Question 1

The problem with transactional customers is that

Accepted Answer

A) companies simply do not have enough of them. 
B) they generate high profits but spend too much time bonding with employees during the transaction. 
C) companies have a tendency to spend too much money marketing to them. 
D) they transition too quickly into relational customers. 
E) all of the above 
A) companies simply do not have enough of them. 
B) they generate high profits but spend too much time bonding with employees during the transaction. 
C) companies have a tendency to spend too much money marketing to them. 
D) they transition too quickly into relational customers. 
E) all of the above C

Question 2

Despite all that is said and done, CRM belongs primarily to the marketing department.

Accepted Answer

A) True 
 B)False  False

Question 3

Companies should invest the most in

Accepted Answer

A) butterflies. 
B) true friends. 
C) barnacles. 
D) strangers. 
E) all four categories because each may contain high-profit customers. 
A) butterflies. 
B) true friends. 
C) barnacles. 
D) strangers. 
E) all four categories because each may contain high-profit customers. B

Question 4

Proctor and Gamble has begun to organize around the concept of customer segment managers.

Accepted Answer

A) True 
 B)False

Question 5

Strangers warrant highest investment since they are unfamiliar with a company's offerings and therefore offer good profit potential.

Accepted Answer

A) True 
 B)False

Question 6

Consumers want to have deep relationships with every company they deal with and companies should act accordingly.

Accepted Answer

A) True 
 B)False

Question 7

Relationship marketing can include all but which of the following?

Accepted Answer

A) affinity marketing 
B) loyalty marketing 
C) co-marketing 
D) key account management 
E) transaction-focused interaction 
A) affinity marketing 
B) loyalty marketing 
C) co-marketing 
D) key account management 
E) transaction-focused interaction

Question 8

Customer satisfaction can be measured in two ways: overall satisfaction and transaction specific satisfaction.

Accepted Answer

A) True 
 B)False

Question 9

"Strangers"

Accepted Answer

A) warrant the highest investment since they are unfamiliar with a company's offerings. 
B) can metamorphose into butterflies through loyalty programs. 
C) can become a company's "apostles" when moved up the hierarchy of effects. 
D) may be low profit initially but offer true potential. 
E) warrant little or no investment. 
A) warrant the highest investment since they are unfamiliar with a company's offerings. 
B) can metamorphose into butterflies through loyalty programs. 
C) can become a company's "apostles" when moved up the hierarchy of effects. 
D) may be low profit initially but offer true potential. 
E) warrant little or no investment.

Question 10

Which term refers to a person's confidence in a partner's reliability, honesty, and integrity?

Accepted Answer

A) trust 
B) satisfaction 
C) commitment 
D) cognitive consistency 
E) none of the above 
A) trust 
B) satisfaction 
C) commitment 
D) cognitive consistency 
E) none of the above

Question 11

The goal of CRM is to establish close, personal relationships with all customers.

Accepted Answer

A) True 
 B)False

Question 12

Companies that invest in barnacles hope to turn them into butterflies.

Accepted Answer

A) True 
 B)False

Question 13

Relationship marketing is a

Accepted Answer

A) strategy. 
B) philosophy. 
C) tactic useful in B2C relationships only. 
D) tactic useful in B2B relationships only. 
E) both A and B 
A) strategy. 
B) philosophy. 
C) tactic useful in B2C relationships only. 
D) tactic useful in B2B relationships only. 
E) both A and B

Question 14

Relationship marketing has 3 basic features: relational databases, data silos and integrated marketing communications.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT true?

Accepted Answer

A) Relationship marketing focuses on establishing and maintaining close relationships with customers. 
B) CRM is concerned with developing a portfolio of profit-maximizing customers. 
C) The CRM philosophy may exclude having relationships with low- and no-profit customers. 
D) The goal of CRM is to establish close and intense relationships with all customers, because one never knows when they might become extremely profitable. 
E) all are true 
A) Relationship marketing focuses on establishing and maintaining close relationships with customers. 
B) CRM is concerned with developing a portfolio of profit-maximizing customers. 
C) The CRM philosophy may exclude having relationships with low- and no-profit customers. 
D) The goal of CRM is to establish close and intense relationships with all customers, because one never knows when they might become extremely profitable. 
E) all are true

Question 16

One of the reasons that the marketing function is becoming more and more decentralized is that line managers became transaction oriented through the use of transactional databases.

Accepted Answer

A) True 
 B)False

Question 17

The major difference between relationship marketing and CRM is that

Accepted Answer

A) CRM includes aspects of systems architecture as well as strategies. 
B) relationship marketing is practiced in a centralized marketing environment, whereas CRM is practiced in a decentralized marketing environment. 
C) relationship marketing is transaction oriented whereas CRM is not. 
D) relationship marketing is B2B oriented whereas CRM is B2C oriented. 
E) CRM only applies to final consumers whereas relationship marketing applies to consumers as well as all channel members. 
A) CRM includes aspects of systems architecture as well as strategies. 
B) relationship marketing is practiced in a centralized marketing environment, whereas CRM is practiced in a decentralized marketing environment. 
C) relationship marketing is transaction oriented whereas CRM is not. 
D) relationship marketing is B2B oriented whereas CRM is B2C oriented. 
E) CRM only applies to final consumers whereas relationship marketing applies to consumers as well as all channel members.

