MRKT 354 Chapter Notes - Chapter 1-5: Pepsi Blue, Conjoint Analysis, Outsourcing
29 Apr 2016
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Chapter 1- customer focus, customer performance, profit impact. Don"t copy companies in first place (copying technology from two years ago) Customer satisfaction and loyalty drive customer profitability. Should you be happy with a csi of 72% Should always keep trying to get higher index. Depends who are the competitors, why are the 28% unsatisfied, historical levels, industry bench marks, incremental gains vs. philosophy of cs excellence. Why is customer retention important and how does a firm effectively retain customers? dissatisfied customers often do not complain, but they do walk and they do talk retained customers are profit drivers. Dissatisfied customers=loss in the short or long term. New customers are less profitable in the short-term. To hold market share in a mature market a business must replace lost customers. The higher the cr rate the greater the profit impact. Higher cr=longer customer life and therefore lifetime value. Customer loyalty index= customer history + purchase amount + desire to repurchase + product.
