What ethical issue can arise from customer loyalty programmes?

Excess spending and debt from programs encouraging overspending

How does the use of management information systems (MIS) benefit businesses in the context of customer loyalty?

Collecting data to develop better customer loyalty programs

What is a disadvantage of customer loyalty programmes?

Higher costs resulting in higher prices for goods and services

In the context of customer loyalty programmes how can customer-generated content be of benefit to

By promoting highly relevant goods and services to customers

How do businesses commonly compete to enhance customer loyalty?

Using customer loyalty programmes

Why is customer retention considered relatively cheap compared to customer acquisition?

It can be less expensive than searching for new customers

How do supermarkets commonly use customer loyalty programmes?

Providing in-store or personalized deals, Offering discounts on certain products

What is meant by the term customer loyalty?

The extent, which customers consistently repurchase from the same business

What can customer loyalty programmes help businesses to achieve in terms of their marketing strategy?

Creating timely and relevant product and promotional offers

studbud

Customer Loyalty

10 termsStudBud Administration11 plays

Imported from external platform

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
What ethical issue can arise from customer loyalty programmes?
Decreased business profitability due to competition in the market
Ineffective or impractical use of management information systems
Lower prices due to market competition
Excess spending and debt from programs encouraging overspending
2
How does the use of management information systems (MIS) benefit businesses in the context of customer loyalty?
Decreasing customer engagement through sales promotions
Ignoring customer preferences that are too expensive to implement
Reducing the customer base in order to reduce operational costs
Collecting data to develop better customer loyalty programs
3
What is a disadvantage of customer loyalty programmes?
Lower customer retention rate
Reduced customer referrals
Reduced customer base
Higher costs resulting in higher prices for goods and services
4
In the context of customer loyalty programmes how can customer-generated content be of benefit to
By promoting highly relevant goods and services to customers
By generating big data
By improving cybersecurity in order to protect customer data
By increasing prices to raise profit margins
5
How do businesses commonly compete to enhance customer loyalty?
Using customer loyalty programmes
Reducing product features
Adding product features
Increasing product prices
6
Why is customer retention considered relatively cheap compared to customer acquisition?
Existing customers are less likely to recommend a business
customer loyalty programmes are not suitable for customer acquisition
It can be less expensive than searching for new customers
Customer acquisition relies on trust and familiarity.
7
What is the most likely benefit for a business that has strong customer loyalty?
Reduced cost of sales
An increased customer base
A narrower customer base
Higher prices for products
8
How do supermarkets commonly use customer loyalty programmes?
Providing in-store or personalized deals
Charging upfront membership fees
Offering discounts on certain products
Producing vast amounts of data easily accessible via cloud technologies
9
What is meant by the term customer loyalty?
The number of customers a business has per period of time
The extent, which customers consistently repurchase from the same business
How much money customers spend on a single purchase, on average
The variety of products that a business offers
10
What can customer loyalty programmes help businesses to achieve in terms of their marketing strategy?
Using predictive text functions to communicate with customers
Creating timely and relevant product and promotional offers
Safeguarding the private data of their customers
Providing crucial computer systems to operate customer service centres

Customer Loyalty Flashcards | StudBud