Deck 3: Perspectives on Crm and Marketing Metrics

Question 1

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

Answer 1

False

Question 2

Customer satisfaction and customer loyalty essentially are the same thing.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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 7

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 8

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 9

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

Question 10

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

Question 11

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 12

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

Question 13

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

Question 14

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

Question 15

CRM essentially is computer software.

Question 16

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

Question 17

CRM software is exclusively for the use of the Information Technology experts.

Question 18

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

Question 19

A data warehouse allows the firm to collect information about every customer touchpoint in a systematic way and analyze it through data mining.

Question 20

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

Question 21

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 22

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 23

__________________ is a monetary number that represents an upper limit on spending to acquire new customers.

A) Supply chain metrics
B) Word of mouth value
C) Customer lifetime value
D) Customer longevity spending
E) Estimated spending

Question 24

Organizational learning occurs in which phase of the CRM process?

A) Knowledge discovery
B) Market planning
C) Analysis and refinement
D) Customer interaction
E) Direct sales

Question 25

To use CRM,companies are ____________.

A) Redesigning the internal structures to focus on internal and external relationships
B) Renegotiating contracts with suppliers to cut price
C) Focusing solely on internal relationships
D) Focusing solely on external relationships
E) Giving huge discounts to long time customers

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

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 28

The main focus of CRM is on ____________.

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

Question 29

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 is _________.

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

Question 30

Customer __________ is usually based on a high level of perceived value derived from the offering and a strong relationship with the provider and its brand(s).

A) Loyalty
B) Satisfaction
C) Acquisition
D) Retention
E) Profitability

Question 31

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

Question 32

Garrett is moving into retirement and wants to cut his client base to 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 33

In which phase of the CRM process is customer information analyzed through various customer touchpoints?

A) Knowledge discovery
B) Market planning
C) Analysis and refinement
D) Customer interaction
E) Direct sales

Question 34

CRM is a short hand way to refer to ________________.

A) Consumer Returns Management
B) Customer Ranking Measures
C) Chief Resource Marketer
D) Computer Resource Management
E) Customer Relationship Management

Question 35

__________________ is NOT an element of the CRM process cycle.

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

Question 36

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 37

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 38

Which of the following is NOT true about CRM?

A) It is a business strategy to select and manage the most valuable customer relationships
B) It adopts a profit-centric business philosophy
C) It helps in increasing the effectiveness of marketing initiatives
D) It enables and supports the implementation of a customer orientation
E) It helps in increasing customer retention

Question 39

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 becomes a buzz marketer
E) The number of purchases in a defined period of time

Question 40

CRM is _______________.

A) A software system
B) A business strategy
C) Focused on maximizing profitability through serving the best customers
D) Customer-centric
E) All of the above

Question 41

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

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

Question 42

____________ 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 43

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 are 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 44

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 45

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

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

Question 46

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

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

Question 47

Data mining is a part of _________________ element of the CRM cycle.

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

Question 48

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 Web site
C) The 1-800 telephone line
D) Sales representatives
E) Branch offices

Question 49

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 50

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 51

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 52

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 CRM process cycle.

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

Question 53

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

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

Question 54

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

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

Question 55

The CRM process cycle may be divided into _____ elements.

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

Question 56

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 57

Touchpoints are ________________.

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

Question 58

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 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

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 61

The insurance and 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 62

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 63

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 64

Companies that focus on real-time matching most likely practice _______.

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

Question 65

All of the following are advantages of CRM-driven one-to-one marketing EXCEPT?

A) Reduced promotional costs.
B) Improved targeting of specific customers.
C) Improved capability to track the effectiveness of a given promotional campaign.
D) Increased effectiveness in competing on value-adding properties.
E) A longer product development cycle.

Question 66

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 67

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 68

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 69

_______________ 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 70

__________ is the reduction in sales (units or dollars)of a firm's existing products due to the introduction of a new product.

A) Cannibalization
B) Margin on Sales
C) Penetration
D) Customer Lifetime Value
E) Sales Force Effectiveness

Question 71

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

Question 72

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 73

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) Knowledge discovery
E) All of the above

Question 74

Which of the following does NOT best describe marketing dashboards?

A) Provides a diagnostic insight
B) Provides enough strategic insights
C) Provides a predictive value
D) Enhances the efficiency and effectiveness of marketing investments
E) All of the above

Question 75

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 76

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

A) The company asking permission to share information with outside companies
B) The company asking permission to share information with companies in the USAA family
C) The company requiring customer to use access codes and identity verification
D) A and B
E) B and C

Question 77

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 78

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 79

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 80

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

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