chapter 1

Question 1

customer relationship management [CRM]

Answer 1

a companywide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.

Question 2

customer satisfication

Answer 2

customers’ evaluation of a good or service in terms of whether it has met their needs and expectations customer satisfaction customers’ evaluation of a good or service in terms of whether it has met their needs and expectations

Question 3

customer value

Answer 3

the relationship between benefits and the sacrifice necessary to obtain those benefits customer value the relationship between benefits and the sacrifice necessary to obtain those benefits

Question 4

empowerment

Answer 4

delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem empowerment delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem

Question 5

exchange

Answer 5

people giving up something in order to receive something else they would rather have exchange people giving up something in order to receive something else they would rather have

Question 6

market orientation

Answer 6

a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept market orientation a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product; it is synonymous with the marketing concept

Question 7

marketing

Answer 7

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large marketing the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

Question 8

market concept

Answer 8

the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives marketing concept the idea that the social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting organizational objectives

Question 9

production orientation

Answer 9

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace production orientation a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

Question 10

relationship marketing

Answer 10

a strategy that focuses on keeping and improving relationships with current customers relationship marketing a strategy that focuses on keeping and improving relationships with current customers

Question 11

sales orientation

Answer 11

the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits sales orientation the belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits

Question 12

societal marketing orientation

Answer 12

the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests societal marketing orientation the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals’ and society’s long-term best interests

Question 13

teamwork

Answer 13

collaborative efforts of people to accomplish common objectives teamwork collaborative efforts of people to accomplish common objectives