Deck 12: Customer Relationship Management

Question 1

One problem with interacting with customers over the Web is that the company does not have an opportunity to make a good first impression in person.

Answer 1

True

Question 2

CRM systems focus on marketing to masses of people.

Answer 2

False

Question 3

CRM systems are designed to achieve customer intimacy.

Answer 3

True

Question 4

Which of the following is the most important enabler of the 360-degree view of the customer across an organization?

A)The organization's database
B)The organization's data warehouse
C)The organization's CRM systems
D)The organization's collaborative CRM systems
E)The organization's analytical CRM systems

Question 5

The complete data on a customer is called _____________.

A)a profile
B)a record
C)a 360-degree view
D)a file
E)a consolidated customer map

Question 6

Over time, the customer relationship with vendors has become more personal.

Question 7

Tweets can be used as customer touch points.

Question 8

Today, customers are becoming increasingly powerful.

Question 9

Operational CRM systems support the front-office business processes that directly interact with customers.

Question 10

Haya noticed that college students needed to dress up for presentations, but they never seemed to have any ties, or at least not very nice ones. She decided to set up a tie store on her campus and offer sports-themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya needs to implement her operational CRM before she can have an analytical CRM.

Question 11

Which of the following is not a customer touch point?

A)telephone contact
B)e-mail
C)Web sites
D)customer visits to a store
E)none of the above - all are touch points

Question 12

Haya noticed that college students needed to dress up for presentations, but they never seemed to have any ties, or at least not very nice ones. She decided to set up a tie store on her campus and offer sports-themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya needs to decide on her CRM strategy before she can select her CRM systems.

Question 13

In the past, customer data have been located all over the company, typically in the functional areas.

Question 14

Collaborative CRM systems provide interaction with customers throughout the entire organization.

Question 15

For purposes of efficiency, customer data are best stored in the functional areas of the organization.

Question 16

Transactional CRM systems provide interactive communication with the customer throughout the organization.

Question 17

The basic idea of CRM is to treat all customers in the same way.

Question 18

Properly designed CRM systems provide a single, enterprise-wide view of each customer.

Question 19

Mobile CRM systems are targeting customers through their laptops.

Question 20

CRM means that a company should interact with its customers as a group.

Question 21

_____ systems support the front-office business processes which directly interact with customers.

A)CRM
B)Collaborative CRM
C)Operational CRM
D)Analytical CRM
E)Transactional CRM

Question 22

_____ is a sales strategy which the business person will provide customers the opportunity to purchase higher-value related products.

A)Bundling
B)Up-selling
C)Re-selling
D)Additional selling
E)Cross-selling

Question 23

Which of the follow statements concerning customer interaction centers (CIC)is false?

A)A call center is an example of a CIC.
B)A Help Desk is an example of a CIC.
C)In outboard telesales, the salesperson contacts the customer.
D)In inboard telesales, the customer calls the CIC.
E)Live chat provides an advantage over telephone conversations.

Question 24

_____ is a form of _____.

A)Up-selling, re-selling
B)Bundling, cross-selling
C)Up-selling, bundling
D)Cross-selling, re-selling
E)Re-selling, additional selling

Question 25

When customers help themselves, often through electronic touch points, this process is called:

A)CRM
B)analytical CRM
C)customer-facing CRM
D)customer-touching CRM
E)Transactional CRM

Question 26

_____ systems provide interactive communication with the customer throughout the organization.

A)CRM
B)Collaborative CRM
C)Operational CRM
D)Analytical CRM
E)Transactional CRM

Question 27

You are in the market for a small economy car. The salesperson has you drive the economy car, and then hands you the keys to a mid-sized car of the same brand for you to drive. The salesperson is engaged in ____________.

A)up-selling
B)cross-selling
C)bundling
D)customer relationship management
E)customer intimacy

Question 28

_____ occurs when a business sells a group of products or services together at a lower price than the combined individual prices of the products.

A)Bundling
B)Up-selling
C)Re-selling
D)Additional selling
E)Cross-selling

Question 29

Which of the following statements is false?

