Deck 1: Introduction to Customer Relationship Management

Question 1

CRM is the process of building, maintaining and growing relationships with the right customers through strategy development based on customer information.

Answer 1

True

Question 2

CRM applications have led to universal success for companies-especially in the U.S.

Answer 2

False

Question 3

So far, research has shown that CRM costs exceed savings for nearly all companies; however, in the long run, CRM will result in significant returns.

Answer 3

False

Question 4

The biggest problem for CRM is its profit-centric focus.

Question 5

One could think of CRM as uniting relationship marketing strategies with IT.

Question 6

CRM is basically marketing-department based.

Question 7

There is no need to conduct performance assessment of CRM efforts. Companies should concentrate on doing it well and the rest will take care of itself.

Question 8

Generally, CRM is technologically driven, or at least technologically supported.

Question 9

With SaaS, the database and applications are hosted as a service over the Internet by a service provider.

Question 10

Company touch points generally do not include customer contact via Facebook, Linkedin or Twitter.

Question 11

Customer Contact Centers handle incoming telephone calls, e-mail, Web communication and even written interactions with customers.

Question 12

Touchpoints are any point of contact that a customer or prospect has with a company including phone inquiries, e-mail inquiries, even return desks for socks a person doesn't want anymore.

Question 13

A data warehouse is the old name for what are now called data marts?

Question 14

Customer Lifetime Value is the introduction, growth, maturity, decline, and abandonment of the customer's life with the company.

Question 15

A Chief Privacy Officer maintains security of all company audit information.

Question 16

When a customer "opts-in" they are allowing the organization to market to them.

Question 17

Customization exists when a manufacturer designs a product or Website to suit a customer's individualized needs.

Question 18

RFM in the area of CRM refers to the important concepts of "regain, finance and manage."

Question 19

SKEW is the term given to stock-keeping items and the fact that CRM enables companies to prune weak selling items.

Question 20

The term CRM has been expanded to not only include "customers" but also lateral partners.

Question 21

Transaction marketing as described in the book is not concerned about the future of a customer relationship.

Question 22

While the term "relationship marketing" has been expanded, it primarily applies to B2B selling in relationship dyads but not B2C selling.

Question 23

Companies should charge high fees to get rid of customers who cost you money; after all, some customers just aren't worth keeping.

Question 24

The strongest relationship a company can have with its customer is not an acquaintance relationship, but rather a friendly relationship.

Question 25

Companies are finally able to be more productive in their mass media advertising and promotion thanks to the strategies imbued in CRM.

Question 26

Widespread application of CRM programs has shown that

A)they have not led to universal success.
B)they can substantially improve firm profitability.
C)success rests upon organizational commitment.
D)they are customer-centric.
E)all are true

Question 27

A company is practicing CRM when

A)it has adopted a profitable customer-centric focus through the use of customer information.
B)it analyzes customer information to create data silos.
C)sales department personnel are capable of doing marketing research.
D)tactics and strategies are replaced by customer simulations.
E)all are true

Question 28

The biggest single contribution of CRM on company business is

A)its focus on making every single transaction profitable.
B)its elimination of wasteful advertising and promotional expenses.
C)providing the ultimate in customer experience through single channels.
D)automating nearly all customer interactions.
E)none of the above

Question 29

Which is not a key process defining CRM?

A)strategy development
B)value creation
C)dissonance reduction
D)multichannel integration
E)performance assessment

Question 30

Multichannel Integration involves the integration of all of these except which of the following?

A)sales personnel
B)outlets
C)customer contact centers
D)direct marketing
E)tripartite relationships

Question 31

Performance assessment does NOT include measuring the success of CRM efforts through metrics on which of the following?

A)neural networks
B)customer acquisition
C)customer retention
D)customer win-back
E)profits

Question 32

SaaS stands for which of the following?

A)software and standards
B)software as a service
C)statistical applications and standards
D)software and analysis systems
E)none of the above

Question 33

Which of the following does NOT belong in the multichannel environment?

A)social media
B)in-person interactions
C)customer clearing houses
D)websites
E)product scanning

Question 34

Interactive technologies allow businesses and customers to interact on a timely basis. Which of the following is not an interactive technology?

A)GPS
B)kiosks
C)cellular phones
D)web-browsing functions
E)all are interactive technologies

Question 35

A touch point is any point of contact that a customer or prospect has with the company. Which of the following is an example?

