WK 2: VALUE AND SATISTFACTION

Question 1

Define Customer Lifetime Value:

Answer 1

value of all the purchases of a product/brand that a customer will make over a lifetime

Question 2

Define Share of Customer:

Answer 2

Fraction of a customer’s purchasing in the marketers product category

Question 3

Define Customer Equity

Answer 3

combined total customer lifetime value of all company customers

Question 4

Perceived values are relative to ___ and ____

Answer 4

Perceived costs and relative judgment

Question 5

satisfaction is _____ and measured by _____

Answer 5

judgement in decision making
Psychological responses

Question 6

Satisfaction is based on :

Answer 6

customer’s experience with the product/service

• Aiming to exceed customer’s expectations may be problematic
• Overemphasis on exceeding expectations, rather focus on fulfilling core needs
• Measuring/implementing with ease and respect
• Understand the core needs and who has those
• Interpersonal aspects of customer company interactions are important

Question 7

Feeling ___ is one of the primary correlates of individuals happiness across many cultures

Answer 7

Respected

Question 8

You can influence perceived costs by;

Answer 8

-providing a reference price

-highlighting low opportunity costs

-highlighting costs of not using the product
(For example, by buying product xyz, you can save $500/ year)

Question 9

How Infomercials Create Value

Answer 9

Increase perceptions of benefits

-Highlight current problems/needs
-Illustrate how product solves problems
-Segregate gains
-Demonstrating multiple uses of the product
-Consensus social information
Example: sold millions of this product

Decrease perceptions of costs
-Provide high reference prices
-Other product prices that are more expensive
-Add ons
-Provide other cost comparisons

Question 10

30 “elements of value” which fall under four categories:

Answer 10

functional, emotional, life changing, and social impact

Question 11

Some elements do matter more than others,
___ affects customer advocacy more than any other element

Answer 11

Quality

Question 12

In general, the ___ elements provided = the greater customer’s loyalty and the high the company’s sustained revenue growth

Answer 12

More

Question 13

Customers are __ to punish bad service, rather than to reward good

Answer 13

Quick