Deck 12: Customer Relationship Management

Question 1

The Chapter 12 opening case discusses companies that use persuasive technologies. Which of the following is NOT a company mentioned in the case?

A) Amazon
B) Facebook
C) Toyota
D) Volkswagen

Answer 1

D

Question 2

_____________ uses a beacon and smartphone app to track children in public places.

A) Google Maps
B) Nivea
C) Oracle Arena
D) Tring313

Answer 2

B

Question 3

_______________ is the loss of customers over time.

A) Customer churn
B) Customer depreciation
C) Lifetime value
D) Market capitalization

Answer 3

A

Question 4

____________ CRM systems provide business intelligence by analyzing customer behavior and perceptions.

A) Analytical
B) Intelligent
C) Operational
D) Persuasive

Question 5

Analytical CRM systems analyze customer data for a variety of purposes. _________ is NOT one of these purposes.

A) Designing and executing targeted marketing campaigns
B) Identifying the most profitable customers to give them the best service
C) Increasing customer acquisition, cross-selling, and upselling
D) Providing financial forecasting and customer profitability analysis

Question 6

High-end CRM system are designed for enterprises with ___________.

A) many large customers
B) many small customers
C) few large customers
D) few small customers

Question 7

A 360 degree view of a customer is facilitated by __________.

A) ERP
B) FAIS
C) SCM
D) TPS

Question 8

___________ are the largest generator of revenue for an enterprise.

A) Cheaper products from China
B) Low shipment costs
C) New customers
D) Repeat customers

Question 9

An organization's goal with CRM is to minimize ____________.

A) Customer churn
B) Lifetime value
C) Market capitalization
D) Shipment costs

Question 10

____________ CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.

A) Analytical
B) Collaborative
C) Decisional
D) Operational

Question 11

____________ is a customer's potential revenue stream over a number of years.

A) Customer churn
B) Lifetime value
C) Market capitalization
D) Revenue-by-customer

Question 12

In customer-________________ CRM applications, an organization's sales, field service, and customer interaction center representatives interact directly with customers.

A) directing
B) facing
C) interacting
D) touching

Question 13

__________ is the number of shares of a company's stock outstanding multiplied by the price per share of the stock.

A) Customer churn
B) Lifetime value
C) Market capitalization
D) Return on investment

Question 14

_____________ enable(s) the Golden State Warriors to provide better service and to deepen customer loyalty.

A) Artificial intelligence
B) Data mining and BI
C) Location-based services
D) RFID tracking

Question 15

____________ uses persuasive technologies to send people ads.

A) GlowCaps
B) GSN Games
C) Mozambique
D) Opower

Question 16

Location-based service notifications work well for the Golden State Warriors in regard to __________.

A) customers purchasing more pizza to get a free popcorn
B) delivering instant replays to fans in the arena
C) getting a complete picture of their fans
D) making it easier for fans to upgrade seats

Question 17

Data warehouses, data mining, DSS, and other BI technologies interact with ________ CRM systems.

A) Analytical
B) Decisional
C) Intelligent
D) Operational

Question 18

Companies CANNOT use technology to ___________ customers.

A) create new habits in
B) manipulate
C) persuade
D) technology can be used in all of these ways

Question 19

The _____________ approach is designed to achieve customer intimacy.

A) CRM
B) ERP
C) FAIS
D) SCM

Question 20

Low-end CRM system are designed for enterprises with ___________.

A) many large customers
B) many small customers
C) few large customers
D) few small customers

Question 21

__________ is NOT related to SFA.

A) A contact management system
B) A sales lead tracking system
C) Configurators
D) Inbound teleservice

Question 22

A(n) _________ CRM system is an interactive system that enables an organization to conduct communications related to sales, marketing, and customer service activities through a mobile medium.

A) Mobile
B) On-demand
C) Open-source
D) Real-time
E) Social

Question 23

You go to the local electronics store to purchase a tablet, and the sales guy talks you into buying a laptop. This is an example of _________.

A) Bundling
B) Cross-selling
C) Targeting
D) Upselling

Question 24

Priceline's new strategy did NOT involve __________.

A) Analytical CRM systems
B) Customer-facing CRM applications
C) Customer-touching CRM applications
D) Operational CRM systems

Question 25

_________ CRM systems engage customers in collaborative conversations to provide mutually beneficial value in a trusted and transparent manner.

A) Mobile
B) On-demand
C) Open-source
D) Real-time
E) Social

Question 26

___________ is NOT a problem associated with on-demand CRM systems.

A) Cost
B) Integration
C) Modification
D) Reliability

Question 27

When organizations create a call list for the sales team, whose members contact sales prospects, this is called _____________.

A) a call center
B) a contact management system
C) inbound teleservice
D) outbound telesales

Question 28

Amazon's "Customers Who Bought … Also Bought" recommender system is an example of ___________.

