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Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
Top 10 Learning Questions for Chapter 5 - Martha Ballesteros
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Top 10 Learning Questions for Chapter 5 - Martha Ballesteros

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  1. TOP 10 Learning Questions for<br />Chapter 5<br />Creating Customer Value, Satisfaction, and Loyalty<br />Martha Ballesteros<br />December 2010<br />http://martha-ballesteros.blogspot.com/<br />
  2. 1. Which of the following is not a profit tier?<br />Gold Customers<br />Silver Customers<br />Iron Customers<br />Lead Customers<br />2<br />http://martha-ballesteros.blogspot.com/<br />
  3. Customer - Product Profitability Analysis<br />3<br />Customers<br />Products<br />http://martha-ballesteros.blogspot.com/<br />
  4. Profit tiers classify customers into those worth pursuing and those that should receive less attention<br />4<br />Platinum customers – most profitable<br />Gold customers – profitable<br />Iron customers – low profitability but <br />desirable for volume<br />Lead customers – unprofitable and <br />undesirable<br />http://martha-ballesteros.blogspot.com/<br />
  5. 1. Which of the following is not a profit tier?<br />Gold Customers<br />Silver Customers<br />Iron Customers<br />Lead Customers<br />5<br />http://martha-ballesteros.blogspot.com/<br />
  6. 2. _______ is the difference between the prospective customer’s evaluation of all benefits and all costs of an offering and the perceived alternatives<br />Customer-Perceived Value<br />Value Proposition<br />Value Delivery System<br />Customer Lifetime Value<br />6<br />http://martha-ballesteros.blogspot.com/<br />
  7. Determinants of Customer – Perceived Value<br />7<br />Customer-Perceived<br />Value<br />Total Customer <br />Benefit<br />Total Customer <br />Cost<br />Product<br />Benefit<br />Monetary<br />Cost<br />Services<br />Benefit<br />Time<br />Cost<br />Personnel<br />Benefit<br />Energy <br />Cost<br />Image<br />Benefit<br />Psychological<br />Cost<br />http://martha-ballesteros.blogspot.com/<br />
  8. Customer – Perceived Value<br />Total Customer Benefit – perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering<br />Total Customer Cost – perceived bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the given market offering<br />8<br /> Total Customer Benefit – Total Customer Cost = Customer-Perceived Value<br />http://martha-ballesteros.blogspot.com/<br />
  9. 2. _______ is the difference between the prospective customer’s evaluation of all benefits and all costs of an offering and the perceived alternatives<br />Customer-Perceived Value<br />Value Proposition<br />Value Delivery System<br />Customer Lifetime Value<br />9<br />http://martha-ballesteros.blogspot.com/<br />
  10. 3. Which of the following statements about customer satisfaction is not true? <br />One key to customer retention is customer satisfaction<br />Customer satisfaction and customer loyalty are proportional<br />Greater customer satisfaction is linked to lower risk in the stock market<br />Generally, a highly satisfied customer is less sensitive to price<br />10<br />http://martha-ballesteros.blogspot.com/<br />
  11. Customer Satisfaction<br />In general, satisfaction is a person’s feelings of <br />pleasure or disappointment that result from <br />comparing a product’s perceived performance <br />or outcome to their expectations<br />11<br />http://martha-ballesteros.blogspot.com/<br />
  12. Monitoring Satisfaction<br />One key to customer retention is customer satisfaction<br />Customer satisfaction and customer loyalty are not proportional<br />Higher returns and lower risk in the stock market<br />In general, a highly satisfied customer:<br />Stays loyal longer<br />Buys more as the company introduces new products and upgrades existing products<br />Talks favorably to others about the company<br />Pays less attention to the competition<br />Less sensitive to price <br />Less costly to serve because of routine transactions<br />12<br />http://martha-ballesteros.blogspot.com/<br />
  13. 3. Which of the following statements about customer satisfaction is not TRUE? <br />One key to customer retention is customer satisfaction<br />Customer satisfaction and customer loyalty are proportional<br />Greater customer satisfaction is linked to lower risk in the stock market<br />Generally, a highly satisfied customer is less sensitive to price<br />13<br />http://martha-ballesteros.blogspot.com/<br />
  14. 4. Which of the following is not part of the customer development process?<br />Prospects<br />Patrons<br />Potentials<br />Partners<br />14<br />http://martha-ballesteros.blogspot.com/<br />
