1. How do companies collect data on customers for their CRM database? correct answers -Statistical models to target customers needs
-Design offerings (marketing mix) to influence behavior
2. What type of data do they collect? correct answers Conversion Rates (from inquires/lookers to buyers)
C...
MKTG 445 Final Exam (100% Correct)
1. How do companies collect data on customers for their CRM database? correct answers -
Statistical models to target customers needs
-Design offerings (marketing mix) to influence behavior
2. What type of data do they collect? correct answers Conversion Rates (from inquires/lookers to
buyers)
Churn Rates
Same customer sales rates
Share of wallet (customers share of product/service category)
Share of heart (customer's emotional bond with the company/bond)
Transaction information--price paid, delivery terms, etc. Customer contact: did the customer initiate contact; did the company? Customers response to market offerings
Customer demographics
3. Manufacturers of fast moving consumer goods (FMCGs) normally sell their products through intermediaries (e.g., via wholesalers and retailers). What avenues do they have to gather customer-information? correct answers 4. What is customer apartheid? CRM leads to customer apartheid. Is that good or bad? correct answers Customer Apartheid (level of customer service): adjusting service levels based on profitability-potential, e.g., routing (the type of help given to the customer); fees waived, other discounts offer, etc.
Why do CRMs fail? (3) correct answers -No clear customer strategy
-Lack of a customer-focused organization
-IT and marketing lack of cooperation
. What type of privacy issues arise due to the massive amount of data gathered by commercial enterprises? correct answers Chapter 8 correct answers 1. What is the meaning of failure in the "second act"? How does this relate to the "Leaky Barrel Theory of Marketing?" correct answers The firm focuses on attracting customers into the fold (the first act) but pays little or no attention to what should be done to keep customers coming back (the second act) Leaky Barrel Theory: professor draws a picture of a barrel and then draws a number of holes in the barrel and gave them titles: rudeness, out of stock, poor service, untrained employees, poor quality, poor selection, poor value, etc. He then drew streams of water coming out of these holes and liken them to customers. Professor points out that in order to maintain a good business the company must constantly "pour" new customers into the top of the barrel--an expensive never ending process. A SUCCESSFUL company will plug the holes in its barrel and lost far fewer customers.
2. What is relationship marketing? What are its benefits? How do customers benefit by relationship marketing? correct answers Concerns attracating, developing, and retaining customer relationships.. benefits: WOM, spend more money on firm, pay premium price
Why do so few American service companies practice excellent relationship marketing? correct answers Because of the common assumption that adding new customers is the quickest route to improve profitability. (current customers offer richer profits more quickly than do new customers
is hidden by accounting practices that do not fully reflect the costs of acquiring and serving new customers.
what are the three levels of relationship marketing. correct answers 1. Frequency or retention
2. Building relationships
3. Solidify Relationships
5. Are low price and high value synonymous? correct answers No...
What are the three manifestations of quality service that are particularly relevant to relationship building? correct answers 1. Fair Play
2. One-on-one marketing 3. Service Augmentation
Questions on Pricing of Services correct answers 1. What are the three things prices depend on? correct answers -competition
-cost
-customer
2. What are the reasons customers usually lack reference price for services? (4) correct answers 1. service heterogeneity
2. individual customer needs
3. Hard to gather price info on services
4. sometimes in some services, providers are unwilling to provide precise pricing info
Know different types of price elasticities, including cross price elasticity. correct answers 5. Why is variable cost pricing so crucial in services correct answers What are some of the barriers in estimating the cost of a service? correct answers ... how to assign fixed costs.. How much of the fixed costs associated with running the hospital should be allocated to the emergency unit?
What are the non-monetary costs of services? What is the marketing implication of non- monetary costs? correct answers Non-Monetary Costs of Services
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