Deck 15: Customer Relationship Management

Question 1

When everyone in the company who touches the customer understands all aspects of the customer's relationship with the company, this is regarded as ________.

A) owning the customer's total experience
B) streamlining business processes that impact the customer
C) having a 360-degree view of the customer relationship
D) fostering community

Answer 1

C

Question 2

A firm using relationship marketing focuses on ________.

A) market share
B) wallet share
C) time share
D) relationship share

Answer 2

B

Question 3

Individualized web portals are most often used to build relationships in the ________.

A) B2C market
B) B2B market
C) B2G market
D) G2C market

Answer 3

B

Question 4

All of the following are metrics used to assess the internet's value in delivering CRM except ________.

A) lifetime value (LTV)
B) cost savings
C) employee satisfaction
D) customer satisfaction

Question 5

CRM allows companies to leverage their resources by investing more in the ________ customers.

A) average
B) least profitable
C) most lucrative
D) none of the above

Question 6

Which of the following represents a major shift in current marketing practice?

A) From high fixed costs to low fixed costs
B) From mass marketing to individualized marketing
C) From focusing on a small base of customers to focusing on acquiring many new customers
D) All of the above

Question 7

Software agents such as shopping agents and search engines ________.

A) scour the internet for terms matching the users' search criteria
B) use web portals to access partner information
C) are forms of experiential marketing
D) match user input to databases and return customized information

Question 8

As more companies integrate customer relationship management (CRM) and supply chain management (SCM) activities ________.

A) they will experience an increase in variable costs
B) they will slightly less able to learn how to create value throughout the supply chain
C) they will become more responsive to individual customer needs
D) all of the above

Question 9

If two or more companies were to link their intranet networks for the purpose of sharing information, then they would have a(n) ________.

A) supply chain
B) extranet
C) ethernet
D) internet

Question 10

Through real-time chat, forums, and email postings at its website, companies are able to ________.

A) aggregate data used to design marketing mixes that meet user needs
B) build community
C) learn about products
D) all of the above

Question 11

In order to keep customers from viewing their communications as spam, the firm should build relationships by ________.

A) offering promotions
B) purchasing new consumer lists periodically
C) using consumer information to build more precise target profiles
D) rewarding customers for giving out their friend's e-mail addresses

Question 12

Which of the following is an advantage of connecting customers with supply chain businesses?

A) all companies will share transaction data so inventories can be kept low
B) customer service reps will have up-to-the-minute inventory information and be able to help consumers more immediately
C) upstream firms can use data to design products that better meet consumer needs
D) all of the above

Question 13

________ allows marketers to monitor users' online behavior and make instantaneous and/or automatic adjustments to online promotional offers and web content.

A) Collaborative filtering
B) Real-time profiling
C) An agent
D) E-mail communication

Question 14

Which of the following is a facet of customer relationship management (CRM)?

A) customer service
B) sales force automation
C) marketing automation
D) all of the above

Question 15

Using _________ firms can develop customized web pages based on visitor behavior.

A) Web log analysis
B) ongoing e-mail
C) client-side tools
D) agents

Question 16

Companies obtain transactional, behavioral, and interaction data about prospects, business customers, and end customers through ________.

A) personal disclosure
B) automated tracking of the sales force
C) website activity
D) all of the above

Question 17

Which of the following is referred to as level one of relationship marketing?

A) Marketers learn the names and needs of customers
B) Marketers create solid solutions to customer problems
C) Marketers build a financial bond with customers by using pricing strategies
D) Marketers stimulate social interaction with customers

Question 18

Companies can use relationship marketing techniques to build relationships with ________.

A) customers
B) employees
C) lateral partners
D) all of the above

Question 19

Social CRM means that companies must interact with customers ________.

A) on the customer's terms
B) based on company data
C) based on company strategy
D) based on company desires

Question 20

Important tools that aid firms in customizing products to groups of customers or individuals include ________ strategies that reside on the company's web and e-mail servers, and ________ strategies that are initiated by internet users.

A) push; pull
B) pull; push
C) marketing; brochureware
D) marketing; inquiry

Question 21

What is the difference between push strategies and pull strategies used by firms that customize products to customers? Your answer should include an example of each.

Question 22

Permission marketing dictates that customers will be pleased to receive e-mail for which they have opted-in.

Question 23

Social CRM does not retain any of the tenets of CRM 1.0.

Question 24

Personalization involves ways that marketers individualize in an impersonal, computer networked environment.

Question 25

Why are the three pillars of relationship management?

Question 26

Discuss the major principles behind Social CRM (CRM 2.0), and contrast it with CRM 1.0.

Question 27

Customer service occurs only post-purchase when customers have questions or complaints.

Question 28

No matter how good a company may be at retaining customers, new customer acquisition is still an important activity.

Question 29

Why is it important to implement CRM effectively and efficiently? In what ways can a firm ensure that their use of CRM is both effective and efficient?

Question 30

Unlike SCM, CRM activities usually refer to back-end operations.

Question 31

One important tenet of CRM is that it is better to attract, retain, and grow customers than to focus only on customer acquisition.

Question 32

The text notes that relationship marketing is practiced on three levels. Describe each of the three levels from the lowest to the highest.

Question 33

Lively and useful chat and forums increase repeat site visits and stickiness.

Question 34

Most customers would prefer to be brand disloyal in favor of finding the lowest price for each purchase, so marketers must entice them into loyalty through special offers.

Question 35

Give an example of a time when you experienced some aspect of CRM via the internet. Did this experience represent a CRM success or failure in your mind? Why?

Question 36

Post-transaction customer service is an important part of the customer care life cycle.

Question 37

Explain what is meant by CRM-SCM Integration. What are the advantages of this integration for internet companies?

Question 38

Most businesses spend more money acquiring new customers than they spend keeping current customers.