Question 1

Channel interactions are the relationships a manufacturer has with its distributors.

Accepted Answer

A) True 
 B)False  False

Question 2

The Gramm-Leach-Bliley Act enforces privacy guidelines:

Accepted Answer

A)   for financial information
B)   for medical records
C)   that regulate telemarketers
D)   that regulate Internet marketers
E)   that regulate all business activities A

Question 3

Continental Airlines has a system that captures information on everything from flight schedules,seat inventories,and customer profiles that is accessible by 35 departments and 1,300 employees.Continental's system is an example of a(n):

Accepted Answer

A)   information mine
B)   knowledge distribution center
C)   information extraction unit
D)   information storage unit
E)   data warehouse E

Question 4

As the second step in the CRM cycle a company must:

Accepted Answer

A)   establish marketing objectives
B)   captures relevant customer data on interactions
C)   identify customer relationships with the organization
D)   understand the interactions the company has with current customers
E)   decide on a segmentation strategy

Question 5

Which of the following would allow an online retailer like Frontgate to learn that customers who purchase electronic products also purchase home office furniture?

Accepted Answer

A)   Knowledge interpretation
B)   Systems management
C)   Data mining
D)   Information extraction
E)   Information search

Question 6

Briefly describe how and why an organization uses data mining.What are some commonly used types of data analysis?

Accepted Answer

The answer of Briefly describe how and why an organization...

Question 7

Which of the following statements about the CRM cycle is true?

Accepted Answer

A)   The letters CRM are an acronym for consumer relationship marketing.
B)   The CRM cycle does not affect employees outside the marketing and management functional areas.
C)   The CRM cycle is continuous and circular with no predefined start or end point.
D)   The CRM cycle takes a simplistic perspective on customers.
E)   All of these statements about the CRM cycle are true.

Question 8

In a CRM environment,_____ is defined as the informal process of collecting customer information through customer contacts and feedback on product and service performance.

Accepted Answer

A)   leveraging
B)   knowledge management
C)   interaction
D)   data mining
E)   learning

Question 9

Los Angeles Sparks
The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base.The Sparks CRM system,provided by software vendor "Smart Button" manages all email promotions sent to fans.Additionally,the sparks online fan site keeps fans informed of upcoming games,practices open to the public,team events,and more.The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season,that ticket holders can give to others.The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats.At the end of the season,the top three point-givers receive cash prizes.The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets.As a result,the Sparks have seen a sharp rise in late-season ticket sales this year.
-Refer to the Los Angeles Sparks.Suppose that the Sparks management sees six categories of fans at their games.They feel some people at Sparks games generally fall within one of the following six groups: 1)general sports fans,2)basketball fans,3)Sparks fans,4)general fans of women's sports,5)fans of opposing teams,and 6)those seeking entertainment.Dividing customer groups down in this manner is termed:

Accepted Answer

A)   customer data mining
B)   customer segmentation
C)   customer targeting
D)   customer positioning
E)   customer centric

Question 10

To target outdoor enthusiasts,Subaru of America added an outdoor life section to its Web site that is organized by area of interest.The site will serve as a platform for co-marketing and promotional programs.This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of:

Accepted Answer

A)   campaign management
B)   customer aggregation
C)   transaction segmentation
D)   data mining
E)   knowledge management

Question 11

_____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.

Accepted Answer

A)   Data profiling
B)   Cluster analysis
C)   Regression analysis
D)   Customer profiling
E)   Data mining

Question 12

Blood Services
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
-Refer to Blood Services.The organization developed a _____ list of donors to receive birthday cards.

Accepted Answer

A)   compiled
B)   benefit-based
C)   response
D)   feedback
E)   proactive

Question 13

What is RFID technology? Explain why it is used and how it works,and describe the main implication of this technology.

Accepted Answer

The answer of What is RFID technology? Explain why it...

Question 14

Data consolidation is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Accepted Answer

A) True 
 B)False

Question 15

A company that has a(n)_____ customizes its product offerings based on data generated through interaction between the customer and the company.

Accepted Answer

A)   ethnocentric perspective
B)   supply-based focus
C)   sales orientation
D)   customer-centric focus

Question 16

Web-based interactions are an increasingly popular touch point for customers to communicate with companies on their own terms.

Accepted Answer

A) True 
 B)False

Question 17

Customer relationship management (CRM)requires that organizations be organized around customer segments.

Accepted Answer

A) True 
 B)False

Question 18

Through customer segmentation,marketers use some past set of occurrences in order to determine what the odds are that certain other occurrences-such as a response or purchase-will take place in the future.

Accepted Answer

A) True 
 B)False

Question 19

Hudson's Bay Company in Canada operates The Bay,Zellers,Home Outfitters,and hbc.com.At each of its stores and its Web site,it gives HBC Rewards that enable members to earn points,which can be redeemed in the HBC Rewards catalog for various items,including travel,leisure and entertainment items,Air Miles reward miles,or Bay and Zellers gift certificates.To use the system,customers have to provide their HBC card number.This reward program enables Hudson's Bay to engage in _____ interactions with its customers.

Accepted Answer

A)   point-of sale and Web-based
B)   customer-centric and technology-centric
C)   retail-centric and Web-based
D)   transaction-based and retail-centric
E)   point-of-sale and retail-centric

Question 20

A _____ is a central repository for data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that information can be shared across all functional departments of the business.

Accepted Answer

A)   data mart
B)   customer information system
C)   data warehouse
D)   decision support system
E)   data cluster

Exam 21: Customer Relationship Management (CRM)

Channel interactions are the relationships a manufacturer has with its distributors.

The Gramm-Leach-Bliley Act enforces privacy guidelines:

Continental Airlines has a system that captures information on everything from flight schedules,seat inventories,and customer profiles that is accessible by 35 departments and 1,300 employees.Continental's system is an example of a(n) :

As the second step in the CRM cycle a company must:

Which of the following would allow an online retailer like Frontgate to learn that customers who purchase electronic products also purchase home office furniture?

Briefly describe how and why an organization uses data mining.What are some commonly used types of data analysis?

Which of the following statements about the CRM cycle is true?

In a CRM environment,_____ is defined as the informal process of collecting customer information through customer contacts and feedback on product and service performance.

_____ is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse.

What is RFID technology? Explain why it is used and how it works,and describe the main implication of this technology.

Data consolidation is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

A company that has a(n) _____ customizes its product offerings based on data generated through interaction between the customer and the company.

Web-based interactions are an increasingly popular touch point for customers to communicate with companies on their own terms.

Customer relationship management (CRM)requires that organizations be organized around customer segments.

Through customer segmentation,marketers use some past set of occurrences in order to determine what the odds are that certain other occurrences-such as a response or purchase-will take place in the future.

A _____ is a central repository for data from various functional areas of the organization that are stored and inventoried on a centralized computer system so that information can be shared across all functional departments of the business.