BUAD 307 - Study Guide Questions

BUAD 307 - Study Guide Questions - Chapter 1 An Overview of...

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Chapter 1: An Overview of Marketing 1. What are some characteristics of firms “interested in customer value?” (Pg. 7) a. Offer products that perform: this is the bare minimum requirement. Consumers have lost patience with shoddy merchandise b. Earn trust: Diane Hessan, CEO of Communispace in Watertown, Massachusetts, says that “selling" is all about the right to do business with someone. Put yourself in their shoes, and understand what the issues are. In today’s business environment, the most critical element of any sale is trust. Ultimately, when someone says yes to you, they are saying, ‘I’m betting on what this person is telling me.’” c. Avoid unrealistic pricing: E – Marketers are leveraging Internet technology to redefine how prices are set and negotiated. With lower costs, e-marketers can often offer lower prices than their brick-and-mortar counterparts. The enormous popularity of auction sites such as eBay and Amazon.com and the customers are interested in bargain prices. Many are not willing to pay a premium for the convenience of examining the merchandise and taking it home with them. d. Give the buyer facts: Today’s sophisticated consumer wants informative advertising and knowledgeable salespeople. Web sites that don’t provide enough information are among the top ten things that irk Internet shoppers most. e. Offer organization – wide commitment in service and after-sale support: People fly Southwest Airlines because the airline offers superior value. Although passengers do not get assigned seats or meals (just peanuts or crackers) when they use the airline, its service is reliable and friendly and costs less than most major airlines. All Southwest employees are involved in the effort to satisfy customers. Pilots tend to the boarding gate when their help is needed, and ticket agents help move luggage. 2. Within the context of customer satisfaction, what did the study on customer attrition show? (Pg. 7) a. Reducing customer attrition by just 5 to 10 percent could increase annual profits by as much as 75 percent. 3. What does the strategy of “relationship management” involve? (Pg. 7-8) a. Relationship management is a strategy that focuses on retaining and improving relationships with customers. It is based on the premise that customers would like to buy from someone they trust rather than from a new company. Thus maintaining good relations with a customer is vital in helping to successfully market a product to them. 4. Within the context of personnel and customer satisfaction, what does the idea of “empowerment” involve? a. It involves giving employees more ownership of solving customer service problems. By making the employees feel like part-time owners of the company the employees will automatically act in the best interest of the company and feel more motivated to deal with customer service issues.
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Chapter 2: Strategic Planning for Competitive Advantage 1. What does a “competitive advantage” involve? (Pg. 19)
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BUAD 307 - Study Guide Questions - Chapter 1 An Overview of...

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