A)Data consolidation and a 360-degree view mean the same thing.
B)Data about customers in various functional areas were difficult to share.
C)Collaborative CRM systems enable customers to provide direct feedback to the organization
D)CRM systems use a data warehouse to make all customer data available to every unit of the business.
E)Organizations can use blogs for customer input about their products and services.

Question 30

_____ are applications and technologies with which customers interact and typically help themselves.

A)Customer-facing CRM applications
B)Up-selling activities
C)Inbound telesales
D)Customer-touching applications
E)Outbound telesales

Question 31

_____ is the practice of marketing additional related products to customers based on a previous purchase.

A)Bundling
B)Up-selling
C)Re-selling
D)Additional selling
E)Cross-selling

Question 32

_____ is the component of an operational CRM system that automatically records all the aspects in a sales transaction process.

A)Inbound telesales
B)Outbound telesales
C)Sales team efforts
D)Sales force automation
E)The customer help desk

Question 33

AT&T sells telephone services that include local and long-distance service, voice mail service, caller ID, and digital subscriber line access to the Internet. This is a form of _____________.

A)up-selling
B)cross-selling
C)bundling
D)customer relationship management
E)customer intimacy

Question 34

In _____, company representatives use multiple communication channels to support their customers' communications preferences.

A)telesales rooms
B)group decision support rooms
C)videoconferencing centers
D)sales team meetings
E)customer interaction centers

Question 35

The sales, marketing, and service functions are part of ____________.

A)CRM
B)analytical CRM
C)operational CRM
D)collaborative CRM
E)Transactional CRM

Question 36

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Which of the following customer touch points will give Haya the most information after her first weekend of selling?

A)Communication she sends via smart phones.
B)She should build a Web site before she begins to sell on campus.
C)She should send an e-mail to all students on campus.
D)She should put a flyer in every mail box on campus.
E)She should physically interact with customers when they visit her store.

Question 37

Which of the following allows customers to connect to a company representative and conduct an instant messaging session?

A)information help desk
B)live chat
C)customer interaction center
D)teleconference
E)videoconference

Question 38

Refer to IT's About Business 12.1 - Amazon: Truly Superb Customer Service: Amazon's optimized product information pages include all of the following except for________,

A)Price comparisons b)Actual product delivery times.
C)Cross-sold product frequency product purchased along with the current product.
D)real-time inventory and availability.

Question 39

Which of the following statements concerning customer relationship management is false?

A)CRM is a customer-driven strategy.
B)CRM constitutes a specific use of technology.
C)Building long-term relationships with customers creates value for the organization.
D)It costs more to bring a customer back from a competitor than it does to keep him or her satisfied in the first place.
E)The basic concept behind CRM is to treat different customers differently.

Question 40

_____ includes those areas where customers directly interact with the company.

A)CRM
B)Analytical CRM
C)Customer-facing CRM
D)Customer-touching CRM
E)Transactional CRM

Question 41

Electronic CRM applications are considered to be which type of CRM application?

A)Inbound telesales
B)Customer-touching
C)Outbound telesales
D)Sales
E)Customer-facing

Question 42

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. The sports themed ties are a little more expensive than the solid colored ones. When someone comes in and seems to be leaning towards a solid colored tie, she makes sure explains the additional "jazz" that comes from wearing a sports themed tie.
This is called_________

A)upselling
B)cross-selling
C)bundling
D)customer intimacy

Question 43

Which of the following is not a customer-touching CRM application?

A)FAQs.
B)Loyalty programs.
C)Personalized Web Pages
D)Automated e-mail Section reference 1.
E)Shopping cart

Question 44

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Which of the following should Haya focus on during her first month of operation?

A)Search/comparison capabilities on a web site
B)Personalized experiences to make a purchase on a web site
C)Customization of ties
D)FAQs
E)A loyalty program

Question 45

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She started offering a "punch card" promotion -- buy three ties and get the fourth one for half off.
This "punch card" promotion is a form of

A)upselling
B)cross-selling
C)a loyalty program.
D)customer intimacy

Question 46

_____ systems study customer behavior and perceptions to provide business intelligence.

A)CRM
B)Collaborative CRM
C)Operational CRM
D)Analytical CRM
E)Transactional CRM

Question 47

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She has built up a fairly good clientele and is wondering what else she can do to sell and keep in touch with her customers.
Her friend Nitesh offers to build her a mobile CRM app. She first needs to think about what a mobile CRM app could do for her. Which of the following is not an activity a mobile CRM would do for her business?

