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Marketers need to concentrate on relevant measures that determine whether the good or service they are offering meets the quality expectations of their target customers.

Total customer satisfaction involves ensuring that the good or service totally conforms to the customer's requirements and monitoring customer satisfaction on a regular basis.

Although very important and growing in popularity among customer-oriented companies, total customer satisfaction is still just an intangible concept.

A totally satisfied customer contributes 2.6 times as much revenue to a company as a somewhat satisfied customer.

A totally satisfied customer contributes 10 times as much revenue to a company as a somewhat dissatisfied customer.

The lifetime value of a customer is the revenue and intangible benefits that a customer brings to the seller over an average lifetime less the amount the company must spend to acquire, market to, and service that customer.

The sum of the value of all of a firm's customers and prospects (total LCV) is called consumer goodwill.

The cost of retaining old new customers is higher than the cost of acquiring new customers.

There are 4 marketing challenges that highlight the importance of concentrating on providing value: (1) escalating customer expectations, (2) competitive forces, (3) cost pressures, and (4) employee demands.

Quality, productivity, and service all result from the way that a business operates.

Customers determine which companies are leaders in providing value based on their assessments of companies' operational excellence, the superiority of their offerings versus competition, and the responsiveness of the company to customer needs and demands.

The benchmarking process consists of five stages: planning, analysis, integration, actions, and maturity.  Analysis involves establishing functional goals and recalibrating the benchmarks.

A particularly valuable function of marketing audits is highlighting where an organization stands with respect to providing total quality to its customers.

A customer satisfaction management program (CSM) focuses on identifying key performance areas to simply meet the average customer's expectations.

Most North American airlines operate on the basis of CSM programs: their seats are designed for people of average height and build, their food is sufficient to meet the tastes and nutritional requirements of most North American travelers, and they offer specific services, such as boarding assistance, on request.

A restaurant with a CSM program would offer the types of foods that its target market wants, provide the level and type of service that they prefer, and provide the type of entertainment that members of its target market will find appealing.  A restaurant with a CRM program would do all of this, plus it would ensure that it always has a supply of the brands and vintages of wines that specific members of its regular clientele usually order.

Databases are particularly valuable for CSM programs because they enable management to make good use of all the data the firm might collect on individual customer behaviour.

Database information about a specific customer's past purchase behaviour can be combined with other information being held in the same database, such as the customer's age and gender, to better understand how to please this customer  in the future.

The transactional view of marketing and the relationship view of marketing are the same in every way except that they have different objectives.

The transactional view of marketing is focused on making the business successful in the short-term while the relationship view of marketing is concerned with long-term success.

The ability of a good or service to fully and without reservation conform to the customer's requirements is called

The approach to business known as total customer satisfaction recognizes

Customer feedback input, customer satisfaction surveys, and total quality control are part of a(n)

Achieving total customer satisfaction can result in a company realizing

A relationship developed with a customer can provide long-term value to both the customer and the firm.  The benefit it provides to the firm is called

Customer loyalty is increasingly being recognized as the path to long-term profitability for a firm.  In part, this is because the costs of acquiring new customers are high and include

The marketing management function is divided into two primary activities.  Focusing on lifetime-customer value concentrates an organization on the activities associated with

The vision of an organization should be to add value for customers and employees. Value is a subjective term related to expectations about cost, time, quantity, quality, and human factors.  Value is defined by

Building value is a function of a five-link chain which

A marketing plan is primarily concerned with how to add value.  One way to do this is through benchmarking, which is

Systematically assessing variables like marketing plans, objectives, strategies, programs, activities, organizational structure, and personnel for a company is known as a(n)

Marketing audits are now used to assess how well the firm is doing in managing customer relationships and providing total customer satisfaction.  However, they were traditionally used to

An important component in achieving total customer satisfaction is

A bank would be implementing ____________________ when it has an annual party for its customers with the objective of developing long-term, cost-effective links of mutual benefit.

Customer relationship marketing (CRM), customer satisfaction management (CSM), and mass customization are

One of the key differences between a customer relationship marketing (CRM) program and a customer satisfaction management (CSM) program is that

Another key difference between CRM programs and CSM programs is that

The first three steps in the CRM process are

Implementing a CRM program involves five categories of activities.  One of the five categories of activities is customizing products.  This means that the customer can

Mass customization involves having flexibility in scheduling production in order to