Deck 14: Building Customer Relationships

Question 1

A transactional relationship is an association between a business and a customer that begins or ends with a purchase or a business exchange.

Answer 1

True

Question 2

Small businesses must strive to understand post-purchase dissonance among their customers and to manage it effectively.

Answer 2

True

Question 3

In the information search and evaluation stage, the business's principal objective is to gain market awareness.

Answer 3

True

Question 4

It is important to keep in touch with a customer and make a sales pitch each time.

Question 5

In some situaitons, a small business owner will have to influence need recognition; in others she may simply be able to react to needs the consumer has identified.

Question 6

A consumer's recognition of a problem can be characterised as routine if the problem evolves over time.

Question 7

Addressing a customer by name typically means very little to them.

Question 8

Consumer needs can be completely satisfied by proper customer relationship management.

Question 9

Only three classes of needs - social, psychological, and spiritual - can be connected to behaviour through motivations.

Question 10

Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers have satisfied their needs.

Question 11

Evoked sets are features or characteristics of products or services that are used to compare brands.

Question 12

A customer complaint can be positive.

Question 13

Regardless of the nature of the business, small businesses can gain a competitive edge by providing exceptional customer service.

Question 14

There must be a company-wide commitment to CRM concept if CRM is to be productive.

Question 15

The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large businesses.

Question 16

Initial CRM support efforts should be made using the website because the web developers have the most customer contact.

Question 17

Lack of in-house expertise is a major justification for using outside CRM services.

Question 18

An evoked set is a group of brands that a consumer is both aware of, and willing to consider, as a solution to a purchase problem.

Question 19

Customer relationship management means different things to different businesses.

Question 20

Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction.

Question 21

CRM is the business version of:

A)the Ten Commandments.
B)the Bill of Rights.
C)the Golden Rule.
D)Maslow's Hierarchy of Needs.

Question 22

Diane is a loyal, long-term customer at Burke's Furniture Store.It would be expected that she would:

A)be willing to pay more for Burke's Furniture's products.
B)have higher order-processing costs since she purchases so much.
C)potentially spend less as she purchases more products over time.
D)All of the above.

Question 23

An approach that recognises that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future is known as:

A)perceptual categorisation.
B)cognitive dissonance.
C)transactional relationship.
D)customer experience management.

Question 24

Which consumer option for dealing with product or service dissatisfaction is the only one that is desirable to a business?

A)Complaint on social media.
B)Warn friends about a product.
C)Take no action.
D)Privately seek redress from business.

Question 25

In general, opinion leaders are considered to be knowledgeable, visible and exposed in mass media.

Question 26

An investigation of culture with a narrow definitional boundary (e.g.by age, geographic location, etc.) is called perceptual categorisation.

Question 27

As an owner of a floral design business, Tim's highest priority for the florist's CRM programme should be:

A)marketing efforts to bring in customers who haven't bought flowers recently.
B)finding the right computer software for an online floral ordering program.
C)determining if existing customers are satisfied with past floral arrangements.
D)identifying how often customers will purchase flowers.

Question 28

Attitudes have an indirect impact on consumer behaviour.

Question 29

To establish an effective customer service programme, what should be completed first?

A)Customer service quotient.
B)Mystery shopper visit.
C)Survey on customer attitudes.
D)Jezek's Zone analysis.

Question 30

Economic benefits associated with maintaining relationships with current customers include:

A)Small increases in customer retention can translate into large increases in profits.
B)Existing customers spend less money than new customers.
C)Order processing costs are higher for current customers.
D)All of these.

Question 31

Most customer service problems are identified by:

A)personal observation.
B)outside consultants.
C)customer complaints.
D)entries in a suggestion box.

Question 32

Regina is so satisfied with her pharmacist that she refers her friends and colleagues, providing a(n) _______ benefit of maintaining relationships with current customers.

A)economic
B)marketing
C)psychological
D)social

Question 33

Attitudes are forces that organise and give direction to the tension caused by unsatisfied needs.

Question 34

Marketers create needs that offer unique motivations to consumers.

Question 35

A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given situation.

