Top 10 learning questions for chapter 5
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The document summarizes 10 learning questions from a chapter about creating customer value, satisfaction, and loyalty. It discusses how customers make choices based on recommendations and value, and that customer-perceived value is determined by products, services, personnel, and image. It also addresses how building customer value is important for businesses to create loyal, long-term customers and avoid dissatisfaction that can result from unmet expectations. The document concludes with questions about customer relationship management, database marketing, and the functions of data warehousing and data mining.
Top 10 learning questions for chapter 5
- 1. TOP 10 Learning Questions for(Chapter 5: Creating Customer Value, Satisfaction, and Loyalty)Francine Luanne M CollantesSeptember 2011http://francollantes.blogspot.com
- 2. 1. How do customers make choices? This question can BEST be answered by which statement according to Philip Kotler?Customers are strongly influenced by “recommendations from other consumers”.Customers look at the costs and risks associated in buying the product or patronizing the service offeredCustomers are value maximizersThe power is with the customerCustomers look at the long-term value in their relationship with the company2http://francollantes.blogspot.com
- 3. Customers form expectations of value and act on itBetter educated and informed consumers
- 4. Have tools to verify claims
- 5. Can seek out superior alternativesKotler’s example:Caterpillar led by maximizing total customer value in construction-equipment despite having Volvo, Hitachi, Komatsu around as competitorshttp://francollantes.blogspot.com
- 6. 41. How do customers make choices? This question can BEST be answered by which statement according to Philip Kotler?Customers are strongly influenced by “recommendations from other consumers”.Customers look at the costs and risks associated in buying the product or patronizing the service offeredCustomers are value maximizersThe power is with the customerCustomers look at the long-term value in their relationship with the companyhttp://francollantes.blogspot.com
- 7. 2. Product, Services, Personnel, and Image belong to which category as determinants of Customer-Perceived Value?Total Customer ValueTotal Customer BenefitTotal Customer CostTotal Customer PropositionTotal Customer Perception5http://francollantes.blogspot.com
- 8. Total Customer Benefit = perceived monetary value of benefit customers expect from a given market offering because of the product, service, people, & image6Total Customer BenefitTotal Customer Cost-ProductMonetaryCustomer Perceived Value=ServiceTimePersonnelEnergyImagePsychologicalReference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009http://francollantes.blogspot.com
- 9. 72. Product, Services, Personnel, and Image belong to which category as determinants of Customer-Perceived Value?Total Customer ValueTotal Customer BenefitTotal Customer CostTotal Customer PropositionTotal Customer Perceptionhttp://francollantes.blogspot.com
- 10. 3. Value Proposition consists of the whole cluster of benefits the company ________ to deliverpromisesperceivesproposesplansprepares8http://francollantes.blogspot.com
- 11. San Miguel’s value proposition lies on their promise of the experience of a “SamahangWalangKatulad”9http://francollantes.blogspot.com
- 12. 3. Value Proposition consists of the whole cluster of benefits the company ________ to deliverpromisesperceivesproposesplansprepares10http://francollantes.blogspot.com
- 13. 4. Loyalty is a deeply held commitment to rebuy or _______ a preferred product or service in the future despite situational influences.repurchaserepatronizereprocurerepayrepossess11http://francollantes.blogspot.com
- 14. Consumers have varying degrees of loyalty to specific brands, stores, and companiesLoyaltyRepeat purchase
- 16. 134. Loyalty is a deeply held commitment to rebuy or _______ a preferred product or service in the future despite situational influences.repurchaserepatronizereprocurerepayrepossesshttp://francollantes.blogspot.com
- 17. 145. Which of the following statements best describe why there’s a need to build customer value?Creating lasting customers is at the heart of every businessCreating lifelong customers is at the heart of every businessCreating long-term customers is at the heart of every businessCreating loyal customers is at the heart of every businessCreating lifetime customers is at the heart of every businesshttp://francollantes.blogspot.com
- 18. The only value your company will ever create is the value that comes from customers - now and in the future15Without customers, you don’t have any businesshttp://francollantes.blogspot.com
- 19. A loyal customer looks at only you, regardless of other choices or alternatives present in the market16http://francollantes.blogspot.com
- 20. 175. Which of the following statements best describe why there’s a need to build customer value?Creating lasting customers is at the heart of every businessCreating lifelong customers is at the heart of every businessCreating long-term customers is at the heart of every businessCreating loyal customers is at the heart of every businessCreating lifetime customers is at the heart of every businesshttp://francollantes.blogspot.com
- 21. 186. If a company’s performance falls short of expectations, the customer gets _________.DistractedDispleasuredDissatisfiedDiscontentedDisappointed http://francollantes.blogspot.com
- 22. 19Customers satisfaction is defined by matching both expectations and performanceSatisfactionFeelings of pleasure or disappointment
- 25. High satisfaction = High customer loyaltyhttp://francollantes.blogspot.com
- 26. 206. If a company’s performance falls short of expectations, the customer gets _________.DistractedDispleasuredDissatisfiedDiscontentedDisappointed http://francollantes.blogspot.com
- 27. 217. Which rule implies that a company could improve its profits by “firing its worst customers?150-40 rule150-50 rule150-30 rule150-20 rule150-10 rulehttp://francollantes.blogspot.com
- 28. 150-20 Rule: The most profitable 20% of customers may contribute 150% of your company’s profitabilityLarge customers demand the ff:Small-Medium customers do the ff:vsconsiderable service
- 29. deep discounts
- 30. More COSTLY!
