Lecture 1

Question 1

Share of Wallet

Answer 1

The part that a specific person spends on a brand of it’s relevant budget.

Question 2

Under the Costumer Concept you want…

Answer 2

1. …to make customers loyal to your brand/firm
2. …via fulling the needs of the individual customers
3. …to be able to select individual customers for the marketing activities

Question 3

Consumer knowledge

Answer 3

= knowledge about consumers

Question 4

Types (examples) of consumer knowledge

Answer 4

• Needs of the customer
• Values of the customer
• Satisfaction of the customer
• Length of the relationship
• Characteristics of the customer
• Attitude of the customer
• Commitment of the customer

Question 5

Two types of customer data

Answer 5

Structured (transactions etc.) vs. unstructured (interactions, WOM)

Question 6

Customer Concept

Answer 6

the belief that prescribes the unit of analysis every marketing action and reaction to be the individual customer. Taking the individual as starting point for marketing activities/decisions

Question 7

Customer orientation

Answer 7

Maximizing the value (profitability) of customers
The implementation of the customer concept and focuses on:
- increasing CLV -> V2F, by:
- Trough creating loyalty
- Trough increasing satisfaction
- Trough delivering on customer values

Question 8

Market orientation

Answer 8

Maximize the value of products and/or services

Question 9

Relational intelligence

Answer 9

Being aware that customers can have various types of relationships with a company

Question 10

Every loyal customer profitable?

Answer 10

No!

• not always cost less to serve
• not always willing to pay more

Question 11

The three outdated pillars of CRM

Answer 11

1. Relationships are stand-alone (silo) investments
2. They are like loving marriages in which both live happily ever after
3. Valuation is easy and linear, accounting for: acquisition, development and retention.

Question 12

Strategic behavior of consumers

Answer 12

• Adapt purchase behavior based on expectations of future promotions
• Switching without having intentions to remain loyal

Question 13

Costumer social value

Answer 13

Arises out of the influence consumers have on each other, recommendation, WOM etc.

Question 14

Interaction response capacity

Answer 14

The degree to which firms offer successive products/services/relationship experiences to each customer with dynamically incorporating feedback

Question 15

Interaction orientation

Answer 15

A firm’s ability to interact with its individual customers & to take advantage of information obtained from them via previous interactions.

Question 16

4 components to interaction orientation

Answer 16

1. Customer concept
2. Interaction response capacity
3. Customer empowerment
4. Customer value management

Question 17

Customer value management

Answer 17

The extent to which a firm can define and dynamically measure individual customer value and use it as its guiding metric for resource allocation

Question 18

Customer empowerment

Answer 18

The extent to which a firm provides it customers:

1. Connect with the firm and shape the nature of transactions
2. Connect and collaborate with each other by sharing information, praise, criticism, suggestions etc.

Question 19

If you want to be able to categorize your customers by relational types, you’ll need to….

Answer 19

… gather information that reveals their feelings and expectations.