A)an inquiry over the phone
B)face-to-face interaction with a store clerk
C)interaction with an ATM
D)company contact via a website
E)all are examples

Question 36

Roughly how many call centers are currently in the United States?

A)1000
B)10000
C)100000
D)1000000
E)none of the above

Question 37

Customer Interaction Centers work with all of the interactive technologies except which of the following?

A)land-based telephones
B)cell phones
C)Twitter
D)Facebook
E)all of the above

Question 38

Which is not a reason that buyers purchase CRM Systems?

A)to retain customers
B)to enhance the buying experience for customers
C)to encourage development of customer communities
D)to encourage the development of social networks
E)to create functional silos for customer data transactions

Question 39

CCCs do not handle which of the following?

A)incoming telephone calls
B)e-mail
C)web communication
D)written interactions with customers
E)CRMs

Question 40

The person most likely working in a CCC is a

A)marketing planner.
B)marketing researcher.
C)CSR.
D)logistics specialist.
E)none of the above

Question 41

Touchpoints are

A)any point of contact that a customer or prospect has with a company.
B)phone inquiries.
C)e-mail inquiries.
D)merchandise return desks.
E)all of the above

Question 42

A data warehouse is

A)the repository for all relevant customer and prospect information.
B)an older form of a data mart.
C)a fulfillment center.
D)a collection of logistical, analytical, and heuristic models.
E)All of the above

Question 43

A data mart is a

A)data warehouse in digital form.
B)collection of data processing models.
C)subset of a data warehouse.
D)syndicated approach to managing marketing research information.
E)contemporary source of data processing programs.

Question 44

Which one of the following is not descriptive of data mining?

A)It involves sophisticated software containing statistical analysis tools.
B)It uncovers patterns, trends, or correlations among variables.
C)It can be used for analyzing variables in a data mart or data warehouse.
D)It is the basis of ERP, SAP, and IVOC.
E)all are descriptive of data mining

Question 45

Customer Lifetime Value is

A)introduction, growth, maturity, decline, and abandonment of the customer life cycle
B)product life cycle analysis in customer terms.
C)a customer's total income minus disposable income spent on a company's offerings.
D)the net present value of future profits to be received from a customer during a specified period of years.
E)none of the above

Question 46

The value that can be computed for a lost customer after a company recaptures or regains them is referred to as which of the following?

A)SLTV
B)opting-in value
C)opt-out regain
D)second opt-in
E)none of the above

Question 47

A Chief Privacy Officer

A)maintains security of all company audit information.
B)insures customers' privacy rights are maintained.
C)was a position created in corporations as a result of the Sarbanes-Oakley amendment.
D)is usually the CFO.
E)by law, must be the CEO of publicly-traded companies.

Question 48

When a customer "opts-in," she is allowing all but which of the following?

A)To let the organization market to her.
B)To let the organization use personal data to learn more about her.
C)To let the company sell her data to someone else for similar efforts.
D)To let the company use her testimonials in print advertising.
E)To let her behavior tracked.

Question 49

Customization

A)exists when a company's promotional offer matches the customer's needs exactly.
B)is personalization on a one-on-one basis.
C)is mass production under the guise of personalization.
D)exists when a manufacturer designs a product of website to suit a customer's individualized needs.
E)is all of the above

Question 50

Personalization

A)exists when the company is a creator or co-creator of the content.
B)exists when a customer modifies a company's website to suit his or her own purposes.
C)is necessary in B2C environments.
D)is SFA interaction between CCC and sales agents.
E)is the primary way to achieve a long-term relationship with key accounts.

Question 51

RFM stands for

A)reach and frequency per thousand
B)recency, frequency, and monetary value
C)renewed and focused management
D)regain, finance, manage
E)reach, finance, management

Question 52

SKEW is

A)the opposite of a normal curve of customer revenue
B)a stock keeping item measure
C)whether customer value varies or not
D)the newest type of ERP software, enabling firms to compute the present value of future inventory for the first time
E)RFM in B2C environment

Question 53

When a customer can easily switch all or part of his buying from one vendor to another, which of the following exists?

A)share market environment
B)lost for good market environment
C)monopolistic market environment
D)pure competition
E)oligopolistic market environment

Question 54

Customer Relationship Management can apply to which of the following?

A)distributors
B)dealers
C)lateral partners
D)final customers
E)all of the above

Question 55

Sales force automation is most applicable to which of the following?

