Deck 14: Customer Relationship Management

Question 1

While social media may help a business understand overall consumer sentiment, it is not suitable for connecting or engaging customers who are in the midst of a complaint or problem.

Answer 1

False

Question 2

CRM is the process of building and maintaining profitable customer relationships

Answer 2

True

Question 3

A large number of companies monitor what is said about them on social media platforms like Facebook and Twitter.

Answer 3

True

Question 4

According to the findings of a TD Canada Trust loyalty poll, almost half of customers ranked reward programs as their number one priority.

Question 5

Kretny Inc.collects information from phone centres, Internet sites, and contacts that salespeople have with their customers.These contacts are called touch points.

Question 6

The increased profitability that is associated with customer retention is due to the fact that the cost of acquiring a customer occurs only after the relationship has been established.

Question 7

Initially, customer relationship management (CRM) was a tool used only by the sales force to keep track of current and prospective customers.

Question 8

Companies are often tempted to encourage consumers to say positive things about their brand on a social media platform, thus affecting the company's credibility.

Question 9

Peter Lawrell, a car dealer, looks at each of his loyal customers as an investment.Peter is referring to customer lifetime value.

Question 10

Data warehouse collection is a process that can spot trends and other nuggets of information that the company might not be aware of.

Question 11

Companies are starting to focus on the value of a customer given that the customer remains loyal to the firm over the customer's lifetime.

Question 12

Buyers palace.ca, an online platform for purchasing books, frequently suggests for members a personalized list of books based on their previous purchases.This is an example of customer relationship management.

Question 13

A company's failure with CRM is often the result of approaching CRM as an overall company strategy rather than a software project.

Question 14

For a company, measuring overall customer satisfaction is a better measure of customer loyalty than measuring satisfaction at each touch point.

Question 15

All the data concerning customers is stored in a central place, called the data mine.

Question 16

A small number of customers account for a large percentage of a brand's sales and profits.This is referred to as market penetration.

Question 17

The value of a customer's purchases that a company has in a specific product mix is called share of wallet.

Question 18

The oldest and best known loyalty program in Canada is HBC Rewards.

Question 19

The reflection of a company's vision and mission statement on a customer-centric sentiment determines the company's state of cultural attitudes.

Question 20

Social media is being increasingly used by the airline industry to the extent that it allows an unhappy passenger waiting in a check-in line to get his complaint resolved in no time by tweeting his dissatisfaction while in queue.

Question 21

Which of the following is true about touch points?

A)They refer to the points along the price line at which the purchased product passes onto the customer's hands.
B)Measuring the overall customer satisfaction is a better measure of customer loyalty than measuring the same at each touch point.
C)A call centre is an example of a human touch point.
D)Measuring customer loyalty starts with understanding and listing the total customer interactions that influenced the customers' satisfaction.

Question 22

Which of the following is true about customer relationship management (CRM)?

A)For CRM to be successful, the cultural attitude must remain constant in the organization.
B)CRM is defined as managing customer interactions to build brand equity and improve long-term profitability.
C)CRM originally started out as a tool to gauge the company purchases to manufacture consumer demands.
D)The heart of a CRM program is information technology and database systems.

Question 23

Philip, a regular customer of Fairmont Banff Spring, returns for an overnight stay at the hotel after a gap of three weeks.He feels unappreciated when he has to give his usual preferences all over again because the guest executive does not refer to the database.This most likely happened because of failing to view the concept of CRM as a(n) _____.

A)holistic marketing strategy
B)company research project
C)promotional strategy
D)overall company strategy

Question 24

By gaining insight into each customer's needs and behaviours and using this information to improve the customer's dealings with the company, Flyaway Airlines is using a process called customer _____.

A)experience management
B)reward program
C)branding
D)relationship management

Question 25

Along with delivering superior customer service, Palero needs to build its brand equity by managing customer interactions.This process is known as customer _____.

A)experience management
B)branding
C)reward program
D)relationship management

Question 26

Fresh Mornings, a breakfast eatery, is suffering from poor employee customer service skills.Fresh Mornings' failure with CRM is the result of approaching CRM as a _____ project rather than an overall company strategy.

A)marketing
B)promotion
C)comprehensive
D)software

Question 27

Palero collects information from phone centres, Internet sites, and contacts that salespeople have with their customers.These contacts are called _____.

