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Marketing Final Exam

With the customer name and describe each of these

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Unformatted text preview: ethods of payment that increase the likelihood of purchase are strategies used for this pricing objective. PTS: 1 REF: 194 Communication KEY: CB&E Model Pricing OBJ: 12-4 TOP: AACSB MSC: BLOOMS Synthesis 9. Relationship marketing can be practiced at three levels, with each level adding a new kind of bond with the customer. Name and describe each of these levels, using a legal service to illustrate each level. ANS: LEVEL 1: FINANCIAL BONDS. This level of relationship marketing is based mainly on pricing incentives that encourage customers to continue doing business with a firm. A legal service could offer discounts to long-term customers or to customers who use the service frequently or regularly. LEVEL 2: SOCIAL BONDS. This level also uses pricing incentives but additionally seeks to build social bonds with customers. This means staying in touch with clients, learning about their needs, and designing the service to meet those needs. For example, the legal service could send thank-you cards or call clients to see if they were satisfied and ask about other desired services. LEVEL 3: STRUCTURAL BONDS. This level of relationship marketing uses financial and social bonds but adds structural bonds. Structural bonds are developed by building value-added services into the service that are not readily available from other firms. This might include exclusive after-hours phone numbers for special clients; transportation services to and from legal hearings or the legal offices; fax, computer, or express document services; or permanent office space reserved for special clients’ use. PTS: 1 REF: 195 Communication KEY: CB&E Model Strategy OBJ: 12-5 TOP: AACSB MSC: BLOOMS Synthesis 10. What is the difference between internal marketing and relationship marketing? Why are these types of marketing important to service marketing? ANS: INTERNAL MARKETING means treating employees as customers and developing systems and benefits that satisfy their needs. A firm that engages in internal marketing practices activities such as competing for talent, offering a vision, training employees, stressing teamwork, giving employees more freedom to make decisions, measuring and rewarding quality, and knowing employees’ needs. The quality of a firm’s employees is an important part of service quality. Employees who like their jobs and are happy with their company are more likely to deliver highquality service. Internal marketing provides a strong foundation for the external marketing of services. RELATIONSHIP MARKETING is a means for attracting, developing, and retaining customer relationships. Satisfied customers who are loyal will buy additional services from the firm and are unlikely to switch to a competitor. Satisfied customers are also likely to engage in positive wordof-mouth communications, thereby bringing in new customers. Because many services involve a process of continuous interaction between the service organization and the customer, relationship marketing is a...
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