1. TOP 10 Learning Questions for (Chapter 5: Creating Customer Value, Satisfaction, and Loyalty) Francine Luanne M Collantes September 2011 http://francollantes.blogspot.com

2. 1. How do customers make choices? This question can BEST be answered by which statement according to Philip Kotler? Customers are strongly influenced by “recommendations from other consumers”. Customers look at the costs and risks associated in buying the product or patronizing the service offered Customers are value maximizers The power is with the customer Customers look at the long-term value in their relationship with the company 2 http://francollantes.blogspot.com

4. Have tools to verify claims

5. Can seek out superior alternativesKotler’s example: Caterpillar led by maximizing total customer value in construction-equipment despite having Volvo, Hitachi, Komatsu around as competitors http://francollantes.blogspot.com

6. 4 1. How do customers make choices? This question can BEST be answered by which statement according to Philip Kotler? Customers are strongly influenced by “recommendations from other consumers”. Customers look at the costs and risks associated in buying the product or patronizing the service offered Customers are value maximizers The power is with the customer Customers look at the long-term value in their relationship with the company http://francollantes.blogspot.com

7. 2. Product, Services, Personnel, and Image belong to which category as determinants of Customer-Perceived Value? Total Customer Value Total Customer Benefit Total Customer Cost Total Customer Proposition Total Customer Perception 5 http://francollantes.blogspot.com

8. Total Customer Benefit = perceived monetary value of benefit customers expect from a given market offering because of the product, service, people, & image 6 Total Customer Benefit Total Customer Cost - Product Monetary Customer Perceived Value = Service Time Personnel Energy Image Psychological Reference: Fig 4.1 Determinants of Customer-Perceived Value, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com

9. 7 2. Product, Services, Personnel, and Image belong to which category as determinants of Customer-Perceived Value? Total Customer Value Total Customer Benefit Total Customer Cost Total Customer Proposition Total Customer Perception http://francollantes.blogspot.com

10. 3. Value Proposition consists of the whole cluster of benefits the company ________ to deliver promises perceives proposes plans prepares 8 http://francollantes.blogspot.com

11. San Miguel’s value proposition lies on their promise of the experience of a “SamahangWalangKatulad” 9 http://francollantes.blogspot.com

12. 3. Value Proposition consists of the whole cluster of benefits the company ________ to deliver promises perceives proposes plans prepares 10 http://francollantes.blogspot.com

13. 4. Loyalty is a deeply held commitment to rebuy or _______ a preferred product or service in the future despite situational influences. repurchase repatronize reprocure repay repossess 11 http://francollantes.blogspot.com

15. Repeat patronagehttp://francollantes.blogspot.com

16. 13 4. Loyalty is a deeply held commitment to rebuy or _______ a preferred product or service in the future despite situational influences. repurchase repatronize reprocure repay repossess http://francollantes.blogspot.com

17. 14 5. Which of the following statements best describe why there’s a need to build customer value? Creating lasting customers is at the heart of every business Creating lifelong customers is at the heart of every business Creating long-term customers is at the heart of every business Creating loyal customers is at the heart of every business Creating lifetime customers is at the heart of every business http://francollantes.blogspot.com

18. The only value your company will ever create is the value that comes from customers - now and in the future 15 Without customers, you don’t have any business http://francollantes.blogspot.com

19. A loyal customer looks at only you, regardless of other choices or alternatives present in the market 16 http://francollantes.blogspot.com

20. 17 5. Which of the following statements best describe why there’s a need to build customer value? Creating lasting customers is at the heart of every business Creating lifelong customers is at the heart of every business Creating long-term customers is at the heart of every business Creating loyal customers is at the heart of every business Creating lifetime customers is at the heart of every business http://francollantes.blogspot.com

21. 18 6. If a company’s performance falls short of expectations, the customer gets _________. Distracted Displeasured Dissatisfied Discontented Disappointed http://francollantes.blogspot.com

