Question 1

Through campaign management,all areas of the company participate in the development of programs targeted to customers.

Accepted Answer

A) True 
 B)False  True

Question 2

You have decided your business should adopt a CRM marketing approach.You have invested in computer software that captures customer data such as name,address,age,education,and lifestyle characteristics.Now,you find many customers are reluctant to provide you with such information.What are the general consumer concerns regarding this issue,and how could you address these concerns?

Accepted Answer

CRM strategies concern many Americans because of the potential for invasion of privacy.The sheer volume of information that is aggregated in databases makes this information vulnerable to unauthorized access and use.
Many consumers are concerned because they know that many companies actively sell huge amounts of personal information to list compilers.Further,there is widespread misunderstanding among consumers about existing privacy laws and regulations.Frustrated by their lack of control,consumers want more opportunities to determine how their personal information will be used.They are also distressed by spam and by the amount of information collected about them online.Given these concerns,it is critical that marketers remember that their relationships with customers are built on trust.Unless companies can win that trust,they will be unable to offer the benefits that CRM can provide.

Question 3

To initiate the CRM cycle,a company must first:

Accepted Answer

A) establish marketing objectives. 
B) capture relevant customer data on interactions. 
C) identify customer relationships with the organization. 
D) understand the interactions the company has with current customers. 
E) decide on a segmentation strategy. 
A) establish marketing objectives. 
B) capture relevant customer data on interactions. 
C) identify customer relationships with the organization. 
D) understand the interactions the company has with current customers. 
E) decide on a segmentation strategy. C

Question 4

Empowerment in a CRM environment is normally a process of collecting customer information through customers' feedback on products.

Accepted Answer

A) True 
 B)False

Question 5

_____ uses a past set of occurrences to predict the likelihood that some other occurrence,such as a response or purchase,will take place in the future.

Accepted Answer

A) Customer manipulation 
B) Predictive modeling 
C) Data mining 
D) Lifetime value analysis 
E) Causal research 
A) Customer manipulation 
B) Predictive modeling 
C) Data mining 
D) Lifetime value analysis 
E) Causal research

Question 6

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

Accepted Answer

A) predictive 
B) compiled 
C) response 
D) actionable 
E) disintegrated 
A) predictive 
B) compiled 
C) response 
D) actionable 
E) disintegrated

Question 7

In a CRM environment,_____ is defined as an informal process of collecting customer data through customer comments and feedback on product or service performance.

Accepted Answer

A) leveraging 
B) knowledge management 
C) interaction 
D) data mining 
E) learning 
A) leveraging 
B) knowledge management 
C) interaction 
D) data mining 
E) learning

Question 8

Data mining identifies the most profitable customers and prospects.Managers can then design tailored marketing strategies to best appeal to the identified segments.In CRM,this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

Accepted Answer

A) manipulating 
B) leveraging 
C) harvesting 
D) converting 
E) managing 
A) manipulating 
B) leveraging 
C) harvesting 
D) converting 
E) managing

Question 9

As the second step in the CRM cycle a company must:

Accepted Answer

A) establish marketing objectives. 
B) capture relevant customer data on interactions. 
C) identify customer relationships with the organization. 
D) understand the interactions the company has with current customers. 
E) decide on a segmentation strategy. 
A) establish marketing objectives. 
B) capture relevant customer data on interactions. 
C) identify customer relationships with the organization. 
D) understand the interactions the company has with current customers. 
E) decide on a segmentation strategy.

Question 10

Communications between customers and organizations that occur in stores or at information kiosks are called:

Accepted Answer

A) live interactions. 
B) point-of-sale interactions. 
C) empowerment points. 
D) survey interactions. 
E) product interactions. 
A) live interactions. 
B) point-of-sale interactions. 
C) empowerment points. 
D) survey interactions. 
E) product interactions.

Question 11

Frequent Flyers
If you think George Clooney's character in the movie Up in the Air was pure fiction,think again.Clooney portrayed a frequent flyer who enjoyed top-of-the-line perks the likes of which even most "elite" flyers don't experience.That's because he was a member of American Airline's invitation-only ConciergeKey recognition program.Most airlines maintain these unpublished super elite frequent flyer plans,such as Continental's Chairman's Circle and Delta's Executive Partner programs.These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue.You'll have to fly upward of 300,000 miles or spend $50,000 a year to be invited.
-Refer to Frequent Flyers.Airlines have estimated the future value of these elite flyers and found that they are very profitable for their business.What technique did the airlines use to project the future value of these flyers over a period of several years?

Accepted Answer

A) RFM analysis 
B) Lifetime value analysis (LTV) 
C) Cluster analysis 
D) Conjoint analysis 
E) Data enhancement analysis 
A) RFM analysis 
B) Lifetime value analysis (LTV) 
C) Cluster analysis 
D) Conjoint analysis 
E) Data enhancement analysis

Question 12

The Detroit Tigers,a Major League Baseball team,used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining.This survey was an example of a(n):

Accepted Answer

A) touch point. 
B) focus area. 
C) data search. 
D) information recognizance. 
E) observational point. 
A) touch point. 
B) focus area. 
C) data search. 
D) information recognizance. 
E) observational point.

Question 13

When Coca-Cola sent users of the My Coke Rewards program digital coupons for free trials of its new Coke Zero product,more than 100,000 people redeemed them.It would have cost the company far more in randomly distributing enough coupons to the general market to get that level of sampling.This is an example of the power of the _____ approach.