A)tangible contacts
B)touch points
C)stimuli
D)response centres

Question 28

Many firms are beginning to fire their low-value customers and are focusing their time on their high-value customers.

Question 29

Philip, who is a regular customer of Fairmont Banff Spring.He On arrival, he gets out of the cab, enters the hotel, goes to the guest desk, and talks to the guest executive about his room.These customer interactions are referred to as _____.

A)tangible contacts
B)touch points
C)stimuli
D)response centres

Question 30

A _____ is any situation in which a customer comes into contact with a brand or company.

A)tangible contact
B)touch point
C)stimulus
D)response centre

Question 31

When the Four Seasons Hotels and resorts improves its long-term profitability by managing customer interactions, it is indulging in customer _____.

A)experience management
B)branding
C)reward program
D)relationship management

Question 32

Which of the following is an interactive touch point?

A)newspaper advertisement
B)e-mail
C)call centre
D)salesperson

Question 33

Palero uses information about customers to create marketing programs that result in customer satisfaction.Which of the following processes is Palero applying?

A)Customer experience management
B)Customer reward program
C)Customer branding
D)Customer relationship management

Question 34

Understanding individual interaction at each _____ is a better measure of customer loyalty than just measuring overall customer satisfaction.

A)tangible contact
B)touch point
C)stimulus
D)response centre

Question 35

_____ is defined as managing customer interactions to build brand equity and improve long-term profitability.

A)Customer experience management
B)Customer branding
C)Customer relationship management
D)Customer reward program

Question 36

Losing a customer means losing the entire future stream of purchases that the customer would make over a lifetime of patronage.

Question 37

To recognize their customer's individual preferences, Flyaway Airlines began to map each step of customer interaction.This included making a note of individually preferred seating, food, and travel timings.Each of these customer interactions may be referred to as _____.

A)tangible contacts
B)touch points
C)response stimuli
D)response centres

Question 38

_____ is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

A)Customer experience management
B)Customer branding
C)Customer reward program
D)Customer relationship management

Question 39

Which of the following is a static touch point?

A)newspaper advertisement
B)e-mail
C)call centre
D)salesperson

Question 40

Information about customers can be used to create marketing programs that

A)Predict customer behaviour
B)Result in customer satisfaction
C)Increase the cost of acquiring customers
D)Lower the lifetime value of a customer

Question 41

To contact an airline, customers are increasingly using _____, as opposed to the old way of phoning the company.

A)electronic literature
B)hypermedia
C)social media
D)website feedback forms

Question 42

WestJet is an excellent example of a company that has embraced CRM from the top management down.Employees of WestJet have a heightened sense of customer service responsibility uncharacteristic of many other employees.How do they accomplish this?

A)loyalty programs
B)ads that focused on employee ownership
C)touch points
D)customer lifetime value

Question 43

Charles, who had been waiting in a check-in line at Grasp Airways, tweeted his dissatisfaction when he realized that the line was not moving quickly.At the same time, airline employees were scanning the online traffic, and came across Charles's complaint.By the time Charles made it to the desk, his compliant was directly dealt with.Which of the following tools did Grasp Airways use to deal with Charles's issue?

A)electronic literature
B)voice mail
C)social media
D)interactive voice response service

Question 44

Which of the following is true about cultural changes that CRM entails?

A)The degree to which customers feel appreciated will help a firm assess its state of cultural attitudes.
B)The cultural attitudes of the organization must not change internally.
C)The average business executive goes into CRM thinking it's about strategy.
D)The benefits of implementing CRM software are greater if the company adopts a CRM culture.

Question 45

According to the findings of a TD Canada Trust loyalty poll, 49 percent of customers ranked _____ as their number one priority.

A)reward programs
B)low interest rate on loans
C)customer service
D)high interest rates on savings accounts

Question 46

When Philip returns for a second stay at The Banff Spring Hotel, the guest executive asks him for his preferences without bothering to refer to the database.Which of the following likely caused the executive to do so?

A)The executive had a low morale because of being unappreciated by his supervisors.
B)It is culturally not right to follow the database.
C)A CRM software needs to be updated every two weeks.
D)Asking a second time for individual preferences is an example of attitude change by management, which is an essential aspect of CRM.