Question 36

Molly has had repeated positive experiences with her local coffee shop.They suggest new flavours, call her by her first name, and donate to a local charity that Molly supports.Molly's experiences, as a result, contribute to the business's CRM _______.

A)organisational culture
B)customer cost
C)value equation
D)customer satisfaction

Question 37

Every group to which an individual belongs is a reference group for that consumer.

Question 38

Educational level is the most single determinant of social class.

Question 39

A basic idea forming the foundation of customer loyalty for small businesses includes the notion that:

A)superior customer service always leads to customer purchases.
B)customer loyalty will mean constant customer satisfaction.
C)small businesses possess great potential for providing superior customer service.
D)customer satisfaction is being ignored by large businesses.

Question 40

Because culture drastically affects the behaviour patterns and values of people, it has tremendous impact on the purchase and use of products.

Question 41

Which of the following is true about Yelp.com?

A)It is an online forum where customers can post reviews.
B)Only negative reviews have any impact.
C)Once a customer posts a negative review, the business is helpless to respond.
D)All of the above are true about Yelp.com.

Question 42

According to consumer information-processing theory, _____ is the final stage through which consumers progress.

A)cognitive dissonance
B)evaluative categorisation
C)post-purchase evaluation
D)purchase decision

Question 43

When Sarah decided to make an offer on a house, this action illustrated she is in the _____ stage of the consumer decision-making process.

A)information search and evaluation
B)need recognition
C)post-purchase evaluation
D)purchase decision

Question 44

The reason that a group of uniformed people walking down the street playing musical instruments is recognised as a band is the result of:

A)characteristic profiling.
B)evaluative criteria.
C)perceptual categorisation.
D)problem recognition.

Question 45

The dress looked so cute in the store window, but after she brought it home, Victoria began having second thoughts about her purchase.Victoria is experiencing:

A)post-purchase dissonance.
B)post-purchase satisfaction.
C)cognitive dissonance.
D)post-decisional distress.

Question 46

Jeff has concluded that his company selling professional football merchandise needs to increase its line of shirts.He is in the ____ stage of the consumer decision-making process.

A)information search and evaluation
B)need recognition
C)post-purchase evaluation
D)purchase decision

Question 47

Linda is considering several colleges at which to finish her culinary degree.She is in the _____ stage of the consumer decision-making process.

A)information search and evaluation
B)need recognition
C)post-purchase evaluation
D)purchase decision

Question 48

Individual processes that ultimately give meaning to stimuli that confront consumers are known as:

A)perceptions.
B)motivations.
C)attitudes.
D)opinions.

Question 49

Mary, an independent sales representative, is hindered in her ability to be in contact with clients because of dropped calls on her cell phone.Her decision to purchase a cellular booster for her phone reflects Mary has just proceeded through the _____ stage of consumer decision making.

A)purchase evaluation
B)evaluative categorisation
C)need recognition
D)cognitive dissonance

Question 50

​The individual processes that give meaning to the stimuli confronting consumers are:

A)a motivation.
B)a perception.
C)an attitude.
D)a cognition.

Question 51

Bob never purchases bottled water when he is thirsty even if it is available.This behaviour indicates that bottled water

A)does not meet Bob's evaluative criteria.
B)increases Bob's cognitive dissonance.
C)is not included in Bob's evoked set.
D)decreases Bob's perceptual categorisation.

Question 52

A customer's email address would most likely be stored in which category of a customer profile?

A)Personal information
B)Demographics
C)Psychographic data
D)Transactions

Question 53

CRM software programs:

A)are designed to help companies gather all customer contact information into multiple data management programs.
B)are often implemented into sales departments first since this area of a company typically generates the greatest amount of customer contact.
C)will require limited support resources for the proper implementation into the company.
D)has a finite set of user-friendly tools to assist implementation resulting in more small businesses adopting the programs.

Question 54

Freida used a discount coupon to purchase a new product.In which category of the customer profile should this be recorded?

A)Personal Information
B)Lifestyle data
C)Profile of past responses
D)Transaction data

Question 55

Attending a prayer breakfast is most likely an attempt to satisfy which category of need?

