QUIZ # 3

THE UNIVERSITY OF LAHORE

HAIDER ALI BAIG

70066100

MARKETING MANAGEMENT

BBA-5B

MS. Sumaira Irshad

LAHORE BUSINESS SCHOOL

UNIVERSITY OF LAHORE ISLAMABAD CAMPUS
Q#1: What is customer relationship management? Elaborate its frame work and
enlist its strategies.
ANSWER: CRM is the abbreviation for customer relationship management. CRM
entails all aspects of interaction that a company has with its customer, whether it is
sales or service-related. CRM is often thought of as a business strategy that enables
businesses to:
Understand the customer.
Retain customers through better customer experience.
Attract new customer.
Win new clients and contracts Increase profitably.
Decrease customer management costs.

CRM solutions provide you with the customer business data to help you provide
services or products that your customers want, provide better customer service,
cross-sell and up sell more effectively, close deals, retain current customers and
understand who the customer is.

Another related development is vendor relationship management, or VRM which

provide tools and services for customers to independently manage their relationship
with vendors. VRM development has grown out of efforts by Projector at Harvard's
Berkman Center for Internet & Society and Identity Commons' Internet Identity
Workshops, as well as by a growing number of startups and established companies.
VRM was the subject of a cover story in the May 2010 issue of CRM Magazine.[15]
In 2001 Doug Laney developed the concept and coined the term 'Extended
Relationship Management' (XRM).[16] Laney defines XRM as extending CRM
disciplines to secondary allies such as government, press, and industry consortia.
Q#2: What is customer perceived value? Describe its determinants in detail.
ANSWER: Perceived customer value is marketing and branding related concept that
points out that success of a product is largely based on whether customers believe it
can satisfy their needs. This phrase emphasizes that when a company develops its
brand and markets its products, customers ultimately determine how to interpret
and react to marketing messages. Companies spend significant time researching the
market to get a sense of how customers think and feel.

Customers are free to choose which supermarket that becomes the shopping
medium for them. One of the supermarkets which face this kind of atmosphere is
Hypermart. One of the efforts to attract customers to Hypermart is by offering not
only quality service but valuable service for the customers. Effective customer value
is the value that can satisfy customers and make them to be loyal customers. Retail
business competition is tight; thus marketers have to offer service which has more
than valuable service but superior value service compared to the other potential
competitors. Based on the description, customer value bears important role to win
the competition in business so that we need to figure out how far customer value
can satisfy customers and make them loyal. For this reason, customer value needs to
be continuously developed through research that is continuously developed as well.
It is aimed to refine whenever there a customer value which is quite satisfying and
develop the value to make them loyal. For this reason, it needs a research that
correlates customer value with satisfaction and customer loyalty. Based on the
background, the research problem is about how to create customer loyalty through
customer value and customer satisfaction. Additionally, it is also aimed to examine
the role customer value on customer satisfaction and customer loyalty .