Creating Long-Term Relationships with Customers Is a Key Component to Surviving

question 95

Multiple Choice

Creating long-term relationships with customers is a key component to surviving and thriving in today's competitive business landscape. One tactic many companies are deploying is the use of membership or loyalty programs where customers can accumulate points and receive discounts or free merchandise. For example, Kimpton Hotels encourages customers to join their membership program and provide key contact information such as their e-mail, address, and phone number. Kimpton Hotels offers benefits such as upgrades and free room nights based on the number of stays or points a customer has accumulated. This example demonstrates how Kiimpton Hotels is utilizing:

• A) marketing mix deployment
• B) customer relationship management
• C) marketing technology
• D) competitive insight

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Definitions:

Job-Order Costing

An accounting method that assigns costs to specific jobs or batches, ideal for customized or made-to-order products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs such as utility expenses for the plant.

Cost of Goods Sold

The expenses directly linked to manufacturing the products a company sells, encompassing both the price of materials and the labor expenses directly involved in product creation.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.