Deck 15: Customer Relationship Management

Question 1

The order cycle is a firm's ability and willingness to provide fast service, answer customer inquiries, and resolve problems.

Answer 1

False

Question 2

The ultimate goal of delivering superior customer service is to increase brand recognition.

Answer 2

False

Question 3

A company that makes its practices, policies, and future plans available to customers is practicing transparency.

Answer 3

True

Question 4

The fill rate measures the percentage of the total number of items on the order that the firm shipped on time.

Question 5

Ease of doing business refers to the amount of effort required on the part of a customer when dealing with a firm.

Question 6

Customer relationship management is an overall strategy that unifies a company's activities with the goal of achieving customer satisfaction through the right actions, attitudes, and systems.

Question 7

If the items ordered are worth $15,450, and the items shipped are worth $13,998, then the dollar fill rate is approximately 91 percent.

Question 8

At the pre-transaction point, the firm measures the accuracy and timeliness of the information fed back to a customer concerning product availability and delivery dates.

Question 9

On-time delivery measures how many shipments are shipped on time.

Question 10

A key element of clientelling is empowering salespersons to provide an exceptional experience for the customer.

Question 11

Customer-driven companies strive to delight, rather than simply satisfy, their customers.

Question 12

Firms develop a reputation for reliability by establishing effective inventory management policies, performing accurate sales forecasts, and maintaining effective transportation and distribution operations.

Question 13

When customer perceptions of value differ widely, a one-size-fits-all customer service policy will be most effective at ensuring the majority of customers will become loyal customers.

Question 14

While poor customer service is almost guaranteed to frustrate customers, having good customer service will always make customers happy.

Question 15

A customer's negative experiences with a company do not carry as much weight as the positive experiences.

Question 16

Relationship marketing is a strategy that focuses on attracting, maintaining, and enhancing customer relationships, thus building brand loyalty.

Question 17

Firms with a customer orientation set an expectation that all employees should seek to provide value to the customer in a way that meets, or hopefully exceeds, the customer's expectations.

Question 18

Companies want to capture and retain customers that will be not only loyal but also profitable, which often means targeting as many customers as possible with whom to do business.

Question 19

A company initiates the CRM process by gathering specific customer information.

Question 20

Anything a company does that directly touches the customer falls under the realm of customer service.

Question 21

Firms that establish effective inventory management policies, perform accurate sales forecasts, and maintain effective transportation and distribution operations are adhering to the customer service objective of

A)consistency.
B)ease of doing business.
C)reliability.
D)timeliness.
E)order.

Question 22

According to your text, what is a major part of ease of doing business?

A)profitability
B)convenience
C)dependability
D)fairness
E)reliability

Question 23

Alton ordered an official NFL jersey for his son's birthday and is hoping it will arrive on time. Luckily, the company sent him the FedEx tracking number of the package so Alton can track the package and know exactly when it will arrive. This form of customer communication is referred to as ________ communication.

A)delivery status
B)order authorization
C)product fulfillment
D)dispatch
E)order status

Question 24

What is one of the four common objectives listed in your text for all employees when building an effective customer service strategy?

A)profitability
B)responsiveness
C)customer equity
D)empowerment
E)ease of doing business

Question 25

Predictive modeling allows the company to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers.

Question 26

The two methods that encompass customer service activities are

A)human and mechanical.
B)internal and external.
C)immediate and long-term.
D)customer-initiated and company-initiated.
E)face-to-face and over-the-phone.

Question 27

Cognitive dissonance is also referred to as buyer's remorse.

Question 28

Share of customer differs from market share in that it measures the quantity of purchase dollars each customer spends on the company's products rather than the number of customers.

Question 29

Placing an order for a product on a company's web page is a(n)________ method for direct customer interaction.

A)external
B)secondary
C)internal
D)human
E)mechanical

Question 30

Which company most likely has a philosophy that elevates customer service to the highest level?

A)a company that would rather have customers go to the customer service department than let salespeople handle complaints
B)a company whose website shows the product offering, but doesn't allow customers to purchase items online
C)a company that allows customers to request a shipping label to return a product
D)a company that institutes a no-hassle, no time-limit return policy
E)a company that allows items purchased online to be returned within 10 days

Question 31

All of the activities a firm engages in to satisfy the needs and wants of its customers is referred to as

A)touch points.
B)customer service.
C)customer satisfaction.
D)relationship management.
E)customer communication.

