A profitable customer over time yields a revenue

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Systems Architecture
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Chapter 6 / Exercise 5
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2. A profitable customer over time yields a revenue stream equal to the company's cost stream. F 3. Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called Activity-Based Costing (ABC). T 4. Customer lifetime value describes the net present value of the stream of future profits expected over the customer's lifetime purchases. T 5. A customer touch point is the time when the customer makes a purchase. F 6. The first step in reducing the customer defection rate is to define and measure Tretention rate. T 7. The most profitable customers can be treated in a special way F 8. Many companies confuse a customer mailing list with a customer database. T 9. Database marketing is the process of building, maintaining, and using customer databases for the purpose of contacting, transacting, and building customer relationships. T 10. A customer mailing list contains business customers' past purchases, past volume, prices and profits. F 11. A 5 percent reduction in the customer defection rate can increase profits by 25 percent to 85 percent. T 12. Most companies measure customer satisfaction and individual customer profitability. F
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Systems Architecture
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Chapter 6 / Exercise 5
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Burd
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13. A Canadian Business magazine survey found that WestJet scored the highest satisfaction rating in the Canadian airline industry-89 percent. T 14. Unprofitable customers should be encouraged to switch to competitors. T 15. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partners . T 16. A major driver of company profitability is the aggregate value of the company's customer base. T 17. Frequency marketing is an acknowledgement of the fact that 80 percent of a company's customers might account for 20 percent of its business. F 18. Through data mining, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data. T 19. Building a customer database would not be worthwhile where customers show great loyalty to a brand. F 20. Building a customer database would not be worthwhile where the product is a once- in-a-lifetime purchase. T 21. Some CRM assumptions, such as the assumption that it costs less to serve more loyal customers, might not always hold true. T 22. 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. F Тема 6

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