Deck 5: Marketing Analytics: Welcome to the Era of Big Data

Question 1

________ is the financial value of a customer throughout the lifetime of the customer relationship.

A) Share of customer
B) The customer perceptual map
C) CRM
D) Customer equity
E) The 80/20 rule

Answer 1

D

Question 2

Customer relationship management (CRM) programs are often called interactive marketing programs.

Answer 2

False

Question 3

Average collectors of an artist's miniatures will buy four new miniatures each year. The collectibles are available at a number of retail locations and from several catalog retailers. To ensure she gets a greater ________, the owner of The Door Gift Shop sends her customers who are collectors a postcard every time the store adds a new miniature to her store's inventory.

A) share of communication
B) segment profile
C) conversion
D) share of customer
E) brand perception

Answer 3

D

Question 4

Which of the following statements about the lifetime value of a customer is true?

A) CRM helps companies identify their customers' lifetime value.
B) All customers have the same lifetime value.
C) A customer's lifetime value is easy to calculate.
D) A company can either increase customer share or a customer's lifetime value, but not both.
E) The value of the customer is related to the value of the brand.

Question 5

Through its CRM program, an online clothing company records information about each time a customer makes a purchase or clicks on a link through an email or an online advertisement. These interactions are examples of ________.

A) customizations
B) touchpoints
C) analytics
D) optimizations
E) impressions

Question 6

CRM stands for ________.

A) consumer relationship marketing
B) consumer retention management
C) customer relationship management
D) customer retention marketing
E) consumer response management

Question 7

Any direct interface between customers and a company-whether it is online, in-person, or over the phone-is called a(n) ________.

A) share of customer
B) customer target
C) touchpoint
D) customization
E) analytic

Question 8

Which of the following statements about CRM programs is true?

A) The success of a CRM program relies on its use of mass communication channels.
B) CRM programs include information gathered from each customer touchpoint.
C) Internet technology is a barrier to the successful implementation of CRM programs.
D) To succeed, all companies should engage in CRM every time they interact with a customer.
E) Only consumer marketers can benefit from the use of CRM programs.

Question 9

In one-to-one marketing, the final step is to ________.

A) interact with the customers and find ways to improve cost efficiency
B) prioritize efficiency of interactions with customers
C) differentiate among these customers in terms of both their needs and their value to the company
D) customize some aspects of the products or services offered to each customer
E) implement a mass customization program

Question 10

A company's first step in one-to-one marketing should be to ________.

A) rank its customers in terms of sales volume
B) identify customers that cost the company money
C) identify types of transactions and determine which will be abandoned
D) identify customers and get to know them in as much detail as possible
E) determine which aspect of the product will be customized to meet the individual needs of its customers

Question 11

Which of the following is not a focus of customer relationship management?

A) customer prioritization
B) share of customer
C) lifetime value of the customer
D) customer equity
E) undifferentiated targeting

Question 12

The dentist's office calling to remind you of your scheduled appointment for the next day is an example of ________.

A) CRM
B) customer equity
C) undifferentiated targeting
D) share of customer
E) repositioning

Question 13

To determine ________, firms compare the investments they make in acquiring and retaining customers to the financial return on those investments.

A) segmentation
B) share of customer
C) brand personality
D) customer equity
E) positioning

Question 14

A building supply company has many high-volume customers and many low-volume customers. A CRM system would be LEAST likely to help management decide to use which of the following methods for communicating with low-volume customers?

A) Every November, send each customer a new calendar that has the phone number of the building supply company printed on the cover.
B) Once or twice a year, mail a new product catalog to each customer.
C) Every few months, have a customer service representative from the building supply company call each customer.
D) Have a sales representative make a personal one-on-one appointment with every low-volume customer at least twice a month.
E) Give each low-volume customer the company Web address to check building supply products sold by the company.

Question 15

The owner of a pet grooming salon wants to calculate customer equity. Which of the following is a step the owner of this pet grooming salon should complete?

A) Compare investments made by the salon owner in acquiring the customer to the total amount of purchases made by the customer.
B) Compare investments made by the salon owner to retain this customer to the total amount of taxes the salon owner pays.
C) Ask the customer if she is planning on getting any new pets.
D) Investigate how many other pet grooming salons are within five miles to determine the likelihood of this pet owner returning to this salon.
E) Determine the age of the pet to estimate how much longer this customer may need the services of the salon.