Question 32

According to your text, the ultimate goal of delivering superior customer service is to

A)decrease customer complaints.
B)increase brand recognition.
C)decrease product returns.
D)increase brand loyalty.
E)increase the target market.

Question 33

The function that takes in orders, checks stock for availability, and prints tickets for warehouse workers to reference as they select products from warehouse locations occurs during which stage of the order cycle?

A)filling order
B)placing order
C)acknowledging order
D)delivering order
E)processing order

Question 34

Companies seeking to protect customer information need only rely on the laws the U.S. government has put in place for protecting the financial, health, telephone, and e-mail information of citizens.

Question 35

The total amount of time companies use to take a customer order and deliver goods to a customer is referred to as the

A)sales cycle.
B)purchase process.
C)transaction route.
D)order cycle.
E)procurement process.

Question 36

The type of customer communication that provides the customer with information concerning the completeness of the order, when it will ship from the firm, and when it will arrive to the customer is called ________ communication.

A)dispatch
B)product fulfillment
C)order authorization
D)delivery status
E)order status

Question 37

Lifetime value measures the extent to which a company puts effort into servicing its customers' needs, based on an understanding of each customer's profitability.

A)Research suggests that it takes more money to keep a current customer than to acquire a new one.
B)Only large companies that deal with many customers need to worry about good customer service.
C)Customers are getting used to poor customer service and it doesn't bother them that much.
D)Good customer service is not necessary for B₂B transactions.
E)Good customer service alone doesn't necessarily make customers happy.

Question 38

The term ease of doing business refers to

A)the ease with which a product can be promoted effectively.
B)how quickly a firm can recoup its costs and begin making a profit.
C)how complicated the process is for producing and delivering a product.
D)the amount of effort required on the part of a customer when dealing with a firm.
E)the ease with which a business can secure financing to start operating its business.

Question 39

The ability of a company to deliver a good or service by the time the customer expects to have it available for sale or consumption is referred to as

A)order.
B)timeliness.
C)reliability.
D)ease of doing business.
E)consistency.

Question 40

What is the customer service objective that involves ensuring customers can depend on receiving a good or service within a stated lead time and that there will be no problems with the order?

A)order
B)consistency
C)reliability
D)ease of doing business
E)timeliness

Question 41

According to your text, the ultimate goal of achieving customer satisfaction is to

A)reduce consumer complaints.
B)widen the target market.
C)increase brand recognition.
D)attract new customers.
E)promote brand loyalty.

Question 42

Companies can assess if they are doing a good job servicing their customers by establishing performance measurements, also known as

A)metrics.
B)evaluators.
C)benchmarks.
D)touch points.
E)qualifiers.

Question 43

What metric judges the reliability of the order system, and determines that the failure to meet all of its requirements results in a score of zero?

A)perfect order rate
B)line fill rate
C)item fill rate
D)on-time delivery
E)dollar fill rate

Question 44

Which of the following is not a requirement necessary to constitute a perfect order?

A)It must be billed correctly.
B)It must be delivered to the right place.
C)It must be delivered with the right items in the right quantities.
D)It must be delivered on the correct due date.
E)It must include return packaging material in case the product is damaged.

Question 45

The performance measurement known as line fill rate measures

A)the percentage of an order shipped on time and complete.
B)the percentage of the total number of items on the order that the firm shipped on time.
C)the percentage of item stocking types on the order shipped on time and complete.
D)the value of goods shipped on time versus the line item value of the order.
E)the value of the line items that have shipped on time.

Question 46

Which performance metric measures how many shipments are delivered per the requested delivery date?

A)perfect order rate
B)order cycle time
C)fill rate
D)item fill rate
E)on-time delivery

Question 47

When a firm measures the accuracy and timeliness of the information fed back to a customer concerning product availability and delivery dates, it is measuring customer communication at what point?

A)pretransaction point
B)transaction point
C)order fill point
D)delivery point
E)posttransaction point

Question 48

A consumer can be happy with a product but switch to another company's good or service if provided additional value. This is why, according to your text, customer-driven companies strive to ________ their customers.

