Exam 8: Customer Relationship Management CRM

Customer relationship management describes organizations that organize around customer segments.

What internal management philosophy is customer-centric similar to?

Ford Canada has turned to the Internet to help it stand apart from its competitors in the automotive industry.One Internet ad shows a Ford truck driving out of a forest with its engine roaring and mud splattering on the screen.The wipers come on to reveal the Ford "Built Tough" logo,which then recedes to the side of the screen.The ad directs people to a site (www.ford.ca/builtfordtough)where they can sign up to receive direct mail from Ford.Ford Canada will combine this database with a database of new F-series truck owners to look for significant patterns and trends.Which of the following best describes what Ford Canada will be using?

After Ruth and Mike had paid in advance for their week's stay at a Quebec inn,Ruth felt that they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.How did the hospitality of the letter deal with Ruth's cognitive dissonance?

Which of the following statements best describes a CRM system?

Volvo has a website that caters to car enthusiasts who might want to see concept cars evolve into real-life products.Volvo would likely have used data mining to locate people who were car enthusiasts and innovators.

Lesley Owens has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about making scrapbooks.She wants to send the mailing to those prospects with the highest probability of becoming subscribers.What should she use?

When Ford Motor Company launched an online effort to market its F-Series trucks,it created a database.According to the textbook,what is one potential problem with the use of this database?

For a catalogue retailer,the contact between the customer and the company's order taker would be an example of a touch point.

In a CRM environment,which of the following is defined as the informal process of collecting customer information through customer contacts and feedback on product performance?

The cable industry needs to identify current and future traffic patterns so it can manage the growth of cable systems.Because of high costs,it is undesirable to buy bandwidth before it is needed.It is also time consuming to upgrade a cable system.Furthermore,consumers hate to wait for capacity increases.Therefore,what does the industry use to determine when and where new systems should be implemented?

Synavant is a pharmaceutical company in Toronto,Ontario.Its director of business development told a group of investors,"There is a single database repository in this company from which everybody can access data about a customer or potential customers." What is Synavant most likely using?

What is the term for the process of finding hidden patterns and relationships in the customer data stored in the data warehouse?

In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling cooks preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is now known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions between October and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1985,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not only at the holidays,but also all year long.Butterball has maintained a prominent position on people's holiday tables,a position it is likely to hold for many years to come. -Refer to Butterball Turkey.As more struggling cooks needed the information provided by the Butterball Turkey Talk-Line,Butterball added more employees.When many consumers expressed an inability to tell when the turkey was done,Butterball developed a pop-up signal that made it easy to tell when the turkey was cooked to perfection.When customers wanted more low-fat meat products,Butterball produced turkey luncheon meats and sausage.Butterball would be classified as which of the following?

ThomasCook.com,an online travel retailer in the United Kingdom,is able to offer a more effective customer experience and support its revenue goals using a certain type of software to manage service interactions across phone,e-mail,and Web channels.The deployment has resulted in a change in the type of customer calls received by ThomasCook.com service agents.Because customers are able to find answers to general queries online,agents at the contact centre are now focused on helping customers with their actual bookings.Which of the following categories would the software fall under?

"Lots of organizations have customer data,but not in a way that's useful," said a speaker at the Canadian Marketing Association's national convention."Retailers have all kinds of data in different places-they don't have a single view of the customer." The speaker is saying that retailers do NOT use which of the following?

Volvo has a concept car website that caters to car enthusiasts who might want to see concept cars evolve into real-life products.A Forum section allows people who really care about the cars they drive to submit opinions and questions,enabling Volvo to gauge consumer reaction to new ideas.What is CRM giving Volvo the opportunity to do?

Which of the following 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?

BMW automobiles has launched an online effort to market its new styles.It hopes to use its database capabilities to capture valuable data on car buyers.BMW plans on cross-referencing new owners with the database generated from this online campaign to see how many names are duplicated.BMW will use these data to forecast which campaigns have the greatest probability of success.Which of the following methods will BMW most likely use to analyze these data?

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