MKTG 445 final (100% Verified Answers)

How do companies collect data on customers for their Consumer Relationship Marketing database? correct answers -GPS in cars, cellphones, credit card purchases, geofencing, web-browser data, ect. What type of data do companies collect on customers? correct answers -conversion rates, churn rates, same customer sales rates, shares of wallet, shares of heart (emotional bond), transaction information, customer contact, demographics Manufactures of fast moving consumer goods (FMCGs) normally sell their products through intermediaries (wholesalers and retailers). What avenues do they have to gather customer-information? correct answers -Retailers gather data and sell it -company apps, loyalty cards, POS systems Vizio and smart TV data, geofedia and social surveillance What is customer apartheid? correct answers -when a company gives different levels of service to consumers based on how they value that consumers business Why do Consumer Relationship Management (CRMs) fail? correct answers -people don't know how to use data and don't have a plan on how to utilize the data -CLV data is not telling you about the customers attitudes (share of heart) -too much reliance on data and focus on individual experiences rather than the entire experience; unhappiness of customers can be seen by all -customer service scores are low/mediocre because businesses are only focused on that big spenders/top priority rather than all customers (calculated misery) What does price depend on? correct answers -cost -customer -competition What are some reasons customers lack reference price for services? correct answers -service differences limit knowledge -individual customer needs vary -harder to gather price information on services -sometimes in services, providers are unwilling to provide precise pricing information Price Elasticity correct answers - (change in quantity/Q1) / (change in price/P1) = ep -change in p = p2 - p1 Mark-Up Price correct answers - selling price - cost = mp Breakeven Price correct answers - fixed costs / (selling price - variable costs) = bp Profit Maximizing Pricing correct answers - revenue (r) - cost (c) = k (profit)