Question 47

Employees at WestJet are recognized for behaving in a way that has the customer's interests at heart.The degree to which the employees feel rewarded will help assess the state of WestJet's _____.

A)CRM software
B)data mining efforts
C)touch points
D)cultural attitudes

Question 48

Every employee at WestJet takes ownership in what they do, and they have a heightened sense of customer service responsibility.The management at WestJet is _____.

A)plagued by employee turnover
B)hiring unmotivated employees
C)facing competition
D)walking the talk

Question 49

One of the temptations for a company using social media is to encourage consumers to say positive things about their brand on a social media platform._____ can suffer as a result.

A)Consistency
B)Quality
C)Feasibility
D)Credibility

Question 50

Which of the following is true about customer retention?

A)Increased focus on new customers will result in more profit and sales.
B)Making a sale to a new customer is comparatively less expensive than making a sale to a current customer.
C)Long-term customers normally tend to be less price-sensitive.
D)The cost of acquiring a customer, which occurs only after establishing the relationship, leads to increased profitability.

Question 51

For flyers who have lost luggage or missed a flight, the immediacy of feedback based on _____ could render toll-free numbers and website feedback forms obsolete in the near future.

A)electronic literature
B)hypermedia
C)social media
D)interactive voice response system

Question 52

Swifttrade.com, an online trading site, makes a special effort to ask customers when and how they would like to be contacted and stores this information in its database.This practice allows Swifttrade.com to channel its brand _____.

A)loyalty
B)image
C)value
D)communication

Question 53

Instead of blogging and tweeting about its new raspberry-flavoured chocolate, Lollies Sweets Inc.encouraged customers to post positive comments about the brand by giving the first 100 buyers an additional 280 grams of the chocolate.There is a possibility that most buyers gave a biased opinion because of the freebie provided.As a result, the _____ of Lollies Sweets Inc.could have suffered.

A)quality
B)credibility
C)consistency
D)service delivery

Question 54

_____ programs are those that are specifically designed for customer retention.

A)Affability
B)Directivity
C)Fixity
D)Loyalty

Question 55

Which of the following is true about long-term customer relationships?

A)Referrals are not usually initiated by long-term customers.
B)On a longer basis, customers tend to become more price-sensitive.
C)Long-term customers tend to be less inclined to switch.
D)Cost of customer acquisition occurs after the relationship has been established.

Question 56

According to Pareto's Rule:

A)20 percent of a brand's sales come from 80 percent of its customers.
B)high-profit customers who are rewarded are easier to retain.
C)light users should be rewarded more for a push.
D)databases merely recognize their customers.

Question 57

Pastels.com, an online site selling self-branded art and craft items, creates a wow experience for every customer who visits the site.It creates a difference by providing free shipping for all products and places only those products that are in stock.A toll-free phone number, active 24/7, is placed on every page of the site.Pastels.com is an example of a company that aims to provide the best _____.

A)reward programs
B)customer service
C)quality products
D)shipping experience

Question 58

Which of the following is true about loyalty programs?

A)All customers must be rewarded equally.
B)Mostly, a large number of heavy users account for a large percentage of sales and profits.
C)Customers who buy an above-average amount of a brand are termed heavy users.
D)According to Pareto's Rule, 20 percent of a brand's sales come from 80 percent of its customers.

Question 59

Regular customers at Krotler Inc.are also offered autographed memorabilia and are sometimes invited for celebrity meet-and-greets.This practice of Krotler Inc.goes beyond its usual practice of giving points to the customer that can be used to redeem for merchandise.These special offers are an example of Krotler Inc.'s _____ programs.

A)affability
B)directivity
C)loyalty
D)credibility

Question 60

A small number of customers account for a large percentage of a brand's sales and profits.This is referred to as _____.

A)Benford's Rule
B)Ninety-ninety rule
C)Murphy's law
D)Pareto's Rule

Question 61

The renovation process is a result of customer patterns and insights that were analyzed to make better marketing decisions.Which of the following processes did Magnet Inc.use?

A)relationship marketing
B)data mining
C)data warehousing
D)customer experience transformation

Question 62

Nathan, who runs a grocery store, looks at each customer as an investment.Nathan is referring to each customer's _____.