Question 16

To reduce the workload required to fully take advantage of all of the data collected from customers in a DRM program, firms use ________, a set of rules for handling different processes in a predetermined way.

A) conversion rates
B) marketing automation
C) customer lifetime value
D) share of customer
E) structured data

Question 17

Companies that successfully practice customer relationship management measure success by ________.

A) share of market and market growth rate
B) business potential and industry potential
C) share of customer and lifetime value of the customer
D) PRIZM and VALS™
E) cost of customer and duration of relationship with customer

Question 18

The ________ is the potential profit generated by a single customer's purchase of a firm's products over the customer's lifetime.

A) customer lifetime value
B) customer prioritization
C) customer segmentation
D) share of a customer
E) customer equity

Question 19

CRM firms focus on increasing their share of ________, not share of market.

A) profit
B) audience
C) segment
D) usage
E) customer

Question 20

Many marketing experts recommend ________ programs that allow a company to talk to individual customers and adjust elements of the marketing mix to satisfy the specific needs of each customer.

A) customer relationship management
B) psychographic segmentation
C) transactional management
D) B2B marketing
E) C2C marketing

Question 21

Compare and contrast the concepts of lifetime value of a customer and customer equity.

Question 22

The Union Express website tracking a lost package is an example of CRM.

Question 23

During the interact step of one-to-one marketing, companies should focus on ways to improve the cost efficiency and effectiveness of the interaction.

Question 24

Explain the philosophy of customer relationship management (CRM).

Question 25

Explain the relationship between one-to-one marketing and CRM.

Question 26

Technology designed specifically for marketing analytics is referred to as mar-tech.

Question 27

Using a CRM approach, customers are prioritized and communication is customized accordingly.

Question 28

Customer relationship management (CRM) programs can systematically track customers' preferences and behaviors over time.

Question 29

To better tailor the services it offers to the needs of specific customers, First City Bank should first collect, verify, and update the information it has about its customers.

Question 30

Rather than focusing on improving cost efficiencies, a CRM program helps marketers focus on the effectiveness of each interaction with a customer.

Question 31

CRM programs are used by e-commerce firms, but not by brick-and-mortar firms.

Question 32

Describe the four steps of one-to-one marketing.

Question 33

The term share of customer is synonymous with share of market.

Question 34

What are two ways the airline industry can benefit from the implementation of CRM systems? Explain your answer.

Question 35

CRM programs facilitate communication from a company to its customers and from customers to the company.

Question 36

A firm has segmented its customers into two groups: high-volume customers and low-volume customers. Explain the different styles of communication the firm should implement to reach each group of customers.

Question 37

Explain how a firm benefits from customers who make multiple purchases versus customers who make just one purchase.

Question 38

Identify any product or service. How can a marketer calculate the lifetime value of a customer relating to the purchase of this product or service? Explain your answer.

Question 39

Historically, marketers have measured success in a product category by their market share.

Question 40

The final stage in one-to-one marketing is to identify customers in terms of both their needs and their value to the company.

Question 41

Analysts use ________ to comb through vast amounts of data to find hidden patterns and determine how to use those patterns.

A) data warehouses
B) sentiment analysis
C) emotion analysis
D) algorithms
E) predictive analytics

Question 42

With a CRM approach, how might a firm select different methods of contacting and communicating with customers based on their value?

Question 43

Walmart's Retail Link provides real time purchase data to suppliers of goods sold at Walmart stores. Retail Link is an example of a ________ source of Big Data.

A) social media
B) partner database
C) commercial entity
D) government
E) corporate information technology

Question 44

The process through which analysts sift through massive amounts of available data to identify unique patterns of behavior among different customer groups is called ________.

A) structuring data
B) information overload
C) reality mining
D) data warehousing
E) data mining

Question 45

Some cellular providers are signing deals with business partners wanting to market products based on specific phone users' locations and calling habits. These cellular providers are participating in a new trend called ________.

A) telemarketing
B) data warehousing
C) reality mining
D) virtual mining
E) prediction marketing

Question 46

In a(n) ________, there is a two-way exchange of information between purchasing organizations.

