Deck 14: Building Customer Relationships

Question 1

There must be a company-wide commitment to CRM concept if CRM is to be productive.

Answer 1

True

Question 2

In some situaitons, a small business owner will have to influence need recognition; in others he may simply be able to react to needs the consumer has indentified.

Answer 2

True

Question 3

Customer relationship management means different things to different businesses.

Answer 3

True

Question 4

A consumer's recognition of a problem can be characterized as routine if the problem evolves over time.

Question 5

Lack of in-house expertise is a major justification for using outside CRM services.

Question 6

Consumer needs can be completely satisfied by proper customer relationship management.

Question 7

Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction.

Question 8

An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem.

Question 9

A customer complaint can be positive.

Question 10

A transactional relationship is an association between a business and a customer that begins or ends with a purchase or a business exchange.

Question 11

Regardless of the nature of the business, small firms can gain a competitive edge by providing exceptional customer service.

Question 12

In the information search and evaluation stage, the firm's principal objective is to gain market awareness.

Question 13

Initial CRM support efforts should be made using the website because the web developers have the most customer contact.

Question 14

It is important to keep in touch with a customer and make a sales pitch each time.

Question 15

The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large firms.

Question 16

Evoked sets are features or characteristics of products or services that are used to compare brands.

Question 17

Addressing a customer by name typically means very little to them.

Question 18

Only three classes of needs-social, psychological, and spiritual- can be connected to behavior through motivations.

Question 19

Small businesses must strive to understand post-purchase dissonance among their customers and to manage it effectively.

Question 20

Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers have satisfied their needs.

Question 21

As an owner of a floral design business, Tim's highest priority for the florist's CRM program should be

A) marketing efforts to bring in customers who haven't bought flowers recently.
B) finding the right computer software for an online floral ordering program.
C) determining if existing customers are satisfied with past floral arrangements.
D) identifying how often customers will purchase flowers.

Question 22

In general, opinion leaders are considered to be knowledgeable, visible, and exposed in mass media.

Question 23

Which consumer option for dealing with product or service dissatisfaction is the only one that is desirable to a business?

A) complaint on social media
B) warn friends about product
C) take no action
D) privately seek redress from business

Question 24

A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given situation.

Question 25

Because culture drastically affects the behavior patterns and values of people, it has tremendous impact on the purchase and use of products.

Question 26

Educational level is the most single determinant of social class.

Question 27

Economic benefits associated with maintaining relationships with current customers include:

A) Small increases in customer retention can translate into large increases in profits.
B) Existing customers spend less money than new customers.
C) Order processing costs are higher for current customers.
D) All of these.

Question 28

An investigation of culture with a narrow definitional boundary (e.g., by age, geographic location, etc.) is called perceptual categorization.

Question 29

Attitudes have an indirect impact on consumer behavior.

Question 30

Molly has had repeated positive experiences with her local coffee shop.  They suggest new flavors, call her by her first name, and donate to a local charity that Molly supports.  Molly's experiences, as a result, contribute to the firm's CRM _______.

A) organizational culture
B) customer cost
C) value equation
D) customer satisfaction

Question 31

CRM is the business version of

A) the Ten Commandments.
B) the Bill of Rights.
C) the Golden Rule.
D) Maslow's Hierarchy of Needs.

Question 32

Marketers create needs that offer unique motivations to consumers.

Question 33

Most customer service problems are identified by

A) personal observation.
B) outside consultants.
C) customer complaints.
D) entries in a suggestion box.

Question 34

Diane is a loyal, long term customer at Burke's Furniture Store. It would be expected that she would

A) be willing to pay more for Burke's Furniture's products.
B) have higher order-processing costs since she purchases so much.
C) potentially spend less as she purchases more products over time.
D) All of the above.

Question 35

Every group to which an individual belongs is a reference group for that consumer.

Question 36

To establish an effective customer service program, what should be completed first?

