MKT 300 Study Guide - Midterm Guide: Internal Communications, Trademark Symbol, Marketing Mix
Document Summary
Chapter 7 creating customer satisfaction & loyalty. Custo(cid:373)er satisfa(cid:272)tio(cid:374): a (cid:272)usto(cid:373)er"s positi(cid:448)e (cid:374)eutral, or (cid:374)egati(cid:448)e feeli(cid:374)g a(cid:271)out the (cid:448)alue re(cid:272)ei(cid:448)ed fro(cid:373) a(cid:374) orga(cid:374)izatio(cid:374)"s produ(cid:272)t i(cid:374) spe(cid:272)ifi(cid:272) use situations. Customer lifetime value (clv): the amount of profit a company expects to obtain over the course of a customer relationship. Satisfied customers: are insulated from competition, tolerate price increases, are less likely to shop, are likely to become loyal. Unhappy customers: only 4% of dissatisfied customers complain, each dissatisfied customer tells nine other people, o(cid:448)er 90% of u(cid:374)happy (cid:272)usto(cid:373)ers (cid:449)o(cid:374)"t (cid:271)e (cid:271)a(cid:272)k, are unlikely to become loyal. All satisfied customers are not loyal & all loyal customers are not satisfied. Complaining customers: satisfied customers may complain out of commitment. If recovery occurs, they tend to be more loyal than before. Relationships build satisfaction and loyalty: empathy, trust. Focus on customer value leadership: the best way to increase the value of a business is the develop a lasting base of loyal customers.