  15. The Customer Development Process<br />15<br />Potentials<br /> Prospects<br />Disqualified<br />First-time<br />Customers<br /> Repeat<br />Customers<br />Clients<br />Members<br />Partners<br />Inactive or <br /> Ex-customers<br />http://martha-ballesteros.blogspot.com/<br />
  16. The Customer Development Process<br />16<br />Potentials<br /> Prospects<br />Disqualified<br />First-time<br />Customers<br /> Repeat<br />Customers<br />Clients<br />Members<br />Partners<br />Inactive or <br /> Ex-customers<br />http://martha-ballesteros.blogspot.com/<br />
  17. The Customer Development Process<br />Potentials – people or organizations who might have an interest in buying the company’s product or service<br />Prospects – people with motivation, ability, and opportunity to make a purchase<br />Partners – people who enthusiastically recommend and actively work with the company<br />17<br />http://martha-ballesteros.blogspot.com/<br />
  18. 4. Which of the following is not part of the customer development process?<br />Prospects<br />Patrons<br />Potentials<br />Partners<br />18<br />http://martha-ballesteros.blogspot.com/<br />
  19. 5. Pizza Hut’s 30-minute delivery guarantee – “If it’s late, it’s free!” - creates what value for the customer?<br />Customer Loyalty<br />Customer Satisfaction<br />Customer Retention<br />Product and Service Quality<br />19<br />http://martha-ballesteros.blogspot.com/<br />
  20. Creating Customer Value, Satisfaction, and Loyalty<br />20<br />Customer Loyalty<br /><ul><li> commitment to repurchase or repatronize a preferred product or service</li></ul>in the future despite situational influences and marketing efforts of competitors<br />Customer Satisfaction<br /><ul><li> customers’ feelings of pleasure or disappointment that result from comparing</li></ul>a product’s perceived performance or outcome to their expectations<br />Customer Retention<br /><ul><li> exceeding customers’ expectations to become loyal advocates of the product</li></ul>or service<br />Product and Service Quality<br /><ul><li> totality of features and characteristics of a product or service that bear on its</li></ul>ability to satisfy stated or implied needs<br />http://martha-ballesteros.blogspot.com/<br />
  21. Creating Customer Value, Satisfaction, and Loyalty<br />21<br />Customer Loyalty<br /><ul><li> commitment to repurchase or repatronize a preferred product or service</li></ul>in the future despite situational influences and marketing efforts of competitors<br />Customer Satisfaction<br /><ul><li> customers’ feelings of pleasure or disappointment that result from comparing</li></ul>a product’s perceived performance or outcome to their expectations<br />Customer Retention<br /><ul><li> exceeding customers’ expectations to become loyal advocates of the product</li></ul>or service<br />Product and Service Quality<br /><ul><li> totality of features and characteristics of a product or service that bear on its</li></ul>ability to satisfy stated or implied needs<br />http://martha-ballesteros.blogspot.com/<br />
  22. Customer Satisfaction<br />In the event that Pizza Hut fails to meet its <br />guaranteed 30-minute delivery time, to <br />compensate for the disappointment from the <br />customer and ensure customer satisfaction, <br />they are willing to give the ordered product for <br />free<br />22<br />http://martha-ballesteros.blogspot.com/<br />
  23. 5. Pizza Hut’s 30-minute delivery guarantee – “If it’s late, it’s free!” - creates what value for the customer?<br />Customer Loyalty<br />Customer Satisfaction<br />Customer Retention<br />Product and Service Quality<br />23<br />http://martha-ballesteros.blogspot.com/<br />
  24. 6. Which of the following statements is not true?<br />Product and service quality, customer satisfaction, and company profitability are intimately connected<br />The company’s largest customers always yield the most profit<br />The midsize customers who receive good service and pay nearly full price are often the most profitable<br />The customer profit rate increases over the life of a retained customer<br />24<br />http://martha-ballesteros.blogspot.com/<br />
  25. Customer Profitability<br />A profitable customer is a person, household, or <br />company that over time yields a revenue <br />stream that exceeds by an acceptable amount <br />the company’s cost stream for attracting, <br />selling, and servicing that customer.<br />25<br />http://martha-ballesteros.blogspot.com/<br />
  26. The 150-20 Rule<br />26<br />Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall<br />http://martha-ballesteros.blogspot.com/<br />
  27. The 150-20 Rule<br />The 20% most profitable customers generate <br />as much as 150% of the profits of a company; <br />the 20% least profitable lose 100% of the <br />profits.<br /><ul><li>It’s not always the company’s largest customers who yield the most profit.