- 32. pay full price
- 33. Less COSTLY = More PROFITABLE!http://francollantes.blogspot.com22
- 34. 237. Which rule implies that a company could improve its profits by “firing its worst customers?150-40 rule150-50 rule150-30 rule150-20 rule150-10 rulehttp://francollantes.blogspot.com
- 35. 248. Which of the following is true?Customer Relationship Management is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyaltyCustomer Relationship Management focuses on programs to attract and retain the right customersCustomer Relationship Management enables companies to provide excellent real-time customer service None of the aboveAll of the above http://francollantes.blogspot.com
- 36. 25CRM is managing detailed information and individual touch points to maximize loyaltySource: http://www.crm-strategy.net/crmpres.htmhttp://francollantes.blogspot.com
- 37. 26Customer Relationship Management is in attracting and retaining the right customersPARTNERSAdvocatesMembersPatronsFirst-TimersProspectsPotentials http://francollantes.blogspot.com
- 38. 27Sun Cellular uses detailed account information of its clients to provide real-time customer service as part of its CRM programhttp://francollantes.blogspot.com
- 39. 288. Which of the following is true?Customer Relationship Management is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyaltyCustomer Relationship Management focuses on programs to attract and retain the right customersCustomer Relationship Management enables companies to provide excellent real-time customer service through the effective use of individual account informationNone of the aboveAll of the above http://francollantes.blogspot.com
- 40. 299. It is the process of building, maintaining, and using customer databases contact, transact, and build customer relationships.Database WarehousingDatabase MiningDatabase MarketingNone of the aboveAll of the abovehttp://francollantes.blogspot.com
- 41. 30For marketers to know their customers, they should follow a processCollect informationStore these information in a databaseUse these information to conduct database marketingReference: Downside of Database Marketing and CRM p.167, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009http://francollantes.blogspot.com
- 42. 31McDonalds uses its McDelivery Online to gather information from customers to build personal relationships with its customershttp://francollantes.blogspot.com
- 43. 329. It is the process of building, maintaining, and using customer information to contact, transact, and build customer relationships.Database WarehousingDatabase MiningDatabase MarketingNone of the aboveAll of the abovehttp://francollantes.blogspot.com
- 44. 3310. The following are the functions of Data Warehouses and Data Mining EXCEPT:It allows businesses to capture, query, and analyze customer needs and responsesIt makes it easy for everyone in the company to be customer oriented and use valuable informationIt deepens customer loyaltyIt avoids serious customer mistakesIt allows business to make proactive, knowledge-driven decisions http://francollantes.blogspot.com
- 45. 34Five main problems can prevent a firm from effectively using CRMSome situations are not conducive to database managementBuilding and maintaining it requires a huge investmentIt may be difficult to get everyone in the company to be customer oriented and use the available informationNot all customers want a relationship with the companyThe assumptions behind CRM may not always hold trueReference: Downside of Database Marketing and CRM p.167, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009http://francollantes.blogspot.com
- 46. 3510. The following are the functions of Data Warehouses and Data Mining EXCEPT:It allows businesses to capture, query, and analyze customer needs and responsesIt makes it easy for everyone in the company to be customer oriented and use valuable informationIt deepens customer loyaltyIt avoids serious customer mistakesIt allows business to make proactive, knowledge-driven decisions http://francollantes.blogspot.com
- 47. TOP 10 Learning Questions for(Chapter 5: Creating Customer Value, Satisfaction, and Loyalty)Francine Luanne M CollantesSeptember 2011http://francollantes.blogspot.com