Question 1

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?

Accepted Answer

A) recency-frequency-monetary analysis 
B) predictive modelling 
C) data mining 
D) lifetime value analysis

Question 2

Leah wants to develop a mailing list of people who have participated in bicycle rides for charities. She has offered to purchase a list of last year's Ride for Life, which was held to raise funds for cancer research. Which type of list is Leah building?

Accepted Answer

A) actionable list 
B) response list 
C) compiled list 
D) predictive list

Question 3

What do we call the process of finding hidden patterns and relationships in the customer data stored in the data warehouse?

Accepted Answer

A) customer information management 
B) data feedback 
C) information retrieval 
D) data mining

Question 4

Scenario 9-4
As flextime, consulting, telecommuting, and downsizing make it more difficult for people to donate blood at the workplace, Canadian Blood Services has launched a CRM marketing campaign in Toronto 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 the scenario. Why did the organization use CRM marketing?

Accepted Answer

A) to cross-sell other products 
B) to design targeted marketing communications 
C) to increase effectiveness of its distribution strategy 
D) to define customer service

Question 5

Touch points are important with regards to learning about customers.

Accepted Answer

A) True 
 B)False

Question 6

Transactions can provide all types of information about the customer's past purchases.

Accepted Answer

A) True 
 B)False

Question 7

There are three stages in CRM.

Accepted Answer

A) True 
 B)False

Question 8

Tom recently purchased a GE microwave oven using a $50 rebate offer. He filled out the rebate certificate and sent it to an address provided by GE. The rebate certificate contained Tom's full name, his phone number, his address, and some purchase information. Tom has most likely become part of which of GE's lists?

Accepted Answer

A) compiled lists 
B) response lists 
C) electronic cash lists 
D) Internet research lists

Question 9

Explain the importance of interactions in a customer relationship management system. Most colleges and universities have some form of CRM system. Describe an interaction that occurs at your institution.

Accepted Answer

The answer of Explain the importance of interactions in a...

Question 10

What would an online retailer use to discover that customers who purchase flannel sheets also have a high probability of purchasing all-natural Christmas wreaths, if the opportunity is made available?

Accepted Answer

A) knowledge interpretation 
B) systems management 
C) data mining 
D) information extraction

Question 11

When Ford Motor Company launched an online effort to market its F-Series trucks, it created a database. According to the textbook, what is one potential problem with the use of this database?

Accepted Answer

A) that customers may perceive it as an invasion of privacy 
B) that the database may be used to generate unrepresentative focus groups 
C) that media alternatives may be eliminated from promotional campaigns 
D) the lack of adequate personal information on customers

Question 12

Scenario 9-3
To target outdoor enthusiasts, Subaru added an outdoor life section to its website that is organized by area of interest. The site will serve as a platform for co-marketing and promotional programs.
-Refer to the scenario. Which of the following provides the most likely reason that Subaru has added this section to its site?

Accepted Answer

A) to design a more effective customer outreach program 
B) to increase the effectiveness of its channels of distribution 
C) to increase the importance of customer service 
D) to design more targeted marketing communications

Question 13

What is the focus of Stage One in the CRM cycle?

Accepted Answer

A) technology to identify customers 
B) marketing research tools that are used 
C) concepts and types of solutions 
D) data mining

Question 14

Scenario 9-3
To target outdoor enthusiasts, Subaru added an outdoor life section to its website that is organized by area of interest. The site will serve as a platform for co-marketing and promotional programs.
-Refer to the scenario. This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of which of the following?

Accepted Answer

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

Question 15

To initiate Stage 2 of the CRM cycle, what must a company do first?

Accepted Answer

A) identify customer relationships with organizations 
B) choose the technology needed for the project 
C) build the strategies 
D) set the goals of the project

Question 16

What do we call the point at which a customer and a company representative exchange information and develop learning relationships?

Accepted Answer

A) social contact 
B) interaction 
C) empowering moment 
D) equilibrium point

Question 17

In Nokia stores, "Experience Areas" feature phones connected to photo printers, speakers, notebook computers, and Bluetooth headsets to demonstrate the interactivity and full range of features available on the cell phones. These "Experience Areas" allow customers to interact with the technology and provide information to Nokia. What are the "Experience Areas" examples of?

Accepted Answer

A) touch points 
B) focus areas 
C) information search areas 
D) experimental points

Question 18

What is learning in CRM?

Accepted Answer

A) the informal process of collecting customer information 
B) the formal process of collecting customer information 
C) the feedback on the process 
D) the feedback on the service performance

Question 19

The Toronto Blue Jays, a Major League Baseball team, used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining. What was this survey an example of?

Accepted Answer

A) a touch point 
B) a focus area 
C) a data search 
D) an interaction

Question 20

Best Buy uses CRM to track visitors to its website. This tracking allows the retailer to confidently project the value of its repeat customers through its application of which of the following?

Accepted Answer

A) customer segmentation 
B) customer valuation 
C) data manipulation 
D) lifetime value analysis

Exam 9: Customer Relationship Management CRM

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase recently as well as how often that customer makes a purchase?

Leah wants to develop a mailing list of people who have participated in bicycle rides for charities. She has offered to purchase a list of last year's Ride for Life, which was held to raise funds for cancer research. Which type of list is Leah building?

What do we call the process of finding hidden patterns and relationships in the customer data stored in the data warehouse?

Touch points are important with regards to learning about customers.

Transactions can provide all types of information about the customer's past purchases.

There are three stages in CRM.

Explain the importance of interactions in a customer relationship management system. Most colleges and universities have some form of CRM system. Describe an interaction that occurs at your institution.

What would an online retailer use to discover that customers who purchase flannel sheets also have a high probability of purchasing all-natural Christmas wreaths, if the opportunity is made available?

When Ford Motor Company launched an online effort to market its F-Series trucks, it created a database. According to the textbook, what is one potential problem with the use of this database?

What is the focus of Stage One in the CRM cycle?

To initiate Stage 2 of the CRM cycle, what must a company do first?

What do we call the point at which a customer and a company representative exchange information and develop learning relationships?

What is learning in CRM?

The Toronto Blue Jays, a Major League Baseball team, used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining. What was this survey an example of?

Best Buy uses CRM to track visitors to its website. This tracking allows the retailer to confidently project the value of its repeat customers through its application of which of the following?