A) customer service quotient
B) mystery shopper visit
C) survey on customer attitudes
D) Jezek's Zone analysis

Question 37

A basic idea forming the foundation of customer loyalty for small firms includes the notion that

A) superior customer service always leads to customer purchases.
B) customer loyalty will mean constant customer satisfaction.
C) small firms possess great potential for providing superior customer service.
D) customer satisfaction is being ignored by large firms.

Question 38

An approach that recognizes that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future is known as

A) perceptual categorization.
B) cognitive dissonance.
C) transactional relationship.
D) customer experience management.

Question 39

Regina is so satisfied with her pharmacist that she refers her friends and colleagues, providing a(n)  _______ benefit of maintaining relationships with current customers.

A) economic
B) marketing
C) psychological
D) social

Question 40

Attitudes are forces that organize and give direction to the tension caused by unsatisfied needs.

Question 41

Mary, an independent sales representative, is hindered in her ability to be in contact with clients because of dropped calls on her cell phone.  Her decision to purchase a cellular booster for her phone reflects Mary has just proceeded through the _____ stage of consumer decision making.

A) purchase evaluation
B) evaluative categorization
C) need recognition
D) cognitive dissonance

Question 42

The dress looked so cute in the store window, but after she brought it home, Victoria began having second thoughts about her purchase.  Victoria is experiencing:

A) post-purchase dissonance.
B) post-purchase satisfaction.
C) cognitive dissonance.
D) post-decisional distress.

Question 43

A customer's email address would most likely be stored in which category of a customer profile?

A) Personal information
B) Demographics
C) Psychographic data
D) Transactions

Question 44

Individual processes that ultimately give meaning to stimuli that confront consumers are known as

A) perceptions.
B) motivations.
C) attitudes.
D) opinions.

Question 45

Information taken from warranty cards would be stored in which category of a customer profile?

A) Personal information
B) Complaints
C) Lifestyle data
D) Transactions

Question 46

Linda is considering several colleges at which to finish her culinary degree. She is in the _____ stage of the consumer decision making process.

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 47

The reason that a group of uniformed people walking down the street playing musical instruments is recognized as a band is the result of

A) characteristic profiling.
B) evaluative criteria.
C) perceptual categorization.
D) problem recognition.

Question 48

Attending a prayer breakfast is most likely an attempt to satisfy which category of need?

A) physiological
B) psychological
C) spiritual
D) social

Question 49

Jeff has concluded that his company selling professional football merchandise needs to increase its line of shirts.  He is in the ____ stage of the consumer decision making process.

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 50

In what stage of the consumer decision making process is Josh when he becomes concerned whether his friends will enjoy the video game he downloaded?

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 51

Julie's preference for the a certain style of barbeque developed in her state is the result of which sociological influence?

A) culture
B) opinion leaders
C) reference groups
D) social class

Question 52

Freida used a discount coupon to purchase a new product.  In which category of the customer profile should this be recorded?

A) Personal Information
B) Lifestyle data
C) Profile of past responses
D) Transaction data

Question 53

Bob never purchases bottled water when he is thirsty even if it is available. This behavior indicates that bottled water

A) does not meet Bob's evaluative criteria.
B) increases Bob's cognitive dissonance.
C) is not included in Bob's evoked set.
D) decreases Bob's perceptual categorization.

Question 54

CRM software programs

A) are designed to help companies gather all customer contact information into multiple data management programs.
B) are often implemented into sales departments first since this area of a company typically generates the greatest amount of customer contact.
C) will require limited support resources for the proper implementation into the company.
D) has a finite set of user-friendly tools to assist implementation resulting in more small businesses adopting the programs.

Question 55

Juan's belief that all low calorie sodas taste awful is an example of

A) cognitive dissonance.
B) the elimination of an item in an evoked set.
C) perceptual categorization.
D) unilateral indifference.

Question 56

When Sarah decided to make an offer on a house, this action illustrated she is in the _____ stage of the consumer decision making process.

