Deck 4: Perspectives on Customer Relationship Management

Question 1

Customer satisfaction and customer loyalty are essentially the same thing.

Answer 1

False

Question 2

USAA customers and employees have face-to-face interaction that leads to high levels of satisfaction.

Answer 2

False

Question 3

Database marketing requires that the firm have a data warehouse and engage in data mining.

Answer 3

True

Question 4

CRM essentially is computer software.

Question 5

CRM-driven, one-to-one marketing tends to have increased promotional costs.

Question 6

Direct interface relates to touchpoints that are both interactive and noninteractive.

Question 7

A data warehouse allows the firm to collect information about every customer touchpoint in a systematic way.

Question 8

Marketing managers who want to improve the effectiveness of CRM focus on three areas: customers, the relationship, and managerial decision-making.

Question 9

A key element that makes CRM possible is the degree to which a customer trusts the firm with his or her information.

Question 10

Customer satisfaction refers to the degree to with a customer will resist switching from one offering to another.

Question 11

The ultimate goal of CRM is maximizing performance of the customer side of the enterprise.

Question 12

An employee who believes that he or she can do a better job by understanding the company's customers has an internal customer mind-set.

Question 13

Managers should buy the best, most advanced CRM package, then try to change the firm to fit the new technology.

Question 14

It is possible today to calculate the total profitability for each customer that we expected to be earned over the length of the customer relationship.

Question 15

An employee who believes that he or she needs to the requirements of the person who receives his or her work has an internal customer mind-set.

Question 16

It is okay to fire a customer who has a low predicted lifetime value, even if there is not a more attractive customer in sight.

Question 17

Customer contact and access points are the key to knowledge discovery process.

Question 18

Data mining is about collecting as much information as possible about customers and potential customers to develop micro-segments.

Question 19

CRM software is best selected for purchase by the Information Technology department since the 'techies' will need to maintain it and better understand the required functions.

Question 20

An employee who believes that he or she needs to understand who buys the company's products and services has an internal customer mind-set.

Question 21

ROCI stands for _________

A) Related Observable Customer Index
B) Return on Consumer Indicators
C) Return on Customer Investment
D) Relationship of Customer and Investment
E) Response of Consumers to Investment

Question 22

Key parts of the marketing plan that rely on CRM-generated information include all except the _________________.

A) Situation analysis
B) Market research
C) Strategy development
D) External economic factors
E) Implementation

Question 23

Customer loyalty is defined as ______________.

A) Repeat purchases
B) The degree to which an individual will resist switching from one offering to another
C) The level of liking an individual harbors for an offering
D) Customer laziness in trying new products
E) The likelihood that a customer become a buzz marketer

Question 24

To use CRM, companies are ____________.

A) Redesigning the internal structures
B) Renegotiating contracts with suppliers to cut price
C) Focusing on internal and external relationships
D) A and C
E) All of the above

Question 25

Fred Reichheld, a customer loyalty expert, has demonstrated that _______.

A) Investment in CRM yields more powerful long-term relationships
B) Long-term customers are more demanding and expect higher levels of service than new customers
C) Loyalty and profitability are not always linked
D) Loyal customers are significant contributors to revenue growth, profitability, and referrals
E) A and D

Question 26

For CRM to succeed, it must have the support of _____________.

A) The IT Department
B) Top management
C) The sales team
D) The marketing department
E) All of the above

Question 27

CRM is _______________.

A) A software system
B) A business strategy
C) Maximizes profitability through serving the best customers
D) Is customer-centric
E) All of the above

Question 28

The __________________ is the monetary number that indicates what a customer will spend with a firm over time.

A) Recency, frequency, and amount
B) Word of mouth value
C) Customer lifetime value
D) Customer longevity spending
E) Estimated spending

Question 29

The ultimate goal of CRM is maximizing performance on the _________ side of the enterprise.

A) Employee
B) Management
C) Customer
D) Supplier
E) Distributor

Question 30

Pedigree Puppy Club is a CRM program in the UK that has captured ______ of the puppy market.

A) 25%
B) 40%
C) 50%
D) 75%
E) 80%

Question 31

CRM stands for _________________.

A) Consumer Retention Management
B) Customer Related Metrics
C) Customer Relationship Management
D) Consumer Rights Monitor
E) Customer Retention Management

Question 32

Customer satisfaction is defined as ________________.

A) The degree to which an individual will resist switching from one offering to another
B) The level of liking an individual harbors for an offering
C) Customer laziness in trying new products
D) The likelihood that a customer become a buzz marketer
E) The number of purchases in a defined period of time

Question 33

Garrett is moving into retirement and wants to cut his client base in half so he can work part time.In deciding which customers to keep, Garrett should look at the monetary prediction called _______________.

A) Customer longevity spending
B) Total customer spending
C) Total customer gross margin
D) Customer lifetime value
E) Total transaction spending

Question 34

The assets of Chick-fil-A include all except ________________.

A) Cows
B) Food
C) People
D) Influence
E) Pricing

Question 35

CRM has passed through the "new idea" stage of marketing to the __________ stage.