A) data warehouse system
B) intelligent agent approach
C) channel partner model
D) data broker system
E) market basket analysis

Question 47

The text of an email or a social media post would best be categorized as ________.

A) structured data
B) unstructured data
C) predictive data
D) optimized data
E) converted data

Question 48

Which of the following is true of information stored in departmental "silos'?

A) Such information is best described as structured data.
B) Such information is best described as unstructured data.
C) Such information is unlikely to be shared with other departments in the firm.
D) Such information is typically gathered from indirect sources.
E) Such information is typically gathered by channel partners.

Question 49

Through a process of ________, a company can identify a social media platform user's attitude toward a brand.

A) data warehousing
B) sentiment analysis
C) search engine optimization
D) predictive analytics
E) reality mining

Question 50

When a company uses computer software to extract large amounts of data from social media platforms, it is using ________.

A) data warehousing
B) scanner data
C) intelligent agents
D) web scraping
E) reality mining

Question 51

To take advantage of the massive amount of data now available, a sophisticated analysis technique called ________ is becoming a priority for many firms.

A) data mining
B) prospecting
C) cold calling
D) data warehousing
E) data tallying

Question 52

Because of ________, it can be difficult to decide what data are useful and what data are not useful.

A) conversion rates
B) predictive analytics
C) unstructured data
D) search engine optimization
E) information overload

Question 53

Big Data would most likely be measured in which of the following?

A) megabytes
B) bytes
C) bits
D) megabits
E) terabytes

Question 54

The term Big Data refers to the ________.

A) use of data warehouses to store structured and unstructured data
B) exponential growth of structured and unstructured data that are difficult to process using traditional database techniques
C) increasing number of everyday objects that are connected to the Internet and can communicate information about their use
D) extraction and analysis of large amounts of data from websites
E) collection and analysis of unstructured data by data scientists

Question 55

A company that compiles and uses large amounts of data to understand its customers is likely to have a ________ to store and process its data.

A) distribution center
B) data warehouse
C) competitive intelligence center
D) custom research project
E) marketing research department

Question 56

Numeric or categorical information is referred to as ________.

A) structured data
B) unstructured data
C) predictive data
D) optimized data
E) converted data

Question 57

CRM and enterprise resource planning databases are examples of ________ sources of Big Data.

A) social media
B) NGO
C) commercial entity
D) government
E) corporate I.T.

Question 58

Census data is an example of a ________ source of Big Data.

A) social media
B) partner database
C) commercial entity
D) government
E) corporate I.T.

Question 59

________ is a term that refers to a system in which everyday objects are able to communicate information throughout an interconnected system.

A) Big Data
B) The Internet of Things
C) Data Science
D) Data warehousing
E) Data mining

Question 60

Scanner data is an example of a ________ source of Big Data.

A) social media
B) partner database
C) commercial entity
D) government
E) corporate I.T.

Question 61

A new "smart" refrigerator has been designed with sensors that send information to the manufacturer about the refrigerator's use and performance. One advantage of the system is that it will detect any possible performance issues before they interfere with consumer use of the refrigerator and communicate that information to both the manufacturer and consumer so that service and/or repairs can take place immediately. This is an example of ________.

A) the Internet of Things
B) a data warehouse
C) data mining
D) sentiment analysis
E) unstructured data

Question 62

Tabak catalog retailer studies about 3,500 variables over the lifetime of a customer's relationship. Through ________, it has found that customers who change residences are three times more likely than customers who do not move as frequently to buy tables, fax machines, and decorative products but are no more likely to buy jewelry or footwear.

A) data mining
B) prospecting
C) sampling
D) sentiment analysis
E) customer acquisition

Question 63

A data scientist is also known as a(n) ________.

A) intelligent agent
B) search engine optimizer
C) data broker
D) business intelligence developer
E) reality miner

Question 64

Which of the following has limited the practice of reality mining?

A) lack of communication among departments within an organization
B) difficulties analyzing unstructured data
C) concerns about preventing information overload
D) concerns about reactions to privacy infringement
E) concerns about preventing customer abandonment

Question 65

Walgreens customers can sign up for the Balance Rewards program, entering a member number or using a member card every time they make a Walgreens purchase in order to receive discounts and build up points that can be redeemed for rewards. Information that Walgreens collects through these purchases is best described as ________.

