Relationship Marketing

Question 1

relationship marketing d

Answer 1

relationship marketing consists of attracting, developing and retaining customers

Question 2

key characteristics of relationship

Answer 2

every customer considered individual person,
activities predominantly directed towards existing customers,
based upon interactions and dialogues

Question 3

what is the Keiretsu system

Answer 3

companies in value chain become closely linked through system of arrangements often for exclusive supply of components and raw materials

Question 4

how much more expensive is it to get a new customer than to retain an old one

Answer 4

6 times

Question 5

what is functional conflict

Answer 5

positive conflict

Question 6

how does the time perspective relate to transactional marketing and relationship marketing respectively

Answer 6

transactional marketing - short term,

relationship marketing - long term

Question 7

what is transactional marketing

Answer 7

business strategy that focuses on single ‘point of sale’ transactions

Question 8

what is the marketing emphasis of transactional and relationship marketing respectively

Answer 8

transactional - marketing mix,

relationship - interactive marketing

Question 9

who is involved within the firm in maintaining the relationships (relationship marketing)

Answer 9

engineers, administrators, delivery drivers, the whole firm

Question 10

example of relationship marketing for B2C

Answer 10

nectar card,

frequent flyer programmes

Question 11

why is there a need for customer retention

Answer 11

constant flow of new customers needed to replace losses

Question 12

what is price loyalty

Answer 12

provided the organisation remains the price leader, these customers will remain loyal (could desert due to increase in earnings)

Question 13

what is monopoly loyalty

Answer 13

loyal because firm is the only one in the market

Question 14

what is inertia loyalty

Answer 14

most will remain loyal to most products we buy simply because saves trouble of finding a new product

Question 15

what is emotional loyalty

Answer 15

customers who are prepared to pay extra for the product who are loyal to it whatever happens

Question 16

what is the best type of loyalty

Answer 16

emotional loyalty because the customer is prepared to pay extra for the product and are loyal to it whatever happens

Question 17

what is disloyalty

Answer 17

dissatisfied customers will tell other customers about experiences and will often persuade others to leave

Question 18

what do businesses have to have to resolve issues

Answer 18

a good problem resolution system

Question 19

how do consumers work out the value of the relationship with companies

Answer 19

benefits gained less costs incurred compared with alternatives available

Question 20

what are the most important things companies have to do when dealing with a problem (relationship marketing)

Answer 20

offer a fair outcome (refunds exchanges),
offer a fair procedure,
offer fair treatment (customers treated honestly politely and with concern)

Question 21

are loyalty cards working

Answer 21

not a lot of evidence that customers remain loyal to one store,
customers do not value the benefits of the cards enough to change their shopping habits