A) Mission critical
B) Fad
C) Business as usual
D) Implementation
E) Decline

Question 36

The main focus of CRM is on ____________.

A) Internal processes
B) Efficiency
C) Marketing metrics
D) Profitability though customer focus
E) Gross revenue

Question 37

Juana and Marta inherited a large auto dealership.Their task is to convince the sales staff to be relationship driven rather than transaction driven.Many sales people are out to make the most money from each sale because they don't see themselves staying in the job for a long time and don't care about the future of the dealership.The CRM metric that demonstrates the preference of relationships over transactions in _________.

A) Customer longevity spending
B) Total customer spending
C) Total customer gross margin
D) Customer lifetime value
E) Total transaction spending

Question 38

CRM is mainly used by the ____________ department(s).

A) Marketing, sales, and customer service
B) Senior management
C) Accounting and IT
D) Customer service
E) Information technology

Question 39

__________________ is not an element in the process cycle for CRM.

A) Analysis and refinement
B) Supplier interface
C) Customer interaction
D) Knowledge discovery
E) Marketing planning

Question 40

Implementing a CRM system and then having it disappoint or fail is much worse for a firm than if it had never attempted CRM.

Question 41

Miguel has eight traditional Cuban restaurants in South Florida and he wants to track his customers by building a database.He would do this in the ___________ element of the process cycle.

A) Data mining
B) Knowledge discovery
C) Marketing planning
D) Customer interaction
E) Analysis and refinement

Question 42

Six times a year, Patrick and Sally send out 15 million catalogs that showcase a wide variety of Irish products.They hire a call center to take orders and another company to actually warehouse and fulfill the orders.All of the information systems area linked to provide real time data to all users.Patrick and Sally are in the stage of CRM that is like market research in the form of a continuous dialogue with customers, facilitated by the effective use of CRM tools.They are in the ______ phase of the CRM process.

A) Data mining
B) Knowledge discovery
C) Marketing planning
D) Customer interaction
E) Analysis and refinement

Question 43

The phase of the CRM process cycle that is devoted to personal selling is _______.

A) Data mining
B) Marketing planning
C) Customer interaction
D) Analysis and refinement
E) Knowledge discovery

Question 44

Properly use, data mining allows the firm to _________________.

A) Move to the marketing planning phase
B) Choose elements of the marketing mix
C) Use marketing communications to customize approaches to different segments
D) A and C
E) All of the above

Question 45

Carol's boss wants her to identify interactive customer touchpoints in the organization.She has decided that all except _______________ are interactive.

A) Call centers
B) The company's static website
C) The 1-800 telephone line
D) Sales representatives
E) Branch offices

Question 46

Firms need to _______________.

A) Identify all customer touchpoints
B) Figure out what information should be collected at each touchpoint
C) Contact every customer on a regular basis
D) All of the above
E) A and B only

Question 47

The CRM process cycle may be divided into _____ elements.

A) Four
B) Five
C) Eight
D) Ten
E) Twelve

Question 48

Michael, the stockbroker, is trying to figure out the response to the customer dinner he hosted last night.Michael is in the __________ phase of the CRM process.

A) Analysis and refinement
B) Supplier interface
C) Customer interaction
D) Knowledge discovery
E) Marketing planning

Question 49

Mayleen wants to cut down on unproductive and expensive direct mail to current customers.Her best bet would be to __________.

A) Hire a firm to do the mailings for her
B) Use less expensive paper to print the mailing
C) Create a data warehouse to track customer touchpoints
D) Use data mining to predict the most profitable customers
E) C and D

Question 50

A data warehouse __________________.

A) Is a place to keep former customer records
B) Is storage for old file boxes
C) Allows customers to store meaningful information about themselves online
D) Allows the company to combine huge amounts of information and then use data mining techniques to learn more about current and potential customers
E) Is a place to store ideas for future marketing campaigns

Question 51

To use touchpoints successfully, the firm must ________________.

A) Try to identify all possible touchpoints
B) Develop specific objectives for the kind of information needed at each touchpoint
C) Figure out what kind of data are needed
D) Develop policies on how the information will be accessed and used.
E) All of the above

Question 52

John recently got a job as a manufacturer's representative and his new boss wants him to evaluate and get rid of under-performing accounts.John doesn't understand why anyone would get rid of a customer.What measurement would help John see his boss' point of view?

A) Return of customer revenue
B) Annual ROI
C) Projected cash flow
D) Return on customer investment
E) Revenue growth per consumer

Question 53

_______________ is the second element in the process cycle for CRM.

A) Analysis and refinement
B) Supplier interface
C) Customer interaction
D) Marketing planning
E) Knowledge discovery

Question 54

A CRM touchpoint that does not require direct interface is ________.

A) Outbound telemarketing
B) Inbound telemarketing
C) A bank's ATM
D) A customer online chat line
E) A branch office

Question 55

____________ is most likely not considered a customer touchpoint.

A) Point-of-sale systems
B) Follow-up calls
C) Records from direct selling
D) Customer complaints to call centers
E) Managerial assessment of customer loyalty

Question 56

_______________ is the first element in the process cycle for CRM.

A) Analysis and refinement
B) Supplier interface
C) Customer interaction
D) Knowledge discovery
E) Marketing planning

Question 57

Touchpoints are ________________.