Question 18

"Butterflies" are

Accepted Answer

A) the type of customer every company strives to capture. 
B) opinion leaders who spread the word about a company as well as being high profit themselves. 
C) generally short-term customers that companies should not invest too much in. 
D) less profitable than the stable "barnacles." 
E) all except C 
A) the type of customer every company strives to capture. 
B) opinion leaders who spread the word about a company as well as being high profit themselves. 
C) generally short-term customers that companies should not invest too much in. 
D) less profitable than the stable "barnacles." 
E) all except C

Question 19

Companies have found that

Accepted Answer

A) it costs more to retain old customers than to acquire new ones. 
B) old customers get jaded, bored, and are constantly looking for deals. 
C) market share is approximately twice as profitable as increasing wallet share. 
D) economies of scale are approximately three times as profitable as the average retention strategy. 
E) cross-selling and up-selling are types of retention strategies. 
A) it costs more to retain old customers than to acquire new ones. 
B) old customers get jaded, bored, and are constantly looking for deals. 
C) market share is approximately twice as profitable as increasing wallet share. 
D) economies of scale are approximately three times as profitable as the average retention strategy. 
E) cross-selling and up-selling are types of retention strategies.

Question 20

Since butterflies, true friends, barnacles and strangers are categories that each contains high-profit customers; companies should seek out the high-profit customers from each and invest equivalent amounts in their development.

Accepted Answer

A) True 
 B)False

The problem with transactional customers is that

Despite all that is said and done, CRM belongs primarily to the marketing department.

Companies should invest the most in

Proctor and Gamble has begun to organize around the concept of customer segment managers.

Strangers warrant highest investment since they are unfamiliar with a company's offerings and therefore offer good profit potential.

Consumers want to have deep relationships with every company they deal with and companies should act accordingly.

Relationship marketing can include all but which of the following?

Customer satisfaction can be measured in two ways: overall satisfaction and transaction specific satisfaction.

"Strangers"

Which term refers to a person's confidence in a partner's reliability, honesty, and integrity?

The goal of CRM is to establish close, personal relationships with all customers.

Companies that invest in barnacles hope to turn them into butterflies.

Relationship marketing is a

Relationship marketing has 3 basic features: relational databases, data silos and integrated marketing communications.

Which of the following is NOT true?

One of the reasons that the marketing function is becoming more and more decentralized is that line managers became transaction oriented through the use of transactional databases.

The major difference between relationship marketing and CRM is that

"Butterflies" are

Companies have found that

Since butterflies, true friends, barnacles and strangers are categories that each contains high-profit customers; companies should seek out the high-profit customers from each and invest equivalent amounts in their development.

Introduction to Customer Relationship Management

The History and Development of CRM

Organization and CRM

CRM and Data Management

Technology and Data Platforms

Database and Customer Data Development

Business-To-Business CRM

Understanding the Customercompany Profit Chain: Satisfaction, Loyalty, Retention, and Profits

The CRM Strategy Cycle: Acquisition, Retention

Privacy and Ethics Considerations

CRM Program Measurement and Tools

Social Networking and CRM

CRM Trends, Challenges, and Opportunities

Filters

Exam 3: Relationship Marketing and CRM

The problem with transactional customers is that

Despite all that is said and done, CRM belongs primarily to the marketing department.

Companies should invest the most in

Proctor and Gamble has begun to organize around the concept of customer segment managers.

Strangers warrant highest investment since they are unfamiliar with a company's offerings and therefore offer good profit potential.

Consumers want to have deep relationships with every company they deal with and companies should act accordingly.

Relationship marketing can include all but which of the following?

Customer satisfaction can be measured in two ways: overall satisfaction and transaction specific satisfaction.

"Strangers"

Which term refers to a person's confidence in a partner's reliability, honesty, and integrity?

The goal of CRM is to establish close, personal relationships with all customers.

Companies that invest in barnacles hope to turn them into butterflies.

Relationship marketing is a

Relationship marketing has 3 basic features: relational databases, data silos and integrated marketing communications.

Which of the following is NOT true?

One of the reasons that the marketing function is becoming more and more decentralized is that line managers became transaction oriented through the use of transactional databases.

The major difference between relationship marketing and CRM is that

"Butterflies" are

Companies have found that

Since butterflies, true friends, barnacles and strangers are categories that each contains high-profit customers; companies should seek out the high-profit customers from each and invest equivalent amounts in their development.

Introduction to Customer Relationship Management

The History and Development of CRM

Organization and CRM

CRM and Data Management

Technology and Data Platforms

Database and Customer Data Development

Business-To-Business CRM

Understanding the Customercompany Profit Chain: Satisfaction, Loyalty, Retention, and Profits

The CRM Strategy Cycle: Acquisition, Retention

Privacy and Ethics Considerations

CRM Program Measurement and Tools

Social Networking and CRM

CRM Trends, Challenges, and Opportunities

Filters