Accepted Answer

A) rifle 
B) machine gun 
C) stealth marketing 
D) gorilla marketing 
E) shotgun 
A) rifle 
B) machine gun 
C) stealth marketing 
D) gorilla marketing 
E) shotgun

Question 14

Petco seems to appreciate some number of negative reviews because customers often go on to purchase a higher quality and more expensive product recommended by the reviewer.This is a type of

Accepted Answer

A) retaining loyal customers. 
B) campaign management. 
C) cross-selling. 
D) improving customer service. 
A) retaining loyal customers. 
B) campaign management. 
C) cross-selling. 
D) improving customer service.

Question 15

For a CRM system to be effective,customer information must be stored in a data matrix.

Accepted Answer

A) True 
 B)False

Question 16

As customers shop,they look at all the various reviews.If they continue to look at the positive reviews after making a purchase in order to reassure themselves they made the right choice,this serves what purpose?

Accepted Answer

A) reinforcing purchase decisions 
B) cross-selling 
C) improving customer service 
D) None of the above 
A) reinforcing purchase decisions 
B) cross-selling 
C) improving customer service 
D) None of the above

Question 17

Frequent Flyers
If you think George Clooney's character in the movie Up in the Air was pure fiction,think again.Clooney portrayed a frequent flyer who enjoyed top-of-the-line perks the likes of which even most "elite" flyers don't experience.That's because he was a member of American Airline's invitation-only ConciergeKey recognition program.Most airlines maintain these unpublished super elite frequent flyer plans,such as Continental's Chairman's Circle and Delta's Executive Partner programs.These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue.You'll have to fly upward of 300,000 miles or spend $50,000 a year to be invited.
-Refer to Frequent Flyers.American Airlines gives its gate employees the authority to hold up a connecting flight when a ConciergeKey member's incoming flight is delayed.The delegation of this authority to a gate employee is called:

Accepted Answer

A) empowerment. 
B) trickle-down management. 
C) Centralization. 
D) synergy. 
E) knowledge management. 
A) empowerment. 
B) trickle-down management. 
C) Centralization. 
D) synergy. 
E) knowledge management.

Question 18

Web-based interactions are an increasingly popular touch point for customers to communicate with companies on their own terms.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements about a CRM system is true?

Accepted Answer

A) A critical component of a CRM system is the use of the appropriate technology to store and integrate customer data. 
B) A CRM system operates on the theory that all customers are equally important. 
C) Due to privacy laws,a CRM system only disseminates customer information to those who are actually in day-to-day contact with customers. 
D) A company using a CRM system must view its customers as bits of data. 
E) All of these statements about a CRM system are true. 
A) A critical component of a CRM system is the use of the appropriate technology to store and integrate customer data. 
B) A CRM system operates on the theory that all customers are equally important. 
C) Due to privacy laws,a CRM system only disseminates customer information to those who are actually in day-to-day contact with customers. 
D) A company using a CRM system must view its customers as bits of data. 
E) All of these statements about a CRM system are true.

Question 20

Petco gathers customer e-mails from in-store customers and then e-mails them.This would be using a knowledge management system.

Accepted Answer

A) True 
 B)False

Through campaign management,all areas of the company participate in the development of programs targeted to customers.

To initiate the CRM cycle,a company must first:

Empowerment in a CRM environment is normally a process of collecting customer information through customers' feedback on products.

_____ uses a past set of occurrences to predict the likelihood that some other occurrence,such as a response or purchase,will take place in the future.

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

In a CRM environment,_____ is defined as an informal process of collecting customer data through customer comments and feedback on product or service performance.

Data mining identifies the most profitable customers and prospects.Managers can then design tailored marketing strategies to best appeal to the identified segments.In CRM,this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

As the second step in the CRM cycle a company must:

Communications between customers and organizations that occur in stores or at information kiosks are called:

The Detroit Tigers,a Major League Baseball team,used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining.This survey was an example of a(n):

Petco seems to appreciate some number of negative reviews because customers often go on to purchase a higher quality and more expensive product recommended by the reviewer.This is a type of

For a CRM system to be effective,customer information must be stored in a data matrix.

As customers shop,they look at all the various reviews.If they continue to look at the positive reviews after making a purchase in order to reassure themselves they made the right choice,this serves what purpose?

Web-based interactions are an increasingly popular touch point for customers to communicate with companies on their own terms.

Which of the following statements about a CRM system is true?

Petco gathers customer e-mails from in-store customers and then e-mails them.This would be using a knowledge management system.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Social Media and Marketing

Filters

Exam 21: Customer Relationship Management Crm

Through campaign management,all areas of the company participate in the development of programs targeted to customers.

To initiate the CRM cycle,a company must first:

Empowerment in a CRM environment is normally a process of collecting customer information through customers' feedback on products.

_____ uses a past set of occurrences to predict the likelihood that some other occurrence,such as a response or purchase,will take place in the future.

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

In a CRM environment,_____ is defined as an informal process of collecting customer data through customer comments and feedback on product or service performance.

Data mining identifies the most profitable customers and prospects.Managers can then design tailored marketing strategies to best appeal to the identified segments.In CRM,this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

As the second step in the CRM cycle a company must:

Communications between customers and organizations that occur in stores or at information kiosks are called:

The Detroit Tigers,a Major League Baseball team,used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining.This survey was an example of a(n):

Petco seems to appreciate some number of negative reviews because customers often go on to purchase a higher quality and more expensive product recommended by the reviewer.This is a type of

For a CRM system to be effective,customer information must be stored in a data matrix.

As customers shop,they look at all the various reviews.If they continue to look at the positive reviews after making a purchase in order to reassure themselves they made the right choice,this serves what purpose?

Web-based interactions are an increasingly popular touch point for customers to communicate with companies on their own terms.

Which of the following statements about a CRM system is true?

Petco gathers customer e-mails from in-store customers and then e-mails them.This would be using a knowledge management system.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Concepts

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Social Media and Marketing

Filters