CRM 3

Question 1

What 4 factors meant the growth of relationship marketing

Answer 1

IT advances.
Direct marketing growth.
The recognition that companies needed to acquire new customers.
The need to analyse client data.

Question 2

Why do consumers want to engage in relationship marketing

Answer 2

Greater efficency in decision making.
Reduce task of information processing.
Increased cognitive consistency in thier decision.
Reduces perceived risk of future decisions.
Ahere to - behaviours of family members , influence of peer groups.

Question 3

How relationship marketing affects marketing effectiveness

Answer 3

Increased knowledge of customers.
Can develop customised products/services.
Minimise opportunities for negative images of marketing.

Question 4

How relationship marketing affecfs marketing efficiency.

Answer 4

Increased customer retention.
Reduce mass marketing wastes.
Customers essentially do a lot of the marketers work such as through order processing and product design.

Question 5

Describe the 4 types of customer

Answer 5

1. loyalists - satisfied customers that become apostles of tbe company.
2. Mercenaries- only loyal to low prices, have no interest in establishing relationships.
3. Hostages - ‘stuck’ with the conpany for a variety of reasons.
4. Defectors - previous customers that have been previously dissatisfied.

Question 6

Types of conpany to customer relationship

Answer 6

Intimate- e.g. patient to doctor
Face to face - e.g. customers to retail stores.
Distant - e.g. phone/online interactions.
No relationship -e.g when products are bought through distributor - dealer chanel

Question 7

Types of customer satisfaction

Answer 7

Overall (circulative)

Transaction specific