Deck 11: Relationship Marketing and Customer Relationship Management Crm

Question 1

Affinity marketing programs focus on creating extra value for consumers.

Answer 1

True

Question 2

Some of the motives for firms to enter into partnership are warding off threats of future competition,raising or creating barriers to entry,and learning new skills.

Answer 2

True

Question 3

Electronic data interchange (EDI)involves computer-to-computer exchanges of invoices,orders,and other business documents.

Answer 3

True

Question 4

Alken Technologies has a support team that is dedicated to provide sales and service to its largest customers to pay attention to their special needs.This marketing technique used by Alken to show commitment to its customers,is referred to as internal marketing.

Question 5

​Interactive television delivers valuable data on real consumer behavior and attitudes toward brands.

Question 6

Customer relationship management systems are more beneficial to retailers than to B2B firms.

Question 7

A sales forecast is an important tool for marketing control because it sets standards against which actual performance can be measured.

Question 8

Successful internal marketing efforts create satisfied employees who spread positive word-of-mouth messages to relatives,friends,and acquaintances.

Question 9

In relationship marketing,the focus is on enticing a buyer to make an immediate purchase based on factors such as low price,convenience,or packaging.

Question 10

Companies focus on building loyal relationships with existing customers as retaining customers costs must less than acquiring new ones.

Question 11

Research alliances between for-profit firms and colleges and universities are examples of lateral partnerships.

Question 12

The cost of acquiring a new customer is equivalent to that of retaining a loyal customer.

Question 13

Lateral partnership is a relationship that involves customers within an organization.

Question 14

The jury of executive opinion not only gathers information from company executives,but also from experts outside the firm such as academic researchers.

Question 15

The first step in measuring customer satisfaction involves comparing actual sales to forecasted sales.

Question 16

A lateral partnership is a strategic relationship that involves direct buyer-seller interactions.

Question 17

In a buyer partnership,the supplier must meet the unique needs of the purchaser in order to make the relationship successful.

Question 18

At the second level of relationship marketing,buyers and sellers develop a dependence on one another that continues to grow over time.

Question 19

As compared to happy customers,unhappy customers typically talk less about their buying experiences.

Question 20

Affinity marketing is a cooperative arrangement in which two or more organizations join to sell their products in an allied marketing campaign.

Question 21

Customer relationship management systems help firms to simplify complex business processes.

Question 22

Firms with similar skills and resources form a partnership to reduce costs.

Question 23

Database marketing involves the use of information technology to analyze data about customers and their transactions.

Question 24

Internal marketing involves selling products to employees of the firm at a discount.

Question 25

Quantitative forecasting methods rely on subjective data that reports opinions rather than exact historical data.

Question 26

A strategic alliance can be formed only between those firms that serve the same industry.

Question 27

A vendor-managed inventory is an inventory management system in which the seller-in an existing agreement with a buyer-determines how much of a product is needed.

Question 28

A company that gathers volunteers to try products and then relies on them to share their experiences with friends and colleagues is adopting a frequency marketing approach.

Question 29

Relationship marketing views customers as equal partners in buyer-seller transactions.

Question 30

First-level relationship marketing programs typically rely on pricing and other financial incentives to motivate the customer into a buying relationship with a vendor.

Question 31

Companies can use database marketing to improve customer retention and referral rates.

Question 32

Transaction based marketing emphasizes retaining customers over making a sale.

Question 33

The interactions at the first level of relationship marketing are most likely to lead to a long-term relationship.

Question 34

Customer win-back is a customer relationship management strategy that focuses on acquiring new customers.

Question 35

The service department of an automobile firm calls its customers regularly after service to check the performance of the car.This is an example of the first level of interaction in relationship marketing.

Question 36

Customer relationship management (CRM)requires a top-down commitment to succeed and must penetrate every aspect of a firm's business.

Question 37

A company using exponential smoothing technique for forecasting their sales in 2015 is likely to award a 1.5 weight for sales data of 2015,2.0 weight for sales data from 2014,and 2.5 weight for the sales data from 2012.

Question 38

Often,the desirability of partnering in the business market is based on the fact that each firm brings to the partnership something the other needs but cannot provide on its own.

Question 39

One of the steps involved in measuring customer satisfaction is compiling feedback from customers regarding present performance.

Question 40

The sale of a product to a customer via a vending machine is typical of a transaction-based relationship.

Question 41

Database marketing is not effective in identifying potential customers as it increases the marketing and promotion costs.

