Chapter 18: Part 2

Question 1

Committed customer

Answer 1

emotional attachment to brand or firm, consumer loyal to a brand

Question 2

Brand loyalty can arise through a # of processes, including:

Answer 2

• Brand identification
• Brand comfort
• Brand delight

Question 3

More difficult to develop

Answer 3

brand-loyal consumers in some categories than for others

Question 4

Churn

Answer 4

turnover in a firm’s customer base

Question 5

Important step in developing marketing strategy is to specify objectives being pursued, possibilities include:

Answer 5

1. Attract new users to the product category
2. Capture competitors’ current customers
3. Encourage customers to use more
4. Encourage current customers to become repeat purchasers
5. Encourage current customers to become committed customers

Question 6

Relationship marketing

Answer 6

attempt to develop an ongoing, expanding exchange relationship

Question 7

Relationship marketing has five key elements:

Answer 7

1. Developing a core service or product around which to build a customer relationship
2. Customizing the relationship to the individual customer
3. Augmenting the core service or product with extra benefits
4. Pricing in a manner to encourage loyalty
5. Marketing to employees so that they will perform well for customers

Question 8

Customer loyalty programs

Answer 8

lots of effort, helps consumers become loyal and rewards them for it

Question 9

Important to distinguish between programs that

Answer 9

generate repeat customers and those that generate committed and loyal customers