Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
What is CLV |
CLV = summation from t=0 to T (M x R / (1 + i)^t) - AC |
|
|
|
How does one develop brand loyalty |
- human relationships - religion - attachment theory - social exchange theory what |
|
|
|
What is the human relationship metaphor |
Relationship w brand is similar to relationship w human |
New -> dating -> love -> boredom -> divorce |
|
|
How can you measure love |
- favorability score - trust score - community impact score - NPS |
|
|
|
What are key features of religions |
Core values Rituals Community |
|
|
|
What is social exchange theory |
- value of relationships determined by benefits - cost - we compare worth with EXPECTED worth - we compare worth with worth of competitions - we also seek out relationships where exchange is equitable/fair My costs > firms costs My benefits < firms benefits leads to resentment My costs < firms costs My benefits > firms benefits Leads to guilt |
|
|
|
What makes a price seem fair? |
- comparison to alternates - comparison to expectations (past experience, industry) |
|
|
|
How to manage brand loyalty |
- discounts - targeted offers - cumulative points |
|
|
|
What is the goal gradient effect |
- closed you get to goal, more likely you are to attain it |
|
|
|
Downsides to loyalty programs |
- over justification - negative implications for loyalty - cognitive dissonance (unpleasant state of arousal that results when two cognitions are in conflict) |
|
|
|
What is cognitive dissonance and what are its key assumptions |
- cognitions and behaviors can be consistent or inconsistent - inconsistency is unpleasant and produces dissonance - the greater the dissonance the more motivation we have to reduce it - we reduce dissonance by changing thoughts, behaviors, attitudes/by rationalizing the conflict |
|
|
|
What are some downsides of established loyal customers |
- expect more and better service - demand lower prices - less likely to spread WOM - firms may over invest in them |
|
