Ch. 14 Building Customer Relationships Flashcards
A principle that maintains that 80 percent of a company’s sales will come from 20 percent of its customers.
80/20 principle
An enduring opinion, based on a combination of knowledge, feelings, and behavioral tendencies.
attitude
Behavioral patterns and values that characterize a group of consumers in a target market.
culture
A collection of information about a customer as defined by CRM goals, including personal, demographic, lifestyle, and transaction data; online habits; past responses; and complaint history.
customer database
An approach that recognizes that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future.
customer experience management (CEM)
The total profit expected from all future sales to a customer.
customer lifetime value (CLV)
A company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on specific customer groups.
customer relationship management (CRM)
A process of identifying customers that fit into smaller, more homogeneous groups.
customer segmentation strategy
The features or characteristics of a product or service that customers use for comparison.
evaluative criteria
A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase need.
evoked set
Goal-directed forces that organize and give direction to the tension caused by unsatisfied needs.
motivations
The starting point for all behavior.
needs
A group member who plays a key communications role.
opinion leaders
The individual processes that give meaning to the stimuli confronting consumers.
perception
The process of grouping things that are perceived as being similar.
perceptual categorization
The psychological tension or anxiety that occurs when a customer has second thoughts immediately following a purchase.
post-purchase dissonance
An analysis that reveals customers most likely to buy from a firm in the future because they have made purchases recently, frequently, and in amounts that exceed some established minimum.
recency-frequency-monetary analysis
Small groups that an individual allows to influence his or her behavior.
reference groups
Divisions within a society having different levels of social prestige.
social classes
An interaction between a business and its customers.
touch point
An association between a business and a customer that begins (or ends) with a purchase or a business deal.
transactional relationship