A) scanner data
B) web
C) unstructured data
D) sentiment analysis
E) data mining

Question 66

Which of the following is true about unstructured data?

A) It cannot be combined with other data sources.
B) Computer logic programs can identify and extract patterns in it.
C) It must be analyzed manually.
D) It is less valuable than structured data in terms of providing insights into customer behavior.
E) It is more likely to come from direct sources than indirect sources.

Question 67

Soundz, a marketer of high-end headphones, wants to identify new markets in Asia with high potential for growth and dense pockets of consumers with growing incomes. Which of the following would be the best source of data to help the leadership at Soundz decide which new markets present the best opportunities?

A) corporate I.T. sources
B) social media sources
C) government sources
D) commercial entity sources
E) partner database sources

Question 68

RBC Royal Bank wanted to evaluate the financial value of its substantial personal customer base to determine which type of customers were the most valuable to the bank. To do this, the bank looked at revenues and expenses from each of its financial products, including loans and credit card usage. To identify and then analyze this information, the bank utilized the MIS analysis technique called ________.

A) data warehousing
B) marketing research
C) probability sampling
D) data mining
E) market basket analyzing

Question 69

Which of the following is NOT one of the four main applications of data mining for marketers?

A) customer retention
B) customer acquisition
C) customer abandonment
D) competitive intelligence
E) market basket analysis

Question 70

A ________ is someone who searches through multiple, disparate data sources in order to discover insights that will provide a competitive advantage.

A) search engine optimizer
B) data broker
C) data warehouser
D) data scientist
E) reality miner

Question 71

________ are companies that collect and sell personal information about consumers.

A) Data brokers
B) Search engine optimizers
C) Data warehouses
D) Web scrapers
E) Channel partners

Question 72

Through the data mining application of ________, marketers identify big-spending customers and target them for special offers that other customers won't receive.

A) customer retention
B) customer acquisition
C) customer abandonment
D) competitive intelligence
E) market basket analysis

Question 73

Using the method of ________, unstructured data such as social media posts can be categorized into a wide range of complex feelings and emotions.

A) sentiment analysis
B) emotion analysis
C) predictive analytics
D) market basket analysis
E) search engine optimization

Question 74

Through the data mining application of ________, marketers target promotional strategies for products based on the records of which customers have recently purchased certain other products.

A) customer retention
B) customer loyalty
C) customer acquisition
D) customer abandonment
E) market basket analysis

Question 75

Through the data mining application of ________, marketers offer promotions to noncustomers who share demographic characteristics with current customers.

A) customer retention
B) customer loyalty
C) customer acquisition
D) customer abandonment
E) market basket analysis

Question 76

Scrambler is a popular smartphone app that users can download and play for free. The makers of Scrambler make the app profitable by selling information obtained about users as they play the game. Marketers would most likely use this information for the data mining application of ________.

A) customer acquisition
B) customer retention
C) customer loyalty
D) customer abandonment
E) customer analysis

Question 77

Prep for Success is an educational services company that specializes in preparing students for selective private school entrance exams. Prep for Success sends information about its services to consumers who have purchased school supplies such as backpacks and lunchboxes online and live in a community with an average household income of above $85,000 per year. This is an example of a company using ________ to identify and contact potential customers.

A) the Internet of Things
B) sentiment analysis
C) unstructured data
D) information overload
E) Big Data

Question 78

Which of the following is the most accurate comparison of structured and unstructured data?

A) More unstructured data than structured data is created every day.
B) More structured data than unstructured data is created every day.
C) Computers can organize and understand structured data but not unstructured data.
D) Computers can organize and understand unstructured data but not structured data.
E) Data mining and analysis has historically focused on unstructured data rather than structured data.

Question 79

Soundz, a marketer of high-end headphones, wants to better understand how consumers think and feel about its products. Which of the following would be the best tool to help the leadership at Soundz learn about consumer attitudes toward the brand?

A) predictive technology
B) an A/B test
C) churn rate
D) sentiment analysis
E) search engine optimization

Question 80

Companies are most likely to use data mining results identifying unprofitable customers for ________.

A) customer retention
B) customer loyalty
C) customer acquisition
D) customer abandonment
E) market basket analysis