MKT 300 Study Guide - Midterm Guide: Neighborhood Watch, Miller Lite, Brand Equity
Document Summary
Customer satisfaction: is the customer"s positive, neutral or negative feeling about the value received from an organization"s products in specific use situations. The 80/20 rule : 80% of a company"s profits are generated by 20% of its customers, 20% of customers are known as target market. Loyal customers: sales to increase revenue. Customer lifetime value (clv): the amount of profit an organization expects to obtain over the course of a customer relationship. 70% of all sales come from repeat purchases of loyal customers: less concerned about price. Results higher profit margins for the company: reduces organization costs. Cost structure: is the amount of resources required to produce a specific amount of sales. Cost of acquiring a new customer is 5 to 25 times more expensive than keeping an existing one. Customer expectations: are consumer believes about the performance of a product based on prior experience and communications: personal experience, advertising and promotion, observation of others, company actions.