A)accurately target
B)motivate
C)pacify
D)delight
E)satisfy

Question 49

When companies meet the needs and expectations customers have for their goods or services, they have achieved

A)positive word-of-mouth.
B)customer equity.
C)positive share of customer.
D)customer satisfaction.
E)ease of doing business.

Question 50

What do post-incident surveys measure?

A)whether the customer expects an immediate resolution to the problem
B)the customer's service experience with the company
C)the strength of a customer's relationship with the company
D)whether or not customers found answers to their questions at the company's website
E)the time a customer had to wait to talk or receive a text back from a service representative

Question 51

Which measure of customer service effectiveness focuses on trends in repeat buying from current customers?

A)customer loyalty
B)abandonment rates
C)customer service website experience
D)relationship surveys
E)post-incident surveys

Question 52

What metric measures the percentage of the total number of items on the order that the firm shipped on time?

A)item fill rate
B)on-time delivery rate
C)fill rate
D)accuracy rate
E)perfect order rate

Question 53

Web-based technologies that enable a company to build and manage social media solutions and services are referred to as

A)social media metrics.
B)web portals.
C)social media platforms.
D)data mines.
E)touch points.

Question 54

The metric that measures the ability of the order system to react to customer orders is the

A)perfect order rate.
B)order cycle time.
C)accuracy rate.
D)on-time delivery.
E)item fill rate.

Question 55

The performance measurement that calculates the percentage of an order shipped on time and complete is called the

A)item response rate.
B)accuracy rate.
C)fill rate.
D)perfect order rate.
E)on-time delivery rate.

Question 56

What metric measures the value of goods shipped on time versus the total value of the order?

A)total fill rate
B)dollar fill rate
C)line fill rate
D)profitability ratio
E)on-time delivery ratio

Question 57

A critical element to performance measurement metrics is

A)CRM programs.
B)employee training.
C)employee input.
D)customer input.
E)production efficiency.

Question 58

An order has a total of 368 items (worth $23,000)and the firm ships 354 of the items (worth $21,000)on time. What is the dollar fill rate?

A)95 percent
B)96 percent
C)86 percent
D)83 percent
E)91 percent

Question 59

An order has a total of 625 items (worth $17,000)and the firm ships 545 of the items (worth $13,000)on time. What is the item fill rate?

A)85 percent
B)32 percent
C)80 percent
D)87 percent
E)76 percent

Question 60

A firm's flexibility is measured by which metric?

A)fill rate
B)responsiveness
C)order cycle time
D)perfect order rate
E)on-time delivery

Question 61

A company's emphasis on customer satisfaction develops as a consequence of a ________ orientation.

A)competitor
B)service
C)product
D)customer
E)sales

Question 62

A company uses its website and social media platforms to disseminate information about the company and to allow customers to post feedback on how it is currently doing business. This company is practicing

A)empowerment.
B)data mining.
C)transparency.
D)collaborative filtering.
E)clientelling.

Question 63

In the GAP Model, the distance between what customers expect and what a company thinks they expect occurs in

A)Gap 1.
B)Gap 2.
C)Gap 3.
D)Gap 4.
E)Gap 5.

Question 64

Maintaining and enhancing good customer relationships begins with a company culture that

A)eliminates employee empowerment.
B)strives to increase brand recognition.
C)places customer service as a high priority.
D)focuses on being a market share leader.
E)fosters employee satisfaction.

Question 65

The process by which companies acquire new customers, keep the customers they already have, and grow the business by increasing their share of customers' purchases is referred to as

A)relationship marketing.
B)lifetime value marketing.
C)customer segmentation analysis.
D)share of customer.
E)customer relationship management.

Question 66

The concept of empowerment means

A)a company allows its employees to make decisions and take action on their own to help customers.
B)a firm is willing to have direct communication with its customer.
C)a firm is willing to provide fast service, answer customer inquiries, and resolve problems in a timely manner.
D)a company strives to deliver a good or service by the time a customer expects to have it available for sale or consumption.
E)a customer does not have to put forth much effort to have a positive experience with a firm.

Question 67

The term used to describe a business that focuses on attracting, maintaining, and enhancing customer relationships in order to build brand loyalty is

A)customer value.
B)relationship marketing.
C)customer segmentation analysis.
D)ease of doing business.
E)marketing concept.

