Deck 14: Customer Relationship Management

Question 1

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)the ease with which a business can secure financing to start operating its business.
D)how complicated the process is for producing and delivering a product.
E)the amount of effort required on the part of a customer when dealing with a firm.

Answer 1

E

Question 2

The two methods that encompass customer service activities are

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

Answer 2

A

Question 3

Which of the following companies is utilizing social media in customer service?

A)A retail store has a box on the check-out counter where customers can leave comments and suggestions.
B)A business e-mails customers order tracking information so they can track the delivery of their orders.
C)A company institutes a 24-hour customer service hotline for customers to call with questions.
D)A company's website has a section where customers can e-mail questions.
E)A company encourages customers to use its Facebook page to ask questions or request product samples.

Answer 3

E

Question 4

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

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

Question 5

Which of the following would not promote ease of doing business?

A)A business offers its customers favorable payment terms and discounts for quick payments.
B)A salesperson on the store floor can place an order for a customer and have the item delivered to the customer's home.
C)A retail store does not have dressing rooms so customers often have to return items that don't fit back to the store.
D)A company's website offers customers the ability to chat live with a customer service representative.
E)A department store has a no hassle return policy and allows customers to return items without a receipt.

Question 6

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

Question 7

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

Question 8

According to your text,which of the following is a major part of ease of doing business?

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

Question 9

Which of the following is not a common objective listed in your text for all employees when building an effective customer service strategy?

A)timeliness
B)customer communication
C)profitability
D)reliability
E)ease of doing business

Question 10

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

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

Question 11

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

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

Question 12

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

Question 13

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

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

Question 14

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

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

Question 15

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

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

Question 16

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

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

Question 17

Janie ordered a boxed DVD set online for her friend's birthday and she is hoping it will arrive on time.Luckily,the company sent her the UPS tracking number of the package so Janie can track the package and know exactly when it will arrive.This form of customer communication is referred to as

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

Question 18

Which of the following companies most likely has a philosophy that elevates customer service to the highest level?

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

Question 19

Which of the following can be said regarding customer service?

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

Question 20

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

Question 21

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

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

Question 22

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

Question 23

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

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

Question 24

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

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

Question 25

Which of the following metrics 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)on-time delivery
B)item fill rate
C)line fill rate
D)dollar fill rate
E)perfect order rate

Question 26

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 27

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

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

Question 28

A firm's flexibility is measured by which metric?

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

Question 29

A critical element to performance measurement metrics is

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

Question 30

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)order fill point
B)delivery point
C)pre-transaction point
D)transaction point
E)post-transaction point

Question 31

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

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

Question 32

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

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

Question 33

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 34

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

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

Question 35

What do post-incident surveys measure?

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

Question 36

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

Question 37

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

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

Question 38

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

Question 39

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

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

Question 40

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

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

Question 41

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

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

Question 42

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

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

Question 43

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

Question 44

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 customer does not have to put forth much effort to have a positive experience with a firm.
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 firm is willing to provide fast service,answer customer inquiries,and resolve problems in a timely manner.

Question 45

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)fosters employee satisfaction.
E)focuses on being a market share leader.

Question 46

Which of the following is the best source of information about in-person customer interactions and is particularly helpful in gathering specific customer information such as contact information and purchase preferences?

A)competitor sales data
B)Facebook and Twitter postings
C)sweepstakes entries
D)sales personnel
E)e-mails to customer service

Question 47

The customer relationship management process is described in your text as being

A)precise.
B)iterative.
C)linear.
D)finite.
E)singular.

Question 48

Trisha 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,Trisha 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 Trisha's store is practicing

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

Question 49

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

Question 50

The first step in the customer relationship management process is to

A)understand how customers interact.
B)store and analyze information.
C)identify current customers.
D)gather specific customer information.
E)utilize analysis to build customer relationships.

Question 51

The process by which companies get 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 52

A business is trying to determine which customers buy its products online versus going to its retail stores.By doing so,the firm is engaged in which step of the customer relationship management process?

A)storing and analyzing information
B)gathering specific customer information
C)understanding how customers interact
D)identifying current customers
E)utilizing analysis to build customer relationships

Question 53

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

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

Question 54

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

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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

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

Question 59

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

A)Companies that base their business on the marketing concept maintain a focus on delivering value to the customer in any profitable way they can.
B)A marketing concept puts the customer in the center of a firm's thinking in terms of both strategy and operations.
C)A marketing concept should encompass managerial awareness and appreciation of the consumer's role in the firm's existence.
D)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.
E)In a marketing concept,there should be general managerial appreciation of the role of marketing intelligence in determining the needs and wants of customers.

Question 60

CRM technologies allow marketers to do all the following except

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

Question 61

The measure of the quantity of purchase dollars each customer spends on the company's products is referred to as share of

A)wallet.
B)market.
C)product.
D)equity.
E)customer.

Question 62

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

Question 63

The measurement of how well a CRM program prioritizes customers based on each customer's profitability is referred to as

A)share of customer.
B)lifetime value.
C)customer focus.
D)customer equity.
E)dollar fill ratE.

