general business data bank

| August 14, 2017

1. Managers who believe the customer is the
company’s only true “profit center” consider the traditional organization chart
to be obsolete.

2. The modern customer-oriented organization
chart places top management at the top of the pyramid as long as they can think
like consumers.

3. There are two determinates of
customer-perceived value: total customer benefit and total customer cost.

4. Customer-perceived
value is the perceived monetary value of all the purchases a customer makes on
an annual basis.

5. Consumers tend to
be value maximizes—they estimate which offer will deliver the most perceived
value and act on it.

6. At the heart of a
good value delivery system is a set of core business processes that help to
deliver distinctive customer value.

7. Professional buyers and purchasing agents
operate under various constraints and occasionally make choices that give more
weight to their personal benefit than to the company’s benefit.

The value proposition is stated
in the price of a product and readily recognized by the average consumer.

9. The value delivery system includes all the
experiences the customer will have on the way to obtaining and using the

10. P
For a consumer to be delighted with a product or service he or she must
perceive that performance exceeds expectations.

11. The ultimate goal of the customer-centered
firm is to create high customer satisfaction.

12. One key to
customer retention is customer satisfaction.

13. Consumers’
expectations result exclusively from past buying experiences.

14. A highly
satisfied customer generally stays loyal longer, pays less attention to
competing brands, and is less sensitive to price.

15. Price perception is the totality of
features and characteristics of a product or service that bear on its ability
to satisfy stated or implied needs.

16. Conformance quality and performance quality
is essentially the same thing in a marketing sense.

17. Two products with
very different performance qualities can have the same conformance quality if
both products deliver their respective promised quality.

18. Marketers have found that pricing plays the
most essential role in defining and delivering high-quality goods and services
to target customers.

19. The midsize customers for most
organizations receive good service, pay nearly full price for the products and
services they purchase, and are often the most profitable.

20. A profitable customer is a person,
household, or company that over time yields a revenue stream that exceeds by an
acceptable amount the company’s cost stream of attracting, selling, and
servicing the customer.

21. The best thing a
company can do in the face of company mistakes is to discourage the customer
from complaining.

Quality is the key to value creation and customer

22. The least
profitable 10% to 20% of customers can reduce profits by 50% to 200% per
23. Most companies measure customer
satisfaction and individual customer profitability.

24. Unprofitable customers who defect to a
competitor should be encouraged to do so.

25. Customer profitability analysis (CPA) is
best conducted with the tools of an accounting technique called activity-based
costing (ABC).

26. According to customer profitability
analysis (CPA), platinum customers spend the most money with the organization,
thereby making them valuable.

27. Customer lifetime value (CLV) describes the
net present value of the stream of future profits expected over the customer’s
lifetime purchases.

28. A good illustration of a personal touch in
the hotel business would be if the hotel employees (e.g., registration, maid
service, et cetera) call a guest by his or her name.

customer touch point is the time when the customer makes a purchase.

30. The aim of customer relationship management
is to keep the costs of meeting and tracking consumers as low as possible.

31. All companies
should practice one-to-one marketing.

32. A key driver of shareholder value is the
aggregate value of the customer base.

33. Customer churn is how rapidly a store can
move customers through its checkout facility or process.

34. The average company loses 25% of its customers each year.
A customer database is simply a
listing of a customer’s name, address, and phone number for credit reference.

It’s often easier to reattract
ex-customers (because the company knows their names and histories) than to find
new ones.
Answer: True

analysis is a good example of a statistical technique that might be employed in

It always costs less to serve
loyal customers than to attract new ones.

marketing is most frequently used by business marketers and service providers
(hotels, banks, airlines, and insurance, credit card, and telephone companies)
that normally and easily collect a lot of customer data.

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