Question 1

Computing share of category is similar to computing share of wallet except share of category is based on volume or frequency of purchase as opposed to value.

Accepted Answer

A) True 
 B)False

Question 2

NPS stands for Net Product Score.

Accepted Answer

A) True 
 B)False

Question 3

Customer information is gathered through a variety of techniques EXCEPT for which of the following?

Accepted Answer

A) ethnographic studies 
B) delphi forecasts 
C) simple observation 
D) longitudinal studies 
E) critical incident scores

Question 4

The Event-History Model is a

Accepted Answer

A) simulation determining the impact of the 4Ps on purchase. 
B) typology of the critical incidents involved in a customer's relationship with a company. 
C) formula that predicts the probability that the customer is still active in the future. 
D) model forecasting the impact of exogenous variables on a company's profits. 
E) model depicting sales curves around key holidays.

Question 5

It has been shown that if a company wants to increase CLV, acquisition measures have a greater effect than customer retention.

Accepted Answer

A) True 
 B)False

Question 6

The drivers of relationship equity are

Accepted Answer

A) satisfaction. 
B) the 4Ps. 
C) company image. 
D) brand value. 
E) loyalty and commitment.

Question 7

If one wants to measure a customer's satisfaction with the service received from a hotel check-in representative, the best way to do it is through

Accepted Answer

A) an overall satisfaction measure. 
B) a cumulative satisfaction measure. 
C) a transaction specific measure. 
D) a longitudinal study. 
E) ethnographic research.

Question 8

Forrester Research Inc. found that 30% of Fortune 1000 firms had no metrics for their CRM projects.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT a brand equity asset according to David Aaker?

Accepted Answer

A) brand name awareness 
B) hierarchy of effects 
C) perceived brand quality 
D) brand Image 
E) all of the above are brand equity assets

Question 10

The most important marketing lever in driving firm value is

Accepted Answer

A) customer acquisition. 
B) customer retention. 
C) return on relationships. 
D) customer equity. 
E) the 4Ps.

Question 11

The Giga Information Group found that only 30 percent of companies involved in CRM deployment measured benefits

Accepted Answer

A) True 
 B)False

Question 12

Jill Dyche reported that 90 percent of the 50 largest CRM users admitted they were unable to quantify a return on their CRM investment.

Accepted Answer

A) True 
 B)False

Question 13

The drivers of brand equity are

Accepted Answer

A) the 4Ps. 
B) brand image. 
C) ethnological data. 
D) cognitive and affective components. 
E) conative components.

Question 14

AT&T found that perceived value, not satisfaction or loyalty, was a better measure of retention.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT true?

Accepted Answer

A) Many or most heavy users are multibrand loyal. 
B) The most profitable customer is likely to be your competitor's most profitable customer. 
C) 100% loyal buyers of a brand tend to be light buyers. 
D) Customers who have divided loyalty may be more profitable than those who are 100% loyal. 
E) all are true

Question 16

Of 100,000 Macy customers active in 2005, 80,000 are still active in 2006. The average lifetime duration is therefore 80%.

Accepted Answer

A) True 
 B)False

Question 17

As companies lose customers, their customer satisfaction scores fall.

Accepted Answer

A) True 
 B)False

Question 18

A specific aspect of service, or a single behavior or characteristic of the service or product, which is used to measure service quality, is referred to as

Accepted Answer

A) an acquisition/defection matrix. 
B) hierarchy of effects mode. 
C) idiosyncratic fit heuristic. 
D) critical Incident Analysis. 
E) event-history score.

Question 19

There are four separate areas that should contain CRM effectiveness measures, excluding which of the following?

Accepted Answer

A) customer CRM strategy cycle 
B) competitive measures 
C) company measures 
D) customer lifetime value and customer equity measures 
E) marketing research and customer knowledge measures

Question 20

Customer equity can be defined as the sum of CLVs of all the company's individual customers less company expenditures discounted to a net present value.

Accepted Answer

A) True 
 B)False

Exam 12: CRM Program Measurement and Tools

Computing share of category is similar to computing share of wallet except share of category is based on volume or frequency of purchase as opposed to value.

NPS stands for Net Product Score.

Customer information is gathered through a variety of techniques EXCEPT for which of the following?

The Event-History Model is a

It has been shown that if a company wants to increase CLV, acquisition measures have a greater effect than customer retention.

The drivers of relationship equity are

If one wants to measure a customer's satisfaction with the service received from a hotel check-in representative, the best way to do it is through

Forrester Research Inc. found that 30% of Fortune 1000 firms had no metrics for their CRM projects.

Which of the following is NOT a brand equity asset according to David Aaker?

The most important marketing lever in driving firm value is

The Giga Information Group found that only 30 percent of companies involved in CRM deployment measured benefits

Jill Dyche reported that 90 percent of the 50 largest CRM users admitted they were unable to quantify a return on their CRM investment.

The drivers of brand equity are

AT&T found that perceived value, not satisfaction or loyalty, was a better measure of retention.

Which of the following is NOT true?

Of 100,000 Macy customers active in 2005, 80,000 are still active in 2006. The average lifetime duration is therefore 80%.

As companies lose customers, their customer satisfaction scores fall.

A specific aspect of service, or a single behavior or characteristic of the service or product, which is used to measure service quality, is referred to as

There are four separate areas that should contain CRM effectiveness measures, excluding which of the following?

Customer equity can be defined as the sum of CLVs of all the company's individual customers less company expenditures discounted to a net present value.