Question 64

The data analysis technique that uses sophisticated algorithms to try to determine the future actions of customers is called

A)lifetime value analysis.
B)customer segmentation analysis.
C)demographic value analysis.
D)predictive modeling.
E)recency-frequency-monetary analysis.

Question 65

The data analysis technique that involves creating customer profiles based on demographic characteristics,purchase patterns,and other criteria,and placing them into various categories is called

A)lifetime value analysis.
B)demographic value analysis.
C)recency-frequency analysis.
D)predictive modeling.
E)customer segmentation analysis.

Question 66

The ratio that compares the financial investments a company puts into gaining and keeping customers to the financial return on those investments is referred to as

A)lifetime value.
B)customer focus.
C)share of customer.
D)dollar fill rate.
E)customer equity.

Question 67

The process that involves the computerized search for meaningful trends in a large amount of data is known as

A)predictive modeling.
B)data mining.
C)data trending.
D)data warehousing.
E)trend modeling.

Question 68

If a company's CRM efforts lead to an increase in the number of goods or services purchased by a consumer,then it has been successful in increasing its

A)lifetime value.
B)customer focus.
C)share of customer.
D)customer equity.
E)product equity.

Question 69

Tamika just purchased a membership at local health club.On the way home,she heard a radio commercial for a competing health club and thought it sounded really good.Now Tamika is questioning whether or not she made the right decision.Tamika is experiencing

A)postpurchase stress.
B)consumer apprehension.
C)purchase anxiety.
D)cognitive dissonance.
E)indecisiveness.

Question 70

Soon after Victor purchased his new vehicle,he received an e-mail from the company thanking him for his purchase and explaining all the features of his new car.The e-mail also contained a link to the company's 100,000 mile club where customers who have had their vehicles for more than 100,000 miles share stories about positive experiences with the brand.By sending this e-mail,the firm is most likely attempting to

A)increase ease of doing business.
B)increase consumer equity.
C)assess the customer's lifetime value.
D)reduce cognitive dissonance.
E)sell additional products.

Question 71

According to your text,what should companies do to guard against a breach of security in their CRM systems?

A)Store credit card numbers only for the purpose of customer orders.
B)Only allow CRM data to be shared with company affiliates.
C)Install powerful firewalls to protect customer data.
D)Rely on government laws to catch hackers.
E)Rely on cloud computing applications instead.

Question 72

In the customer relationship management process,after data has been stored,computer programs can analyze the data to search for meaningful trends that the company can use to build customer relationships.This analysis process is called

A)data warehousing.
B)data trending.
C)predictive modeling.
D)trend modeling.
E)data mining.

Question 73

The last step of the customer relationship management process is to

A)identify current customers.
B)utilize analysis to build customer relationships.
C)understand how customers interact.
D)gather specific customer information.
E)store and analyze information.

Question 74

A local hair salon is analyzing its customer data to determine the last time each customer visited the salon,if he or she purchased a hair care product,and how much money the customer spends on the salon's services and products.In essence,it is trying to determine its customers' profit potential so it can target them for marketing efforts.What data analysis tool is the salon using?

A)recency-frequency-monetary analysis
B)demographic value analysis
C)customer segmentation analysis
D)predictive modeling
E)lifetime value analysis

Question 75

What issue highlighted in your text is an ever-present concern for customers regarding CRM systems?

A)the potential for customers to be inundated with company mail
B)the attempt by companies to use customer data to generate product specific promotions
C)the fear that the company will use customer data in its advertising campaigns
D)the worry that customer data is not secure
E)the attempt by companies to sell customers additional products

Question 76

A company can determine the value of its CRM program by calculating its

A)share of customer ratio.
B)lifetime value ratio.
C)customer equity ratio.
D)dollar fill rate.
E)customer focus ratio.

Question 77

A firm that uses CRM data to generate coupons for customers based on their past purchases is using the CRM data to

A)reduce order cycle time.
B)build customer equity.
C)reduce cognitive dissonance.
D)tailor customer promotions.
E)understand how customers interact.

Question 78

Netflix wants to determine which movies customers might rent in the future.In order to do so,the firm looks at customers' previous rentals,their online reviews of movies,and the movie ratings of all Netflix customers as a whole.Which data analysis tool is Netflix most likely using?

A)predictive modeling
B)recency-frequency-monetary analysis
C)demographic value analysis
D)customer segmentation analysis
E)lifetime value analysis

Question 79

A firm that uses data to compare the costs of retaining customers and the costs of acquiring new customers with the goal of determining how much money each type of customer requires is using

A)demographic value analysis.
B)lifetime value analysis.
C)customer segmentation analysis.
D)predictive modeling.
E)recency-frequency-monetary analysis.

Question 80

Which data analysis tool allows firms to monitor the actual costs of doing business with customers to ensure that it is focusing on the most profitable customers?

A)demographic value analysis
B)predictive modeling
C)recency-frequency-monetary analysis
D)lifetime value analysis
E)customer segmentation analysis