Question 42

The grassroots marketing approach relies on conventional and traditional marketing strategies.

Question 43

Quick-response merchandising is a just-in-time strategy that reduces the time merchandise is held in inventory,resulting in substantial cost savings.

Question 44

Viral marketing involves efforts that allow satisfied customers to spread the word about products to other customers.

Question 45

Marketers can use grassroots marketing approach to develop long-lasting,individual relationships with loyal customers.

Question 46

An internal partnership consists of a relationship that involves long-term exchanges of goods or services in return for cash.

Question 47

The supply chain management process has no influence on the relationship of the company with the product's end users.

Question 48

The term "lifetime value of a customer" refers to revenues and intangible benefits such as referrals and customer feedback a customer brings to the seller over an average lifetime of their relationship,less the amount the company must spend to acquire,market to,and service the customer.

Question 49

A strategic alliance is a partnership in which two or more companies combine resources and capital to create competitive advantages in a new market.

Question 50

Many grocery chains require customers to have a membership card in order to receive sale prices or other discounts.These grocery chains are practicing database marketing.

Question 51

Companies that excel at satisfying customers provide their employees with the necessary tools to address customer requests and problems in a timely manner.

Question 52

Cobranding is a cooperative arrangement in which two or more businesses team up to closely link their names on a single product.

Question 53

The payback period in a customer relationship is the length of time it takes to break even on customer acquisition costs.

Question 54

One of the main goals of internal marketing is to keep the employees informed about corporate goals,strategies,and customer needs.

Question 55

​At the third level of relationship marketing,buyer-seller relationships are transformed structurally into business partnerships.

Question 56

Buyer-seller relationships between companies involve working together to provide advantages that benefit both parties.

Question 57

The buyer and seller exchanges in transaction-based marketing are characterized by limited communications and little or no ongoing relationships.

Question 58

​In level 1 of relationship marketing,purchasers on a company's relationship marketing continuum receive specialized services and value-added benefits that may not be available from another firm.

Question 59

Assume that Ford has established a strategic alliance with Michelin to design an exclusive line of tires for Ford automobiles.The Ford-Michelin strategic alliance would be a horizontal alliance.

Question 60

A firm forming a partnership with another firm at the same level in the supply chain is creating a horizontal alliance.

Question 61

Planners apply qualitative sales forecasting techniques when they want judgmental or subjective indicators.

Question 62

A strategic alliance formed between firms at adjacent stages in a supply chain is considered a vertical alliance.

Question 63

Successful customer relationship management systems reduce costs by empowering customers to find the information they need to manage their own orders.

Question 64

Advertising via mobile apps helps marketers gain access to users' personal data.

Question 65

Customer satisfaction can be measured in terms of the gaps between what customers expect and what they perceive they have received.

Question 66

Affinity marketing consists of frequent-buyer or user marketing programs that reward customers with cash,rebates,merchandise,or other premiums.

Question 67

Frequency marketing programs are promotional efforts sponsored by organizations that solicit involvement by individuals who share common interests and activities.

Question 68

The Delphi technique is preferred by marketers because it is quick,inexpensive and works best for short-run forecasting.

Question 69

Building and managing long-term relationships between buyers and sellers are the hallmarks of transaction-based marketing.

Question 70

In a cooperative alliance,the partners establish a new business unit in which each takes an ownership position.

Question 71

One of the key criteria considered while forming a strategic alliance is the size and location of the partner firm.

Question 72

A partnership is an affiliation of two or more companies that help each other achieve common goals.

Question 73

Organizations must share similar values and goals for a partnership to succeed in the long run.

Question 74

Firms focus on acquiring new customers rather than retaining existing customers,as new customers account for nearly 70 percent of new business for a firm.

Question 75

Reviewing customer comments and feedback and monitoring the click-through behavior on websites help companies to set appropriate,measurable goals for relationship programs.

Question 76

Companies use knowledge obtained from databases to track customer buying patterns and to customize offerings and sales promotions.

Question 77

Strategic alliances typically include only the largest firms in any industry because of the amount of capital required to invest in shared facilities.

Question 78

The term "buzz marketing" refers to a promotional effort in which a dedicated sales team is assigned to a firm's major customers to provide sales and service.

Question 79

It is essential for an organization to build and maintain internal partnerships in order to meet the needs of its external partnerships.

Question 80

National account selling technique is used by marketers to serve their largest and most profitable customers.