A)Send a coupon to a loyal customer when they are near her tie store.
B)Allow customers to order a tie and pay for it.
C)Join her loyalty program.
D)Do customer profitability analysis

Question 48

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors.
Haya begins collecting data about her customers by having them sign up for Promotional E-mails at her store. She collects their names and e-mail address on her form and keeps track of their purchases as well. She does some work with the data to understand what her customer behaviors are. That work would be considered ________________-.

A)CRM
B)Analytical CRM
C)Operational CRM
D)Collaborative CRM?e)Transactional CRM

Question 49

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. With the prime presentation time of the semester coming up, she decides to offer a sports tie and a colored tie as a set at a discounted price.
This is called __________

A)upselling
B)cross-selling
C)bundling
D)customer intimacy

Question 50

_____ are simple tools for answering repetitive customer questions.

A)Personalized Web pages
B)Customized products and services
C)Frequently asked questions
D)E-mail systems
E)Automated Section reference 1 systems

Question 51

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors.
She has purchased blank receipt books to use when she makes a sale to gather the information about the transaction. This is part of her

A)CRM
B)Collaborative CRM
C)Operational CRM
D)Analytical CRM
E)Transactional CRM

Question 52

_____ creates statistical models of customer behavior and the value of customer relationships over time.

A)CRM
B)Analytical CRM
C)Operational CRM
D)Collaborative CRM
E)Transactional CRM

Question 53

Which of the following statements about loyalty programs is false?

A)Loyalty programs work when there is a high frequency of repeat purchases.
B)Loyalty programs work when there is little personal customization.
C)The purpose of loyalty programs is to influence future behavior.
D)The purpose of loyalty programs is to reward past behavior
E)Loyalty programs are a customer-touching application.

Question 54

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya begins collecting data about her customers by having them sign up for Promotional E-mails at her store. She collects their names and e-mail address on her form. How might she use the customer data?

A)Target marketing campaigns
B)Cross-sell
C)Gain insights into her products
D)Perform customer profitability analysis?e)Marketing

Question 55

_____ examines customer data in detail for designing and executing targeted marketing campaigns.

A)CRM
B)Analytical CRM
C)Operational CRM
D)Collaborative CRM
E)Transactional CRM

Question 56

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya begins to notice that her sports ties are selling really well. Which of the following should be her next step?

A)Target marketing campaigns
B)Cross-sell
C)Insights into her products
D)Customer profitability analysis

Question 57

A check-in kiosk at the airport is which type of CRM application?

A)Inbound telesales
B)Customer-touching
C)Outbound telesales
D)Sales
E)Customer-facing

Question 58

_____ is a CRM system that is hosted by an external vendor in the vendor's data center.

A)Mobile CRM
B)Analytical CRM
C)Operational CRM
D)On-demand CRM
E)Customer-facing CRM

Question 59

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Which of the following should Haya consider during her first month of operation?

A)A sales force automation system
B)A customer interaction center
C)Bundling
D)Campaign management
E)Purchasing profiles

Question 60

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors.
Sales are going well and she needs to decide how many ties to order of each color and sport. To help her with this decision, she turns to ______________

A)on-demand CRM.
B)her operational CRM.
C)her analytical CRM.
D)her mobile CRM.

Question 61

The benefits of open-source CRM include all of the following except:

A)It is easy to customize.
B)It is favorably priced.
C)It has more functionality than in-house CRM systems.
D)It updates data and fixes errors rapidly.
E)It has extensive support information.

Question 62

Potential problems with on-demand CRM include all of the following except:

A)It increases costs for the organization.
B)The vendor could prove unreliable.
C)It is difficult to modify hosted software.
D)It may be difficult to integrate hosted software with existing software in the organization.
E)Giving strategic data to a vendor is risky.