chapter 3 Flashcards
discrete life events
Events that have immediate impacts on many aspects of customers’ purchase decisions.
aging effect
Changes in a person’s motivation, ability, preferences, and consumption choices as they grow older.
customer learning efect
Theprocess where users of a particular product or service become more familiar with the product, and thus are more likely to repurchase the same product in the future.
product lifecycle
A well-recognized phenomenon that captures prototypical changes in customers’ purchase criteria and marketers’ actions as the product category matures.
product lifestyle stages:
: introduction, growth, maturity, and decline.
acquisition stage
A stage where customers first evaluate and begin to deal with a firm, at
or before first contact, where they start to learn about the firm’s offerings and how to transact with the firm.
customer onboarding
The planned process of introducing new customers to a firm to improve their long-term satisfaction and loyalty.
expansion stage
A stage where firms are trying to upsell or cross- sell in order to expand sales and engagement with existing customers, in addition to predicting and adapting to customers’ future migrating paths.
retention stage
A stage that deals with customers who are migrating due to a basic propensity to switch.
hidden markov model
A statistical model that can uncover “states” of customer behaviors, as well as how those states evolve. (states are different types of behaviors - increased spending, frequent spending)
transactional state
A relationship state with low levels of customer trust, commitment, dependence, and relational norms.
transitional state
A relationship state where customers exhibit higher profit potential, cooperation, and sales growth.
communal state
A relationship state where customers exhibit
the highest trust, commitment, profit potential, cooperation, and sales growth.
damaged state
A relationship state where customers have low levels of trust and commitment and very low relational norms and cooperation.
lost customer analysis
is a powerful, after-the-fact diagnostic tool. In the simplest form, a firm contacts customers who have migrated away, to identify the cause for this change, then works backward to fix the problem and ensure other customers don’t leave for the same reason.
