Term
| Customer perceived value (CPV) |
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Definition
| is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. |
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Term
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Definition
| is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. |
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Term
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Definition
| is the bundle of costs customers expect to incur in evaluating, obtaining, using, and dis- posing of the given market offering, including monetary, time, energy, and psychic costs. |
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Term
| The value-delivery system |
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Definition
| includes all the experiences the customer will have on the way to obtaining and using the offering. |
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Term
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Definition
| is a person's feelings of pleasure or dis- appointment resulting from comparing a product's perceived performance (or outcome) in relation to his or her expectations. |
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Term
| Customer Expecations are formed from |
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Definition
| past buying experience, friends' and associates' advice, and marketers' and competitors' information and promises. |
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Term
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Definition
| is a person, household, or com- pany that over time yields a revenue stream that exceeds by an acceptable amount the com- pany's cost stream of attracting, selling, and servicing that customer. |
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Term
| Customer profitability analysis (CPA) |
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Definition
| is best conducted with the tools of an accounting technique called Activity-Based Costing (ABC). |
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Term
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Definition
| is a company's ability to perform in one or more ways that competitors cannot or will not match. |
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Term
| Customer lifetime value (CLV) |
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Definition
| describes the net present value of the stream of future profits expected over the customer's lifetime purchases. |
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Term
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Definition
| is the total of the discounted lifetime values of all of the firm's customers.4 |
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Term
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Definition
| is the customer's objective assessment of the utility of an offering based on perceptions of its benefits relative to its costs. |
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Term
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Definition
| is the customer's subjective and intangible assessment of the brand, above and beyond its objectively perceived value. |
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Term
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Definition
| is the customer's tendency to stick with the brand, above and beyond objective and subjective assessments of its worth. |
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Term
| The four-step framework for one-to-one marketing that can be adapted to CRM marketing |
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Definition
| • Identify your prospects and customers. • Differentiate customers in terms of (1) their needs and (2) their value to your company. • Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships. • Customize products, services, and messages to each customer. |
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Term
| Acquiring the right customer |
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Definition
| You've identified your most valuable customers. |
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Term
| Wunderman's suggestions for creating structural ties with the customer: |
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Definition
| 1. Create long-term contracts. 2. Charge a lower price to consumers who buy larger supplies. 3. Turn the product into a long-term service. |
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Term
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Definition
| is an organized collection of comprehensive information about individual cus- tomers or prospects that is current, accessible, and actionable for such marketing purposes as lead generation, lead qualification, sale of a product or service, or maintenance of cus- tomer relationships. |
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Term
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Definition
| is the process of building, maintaining, and using customer databases and other databases (products, suppliers, resellers) for the purpose of contacting, transacting, and building customer relationships. |
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Term
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Definition
| is simply a set of names, addresses, and telephone numbers. |
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Term
| business database would contain business customers' |
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Definition
| past purchases; past vol- umes, prices, and profits; buyer team member names (and ages, birthdays, hobbies, and favorite foods); status of current contracts; an estimate of the supplier's share of the cus- tomer's business; competitive suppliers; assessment of competitive strengths and weak- nesses in selling and servicing the account; and relevant buying practices, patterns, and policies. |
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Term
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Definition
| marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data. |
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Term
| Five ways companies use databases: |
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Definition
| 1. To identify prospects. 2. To decide which customers should receive a particular offer.3. To deepen customer loyalty.4. To reactivate customer purchases.5. To avoid serious customer mistakes. |
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Term
| 1st downside of Database marketing and CRM |
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Definition
| (1) where the product is a once-in-a-lifetime purchase (e.g., a grand piano); (2) where customers show little loyalty to a brand (i.e., there is lots of customer churn); (3) where the unit sale is very small (e.g., a candy bar); and (4) where the cost of gath- ering information is too high. |
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Term
| 2nd downside of Database marketing and CRM |
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Definition
| the difficulty of getting everyone in the company to be customer-oriented and to use the available information. |
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Term
| 3rd downside of Database marketing and CRM |
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Definition
| not all customers want a relationship with the company, and they may resent knowing that the company has collected that much personal information about them. |
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Term
| 4th downside of Database marketing and CRM |
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Definition
| the assumptions behind CRM may not always hold true. |
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