A)Physiological
B)Psychological
C)Spiritual
D)Social

Question 56

John's belief that all low calorie sodas taste awful is an example of:

A)cognitive dissonance.
B)the elimination of an item in an evoked set.
C)perceptual categorisation.
D)unilateral indifference.

Question 57

June has always believed that the resale furniture store doesn't have quality furniture as it has been used by others.This _____ may cause her to avoid the store and shop at a store specialising in new furniture across town.

A)attitude
B)cognitive dissonance
C)motivation
D)perceptual categorisation

Question 58

Julie's preference for a certain style of braai is the result of which sociological influence?

A)Culture
B)Opinion leaders
C)Reference groups
D)Social class

Question 59

Information taken from warranty cards would be stored in which category of a customer profile?

A)Personal information
B)Complaints
C)Lifestyle data
D)Transactions

Question 60

In what stage of the consumer decision-making process is Josh when he becomes concerned whether his friends will enjoy the video game he downloaded?

A)information search and evaluation
B)need recognition
C)post-purchase evaluation
D)purchase decision

Question 61

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
An approach that recognises that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future

Question 62

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
A group member who plays a key communication role.

Question 63

In general, a person can be an opinion leader even if he or she is not:

A)knowledgeable.
B)visible.
C)exposed to the mass media.
D)nationally known.

Question 64

Mandy is shopping for a new car.She is visiting a privately owned lot in her hometown and describes to Jane, the salesperson, that she wants a four-door sedan with high fuel economy and a leather interior.Jane then shows her three cars that she thinks may fit Mandy's preferences.What stage of the decision-making process is Mandy in and what should Jane understand about Mandy's search to complete the sale?

Question 65

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
Goal-oriented forces that organise and give direction to the tension caused by unsatisfied needs.

Question 66

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
An enduring opinion based on a combination of knowledge, feeling and behavioural tendencies.

Question 67

Greg is a retired NBA basketball player who has returned to his small hometown to open a basketball gym.There are no other businesses in his area like his concept and he wants to reach his customers.What psychological influences on his consumers does Greg need to consider before opening his location and how will they apply to the basketball gym?

Question 68

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
A company-wide business strategy designed to optimise profitability, revenue and customer satisfaction by focusing on specific customer groups.

Question 69

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
Behavioural patterns and values that characterise a group of consumers in a target market.

Question 70

Billy admires firemen.He wants to dress like them, wear a fireman's hat and pretend to put out fires.For Billy, firemen are:

A)a referral group.
B)a reference group.
C)a perceptual group.
D)an associate group.

Question 71

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
Divisions within a society having different levels of social prestige.

Question 72

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
A small group that an individual allows to influence his or her behaviour.

Question 73

Behavioural patterns and values that characterise a group of consumers in a target market are called:

A)reference groups.
B)cultures.
C)social classes.
D)perceptual categories.

Question 74

Nikita's decision to buy her shoes at the same shop that her boss patronises is the result of which sociological influence?

A)Culture
B)Opinion leaders
C)Reference groups
D)Social class

Question 75

Aspiring mystery writers study Agatha Christie to learn the art of writing that genre.In this case, Christie would be considered:

A)how a subcultural analysis impacts marketing efforts.
B)an opinion leader with which businesses want to affiliate.
C)a reference group for mystery writers
D)a social class because of her lifestyle choices.

Question 76

A winery promotes its products by holding wine tastings at the restaurants of outstanding local chefs.The winery is utilising which sociological influence?

A)Culture
B)Opinion leaders
C)Reference groups
D)Social class

Question 77

Briefly describe each stage of the customer decision-making process.

Question 78

Erica often shops at a retail store where her friends shop because of her desire to be affiliated with the group.The friends are exerting ______ power over Erin.

A)expert
B)group
C)referent
D)expert

Question 79

Match the term with its definition.
a.Attitude
b.Culture
c.Customer experience management
d.Customer lifetime value
e.Customer relationship management
f.Motivations
g.Needs
h.Opinion leader
i.Perception
j.Perceptual categorisation
k.Reference group
l.Social classes
The process of grouping things that are perceived as being similar.

Question 80

What should entrepreneurs understand about sociological influences on customers?