A) information search and evaluation
B) need recognition
C) post-purchase evaluation
D) purchase decision

Question 57

The individual processes  that give meaning to  the stimuli confronting  consumers are

A) a motivation.
B) a perception.
C) an attitude.
D) a cognition.

Question 58

June has always believed that the resale furniture store doesn't have quality furniture as it has been used by others. This _____ may cause her to avoid the store and shop at a store specializing in new furniture across town.

A) attitude
B) cognitive dissonance
C) motivation
D) perceptual categorization

Question 59

Which of the following is true about Yelp.com?

A) It is an online forum where customers can post reviews.
B) Only negative reviews have any impact.
C) Once a customer posts a negative review, the business is helpless to respond.
D) All of the above are true about Yelp.com.

Question 60

According to consumer information-processing theory, _____ is the final stage through which consumers progress.

A) cognitive dissonance
B) evaluative categorization
C) post-purchase evaluation
D) purchase decision

Question 61

Nikita's decision to buy her shoes at the same shop that her boss patronizes is the result of which sociological influence?

A) culture
B) opinion leaders
C) reference groups
D) social class

Question 62

Briefly describe each stage of the customer decision making process.

Question 63

A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs.  The winery is utilizing which sociological influence?

A) culture
B) opinion leaders
C) reference groups
D) social class

Question 64

In general, a person can be an opinion leader even if he or she is not

A) knowledgeable.
B) visible.
C) exposed to the mass media.
D) nationally known.

Question 65

How can technology improve customer relationships?

Question 66

Sally is a new customer at Fit and Strong, a training facility for marathon athletes.  Upon entering the business, the receptionist asked Sally to fill out a customer profile questionnaire in order to collect data for company files. What information is likely to be asked of Sally?

Question 67

Behavioral patterns and values that characterize a group of consumers in a target market are called

A) reference groups.
B) cultures.
C) social classes.
D) perceptual categories.

Question 68

List the five major economic benefits of maintaining relationships with current customers.

Question 69

Caleb owns a small deli and is focusing on developing his business relationship with customers. What four underlying beliefs should Caleb consider in order to develop and provide great customer service?

Question 70

What should entrepreneurs understand about sociological influences on customers?

Question 71

Aspiring mystery writers study Agatha Christie to learn the art of writing that genre.  In this case, Christie would be considered:

A) how a subcultural analysis impacts marketing efforts.
B) an opinion leader with which businesses want to affiliate.
C) a reference group for mystery writers
D) a social class because of her lifestyle choices.

Question 72

Compare CRM marketing efforts between current customers and new customers.

Question 73

Identify five outcomes of customer satisfaction.

Question 74

Greg is a retired NBA basketball player who has returned to his small hometown to open a basketball gym. There are no other businesses in his area like his concept and he wants to reach his customers. What psychological influences on his consumers does Greg need to consider before opening his location and how will they apply to the basketball gym?

Question 75

Identify and explain the importance of five indicators of extraordinary customer service.

Question 76

Mandy is shopping for a new car. She is visiting a privately owned lot in her hometown and describes to Jane, the salesperson, that she wants a four-door sedan with high fuel economy and a leather interior. Jane then shows her three cars that she thinks may fit Mandy's preferences. What stage of the decision making process is Mandy in and what should Jane understand about Mandy's search to complete the sale?

Question 77

Aly'an is a country rock band that has a new CD and is gaining a fan base.  The band wants to connect with their fans, increase CD sales and have more shows.  What are tools they could use to drive more people to their website?

Question 78

Discuss the importance of why small businesses should offer personal attention.  What are suggestions for implementing such procedures.

Question 79

Billy admires firemen.  He wants to dress like them, wear a fireman's hat, and pretend to put out fires.  For Billy, firemen are:

A) a referral group.
B) a reference group.
C) a perceptual group.
D) an associate group.

Question 80

Erin often shops at a retail store where her friends shop because of her desire to be affiliated with the group.  The friends are exerting ______ power over Erin.

A) expert
B) group
C) referent
D) expert