Deck 10: Marketing Strategy and CRM

Question 1

Companies should develop retention strategies based on all but which of thefollowing?

A) Monetary rewards
B) Social bonds
C) Service structure
D) Humanistic bonds
E) All are relevant.

Answer 1

All are relevant.

Question 2

What is overall or cumulative satisfaction? What is transaction-specific satisfaction?When is it most useful to use each as a measure of satisfaction?

Answer 2

Overall or cumulative satisfaction is an evaluation based on the totalpurchase and consumption experience with a good or service over time; transactionspecific customer satisfaction is an immediate post-purchase evaluation. Transactionspecific satisfaction measures are more useful in determining the effectiveness of training or other quality improvement efforts. Cumulative satisfaction measures (measures of service quality) are more useful in determining the effectiveness of customer retention efforts.

Question 3

Satisfaction is said to have an asymmetric impact on variables such as loyalty, profits, and word-of-mouth. What does this mean?

Answer 3

Regarding word of mouth, nearly all research studies have shown thatdissatisfied customers tell more people about their bad experiences with a company than satisfied customers with good experiences. Satisfaction is therefore said to have an asymmetric impact on variables, such as loyalty and profits. Also, Kumanr and Reinarts claim that the link between satisfaction and retention is asymmetric; i.e., dissatisfaction has a greater impact on retention than satisfaction.

Question 4

What is the Expectancy Confirmation/Disconfirmation Model of Satisfaction?

Question 5

B. B. Jackson identified three types of relationships that a company can have with its customers. Define each.

Question 6

Liking and preference can be based on the benefits the brand provides. These benefits can be of three types: functional, emotional, and internal. Explain the meaning of each of these three types of brand benefits.

Question 7

McKinsey recommends that companies develop a loyalty profile of their customer base that combines the elements of satisfaction, attitudes, and behavior. This results in three loyalist categories: emotive, deliberative and inertial. Define each.

Question 8

"There is not a simple linear relationship between satisfaction and loyalty." What does this statement mean?

Question 9

"Most loyal customers may not, in fact, be exclusively loyal." What does thisstatement mean?

Question 10

What is a loyalty/points/rewards program? Who offers them? What do they all have in common?

Question 11

Retention strategies can be based on rewards, programmatic and humanistic bonds, or service structure. Describe each and give an example of each.

Question 12

Reinartz and Kumar empirically tested the relationship between retention and profitability.Their findings contradicted many of the traditional tenets. What did they find?

Question 13

Why is acquisition a necessary part of the CRM strategy cycle? What steps should be taken to insure an acquisition strategy is implemented successfully?