Deck 22: Note : Loyalty-Based Marketing,customer Acquisition,and Customer Retention

Question 1

Which of the following is a true statement about customer relationship management programs?

A) CRM programs enable firms to tailor new products to individuals customers.
B) CRM programs rely primarily on mass market communication systems.
C) CRM programs benefit consumer marketers more than B2B marketers.
D) CRM programs use demographic data to track customer loyalty.

Answer 1

A

Question 2

CRM programs enable marketers to ________.

A) compare strategic business units
B) personalize the marketing mix
C) analyze the value chain
D) eliminate loss leaders

Answer 2

B

Question 3

What is the recommended strategy for dealing with small wallets?

A) make product alterations
B) improve customer service
C) implement cross-selling
D) lower product costs

Answer 3

D

Question 4

Individuals who really like a product and recommend the product to others most likely have ________ loyalty.

A) attitudinal
B) demographic
C) behavioral
D) psychographic

Question 5

The rate of return on investments made towards customer retention is always increasing because of constantly decreasing acquisition costs.

Question 6

A firm should make the greatest communication,customer relationship management,and service investments towards which group of customers?

A) high-loyalty, low profitability
B) high-loyalty, high-profitability
C) low-loyalty; low profitability
D) low-loyalty; high profitability

Question 7

Items priced at or below costs in order to attract customers are known as ________.

A) market wreckers
B) loss-leaders
C) cross-sellers
D) barnacles

Question 8

Which of the following is a true statement based on the research of Frederick Reichheld?

A) Loyal customers cost more to serve.
B) New customers provide referrals.
C) Loyal customers pay price premiums.
D) New customers buy more products.

Question 9

A company's first step in customer relationship management should be to ________.

A) correlate types of transactions
B) collect customer touch point data
C) rank customers by sales volume
D) determine how to customize products

Question 10

What is the purpose of a customer relationship management program? How do such systems benefit marketers?

Question 11

According to research,firms spend the majority of their marketing efforts and resources on keeping existing customers because customer retention is highly profitable.

Question 12

Customer relationship management is primarily used by firms to ________.

A) attract new customers
B) survey profitable customers
C) retain loyal customers
D) target infrequent customers

Question 13

Which strategic action would be most appropriate for highly profitable,short-term customers?

A) focus on up- and cross-selling
B) attempt to gain attitudinal loyalty
C) try to achieve transactional satisfaction
D) communicate frequently and consistently

Question 14

Research indicates that word-of-mouth referrals are more likely than price deals to result in the acquisition of loyal customers.