A) Stactic and mobile
B) Interactive and noninteractive
C) Frequent and expensive
D) Infrequent and inexpensive
E) Frequent and inexpensive

Question 58

_______________ is the third element in the process cycle for CRM.

A) Analysis and refinement
B) Supplier interface
C) Customer interaction
D) Knowledge discovery
E) Marketing planning

Question 59

Carol's boss wants her to identify noninteractive customer touchpoints in the organization.She has decided that all except _______________ are noninteractive.

A) Call centers
B) The company's static website
C) Direct mail
D) Television ads
E) Coupons and rebates

Question 60

_______________ is the fourth element in the process cycle for CRM.

A) Analysis and refinement
B) Supplier interface
C) Marketing planning
D) Knowledge discovery
E) Customer interaction

Question 61

USAA began as an insurance company for ________________.

A) All military personnel
B) Anyone who worked on a military base
C) Military officers and their families
D) Enlisted personnel
E) Anyone who lived in the U.S.

Question 62

Companies that focus on transactions most likely practice _______.

A) Mass marketing
B) Target marketing
C) One-to-one marketing
D) Customer marketing
E) Consumer marketing

Question 63

Companies that use CRM are most likely to practice _______________.

A) Mass marketing, given the economics of scale created by CRM
B) Consumer marketing, due to being able to identify like-minded audiences
C) Shotgun marketing, given the ability to reach large numbers of people
D) Customer marketing, due to trying to establish one-to-one relationships
E) Holistic marketing, to reach many different audiences

Question 64

The most prevalent formalization mechanism of a customer-centric culture is __________.

A) TQM
B) Reengineering
C) CRM
D) ABM
E) The Marketing Dashboard

Question 65

Firms that use CRM systems successfully also have the ____________ to make the initiative successful.

A) Culture
B) Leadership
C) Structure
D) Systems
E) All of the above

Question 66

Jane received a call from her bank today telling her that account had been hacked.Jane's bank expects about _____% of hacked customers to defect soon.

A) 20
B) 45
C) 50
D) 75
E) 90

Question 67

Companies that focus on lifetime value most likely practice _______.

A) Mass marketing
B) Target marketing
C) One-to-one marketing
D) Customer marketing
E) Consumer marketing

Question 68

USAA's high regard for customer privacy is evidenced through _____________.

A) Asking permission to share with outside companies
B) Asking permission to share with companies in the USAA family
C) Requiring customer through access codes and identity verification
D) A and B
E) B and C

Question 69

The cost of data protection with encryption, back-up files, is ____________.

A) Low
B) Very inexpensive
C) Relatively inexpensive
D) Moderately expensive
E) High

Question 70

The financial services firm that consistently rates high in customer satisfaction due to its CRM system is ____________.

A) Wells Fargo
B) USAA
C) Bank of North America
D) Morgan Stanley
E) Washington Mutual

Question 71

One interesting feature of Subway's CRM system is that ___________.

A) It treats all customers the same
B) It allows customers to remain anonymous if they wish
C) It offers different coupons to customers
D) It has special promotions
E) All of the above

Question 72

_______________ is not an advantage of one-to-one marketing over traditional mass marketing.

A) Increased promotional costs
B) Improved targeting of specific customers
C) Increased product development cycles
D) More efficient customer interaction
E) Better ability to track a campaign

Question 73

Companies that focus on products most likely practice _______.

A) One-to-one marketing
B) Customer marketing
C) Target marketing
D) Consumer marketing
E) Mass marketing

Question 74

Firms that have high levels of customer information security and handle the information responsibly also _______________.

A) Find it easier to attract new customers
B) Retain current customers
C) Use it as a competitive advantage
D) B and C
E) All of the above

Question 75

The effort a firm makes towards cultivating a customer-centric culture requires a high degree of __________________ within the firm.This means structure, processes and tools are developed to support the culture.

A) Professionalism
B) Creativity
C) Management
D) Formalization
E) Metrics

Question 76

Some companies today continue to think of consumers in the role of faceless reactors to the firm's marketing strategies.These companies tend to use _________ marketing.

A) Targeted marketing
B) One-to-one marketing
C) Customer centric marketing
D) Mass marketing
E) Service marketing

Question 77

Retailers like Brookstone use loyalty programs to reward the best customers.Brookstone customers earn points for ____________.

A) Signing into the website
B) Purchasing online
C) Referring new customers
D) B and D
E) All of the above

Question 78

The issue of privacy is particularly sensitive to legal and ethical issues in the ___________ market.

A) Industrial goods market
B) High technology goods
C) Consumer
D) B2B
E) Service

Question 79

Companies that focus on real time most likely practice _______.

A) Mass marketing
B) Target marketing
C) One-to-one marketing
D) Customer marketing
E) Consumer marketing

Question 80

The effort a firm makes towards cultivating a customer-centric orientation requires a high degree of ____________.

A) Spontaneity
B) Creativity
C) Formality
D) Formalization
E) Static structure