Creating Customer Value, Satisfaction, and Loyalty: General Concept Questions

3. The marketing strategy of company is not so convincing because they can extend their product range with good

35) Because of Coca-Cola’s size and power in the marketplace, they tend to dominate some members in the channel. This allows them to require strong cooperation from resellers who carry Coke products. This is an example of a(n) _____________.

12. Research has shown that only about three out of every four customers are, on average, satisfied by a firm’s marketing programs. Give an example of a purchase you made where you were not satisfied and what the firm could have changed to satisfy you. If customer satisfaction is so important to firms, why don’t they score better in this area?

P3 – Explain how focussing on the customer, by providing good customer, is essential to retailing

3. Hired as a marketing consultant for a grocery store, what is the lifetime value of a customer and how to relate.

13. According to McCann-Erickson's concept of emotional bonding, the most basic relationship a consumer has with a brand is how he or she thinks about the: A. emotional ties he or she has with the product and/or brand. B. brand personality. C. product benefits. D. self-actualization motives for purchasing. E. self-esteem motives that will be affected by the purchase. 14. Research shows consumers perceive Miller beer as strong, bold, and adventurous. This is an example of how consumers assign a _____ to a brand. A. product rank B. personality C. product features D. unique selling proposition E. market rank 15. Hershey's advertises heavily around Christmas with ads that show only a picture of red, green and silver wrapped Hershey Kisses chocolate. Hershey's is using _____ advertising. A. transformational B. reminder C. rational D. emotional integration E. teaser 16. When Ford Motor Company was preparing to introduce a new model, ads were run for several weeks that talked about the new car but never showed it. This is an example of _____ advertising. A. reminder B. transformational C. teaser D. emotional E. cognitive 17. When a person speaks on the behalf of a product or service based on his or her personal use of and/or experiences with it, a(n) _____ execution is being used. A. dramatization B. slice-of-life C. animation D. demonstration E. testimonial

Reflect on each of these five topics and discuss how each may have an impact on your target market’s decision-making process.

10. What is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $75 per visit, the frequency of repurchase is six times per year, the contribution margin is 10 percent, and the average customer defection rate is 25 percent?

Question 1: How can an effective Customer Relationship Management program be used to identify, retain, satisfy and retain customers?

Q#1 Marketing has been described as being both an "art" and a "science." Discuss the differences and similarities between these two marketing thrusts. Provide your theoretical response and a "real-life" example where you have seen both processes work effectively at creating customer value and loyalty

Marketing is a management function which involves creating, communicating and delivering value for an organisation’s customers (Kotler, Brown, Burton, Deans & Armstrong (2010). Although many earlier academics define marketing as merely a process of satisfying customer needs in order to gain profits, more recent developments of the definition include its inherent connection with delivering superior value to customers in order to maintain ongoing relationships (Webster, 1992).

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

5. RELATIONSHIP MARKETING: In this competitive era, companies are always looking for ways to develop and maintain a long lasting relationship with customers, employees and even suppliers. Relationship marketing is two way traffic; it goes beyond just making ‘sales’ and companies are beginning to realize. Good relationship with customers is a strategic weapon for any company, this is because long term customers buy more, do referrals and give back valuable and truthful feedback. Keeping a customer requires an extra effort. According to the founder of Walmart: “There is only one boss, the customer, and he can fire

Aiming on customer loyalty, superior value must be delivered along with the superior performance. Narver and Slater (1990) said there are 5 components which composed those things, which are:

2. Then we need to understand the customers with whom we have been successful and why.