Exam 6: Value for Customers

Which of the following statements about customer relationships is true?

To make data collected from customer satisfaction surveys useful, a company should do which of the following?

Refer to the scenario below to answer the following questions. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan involved a seasonal promotional gimmick to be implemented from early winter to late spring that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our delicatessen offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout the winter." -By offering a discount to visitors from early winter to late spring, Carol changed the ________ of a stay at Seagull Terrace.

Frequent flier miles are an example of ________ programs.

A ________ is a graphical representation of the ratio between product benefits and costs.

At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.

Which of the following strategies would a company most likely use to increase customer perceived value?

The only way for a company to accurately measure customer satisfaction is through independent rating organizations such as J.D. Power and Associates and the American Customer Satisfaction Index.

Briefly explain how a buyer makes a purchase decision.

________ is defined as the activities used to establish, develop, and maintain customer sales.

The practice of CRM requires ________ processes.

A buyer with a ________ response to a purchase has reached the baseline level of satisfaction.

Tommy Baker is in charge of CRM for American Pie Nostalgia. As a result of his successful efforts in this area, his firm will likely enjoy all of the following EXCEPT ________.

Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________.

________ is the statistical analysis of large databases for the purpose of discovering hidden pieces of information.

It is most accurate to say that customers buy from stores and companies that offer which of the following?

According to the Pareto Principle, which of the following is true?

As a general rule, about 20% of a company's customers generate a loss instead of a profit for the company.

Explain why a customer's level of satisfaction with a product may change from the initial level of satisfaction.

Refer to the scenario below to answer the following questions. Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years. Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months. "But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!" So Carol spent her first winter devising a new marketing plan. She put together a promotional package designed to attract business travelers year-round. Carol's plan involved a seasonal promotional gimmick to be implemented from early winter to late spring that would attract the same numbers as the large summer crowd. Her idea worked! During her second winter, Carol greeted numerous business travelers both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals. "We still have a long way to go," Carol admitted. "Our delicatessen offers delicious entrees, but we'd like to expand that. We provide health club privileges off-site, but we'd like to eventually provide our own. These are goals I hope to achieve in a few years. Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend get-aways throughout the winter." -Carol asks guests to complete a customer satisfaction survey before they leave the resort. In addition to asking for demographic information and 1-10 ratings on aspects of the stay at the resort, the survey asks guests for suggestions on what types of services they'd like to see at the hotel. Carol most likely intends to use this information as part of a(n) ________ system.