Question 68

Nadim works in an upscale department store. She has been instructed by the management staff that she can take up to 20 percent off a product if it appears damaged in some way. In addition, Nadim is encouraged to help customers as she sees fit, including giving customers discount coupons on future purchases if they return a product because they weren't satisfied. The management at Nadim's store is practicing

A)empowerment.
B)standardization.
C)transparency.
D)employee equity.
E)quality control.

Question 69

Any point at which a customer and the company come into contact is called a ________ point.

A)communication
B)value
C)sales
D)touch
E)marketing

Question 70

A company that tracks customers' shopping patterns and then sends them sales offers that complement their previous purchases is engaged in

A)customer segmentation analysis.
B)share of customer management.
C)lifetime value marketing.
D)customer relationship management.
E)target market segmentation.

Question 71

The marketing strategy that reflects the idea that a firm's long-term success must include a company-wide effort to satisfy customer needs and wants is referred to as

A)the marketing concept.
B)the management concept.
C)customer service.
D)the business action plan.
E)customer relationship management.

Question 72

When a business allows employees to make decisions about how service is provided to customers it is practicing

A)quality control.
B)transparency.
C)empowerment.
D)standardization.
E)employee equity.

Question 73

A company uses a software program to capture and analyze consumer data to create and maintain customer profiles, including buying habits and purchasing patterns. It then uses this information to design individualized fulfillment strategies for its customers. The company is most likely engaged in

A)customer relationship management.
B)share of customer management.
C)target market segmentation.
D)lifetime value marketing.
E)customer segmentation analysis.

Question 74

Emma was shopping at a local strip mall. Suddenly, her smartphone chimed to let her know that certain stores in the mall were offering coupons. This is an example of

A)geofencing.
B)data mining.
C)retail filtering.
D)geocaching.
E)collaborative filtering.

Question 75

Which of the following is not true regarding the application of a marketing concept?

A)A marketing concept puts the customer in the center of a firm's thinking in terms of both strategy and operations.
B)In a marketing concept, there should be general managerial appreciation of the role of marketing intelligence in determining the needs and wants of customers.
C)A marketing concept should encompass managerial awareness and appreciation of the consumer's role in the firm's existence.
D)Companies that base their business on the marketing concept maintain a focus on delivering value to the customer in any profitable way they can.
E)In a marketing concept it is not necessary for all areas of a firm to be customer oriented, but it is absolutely necessary for sales and marketing to be so.

Question 76

The mechanism that filters large amounts of information about many consumers' previous purchases that may be related in some way in order to predict consumer preferences is known as

A)business-customer marketing.
B)specialized marketing.
C)collaborative filtering.
D)client marketing.
E)geofencing.

Question 77

A manufacturer of custom cabinetry relies on timely delivery from its wood supplier in order to produce its products. The company would like to have its shipment of wood delivered all at once, but it often comes in multiple shipments. While this is not usually a problem and the manufacturer is generally happy with its supplier, it has found another supplier that will deliver the wood in one shipment. Because of this, the manufacturer has decided to switch suppliers. This is an example of how

A)the marketing concept does not work in all situations.
B)meeting a customer's expectations doesn't always lead to brand loyalty.
C)it is impossible for a company to achieve a perfect order rate.
D)relationship marketing is not effective at building brand loyalty.
E)unreasonable demands by a customer can lead to loss of sales.

Question 78

CRM technologies allow marketers to do all the following except

A)track consumer behavior over time.
B)interact with customers to learn what they need and want.
C)adopt a broad approach focusing on the needs of the entire market.
D)capture data allowing the firm to identify potentially profitable customers.
E)take the information gathered and tailor goods accordingly.

Question 79

The perceived benefits, both monetary and nonmonetary, that a customer receives from a product compared to the cost associated with obtaining it is referred to as

A)share of customer.
B)relationship marketing.
C)ease of doing business.
D)customer equity.
E)customer value.

Question 80

A company that personalizes service by tailoring product information for individual customers in order to provide an exceptional, personalized shopping experience is practicing

A)empowerment.
B)data mining.
C)geofencing.
D)collaborative filtering.
E)clientelling.