Deck 10: Customer Relationship Management

Question 1

When web sites suggest other items for purchase based on already purchased items, this is an example of Clickstream Selling.

Answer 1

False

Question 2

Because integrated supply chains require good suppliers to act as good supply-chain customer partners, CRM programs should include first-tier customer training and education to ensure proper use of purchase products.

Answer 2

True

Question 3

Some of the ways customers evaluate the customer service capabilities of an organization are through their experiences with human response call centers, automated response call centers, and consumer web sites.

Answer 3

True

Question 4

The objectives of any CRM initiative should be focused on what the company can reasonable achieve.

Question 5

Private clouds allow corporate users to internally manage their data centers.

Question 6

Segmenting customers on the basis of things like products purchased, sales history, demographic information, and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.

Question 7

Companies that provide on-demand applications are often referred to as data warehouses.

Question 8

According to the text, customer relationship management refers to building and maintaining profitable long-term customer relationships.

Question 9

Cross-selling is a term used when customers are sold additional products as the result of an initial purchase.

Question 10

It is best to integrate information about and results relating to marketing efforts like customer loyalty programs, frequent user cards, and credit card applications within an organization.Integrating the efforts of these programs between employees and an organization's IT systems (data warehouses) can help managers make more informed customer-focused decisions.

Question 11

According to the text, poor planning is typically the cause for most unsuccessful CRM initiatives.

Question 12

Sales force automation products help salespeople better manage their accounts, their business opportunities, and communications while away from the office.

Question 13

In general, companies avoid social media sites since they rarely are able to find useful information about customer opinions via blogs and social networking sites.

Question 14

Future trends in CRM include coping with the delicate issue of privacy, utilization of social media, and utilization of cloud computing.

Question 15

Cloud computing is a term used to describe how a customer navigates a website.

Question 16

As customers navigate through a website CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that individual customer.

Question 17

While a company's Internet presence may be desirable for finding information or conducting product transfers, touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.

Question 18

While a well planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers, they are not particularly helpful for manufacturing companies like GM since their touches with the customer are few.

Question 19

Up until now CRM has been very effective for most companies because it has focused on building customers' trust and loyalty, ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.

Question 20

Through the use permission marketing programs, customers are allowed to select the type of communications companies can make with them.Actually, customers can even choose to be completed eliminated from both e-mail and traditional mailing lists.

Question 21

You are a manager at Sunnydale Appliances.A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information.According to the text, this is an example of:

A)Customer churn
B)Posttransaction customer service
C)Customer management
D)Pretransaction customer service

Question 22

Which of the following is a method that organizations typically use in attempting to effectively manage the relationships between the organization and its customers at the customer service level?

A)Reengineering and/or automating call centers based on past call center data
B)Developing web sites that allow customers to access their personal accounts and/or information like hours of operation, store locations, and product information
C)Utilizing CRM programs to administer personalized surveys based specific customer segments
D)All of these

Question 23

Which of the following statements about consumer focused programs/initiatives is TRUE?

A)Customers want additional support services and other offerings that add value to their initial product or service purchases
B)CRM programs are simple in that they involve treating customers properly and making them feel valued
C)CRM programs are complex in that they involve identifying all customers, their needs, and then creating a system geared towards completely satisfying the customer.
D)All of these

Question 24

All of the following are requirements for designing and implementing a successful CRM program EXCEPT:

A)Support from the firm's top executive
B)Knowledge of the tools available to aid in CRM
C)Adherence to a static CRM program
D)Continuous awareness of customers' changing requirements

Question 25

Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers.This is referred to as:

A)Event-based marketing
B)Relationship marketing
C)Customer churn
D)Customer preference marketing

Question 26

Companies work very hard to reduce the number of their present customers which never return.This customer defection is often referred to as:

A)Customer churn
B)Clickstream defection
C)Balking
D)Revenue Exodus

Question 27

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events, like birthdays and anniversaries, this is referred to as:

A)Event-based marketing
B)Segmented selling
C)Personal holiday marketing
D)Extreme segmentation marketing

Question 28

According to the text, in logistics, a "perfect order" occurs when:

A)The Seven R Rule is satisfied
B)A customer is successfully cross-selled
C)Customer churn does not occur
D)Clickstream is minimized

Question 29

Which of the following customer service elements can be classified as examples of post-transaction elements?

A)Salesperson politeness
B)Customer complaint resolution
C)Customer service policies
D)The company's choice of organizational structure

Question 30

Which of the following customer service elements can be classified as examples of pre-transaction elements?

A)Salesperson politeness and order processing capabilities
B)Warranty repair capabilities and customer complaint resolution
C)Product returns and information about the operation of the product purchased
D)Customer service policies and the company's choice of organizational structure

Question 31

Your top sales executive leaves your company to work for a competitor.Fortunately, all of her notes regarding prior dealings with customers have been captured in a:

A)Sales activity management system
B)Sales territory management system
C)Lead management system
D)Knowledge management system

Question 32

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:

A)Segmenting customers
B)Predicting customer behaviors
C)Customer value determination
D)Customer preference determination

Question 33

You work for a company that segments customers by demographic information markets specifically to those customers who are located in the Los Angeles area.This is an example of:

A)Target marketing
B)Cross-selling
C)Geographic marketing
D)Personalized customer communication

Question 34

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased.This type of marketing/promotion is an example of:

A)Target marketing
B)Segmented selling
C)Clickstream selling
D)Cross-selling

Question 35

The element of a CRM program in which a customer's lifetime value is calculated is referred to as:

A)Segmenting customers
B)Predicting customer behaviors
C)Customer value determination
D)Customer preference determination

Question 36

All of the following are required elements for the development of an effective CRM initiative EXCEPT:

A)Segmenting customers
B)Customer value determination
C)Utilization of MRP
D)Personalizing customer communications

Question 37

Which of the following are required elements of an effective CRM initiative?

A)Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers
B)Segmenting customers
C)Preserving a traditional sales force that communicates with the supply-chain via a traditional paper document/contract system
D)All of these

Question 38

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a:

A)Sales activity management system
B)Sales territory management system
C)Lead management system
D)Knowledge management system

Question 39

The use of quick response codes (QR Codes) to retrieve marketing information is a type of:

A)Geographic marketing
B)Target marketing
C)Customer churn
D)Mobile marketing

Question 40

CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place.The CRM attribute is called:

A)Customer profitability determination
B)Customer-base retention initiative
C)Customer defection analysis
D)Customer clickstream analysis

Question 41

Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a:

A)Clickstream
B)QR code
C)Data warehouse
D)Social media site

Question 42

According to the textbook, which of the following statements is TRUE?

A)CRM stands for customer resource management
B)ASP stands for application service provider
C)CRM stands for centralized resource management
D)ASP stands for accelerated shipment process

Question 43

Since many companies do not have the knowledge, resources (money/people), or capability of building an infrastructure to support a CRM program, many companies have chosen to outsource this responsibility to a(n):

A)ASP
B)Customer Support Specialist Firm
C)DSS
D)Marketing Facilitator

Question 44

According to the textbook, a performance measurement type for CRM would include:

A)Customer loyalty
B)Customer Satisfaction
C)Average sales revenue per customer
D)All of these

Question 45

When integrating new CRM modules, it is important that compatible CRM modules are linked to a(n):

A)Data warehouse
B)Data knowledge system
C)Sales activity management system
D)Sales force automation system