Week 1 Homework Assignment: Chapters 1 Questions 4 and 7
Cruz A. Morin II

Devry University

Chapter 1
4. Why does word – of – mouth “advertising” work so effectively?
Word – of – mouth advertising works of effectively because it is the simplest way to advertise. When people receive either excellent service or a good deal on a product they will talk about to everyone they know. Companies know this really well and want to ensure that is what is delivered to each customer weather it is a new customer or someone that has been a customer for a long time. Every company wants positive word – of – mouth advertising because it is free to them. The other way that word – of – mouth advertising is being updated now is with the use of social media by everyone. Besides regular social media sites you also have review sites that people post both good and bad reviews on (ex. YELP). 7. What do we mean by an “engaged” customer, and how does this relate to customer loyalty? An “engaged” customer is someone who feels that they have an emotional tie to the company that they are doing business with. Most companies will use loyalty programs to in a way entice customers to keep returning. When extremely satisfied customers have been asked if they felt an emotional tie and many said no. If a company wants to truly rise the level of customer loyalty they have to increase the emotional tie in that each customer fills and at the end of the day if there is no tie in with the emotions then you can be the top rated company in customer satisfaction and it will be as valuable to you as old unsold inventory that has to be sent back to a manufacturer.

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