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Strategic Brand Managment > Brambach - Relationship Marketing > Flashcards

Brambach - Relationship Marketing Flashcards

1
Q

Explain the term „experience“.

A
  • exiting/noteworthy event experienced > short-term
  • knowledge gained by going/living through something > long-term
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2
Q

Describe the success chain.

A

Relationship Marketing > customer satisfaction > customer retention > economic success

all while considering internal and external moderating factors

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3
Q

What are the external moderating factors in the success chain.

A
  • heterogenity of customers expectations, dynamics and complexity of the market
  • variety seeking, image, number of alternatives, customer search for convenience
  • Net present value of customers, performance orientation of customers, willingness to pay, switching behavior
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4
Q

What are the internal moderating factors in the success chain?

A
  • customization of products/services, heterogeneity of product and service portfolio, complexity of p&s
  • switching problems, duration of contracts, functional links of p&s offered by the firm, emotional ties
  • structure and quality of customer data, employee fluctuation, pricing restriction
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5
Q

What may cause additional turnover and profit as a result from relationship marketing?

A
  • repurchase(s)
  • cross buying
  • tolerance for price increases
  • recommendations
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6
Q

What are the phases in customer relationship life cycle used in relationship marketing?

A
  • Acquisition
  • Retention
  • Recovery
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7
Q

What are the major tasks in each phase of the customer life cycle?

A
  • Acquisition: stimulation, persuasion, acclimatisation
  • Retention: dependence, solidarity (emotional connection)
    > customization, building switching barriers, cross selling and efficiency improvement
  • Recovery: Improvement/ Error rectification, Restitution, Re- stimulation and persuasion

(Relationship Termination: passive/active withdrawal, definite or revocable termination)

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8
Q

What are the reasons for customer Acquisition?

A
  • fewer customer gains compared to competitors
  • small group of regular customers
  • the firm has less profitable customers that could be acquired
  • current customers are less profitable than the ones on the market
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9
Q

What are possible limitations of customer acquisition?

A
  • selected group does not want company’s offer
  • the customers do not trust the company to fulfill their needs an expectations
  • customer perceive the switching costs to high
  • customer has doubts because of potential switching costs
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10
Q

What are instruments for customer acquisition?

A
  • TV ads
  • free trials
  • Demo version
  • Money guarantee
  • social media
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11
Q

What are the reasons for the customer retention strategy?

A
  • high churn rate
  • immediately loses new customers
  • cross selling only on a low degree
  • cannot utilize cost saving potential for existing relationships
  • has many customers that are also using competitors’ products
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12
Q

What’s re possible limitations for the customer retention strategy?

A
  • neglect of customer acquisition/ recovery
  • focus on one “core customer group” and neglect of others
  • customers that are not profitable now could become profitable later
  • some measures of customer retention only create “cold loyalty” (dependence) instead of (emotional) loyalty (solidarity)
  • risk of inflation if customer expectations by too many retention measures
  • possible reactance and over- saturation
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13
Q

What are the two possible types of loyalty when talking about customer retention?

A
  • dependence (cold loyalty)
    > limited (/no) freedom of switching
    > an enforced (artificial) tie
  • solidarity (real loyalty)
    > caused by satisfaction and trust
    > maximum freedom to switch the supplier
    > unconstrained (natural) emotions attachment/ connection
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14
Q

What switching barriers are there?

A
  • Technical/ functioning switching barriers (e.g., customer service for a specific car)
  • Contractual switching barriers
  • Economic switching barriers (loss of a discount for services etc.)
  • Situational switching barriers (convenience, time constraints or monopoly etc.)
    > dependence
  • Emotional switching barrier (because of built satisfaction and trust) (price guarantee, customer integration, newsletter, complaint management, free delivery, etc,)
    > solidarity
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15
Q

What are the reasons for customer recovery strategy?

A
  • high churn rate
  • company´s mistakes are the cause for this churn rate
  • recovery more profitable than acquisition
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16
Q

What are the possible limitations of the recovery strategy?

A
  • the mistakes that lead to churn are too grave
  • the former customer could feel harassed by the attempt to re-connect
  • it could be too expensive
  • danger of regaining customer by using a monetary trigger which results in cold loyalty
17
Q

What are the motives for the loyalty of our customers?

A
  • Social integration (social closeness, acceptance, sociality, affiliation)
  • Continuity (routine, disburden, convenience, security)
  • Loyalty (solidarity, thankfulness, trust, security)
  • Autonomy (independence, freedom, self-worth, emancipation)
  • Variety (curiosity, entertainment, striving for innovations)
  • Opportunism ( selfishness, price-interest, distrust)
18
Q

What is the impact on the customer in the center of the success chain?

A

Relationship judgement > Psychological level (customer satisfaction) > Behavioral consequences (word-of-mouth communication)

19
Q

What is cognitive dissonance?

A

> the state of having inconsistent thoughts, beliefs or attitudes, especially as relating to behavioral decisions and attitude change

> mental conflicts that need to be resolved before a potential customer can proceed developing an interest

20
Q

What is interest?

A

> the feeling of wanting to give your attention to something or wanting to be involved with and to discover more about something

> the base feeling that focusses the potential customer on the product as possible solution (as part of stimulation)

21
Q

What is attention?

A

> Behavioral and cognitive process of selectively concentrating on a discrete aspect of information (subjective or objective) while ignoring other perceivable information

> attention creates the focus on the possible problem solution provided by the company (as part of persuasion)

22
Q

What is recognition?

A

> the fact of knowing someone/ -thing because you have seen or heard them or experienced it or public appreciation for their achievements before

> recognition is the knowledge of the company´s problem solution (> resolved cognitive dissonance and part of persuasion)

23
Q

What is preference?

A

> the fact of liking one thing/person more than another

> the advanced step in persuading the potential customer of the company´s problem solution

24
Q

What is image?

A

> a picture in your mind or an idea of how someone/-thing is

> final positive belief of the potential customer that leads to the first purchase and will developed further within the relationship

25
Q

What is perceived quality?

A

> subjective belief or opinion of the customer on how good or bad something delivered from the company is

> level of delivery of the company must be (perceived as) good

26
Q

What is perceived value?

A

> is a belief or opinion of customer of the worth of the quality delivered by the company

> price-quality relationship must be reasonable

27
Q

What is customer satisfaction?

A

> opinion/ belief or knowledge on how well the quality delivered in on the level of customer expectation

> most important positive emotion
created if teh company meets expectations

28
Q

What is trust?

A

> belief that someone is good/ reliable/ safe and honest and will not harm you and the confidence that the company will act the same way in the future

> positive expression of positive perceived relationship quality and a difficult to measure emotion of a customer
pre-requisite of a long term relationship

29
Q

What is commitment?

A

> willingness to give your time and energy to something you believe in and is of high importance to you

> result and pre-requisite of a relation
kind of self-obligation to maintain the positive relationship to the company

Strategic Brand Managment (2 decks)

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