StreamPlus has one of the highest customer loyalty ratings in the entertainment industry, with a significant percentage of current streaming subscribers continuing to renew their subscriptions on a yearly or month-to-month basis. In addition, many customers have canceled their cable or satellite subscriptions and rely almost exclusively on streaming services such as StreamPlus and Hulu for their entertainment. StreamPlus is available for $139/year, or customers can also choose to pay by the month for $14.99/month. If a significant percentage of subscribers continue their service on an annual basis, StreamPlus can build a stable revenue stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to StreamPlus for five years and generated more than $1,000 in revenue for the company. Which of the following marketing terms best captures the importance of customer loyalty and its impact on StreamPlus?

A conservative current operating asset financing approach will result in permanent current assets and some seasonal current assets being financed using long-term securities.

Long-term relationships with profitable customers are the key objective of which of the following?

Scenario 1.2. Use the following scenario to answer the questions. ​ FurStay is a full-service pet salon and boarding kennel. FurStay has an interactive website where customers can directly book a grooming appointment, obedience class, or overnight accommodations for their dog or cat. FurStay has several unique services, such as a 600-square-foot swimming pool, complete with a slide and dog-friendly graduated steps to help dogs exit the pool. Customers can also drop their dog or cat off each morning for pet day care. FurStay has a pickup and delivery service, webcams in every kennel so that pet families can view their pets while away, and pet “furniture” so that cats and dogs can lie on sofas just like at home. FurStay is also open 24 hours a day, 365 days each year, so that customers can pick up their pet at any time. ​ The cost for an overnight stay at FurStay averages $75, compared to competing kennels at about $50. The day care costs are $40 for either a dog or a cat. The majority of FurStay’s competitors don’t offer day care services and require a two-day minimum for overnight stays.   Informal discussions with customers led to the addition of pet day care and 24-hour operations. Previously, FurStay was more interested in competing based on its prices.Refer to Scenario 1.2. If FurStay employs the philosophy of building relationships with its dog and cat customers and their owners, it will be implementing which of the following?

You work in the marketing department of a company that sells skincare products directly to customers. Recently, your CEO decided they want to expand and begin selling through popular retailers. You have been given the task of identifying retailers that reach a significant portion of the target market, but that also fit with the quality of your company’s brand. Once these retailers are selected, you are to work with these retailers to negotiate shelf placement. Your job deals mainly with which marketing mix element?

IBM has worked, as an organization, to improve its positive impact on society and the natural environment. These efforts are also known as which of the following?

Mynda owns a company that sells snowboards. During the winter, she sells so many snowboards that she constantly has to restock. However, Mynda always seems to have dozens of snowboards left in inventory once spring hits and demand falls rapidly. To try and sell these excess snowboards, Mynda offers steep discounts on her products, invests heavily in advertising to make consumers aware of the discounts, and instructs her in-store salespeople to use strong persuasion tactics to convince them to purchase the remaining snowboards. During this period of time, what type of orientation is Mynda embracing?

The public is becoming more aware of how marketers’ activities affect the welfare of consumers and society. As a result, more firms are working to do which of the following?

Scenario 1.3. Use the following scenario to answer the questions. A meeting of the Council of Supply Chain Management Professionals featured a presentation from an executive from Dell, which is known for its ability to customize computers to customers’ needs and provide quality products through its retail channel. The executive discussed the firm’s capabilities regarding the ability to produce products that are “built-to-order” and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, Dell began forging relationships with retailers such as Target to provide a limited number of computer models in the retailers’ stores. In order to fulfill the orders to Target, Dell was required to make changes in its production and manufacturing, such as holding more products in inventory and utilizing different modes of transportation. For example, Dell was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As Dell shifted from a “build-to-order” manufacturer to a “make-to-stock” manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to retail partners like Target, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. Dell’s ability to modify its business model by forging relationships with retailers such as Target, as well as customer insights, has helped the company achieve its revenue and profitability goals.Refer to Scenario 1.3. Which environmental factor is exemplified by the customer trend that consumers were no longer willing to wait 7 to 10 days for a build-to-order computer and led Dell to modify its business model to become a make-to-stock manufacturer?

For most products, the costs of marketing activities consume approximately what portion of the consumer’s dollar?