Marketing Chapter 15

________ refers to a ratio that compares the financial investments a company puts into gaining and keeping customers to the financial return on those investments.

Customer equity

Which statement is true of customer satisfaction?

It is a state that is achieved when a firm meets the needs and expectations of customers.

________ refers to a strategy that focuses on building brand loyalty by attracting, maintaining, and enhancing customer associations.

Relationship marketing

Which statement is true of customer service?

While bad customer service can distance customers, good customer service alone cannot keep customers happy.

The customer relationship management process can be described as

a process that uses data mining to search for meaningful trends in vast amounts of data.

Garret's, an online apparel retailer, has a customer-oriented strategy. One of the firm's goals is to tailor its product information to individual customers. What method can Garret's use to do this?

clientelling

Maribel, a sales analyst at BuyMore.com, wants to capture and store consumer data to create and maintain customer profiles. Doing this would allow her to study the data to identify purchasing patterns and buying habits. This information could then be used by the marketing team to target marketing campaigns at specific segments of customers. What type of software should she use for this purpose?

customer relationship management software

The perceived benefits that a consumer receives from a product compared to the cost associated with obtaining it is referred to as

customer value.

One of the basic keys for a company to building good relationships with customers is to

establish the ways in which it will provide more customer value than its competitors do.

What is the first step in the customer relationship management process for a company?

identifying current customers

The ultimate goal of delivering superior customer service is to

increase brand loyalty.

To safeguard against a breach of security, CRM systems must

install robust firewalls to prevent unauthorized access.

The metric that measures the percentage of the total number of items on an order that a firm shipped on time is

item fill rate.

Mark is the newly recruited operations manager at an online shoe store. He was recruited after the CEO noticed no significant improvement in sales figures despite the increase in marketing and promotions during the past three quarters. Mark's first task is to assess the profitability of existing and potential customers in the long run in order to maintain or increase services to those customers. What method of analysis will serve this purpose?

lifetime value analysis

Charlene, the marketing manager of an e-commerce firm, wants to measure the percentage of orders shipped and completed in time based on stock keeping units. Which of the following metrics should Charlene use?

line fill rate

Darlene placed an order for a textbook from an online retailer on August 14 and received the book on August 18. This timeframe is referred to as the

order cycle.

Companies that base their business on the marketing concept

put the customer in the center of their thinking in terms of strategy and operations.

The metric that measures a firm's ability and willingness to provide fast service, answer customer inquiries and resolve problems is

responsiveness

What can a firm measure during the post-transaction point in the customer communication process?

the ability of the firm to answer questions concerning the use of the product

Treyvon is an account manager at an inventory management firm. He wants to measure the dollar fill rate of some of his customers' orders. In order to complete this task, Treyvon should measure

the value of goods shipped on time versus the total value of the order.