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Chapter: Business Science : Customer Relationship Management : Understanding Customers

Important answers: Understanding Customers

Business Science - Customer Relationship Management - Understanding Customers

1. What is Customer information database?


It includes personal information such as contact addresses and phone numbers, as well as family size, location and other demographic information. many companies also use their CRM database to record purchase information, service calls, customer support needs, and even warranty information‘s.


2. What is customer profile analysis?


The marketer builds up a customer profile that gives an indication of who might typically use their outlet. Customer profile is affected by the macro business environment.


3. What do you mean by customer database?



A customer database is most often used by businesses to gather customer contact details (with permission) and buying history, so information about products and services can then be sent to customers, or segments of customers.


4. What is meant by group customers?


Group customer are referred as industrial market which consists of all the individuals or organizations who acquire goods and services that enter into the production of other products or services that are sold, rented or supplied to others.


5. What do you mean by customer lifetime value?


Customer lifetime value (CLV), lifetime customer value (LCV), or lifetime value (LTV) is the  net present value of the cash flows attributed to the relationship with a customer. The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales.





6. Define group:


A group may be defined as the aggregation of goals, develop shared attitudes and are aware that they are part of a group and perceive themselves. as such‖



7. What is customer perception?


A  marketing concept that encompasses a  customer's impression,  awareness and/or consciousness about a  company or its offerings. Customer perception is typically affected by  advertising,  reviews, public relations, social media, personal  experiences and other  channels.




8. Why do we use customer analysis?


Customer analysis is the process of determining customer segmentation, value, purchasing behavior and motivation in order to better target marketing and increase sales.


9. What is CRM database?



A CRM database is a program of stored information that is relevant and useful to the success of your business. CRM database programs can be used as standalone software, incorporated with existing databases, such as Outlook or Excel, or a combination of the two. What a CRM database may hold can vary greatly due to the type of business, the focus of marketing, and the direction in which the business is going. A CRM database can be used for customer information, employee tasks, marketing plans, and a variety of other daily business functions.


10. List out the benefits of customer database?



Benefits of a customer database



·        Increase awareness of your brand


·        Enhance marketing opportunities


·        Build and strengthen relationships between you and your customers


·        Build trust in your products and services


·        Increase your profits



11.            What are the factors influencing the customer behavior? Consumers buying behavior is influenced by


1. Cultural



2. Social



3. Personal and



4. Psychological factors.



12.            Define consumer behavior?



According to belch and belch,‖ consumer behav when searching for selecting, purchasing, using, evaluating and disposing of products and services so as to satisfy their needs and desires.‖

A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller or vendor. This is typically through purchasing or renting goods or services.


13. What is meant by customer profitability?



Customer profitability can also provide an estimate of firm value, thus providing a link between marketing investment and shareholder return. The premise of customer based valuation is simple.


If the customers are the key profit generators of a firm and we can estimate the lifetime value of each customer, the current and future customer base of a company should provide a good proxy for its market value.


14. Describe the process of selective perception process?



Selective perception process:



1. Selective exposure



2. Selective attention



3. Selective comprehension



4. Selective Retention.



15. What is zone of tolerance?



The gap between the desired and adequate service has been called the Zone of tolerance. If services drop below adequate service –the minimum level considered acceptable- customers will be frustrated and their satisfaction with the company will be undermined. The zone of tolerance might be considered as the range or window in which customers do not particularly notice service performance.


16. What is customer segmentation?



Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests, spending habits, and so on. Using segmentation allows companies to target groups effectively, and allocate marketing resources to best effect.


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