  28. The largest customers can demand considerable service and receive the deepest discounts</li></ul>27<br />http://martha-ballesteros.blogspot.com/<br />
  29. 6. Which of the following statements is not true?<br />Product and service quality, customer satisfaction, and company profitability are intimately connected<br />The company’s largest customers always yield the most profit<br />The midsize customers who receive good service and pay nearly full price are often the most profitable<br />The customer profit rate increases over the life of a retained customer<br />28<br />http://martha-ballesteros.blogspot.com/<br />
  30. 7. What customer value improvement strategy involves businesses giving special treatment to their valuable customers through birthday greetings, small gifts, and invitations to special sports or art events? <br />Reducing the rate of customer defection<br />Increasing the longevity of the customer relationship<br />Enhancing the growth potential of each customer through “share-of-wallet”, cross-selling, and up-selling<br />Focusing disproportionate effort on high-value customers<br />29<br />http://martha-ballesteros.blogspot.com/<br />
  31. Increasing Value of the Customer Base<br />30<br />Reducing the rate of customer defection<br /><ul><li> selecting and training employees to be knowledgeable and friendly</li></ul>Increasing the longevity of the customer relationship<br /><ul><li> the more involved a customer is with the company, the more likely he is to </li></ul>stick around<br />Enhancing the growth potential of each customer through “share-of-<br />wallet”, cross-selling, and up-selling<br /><ul><li> increase sales from existing customers with new offerings and opportunities</li></ul>Making low-profit customers more profitable or terminating them<br /><ul><li> to avoid direct termination, marketers can encourage unprofitable customers </li></ul>to buy more or in large quantities<br />Focusing disproportionate effort on high-value customers<br /><ul><li> most valuable customers are treated in a special ways
  32. thoughful gestures can send a strong positive signal to the customer</li></ul>http://martha-ballesteros.blogspot.com/<br />
  33. Increasing Value of the Customer Base<br />31<br />Reducing the rate of customer defection<br /><ul><li> selecting and training employees to be knowledgeable and friendly</li></ul>Increasing the longevity of the customer relationship<br /><ul><li> the more involved a customer is with the company, the more likely he is to </li></ul>stick around<br />Enhancing the growth potential of each customer through “share-of-<br />wallet”, cross-selling, and up-selling<br /><ul><li> increase sales from existing customers with new offerings and opportunities</li></ul>Making low-profit customers more profitable or terminating them<br /><ul><li> to avoid direct termination, marketers can encourage unprofitable customers </li></ul>to buy more or in large quantities<br />Focusing disproportionate effort on high-value customers<br /><ul><li> most valuable customers are treated in a special ways
  34. thoughful gestures can send a strong positive signal to the customer</li></ul>http://martha-ballesteros.blogspot.com/<br />
  35. 7. What customer value improvement strategy involves businesses giving special treatment to their valuable customers through birthday greetings, small gifts, and invitations to special sports or art events? <br />Reducing the rate of customer defection<br />Increasing the longevity of the customer relationship<br />Enhancing the growth potential of each customer through “share-of-wallet”, cross-selling, and up-selling<br />Focusing disproportionate effort on high-value customers<br />32<br />http://martha-ballesteros.blogspot.com/<br />
  36. 8. A ________ is where marketers can capture, query, and analyze data to draw inferences about individual customer’s needs and responses<br />Customer Database<br />Customer Mailing List<br />Business Database<br />Data Warehouse<br />33<br />http://martha-ballesteros.blogspot.com/<br />
  37. Customer Databases and Database Marketing<br />34<br />Customer Database<br /><ul><li> organized collection of comprehensive information about individual customers</li></ul>or prospects that is current, accessible, and actionable for marketing purposes<br />Customer Mailing List<br /><ul><li> a set of names, addresses, and telephone numbers</li></ul>Business Database<br /><ul><li> business customers’ past purchases; past volumes, prices, and profits; </li></ul>competitive strengths and weaknesses, and other relevant patterns and policies<br />Data Warehouse<br /><ul><li> where marketers can capture, query, analyze data to draw inferences about</li></ul>individual customer’s needs and responses<br />http://martha-ballesteros.blogspot.com/<br />
  38. Customer Databases and Database Marketing<br />35<br />Customer Database<br /><ul><li> organized collection of comprehensive information about individual customers</li></ul>or prospects that is current, accessible, and actionable for marketing purposes<br />Customer Mailing List<br /><ul><li> a set of names, addresses, and telephone numbers</li></ul>Business Database<br /><ul><li> business customers’ past purchases; past volumes, prices, and profits; </li></ul>competitive strengths and weaknesses, and other relevant patterns and policies<br />Data Warehouse<br /><ul><li> where marketers can capture, query, analyze data to draw inferences about</li></ul>individual customer’s needs and responses<br />http://martha-ballesteros.blogspot.com/<br />
  39. 8. A ________ is where marketers can capture, query, and analyze data to draw inferences about individual customer’s needs and responses<br />Customer Database<br />Customer Mailing List<br />Business Database<br />Data Warehouse<br />36<br />http://martha-ballesteros.blogspot.com/<br />
