CBA Marketing & Customer Relations Flashcards

What is the Net Promoter Score (NPS) used to measure?

Answer: Customer loyalty and the likelihood of customers recommending a company to others

NPS measures customer loyalty by asking customers how likely they are to recommend a company to others on a 0–10 scale.

Which pricing strategy involves setting a high initial price for a new product and gradually lowering it over time?

Answer: Price skimming

Price skimming sets a high initial price to capture maximum revenue from early adopters before lowering it to attract price-sensitive consumers.

What is the main goal of a customer relationship management (CRM) system?

Answer: To manage and analyze customer interactions to improve business relationships and drive sales

A CRM system helps businesses manage customer data, track interactions, and improve relationships to increase customer retention and sales.

What is 'push marketing' in a distribution strategy?

Answer: Pushing products through the distribution channel by offering incentives to intermediaries

Push marketing involves promoting products to wholesalers, retailers, or distributors who then push the product to end consumers.

What does 'positioning' mean in a marketing strategy?

Answer: How a company wants its product to be perceived in the minds of target customers relative to competitors

Positioning defines the unique space a brand or product occupies in the target customer's mind compared to competing offerings.

Which customer service metric measures the average time it takes for a support team to resolve a customer's issue?

Answer: Mean time to resolution (MTTR)

Mean time to resolution (MTTR) measures the average elapsed time from when a customer issue is reported until it is fully resolved.