Final answer:
Marketing managers foster customer loyalty by offering cumulative quantity discounts, encouraging repeat purchases. Similar to a money-back guarantee, this strategy provides customers with confidence when buying, especially for remote purchases. A strong reputation leads to less concern about quality and can sustain higher prices.
Step-by-step explanation:
Marketing managers can develop loyalty with customers by offering cumulative quantity discounts, which foster repeat buying. This tactic is part of a broader marketing strategy aimed at increasing customer loyalty and encouraging ongoing business relationships. By providing discounts based on the quantity purchased over time, customers are motivated to continue buying from the same company in order to receive a better deal.
In the goods market, this strategy is akin to a money-back guarantee, an agreement that serves as a promise of quality and mitigates risk for the consumer. This is particularly beneficial for businesses selling products remotely, such as through mail-order catalogs or online, which do not offer customers the opportunity to inspect products beforehand. The money-back guarantee and cumulative quantity discounts both provide assurance to customers, encouraging them to make a purchase with confidence.
Building a good reputation is crucial for businesses seeking repeat customers, who are likely to refer new customers as well. A positive reputation means consumers worry less about product quality, which can justify higher prices compared to less established vendors. Overall, these strategies serve to develop a trusted brand that values customer satisfaction and fosters long-term customer relationships.