Chapter 12 ID Flashcards
customer’s willingness to
continue patronizing a firm over the long run
old-fashioned word that has traditionally been used to
describe fidelity and enthusiastic
Loyalty
included feelings by customers that in an established relationship, there was less risk of something going wrong,
Confidence benefits
embraced mutual recognition between customers and
employees, being known by name
Social benefits
included better prices, discounts on special deals
that were unavailable to most customers,
Special treatment benefits
These customers form a very small percentage of a
firm’s customer base, but are heavy users and tend to contribute
a large share of the profits.
Platinum
They tend to be slightly more price sensitive and less committed to the firm.
Gold
These customers provide the bulk of the customer base.
Their numbers give the firm economies of scale.
Iron
Customers in this tier tend to generate low revenues for a
firm, but often still require the same level of service as iron
customers
Lead
The foundation for building true loyalty lies in
customer satisfaction
drives customers away and is a key factor in switching behavior.
dissatisfaction
occurs at low satisfaction levels. Customers will switch if switching costs are high or there are no viable
or convenient alternatives.
The zone of defection
is found at moderate satisfaction levels.
Here, customers are willing to switch if they find a better alternative.
The zone of indifference
is located at very high satisfaction levels,
where customers have such high attitudinal loyalty that they do not look for alternative service providers.
The zone of affection
used to describe customers who drop off a company’s radar screen and transfer their purchases to another supplier.
Defection
referred to as share-of-wallet and share-of-heart.
True loyalty
refers to a true liking and
emotional attachment of the firm, service, and brand.
includes behaviors such as buying again, a high share-of-wallet,
providing positive word-of mouth, and attitudinal loyalty
Behavioral loyalty
Progressive service firms regularly conduct what is called _______ to gain a better understanding of why customers defect.
Churn diagnostics
