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of a market offering is called the ________.

Club membership programs that are open to everyone who purchases a product or service ________.

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

Permission marketing presumes that consumers know what they want.

A key driver of shareholder value is the aggregate value of the customer base. Identify the five strategies employed by successful companies to improve the value of their customer base by attracting and retaining customers.

Of customers who register a complaint, ________.

Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases.

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

The marketing funnel identifies the profitability of consumers at each stage in the decision process.

The Net Promoter Score is calculated by subtracting ________ from ________.

Two products with very different performance qualities can have the same conformance quality if both products deliver their respective promised quality.

Berry's is a chain of shoe stores. The marketing team suggested that the company use permission marketing. How can this benefit the company?