Exam 17: TB Boone 3Ce final

Word-of-mouth advertising via technological devices is referred to as viral marketing.

It costs millions in advertising to lure new customers to cosmetic counters.A cosmetics company CEO recognized that women prefer to be loyal to their cosmetic brands and, in doing so, would need products that take a woman through her lifetime, changing as her skin changes.By following this philosophy, the company began practising one of the main tenets of relationship marketing.

Database marketing involves the use of information technology to analyze data about customers and their transactions.

Which level is NOT part of the relationship marketing continuum?

Distinguish between co-branding and co-marketing.Give an example of each.

How does electronic data interchange (EDI) compare with the traditional system of business-to-business communication?

When developing customer relationship strategies, managers must closely integrate customer service, quality, and marketing functions.

Creating long-term relationships with customers leads to improved products and better sales, but it comes at a high price for the company and, ultimately, the consumer.

General Foods offers a "Box Tops for Education" program that rewards schools with funds to purchase needed supplies.The funds are accrued through submitted box tops found on specially marked products.This charitable program provides added value to families and encourages stronger customer relationships.It is, in essence, affinity marketing.

The amount of value a firm brings to a partnership has no bearing on the strength and longevity of the relationship.

What is the first step in measuring customer satisfaction?

Relationship marketing views the buyer/seller relationship as equal partners, thus motivating customers to enter into a long-term cycle of repeat purchases, customer satisfaction, and profitability.

Lifetime value calculations involve matching the costs of acquiring and maintaining customer relationships with the profit produced by those customers over the length of time they can be expected to do business with the company.

The human resources director at Lowe Locks, Inc.has decided to restructure the evaluation process.She recommends that a percentage of feedback come from input provided by suppliers and distributors of their products.This restructuring process indicates that the focus of Lowe Locks is on transaction-based marketing.

A proactive approach to customer feedback involves initiating the interface through telephone calls, visiting, surveys, and technological interfacing that will provide a company with data.

What type of marketing is the information-based approach that collects and analyses data for specific information about markets and consumers?

Timely, appropriate response to customer complaints can actually build more loyalty than if the customer had never complained at all.

Often, the desirability of partnering in the business market is based on the fact that each firm brings to the partnership something the other needs but cannot provide on its own.

Discuss proactive and reactive methods used in the customer service process.How can a dissatisfied customer actually benefit a company?

A customer would prefer to experience routinized-or even limited-decision making when it comes to product purchases.