  40. 9. Which of the following is not true about building customer loyalty?<br />Listening to customers is crucial to customer relationship management<br />Personalization goes beyond creating customized information<br />Monitor customer values over time<br />Supply customers with special equipment or links to help them manage orders, payroll, and inventory<br />37<br />http://martha-ballesteros.blogspot.com/<br />
  41. Customer Loyalty<br />The commitment to repurchase or repatronize<br />a preferred product or service in the future <br />despite situational influences and marketing <br />efforts of competitors<br />38<br />http://martha-ballesteros.blogspot.com/<br />
  42. Four Types of Marketing Activities to Improve Loyalty and Retention<br />Interacting with Customers<br />Being a customer advocate by listening to customers and understanding their point of view<br />Developing Loyalty Programs<br />Helps build long-term loyalty with high customer lifetime value (CLV), creating cross-selling opportunities in the process<br />Personalizing Marketing <br />Create strong bonds with customers by individualizing and personalizing relationships<br />Creating Institutional Ties<br />Customers are less inclined to switch to another supplier when this would involve high capital costs or the loss of loyalty discounts<br />39<br />http://martha-ballesteros.blogspot.com/<br />
  43. Building Customer Loyalty<br />Listening to customers is crucial to customer relationship management Interacting with Customers<br />Personalization goes beyond creating customized information Personalized Marketing<br />Monitor customer values over time<br />Supply customers with special equipment or links to help them manage orders, payroll, and inventory Creating Institutional Ties<br />40<br />One of the<br />steps in<br />customer <br />value<br />analysis.<br />Nota loyalty <br />and <br />retention<br />marketing <br />activity.<br />http://martha-ballesteros.blogspot.com/<br />
  44. 9. Which of the following is not true about building customer loyalty?<br />Listening to customers is crucial to customer relationship management<br />Personalization goes beyond creating customized information<br />Monitor customer values over time<br />Supply customers with special equipment or links to help them manage orders, payroll, and inventory<br />41<br />http://martha-ballesteros.blogspot.com/<br />
  45. 10. PLDT keeps a database of their customers. The company makes sure that the customers get updated with their bill, the latest promos and services, as well as recommend product and service upgrades. The company utilizes their database in such ways except,<br />To identify prospects<br />To decide which customers should receive a particular offer<br />To improve customer satisfaction<br />To reactivate customer purchases<br />42<br />http://martha-ballesteros.blogspot.com/<br />
  46. Using the Database<br />43<br />To identify prospects<br /><ul><li> companies sort through a database to identify best prospects and contacts</li></ul>them by mail, phone, or personal call to try convert them into customers<br />To decide which customers should receive a particular offer<br /><ul><li> databases help companies match ideal target customer based on a criteria</li></ul>for a particular offer<br />To deepen customer loyalty<br /><ul><li> build interest and enthusiasm by remembering customer preferences</li></ul>To reactivate customer purchases<br /><ul><li> help the company make attractive or timely offers</li></ul>To avoid serious customer mistakes<br /><ul><li> updated database of customer inquiries and transactions helps companies</li></ul>avoid mistakes<br />http://martha-ballesteros.blogspot.com/<br />
  47. Using the Database<br />44<br />To identify prospects<br /><ul><li> companies sort through a database to identify best prospects and contacts</li></ul>them by mail, phone, or personal call to try convert them into customers<br />To decide which customers should receive a particular offer<br /><ul><li> databases help companies match ideal target customer based on a criteria</li></ul>for a particular offer<br />To deepen customer loyalty<br /><ul><li> build interest and enthusiasm by remembering customer preferences</li></ul>To reactivate customer purchases<br /><ul><li> help the company make attractive or timely offers</li></ul>To avoid serious customer mistakes<br /><ul><li> updated database of customer inquiries and transactions helps companies</li></ul>avoid mistakes<br />http://martha-ballesteros.blogspot.com/<br />
  48. PLDT Customer Satisfaction vs. Customer Loyalty<br />PLDT also ensures customer satisfaction through their 24-<br />hour customer service assistance and immediate response <br />team,among many others. <br />However, for this concept, PLDT tries to deepen customer <br />loyalty by sending discount coupons and giving reward<br />points to long-standing and valued customers as indicated in <br />their customer database.<br />45<br />http://martha-ballesteros.blogspot.com/<br />
  49. 10. PLDT keeps a database of their customers. The company makes sure that the customers get updated with their bill, the latest promos and services, as well as recommend product and service upgrades. The company utilizes their database in such ways except,<br />To identify prospects<br />To decide which customers should receive a particular offer<br />To improve customer satisfaction<br />To reactivate customer purchases<br />46<br />http://martha-ballesteros.blogspot.com/<br />
  50. TOP 10 Learning Questions for<br />Chapter 5<br />Creating Customer Value, Satisfaction, and Loyalty<br />Martha Ballesteros<br />December 2010<br />http://martha-ballesteros.blogspot.com/<br />

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