Chapter 7 Building customer relationships

Question 1

Relationship marketing

Answer 1

describes a shift in marketing by which companies turn away from a transaction focus towards a relationship focus

Question 2

The bucket theory

Answer 2

illustrates that a relationship approach can help to plug the holes in the bucket

Question 3

relationship value of customers

Answer 3

a concept that looks at customers from the point of view of their lifetime revenue to a company

Question 4

estimating the customer lifetime value

Answer 4

document the increased value or profits that occur for each additional customer who remains loyal to the company

Question 5

customers profitability segments

Answer 5

companies try to identify segments that differ in current and/or future profitability to a firm

Question 6

platinum - tier

Answer 6

company’s most profitable customer

Question 7

gold-tier

Answer 7

profitability levels are not as high

Question 8

iron-tier

Answer 8

essential customers

Question 9

lead-tier

Answer 9

customers who are costing the company money

Question 10

core service providers

Answer 10

customers experience management needs involve the whole organization

Question 11

switching barriers

Answer 11

influence consumer decisions to exit from relationships with firms and therefore facilitate customer retention

Question 12

relationship bonds

Answer 12

encourage customers to stay with the firm because they want to