A)B2B markets
B)B2C markets
C)both B2B and B2C markets
D)firms in defense industries
E)firms whose customers buy in repetitive buying cycles

Question 56

Transaction marketing

A)is the opposite of relationship marketing.
B)focuses on the sale.
C)is not concerned about the future of a relationship.
D)had led to the development of CRM.
E)A, B, and C are all aspects of transaction marketing.

Question 57

Relationship marketing

A)applies to B2B selling in relationship dyads, but not B2C selling.
B)applies to B2C selling but not to B2B selling.
C)is a non-electronic approach to building personal relationships in a B2B or B2C environment.
D)views the sale as the beginning, not the end, of a relationship.
E)A and C are both correct

Question 58

A company's goal should be which of the following?

A)To attract the greatest number of customers, realizing that some may not be profitable.
B)To maximize market share while reducing costs.
C)To attract the greatest number of profitable customers.
D)To maximize transactional revenue.
E)To minimize SKEW while maximizing ROI.

Question 59

Companies should do which of the following?

A)De-market to non-profitable customers
B)Charge high fees to get rid of customers who have cost them money
C)Send non-profitable customers packing whenever possible
D)Nurture even low-value customers because they will eventually become profitable
E)A, B, and C are all correct

Question 60

CRM is

A)applicable to both acquiring new customers and retaining old customers.
B)only applicable to customer retention and growth.
C)primarily concerned with feeding the pipeline with new customers since companies lose 40% of their customers each year.
D)the forerunner of the 4Ps.
E)both C and D

Question 61

Which of the following is false?

A)Offensive marketing typically refers to activities aimed at increasing the size of a firm's customer base.
B)Defensive marketing refers to activities aimed at existing customers.
C)Customer retention and service recovery efforts are types of defensive marketing.
D)Mass marketing refers to activities aimed at existing customers.
E)All are correct.

Question 62

The strongest relationship is with a

A)partner.
B)acquaintance.
C)friend.
D)value added agent (VAA)
E)loyal customer.

Question 63

Acquaintance relationships are

A)based on satisfaction.
B)based on above-parity products and services.
C)expected in value added partnerships
D)typical in value added networks
E)all of the above

Question 64

Friendly relationships are

A)based on satisfaction.
B)based on product parity.
C)not based on trust.
D)based on differential value.
E)A and B are correct

Question 65

Partner relationships are

A)never based on a structural component.
B)based on customized value to the customer.
C)based on commitment.
D)based on satisfaction and trust that a company is providing product and service parity.
E)B and C are correct

Question 66

Why are CRM systems being extensively used today?

A)To foster satisfaction and trust.
B)To enhance productivity across all key marketing functions.
C)To increase transaction revenue.
D)To improve offensive marketing.
E)To enable organizations to better manage ERP, SAP, and PRM.

Question 67

CRM enhances a firm's ability to be more productive in all of the following areas except which of the following?

A)managing migration
B)customer acquisition
C)customer development
D)winning back defectors
E)mass media advertising

Question 68

CRM enables companies to do all of the following EXCEPT which of the following?

A)Manage upward migration
B)Improve cueing
C)Match callers with the most appropriate CSP
D)Train customers to use the most profitable channels
E)More effectively manage the 4Ps

Question 69

Peppers' and Rogers' four basic steps in CRM do NOT include which of the following?

A)Customer identification
B)Differentiating the most beneficial from those you want to get rid of
C)Interaction and learning more and more about your customers
D)Provide mass market product and service offerings that will be profitable based on economies of scale
E)Customize offerings one-on-one

Question 70

Learning relationships are

A)based on the fact that in B2B dyads, the high-tech customer will teach the vendor about market dynamics in the industry.
B)possible when there is dialogue.
C)possible because of the large number of well-informed companies.
D)common among couples but not relevant in the business world.
E)A and C

Question 71

What is the CRM "Ecosystem"?

A)green marketing
B)a privacy-oriented company, plus its data warehouse
C)integration of back-office and front-office through data exchange, systems, and business processes
D)the network of prospects, customers, CCC personnel, and data
E)company-customer relationships through the customer life cycle

Question 72

Which of the following is NOT a reason why companies should be concerned about multi-channel customers?

A)They spend more than 2-4 times what single-channel customers spend.
B)They can be 25-50 percent more profitable than single-channel users.
C)They are 5-10 times as likely to make overseas purchases.
D)They may use store, telephone, ATM, catalog, and online modes to purchase products from a company.
E)All of the above are true