MBA 706 test 2 answers
Traditional Organizational Structure✔✔pyramid with the president at the top, man-
agement in the middle, and frontline people and customers at the bottom
Customer Perceived Value (CPV)✔✔the difference between the prospective
customer's evaluation of all the benefits and all the costs of an offering and the
perceived alternatives
Total Customer Benefit✔✔the perceived monetary value of the bundle of economic,
functional, and psychological benefits customers expect from a given market offering
because of the product, service, people, and image
total customer cost✔✔the perceived bundle of costs customers expect to incur in
evaluating, obtaining, using, and disposing of the given market offering, including
monetary, time, energy, and psychological costs
Customer value analysis✔✔reveals the company's strengths and weaknesses
relative to those of various competitors.
The steps in this analysis are:
1. Identify the major attributes and benefits customers value.
2. Assess the quantitative importance of the different attributes and benefits.
3. Assess the company's and competitors' performances on the different customer
values against their rated importance.
4. Examine how customers in a specific segment rate the company's performance
against a specific majorcompetitoronanindividualattributeorbenefitbasis
5. Monitor customer values over time
Loyalty✔✔A deeply held commitment to rebuy or repatronize a preferred product or
service in the future despite situational influences and marketing efforts having the
potential to cause switching behavior.
value proposition✔✔consists of the whole cluster of benefits the company promises
to deliver; it is more than the core positioning of the offering.
value delivery system✔✔includes all the experiences the customer will have on the
way to obtaining and using the offering
Satisfaction✔✔is a person's feelings of pleasure or disap- pointment that result from
comparing a product's perceived per- formance (or outcome) to expectationS
-depends on product and service quality
Periodic surveys✔✔can track customer satisfaction directly and ask additional
questions to measure repurchase intention and the respondent's likelihood or
willingness to recommend the company and brand to others.
, quality✔✔Is the totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs.
profitable customer✔✔a person, household, or company that over time yields a
revenue stream exceeding by an acceptable amount the company's cost stream for
attracting, selling, and serving that customer.
customer profitability analysis✔✔Is best conducted with the tools of an accounting
technique called activity based costing(ABC) The company estimates all revenue
coming from the customer, less all costs (including the direct and indirect costs of
serving each customer)
*Companies that fail to measure their costs correctly are also not measuring their
profit correctly are most likely to misallocate their marketing efforts.
Customer Lifetime Value (CLV)✔✔describes the net present value of the stream of
future profits expected over the customer's lifetime purchases.
CLV calculations provide a formal quantitative framework for planning customer
investment and help marketers adopt a long-term perspective
Customer Relationship Management (CRM)✔✔is the process of carefully managing
detailed information about individual customers and all customer "touch points" to
maximize loyalty.
CRM enables companies to provide excellent real-time customer service through the
effective use of individual account information.
Customer touch point✔✔any occasion on which a customer encounters the brand
and product—from actual experience to personal or mass communications to casual
observation.
Personalizing marketing✔✔is about making sure the brand and its marketing are as
personally relevant as possible to as many customers as possible—a challenge,
given that no two customers are identical.
permission marketing✔✔The practice of marketing to consumers only after gaining
their expressed permission, is based on the premise that marketers can no longer
use "interruption marketing" via mass media campaigns.
4 step framework for one-to-one marketing✔✔1. Identify your prospects and
customers
2. Differentiate customers in terms of (1) their needs and (2) their value to your
company
3. Interact with individual customers to improve your knowledge about their individual
needs and to build stronger relationships
4. Customize products, services, and messages to each other
to reduce defection rate company must:✔✔1. Define and measure its retention rate.
Traditional Organizational Structure✔✔pyramid with the president at the top, man-
agement in the middle, and frontline people and customers at the bottom
Customer Perceived Value (CPV)✔✔the difference between the prospective
customer's evaluation of all the benefits and all the costs of an offering and the
perceived alternatives
Total Customer Benefit✔✔the perceived monetary value of the bundle of economic,
functional, and psychological benefits customers expect from a given market offering
because of the product, service, people, and image
total customer cost✔✔the perceived bundle of costs customers expect to incur in
evaluating, obtaining, using, and disposing of the given market offering, including
monetary, time, energy, and psychological costs
Customer value analysis✔✔reveals the company's strengths and weaknesses
relative to those of various competitors.
The steps in this analysis are:
1. Identify the major attributes and benefits customers value.
2. Assess the quantitative importance of the different attributes and benefits.
3. Assess the company's and competitors' performances on the different customer
values against their rated importance.
4. Examine how customers in a specific segment rate the company's performance
against a specific majorcompetitoronanindividualattributeorbenefitbasis
5. Monitor customer values over time
Loyalty✔✔A deeply held commitment to rebuy or repatronize a preferred product or
service in the future despite situational influences and marketing efforts having the
potential to cause switching behavior.
value proposition✔✔consists of the whole cluster of benefits the company promises
to deliver; it is more than the core positioning of the offering.
value delivery system✔✔includes all the experiences the customer will have on the
way to obtaining and using the offering
Satisfaction✔✔is a person's feelings of pleasure or disap- pointment that result from
comparing a product's perceived per- formance (or outcome) to expectationS
-depends on product and service quality
Periodic surveys✔✔can track customer satisfaction directly and ask additional
questions to measure repurchase intention and the respondent's likelihood or
willingness to recommend the company and brand to others.
, quality✔✔Is the totality of features and characteristics of a product or service that
bear on its ability to satisfy stated or implied needs.
profitable customer✔✔a person, household, or company that over time yields a
revenue stream exceeding by an acceptable amount the company's cost stream for
attracting, selling, and serving that customer.
customer profitability analysis✔✔Is best conducted with the tools of an accounting
technique called activity based costing(ABC) The company estimates all revenue
coming from the customer, less all costs (including the direct and indirect costs of
serving each customer)
*Companies that fail to measure their costs correctly are also not measuring their
profit correctly are most likely to misallocate their marketing efforts.
Customer Lifetime Value (CLV)✔✔describes the net present value of the stream of
future profits expected over the customer's lifetime purchases.
CLV calculations provide a formal quantitative framework for planning customer
investment and help marketers adopt a long-term perspective
Customer Relationship Management (CRM)✔✔is the process of carefully managing
detailed information about individual customers and all customer "touch points" to
maximize loyalty.
CRM enables companies to provide excellent real-time customer service through the
effective use of individual account information.
Customer touch point✔✔any occasion on which a customer encounters the brand
and product—from actual experience to personal or mass communications to casual
observation.
Personalizing marketing✔✔is about making sure the brand and its marketing are as
personally relevant as possible to as many customers as possible—a challenge,
given that no two customers are identical.
permission marketing✔✔The practice of marketing to consumers only after gaining
their expressed permission, is based on the premise that marketers can no longer
use "interruption marketing" via mass media campaigns.
4 step framework for one-to-one marketing✔✔1. Identify your prospects and
customers
2. Differentiate customers in terms of (1) their needs and (2) their value to your
company
3. Interact with individual customers to improve your knowledge about their individual
needs and to build stronger relationships
4. Customize products, services, and messages to each other
to reduce defection rate company must:✔✔1. Define and measure its retention rate.
