Chapter 14

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Caveat emptor

"let the buyer beware " or "it's your own fault if you buy it and it doesn't work!"

social network

A community or social group that centers its attention on a particular brand or product category

CAN-SPAM Act

A law that prohibits the use of e-mail (e.g., SPAM), fax and other technology to randomly send messages to potential consumers without their permission

complaint management

Acknowledge the customer's feelings, and listen carefully to the complaint

Customer Satisfaction

Defined as the feeling that a person experiences when an offering meets their expectations

Delivery Gap

Failing to meet the performance standards established for an offering.

Loyalty Programs

Marketing efforts that reward a person or organization for frequent purchases and the consumption of offerings

Knowledge Gap

Not understanding the customer's expectations or needs, which then leads a company to create a product that disappoints.

Sugging

Selling under a guise or phony front

Standards Gap

Setting performance standards that are too low despite what is known about the customers' requirements.

viral marketing

The spread of the company's message (like a computer virus) through the community

1. What results are expected from the influencer panel? 2. How much are the panel members willing to do? 3.What's in it for the panel members?

Three questions to ask before activating a panel...

heavy user

actually use or consumes the offering regularly, preferable more than the average user

blogs

form of online communication that help spread viral marketing messages

Improving Customer Satisfaction

goal sought by many businesses.

attitudinal loyalty

degree to which the customer prefers or likes the brand

Blocker Effect

don't pay attention to other places,

-longevity -blocker -spreader -accelerator

effects of loyalty

interested

has a greater intrinsic interest in the product category than the average user

Accelerator Effect

hit a goal and spend so much to receive something free or discounted

Spreader Effect

join because you like one product and then you start liking other of their products

Communication Gap

overstating the offering's performance level, thereby creating unrealistic expectations on the part of customers.

Longevity Effect

positive effects, evaluate how much you buy and how long they think you will be buying, customize and create loyalty program, Switching cost, customer lifetime value

Phishing

soliciting personal information in order to steal an identity and use it to generate cash fraudulently

loyal

sticks to one brand when it works

behavioral loyalty

the customer buys the product regularly and does not respond to competitors offering

lead user

willing to try new products and offer feedback

active influences

willling to tell others, but more important, others listen and act on the influencer's opinion


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