A)sales projection
B)customer lifetime value
C)word-of-mouth activity
D)market share

Question 63

Michael & Peter's, a legal consultant, has discovered that it is losing a significant number of its clients.Which of the following refers to the first step that the consultant should take for customer reacquisition?

A)Determine why their customers have stopped taking their services.
B)Find the customer category that is in risk of being lost.
C)Avoid relying on databases since they only provide overall purchase frequency data.
D)Concentrate on future stream of customer purchases since losing one customer is simply equivalent to losing that particular sale.

Question 64

Describe the concept of customer relationship management.

Question 65

The potential sales that will be generated by a customer if the customer remains loyal to that company for a lifetime are referred to as customer lifetime _____.

A)motive
B)value
C)behaviour
D)profits

Question 66

Magnet Inc.was storing all the data about customers in a central place.This central place is referred to as a _____.

A)customer hub
B)data index
C)data warehouse
D)data file manager

Question 67

Which of the following is a disadvantage of jettisoning low-value customers?

A)High-value customers tend to become unprofitable.
B)The total value of individual customers, in terms of profits, falls.
C)Competitors become aware of the company's customer base.
D)The company loses its focus on the high-value consumers.

Question 68

Most often, customers tend to stop buying from a company due to _____.

A)some issues with the product
B)poor customer service
C)low interest in the product
D)unhappiness with the brand

Question 69

Philip, who went to pick up his car after servicing, noticed that his tennis racquet, which he had left behind in the car, was missing.When he approached the car dealer, he was given an apology and a cheque for a new racquet.The dealer, although not at fault, took care of the mishap as a favour to the customer.The dealer, thus, was giving importance to customer lifetime _____.

A)motive
B)value
C)behaviour
D)attention

Question 70

Along with bringing changes to the store layout, Magnet Inc.has also created rooms that resemble a home to show customers exactly how the products will look when they are installed.This will personalize the customer's experience, which will help Magnet Inc.in building customer relationships.This focus is an example of customer lifetime _____.

A)motive
B)value
C)behaviour
D)profits

Question 71

Porther Inc.maintains an electronic library where all its customer information is indexed.This library is called the _____.

A)customer data folder
B)data warehouse
C)customer hub
D)data mine

Question 72

In addition to rewarding customers, Gatersby Inc.'s loyalty program provided the firm with reams of customer information in its database._____ is the most efficient way to use this information to make better marketing decisions.

A)Relationship marketing
B)Data mining
C)Data warehousing
D)Database marketing

Question 73

Many firms are beginning to _____ their low-value customers while focusing their time on their high-valued customers.

A)appreciate
B)value
C)target
D)jettison

Question 74

The Eatery Palace, a grocery chain, used to display its juices by arranging them according to their brands.The store later studied information and learned that its customers prefer the juices to be arranged according to their flavours.The process used to retrieve this information is referred to as _____.

A)relationship marketing
B)data mining
C)data warehousing
D)customer experience transformation

Question 75

Maria, who regularly shops for cosmetics from Beauty at Its Best using her loyalty card, receives mailings from the store offering her special coupons on cosmetic items related to her regular purchase.Beauty at Its Best is trying to increase its _____.

A)customer base
B)visibility
C)share of wallet
D)sales history

Question 76

_____ is a process of analyzing customer patterns and insights to make better marketing decisions.

A)Relationship marketing
B)Data mining
C)Data warehousing
D)Customer experience transformation

Question 77

Which of the following is true about customer reacquisition?

A)Losing a customer is equivalent to simply losing a sale.
B)Most often, a customer stops buying from a company when there is something inherently wrong with the brand.
C)Determining why the customer has stopped buying is the first step in customer reacquisition.
D)The longer customers stays away from the business, the less likely they are to return.

Question 78

Companies are beginning to focus on the _____ of a customer if that customer remains loyal to the firm over the customer's lifetime.

A)emotional motives
B)value
C)behaviour
D)affordability

Question 79

The percentage of a customer's purchases that a company has in a specific product category is referred to as _____.

A)return on investment
B)sales potential
C)share of wallet
D)sales history

Question 80

All the data concerning customers is stored in a central place, called the _____.

A)customer data folder
B)data warehouse
C)customer hub
D)data mine