23. Result of comparing:

24. Perceived performance vsExpectations

25. High satisfaction = High customer loyaltyhttp://francollantes.blogspot.com

26. 20 6. If a company’s performance falls short of expectations, the customer gets _________. Distracted Displeasured Dissatisfied Discontented Disappointed http://francollantes.blogspot.com

27. 21 7. Which rule implies that a company could improve its profits by “firing its worst customers? 150-40 rule 150-50 rule 150-30 rule 150-20 rule 150-10 rule http://francollantes.blogspot.com

29. deep discounts

30. More COSTLY!

31. Receive minimal service

32. pay full price

33. Less COSTLY = More PROFITABLE!http://francollantes.blogspot.com 22

34. 23 7. Which rule implies that a company could improve its profits by “firing its worst customers? 150-40 rule 150-50 rule 150-30 rule 150-20 rule 150-10 rule http://francollantes.blogspot.com

35. 24 8. Which of the following is true? Customer Relationship Management is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyalty Customer Relationship Management focuses on programs to attract and retain the right customers Customer Relationship Management enables companies to provide excellent real-time customer service None of the above All of the above http://francollantes.blogspot.com

36. 25 CRM is managing detailed information and individual touch points to maximize loyalty Source: http://www.crm-strategy.net/crmpres.htm http://francollantes.blogspot.com

37. 26 Customer Relationship Management is in attracting and retaining the right customers PARTNERS Advocates Members Patrons First-Timers Prospects Potentials http://francollantes.blogspot.com

38. 27 Sun Cellular uses detailed account information of its clients to provide real-time customer service as part of its CRM program http://francollantes.blogspot.com

39. 28 8. Which of the following is true? Customer Relationship Management is the process of carefully managing detailed information about individual customers and all customer “touch points” to maximize loyalty Customer Relationship Management focuses on programs to attract and retain the right customers Customer Relationship Management enables companies to provide excellent real-time customer service through the effective use of individual account information None of the above All of the above http://francollantes.blogspot.com

40. 29 9. It is the process of building, maintaining, and using customer databases contact, transact, and build customer relationships. Database Warehousing Database Mining Database Marketing None of the above All of the above http://francollantes.blogspot.com

41. 30 For marketers to know their customers, they should follow a process Collect information Store these information in a database Use these information to conduct database marketing Reference: Downside of Database Marketing and CRM p.167, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com

42. 31 McDonalds uses its McDelivery Online to gather information from customers to build personal relationships with its customers http://francollantes.blogspot.com

43. 32 9. It is the process of building, maintaining, and using customer information to contact, transact, and build customer relationships. Database Warehousing Database Mining Database Marketing None of the above All of the above http://francollantes.blogspot.com

44. 33 10. The following are the functions of Data Warehouses and Data Mining EXCEPT: It allows businesses to capture, query, and analyze customer needs and responses It makes it easy for everyone in the company to be customer oriented and use valuable information It deepens customer loyalty It avoids serious customer mistakes It allows business to make proactive, knowledge-driven decisions http://francollantes.blogspot.com

45. 34 Five main problems can prevent a firm from effectively using CRM Some situations are not conducive to database management Building and maintaining it requires a huge investment It may be difficult to get everyone in the company to be customer oriented and use the available information Not all customers want a relationship with the company The assumptions behind CRM may not always hold true Reference: Downside of Database Marketing and CRM p.167, A Framework for Marketing Management, 4th Ed, Philip Kotler and Kevin Lane Keller, 2009 http://francollantes.blogspot.com

46. 35 10. The following are the functions of Data Warehouses and Data Mining EXCEPT: It allows businesses to capture, query, and analyze customer needs and responses It makes it easy for everyone in the company to be customer oriented and use valuable information It deepens customer loyalty It avoids serious customer mistakes It allows business to make proactive, knowledge-driven decisions http://francollantes.blogspot.com

47. TOP 10 Learning Questions for (Chapter 5: Creating Customer Value, Satisfaction, and Loyalty) Francine Luanne M Collantes September 2011 http://francollantes.blogspot.com