Identifying information 118 the degree to which

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Topic: 13-06 Identifying information 118. The degree to which consumers feel their privacy has been violated depends upon what two factors? The two factors are (1) the customer's control over their personal information when engaging in marketplace transactions, and (2) their knowledge of the collection and use of personal information. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Easy Learning Objective: 13-01 Define customer relationship management. Topic: 13-07 Privacy and CRM programs 13-52
Chapter 13 - Building Customer Loyalty: Customer Relationship Management and Service Strategies 119. What information is generally included in the privacy policies of most online retailers? Privacy policies state (1) what information is collected from each visitor, (2) how the information will be used, (3) give customers a choice as to whether they give information, (4) allow them to view and correct personal information held by a site, and (5) ensure that consumer information is held securely and is not passed on to other companies without the consumer's permission. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Medium Learning Objective: 13-01 Define customer relationship management. Topic: 13-07 Privacy and CRM programs 120. Define lifetime customer value (LTV), and explain how it is estimated? The LTV is the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer. It is estimated by using past behaviours to forecast future purchases, gross margin from these purchases, and costs associated with servicing the customers. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Medium Learning Objective: 13-02 Examine how retailers determine who their best customers are. Topic: 13-10 Identifying best customers 121. Explain why the customer pyramid is more appropriate to use than the 80-20 rule for identifying customers. The customer pyramid is a better tool than the 80-20 rule for identifying customers because it is divided into four segments, which includes all customers and all sales. The pyramid is divided into platinum, gold, iron, and lead, which correspond to the most loyal customers to customers who actually cost the company money. Because of this, the retailers can develop more appropriate strategies on how to target all shoppers, not just a percentage of them. Accessibility: Keyboard Navigation Blooms: Remember Difficulty: Medium Learning Objective: 13-02 Examine how retailers determine who their best customers are. Topic: 13-10 Identifying best customers 13-53
Chapter 13 - Building Customer Loyalty: Customer Relationship Management and Service Strategies 122. Describe how catalogue retailers and direct marketers develop a scheme for segmenting customers? These retailers use a RFM (recency, frequency, monetary) analysis to segment customers based on how recently they made a purchase, how frequently they make purchases, and how much they have bought.

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