Marketing 301 1st Edition Exam 2 Study Guide Chapter 6 Customer loyalty refers to the degree to which a customer will select a particular brand when a purchase from that product category is being considered Buyers exhibit varying degrees of loyalty toward the brands they purchase Companies use a discount rate because revenue collected in the future is worth less than revenue collected today The last step in developing a one to one relationship with customers is to customize your products or services for each customer segment Customer Value Expected Benefits Expected Costs Only customers who are delighted can be counted on to remain loyal to a brand Customer satisfaction refers to the degree to which a product meets or exceeds customer expectations Relationship Marketing is the organizational commitment to developing and enhancing long term mutually beneficial relationships with profitable or potentially profitable customers Customer relationship management CRM comprises the activities that are used to establish develop and maintain customer sales A value map is a graphical representation of the ratio between customers perceived benefits and the perceived cost of a product A dissatisfied customer is associated with a negative degree of satisfaction with a product Products that fall within the fair value zone are perceived to deliver benefits equal to the products total cost Customer satisfaction is the degree to which a product meets or exceeds customer expectations It costs 5 7 times more to recruit new customers than it does to retain existing customers Customer relationship management comprises the activities that are used to establish develop and maintain customer sales Relationship marketing is the organizational commitment to developing and enhancing long term mutually beneficial relationships with profitable or potentially profitable customers Managers use a value map to track and manage the perceived value customers assign to their brands as well as to competitors brands Product champions are satisfied customers who cannot wait to share their experiences with anyone who listens Functional benefits are the most basic and visible benefits of a product These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Data mining is the statistical analysis of large databases seeking to discover hidden pieces of information Identify and gather as much detail as possible about your customers Is the first step in developing a one to one relationship with customers Customer value is the difference between the benefits a customer expects to receive from a product and the total cost incurred from acquiring using and disposing of the product The Pareto Principle is often referred to as the 80 20 rule Chapter 7 Fine Jewelry is an example of an approach product Theory of Planned Behavior attempts to explain how attitudes behaviors and norms influence consumer behavior Reinforcement is defined as a reduction in drive resulting from a positive response experience Consumer problem solving is how someone comes to a conclusion about a situation Significant problem solving occurs when the product is expensive and there are great implications if a poor choice is made such as when purchasing a new car Limited problem solving occurs when a consumer is prepared to exert a certain amount of effort to make a purchase decision Routine problem solving occurs when a consumer has a well developed process associated with fulfilling a need or want New product problem solving is not a type of consumer problem solving Opinion leaders have the greatest influence on the attitudes and behaviors of a particular group Post purchase evaluation is the last step of the decision making process Cognitive age is how old a person feels not how old that person actually is Self identity is an individual s understanding that he or she is unique Culture is the shared values beliefs and preferences of a particular society Consumer behavior is the dynamic interaction of affect and cognition behavior and the environment in which human beings conduct the exchange aspects product and service purchases of their lives Personality is best described as a sense of consistency internal causality and personal distinctiveness Norms are standards of behavior imported to members of a group The emotional factor known as the adventure or journey of reinvention is the idea that individuals seek products and services such as exotic vacations that create excitement or enable introspection according to the Boston Consulting Group Perception is a cognitive impression of incoming stimuli that influences an individual s actions and behavior Problem or opportunity recognition is the first step of the decision making process Information search is the second step in the consumer decision making process In this step Mishael would ask her friends which tablets they like and she might do some online research to see what tablets she might be interested in Evaluation of alternatives is the next step in the decision making process Purchase decision is the fourth step in the consumer decision making process An example of an avoidance product is automobile services Insurance medical services and deodorant are also examples of avoidance products Avoidance products are those products that consumers would not regularly consider unless the use of such a product would reduce the likelihood of something unpleasant occurring Entertainment automobiles fine jewelry and fashionable clothing are examples of an approach product Approach products consist of products that consumers gain enjoyment from using Information search is the stage of the buyer decision process in which the consumer is motivated to search for more data on the product Self identity is an example of a personal influence on decision making Chapter 8 A ratio scale is a measurement in which the numbers assigned to the characteristics of the objects have an identifiable absolute zero During the defining the problem step of the marketing research process is when marketers determine whether marketing research is necessary and viable Ethnographic research is a type of observational research where trained researchers immerse themselves in a specific consumer environment The reliability is the level of consistency of the measurement when talking about the reliability of a sample A small number of individuals who were