Diff: 1
LO: 1-4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
AACSB: Analytical thinking
94) Describe and compare the four types of customers classified by their potential profitability to an organization. Identify how an organization should manage each type of customer.
Answer: The four types of customers are strangers, butterflies, true friends, and barnacles.
1. "Strangers" have low potential profitability and loyalty. A company's offerings do not fit well with a stranger's wants and demands. Companies should not invest in building a relationship with this type of customers.
2. Another type of customer in which a company should not invest is the "barnacle." Barnacles are highly loyal but not very profitable because there is a limited fit between their needs and the company's offerings. The company might be able to improve barnacles' profitability by selling them more, raising their fees, or reducing service to them. However, if they cannot be made profitable, they should be "fired."
3. Like strangers, "butterflies" are not loyal. However, they are potentially profitable because there
is a good fit between the company's offerings and their needs. Like real butterflies, this type of customer will come and go without becoming a permanent, loyal consumer of a company's products. Companies should create satisfying and profitable transactions with them, and then cease investing in them until the next time around.
4. The final type of customers is "true friends." They are both profitable and loyal. There is a strong fit between their needs and the company's offerings, so the company should make continuous relationship investments in an effort to go beyond satisfying and to delight these customers. A company should try to delight true friends so that they will tell others about their good experiences with the company.
Diff: 3
LO: 1-4: Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return.
AACSB: Analytical thinking
95) ________ marketing is perhaps the fastest-growing marketing platform.
A) Online
B) Social media
C) Mobile
D) Website
E) Blog
Answer: C
Diff: 1
LO: 1-5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships.
AACSB: Analytical thinking
96) ________ involves machines that think and learn in a way that looks and feels human but with a lot more analytical capacity.
A) Not-for-profit marketing
B) Globalization
C) Artificial intelligence
D) Social responsibility
E) Sustainable marketing
Answer: C
Diff: 2
LO: 1-5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships.
AACSB: Application of knowledge
97) Digital and social media marketing involves using digital marketing tools such as websites, social media, mobile ads and apps, online video, email, blogs, and other digital platforms to engage consumers.
Answer: TRUE
Diff: 2
LO: 1-5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships.
AACSB: Analytical thinking
98) Today, almost every company, large or small, is touched in some way by global competition.
Answer: TRUE
Diff: 1
LO: 1-5: Describe the major trends and forces that are changing the marketing landscape in this age of relationships.
AACSB: Application of knowledge
99) Discuss the opportunities and challenges that new communication technologies have created for marketers.
Answer: Through the Internet and related technologies, people can now interact in direct and surprisingly personal ways with large groups of others, from neighbors within a local community to people across the world. With communication technologies such as e-mail, blogs, websites, online communities, online social networks, and Twitter, today's marketers incorporate interactive approaches that help build targeted, two-way customer relationships. Marketers can create deeper consumer involvement and a sense of community surrounding a brand, making a brand a meaningful part of consumers' conversations and lives. However, while new communication tools create relationship-building opportunities for marketers, they also create challenges. They give consumers a greater voice, and therefore greater power and control in the marketplace. Today's consumers have more information about brands than ever before, and they have a wealth of platforms for airing and sharing their brand views with other consumers.