A) Bundling
B) Cross-selling
C) Targeting
D) Upselling

Question 29

__________ is a risk of open-source CRM systems.

A) Cost
B) Customization
C) Quality control
D) Variety

Question 30

You get a call from a telemarketer at dinner trying to sell life insurance. This is an example of a customer-__________ CRM application and ____________.

A) facing; inbound teleservice
B) facing; outbound telesales
C) touching; inbound teleservice
D) touching; outbound telesales

Question 31

Priceline focused its new system on ____________.

A) addressing analytical CRM system issues
B) customer acquisition through a better website
C) data consolidation (360-degree view)
D) supplier relations to get cheaper prices

Question 32

Customer-touching CRM applications are also called ________ CRM applications.

A) analytical
B) collaborative
C) electronic
D) traditional

Question 33

_________ CRM systems have source code that is available to developers and users.

A) Mobile
B) On-demand
C) Open-source
D) Real-time
E) Social

Question 34

__________ is a centralized office set up to receive and transmit a large volume of requests by telephone.

A) A call center
B) A contact management system
C) Inbound teleservice
D) Outbound telesales

Question 35

Every Microsoft Windows user had a copy of Internet Explorer when they got a new computer in the 1990s. This is an example of _________.

A) Bundling
B) Cross-selling
C) Targeting
D) Upselling

Question 36

You are having problems connecting your computer to your college's network, so you call the IT help desk. This is a customer-______________ CRM application.

A) Directing
B) Facing
C) Interacting
D) Touching

Question 37

If customers can communicate directly with the company to initiate a sales order, inquire about products and services before placing an order, and obtain information about a transaction they have already made, it is called _________.

A) a configurator
B) a contact management system
C) inbound teleservice
D) outbound telesales

Question 38

__________ CRM systems are also known as SaaS.

A) Mobile
B) On-demand
C) Open-source
D) Real-time
E) Social

Question 39

A(n) ___________ CRM system is one that is hosted by an external vendor in the vendor's data center.

A) Mobile
B) On-demand
C) Open-source
D) Real-time
E) Social

Question 40

___________ enable customers to model the product to meet their specific needs.

A) A contact management system
B) A sales lead tracking system
C) Configurators
D) Inbound teleservice

Question 41

The fundamental concept of CRM is to do a better job grouping customers so their value to the company can be maximized.

Question 42

CRM is not a process or a technology per se; rather, it is a customer-centric way of thinking and acting.

Question 43

CRM systems help make the customer relationship more personal.

Question 44

The Morton's Steakhouse case is an example of using _______ CRM systems.

A) Mobile
B) On-demand
C) Open-source
D) Social

Question 45

Eli Lilly and Company's new CRM system implementation was a(n) ________ product.

A) Mobile
B) Open-source
C) Real-time
D) Social

Question 46

The purpose of loyalty programs is to reward past behavior.

Question 47

Influencing the ____________ is the key to success for pharmaceutical sales representatives.

A) Customer
B) Pharmacist
C) Physician
D) Supplier

Question 48

Priceline has always been so successful because they were the first to possess a 360 degree view of the customer from their inception.

Question 49

Persuasion implies manipulations with the intent to fool or control people into doing something, believing something, or buying something that either harms them or provides no benefit to them. Technology can be used to both persuade and manipulate.

Question 50

___________ is NOT a benefit of Redglaze Group's SugarCRM system.

A) Company image
B) Customized modules
C) Staff empowerment
D) System security

Question 51

In contrast with customer-touching applications, customers who utilize customer-facing applications interact directly with the applications themselves.

Question 52

____________ is NOT a benefit of Eli Lilly's implementation of Veeva.

A) A larger customer base
B) Improved efficiency
C) Lower IT support costs
D) Shorter training times

Question 53

Redglaze Group companies focused its new system on ____________.

A) addressing analytical CRM system issues
B) customer acquisition through a better website
C) integrating core functions (360-degree view)
D) supplier relations to get cheaper prices

Question 54

The SugarCRM product implemented by Redglaze Group is a(n) ________ CRM system.

A) Mobile
B) On-demand
C) Open-source
D) Real-time
E) Social

Question 55

Cross-selling and bundling are synonyms.

Question 56

Operational CRM systems support back-office business processes.

Question 57

CRM is essential for both small and large organizations.

Question 58

Morton's Steakhouse used __________ as a social CRM system.

A) Facebook
B) LinkedIn
C) Pinterest
D) Twitter

Question 59

One of the biggest challenges facing companies that use LBS apps is relevancy.

Question 60

The Internet and the World Wide Web make the customer relationship more personal.

Question 61

The Morton's Steakhouse case is an example of how a company can have its reputation damaged if it ignores customer complaints online.

Question 62

Why would a company want to engage in data consolidation for customer information? What technology helps a company achieve this?

Question 63

______________________ CRM systems provide business intelligence by analyzing customer behavior and perceptions.

Question 64

The numerous and diverse interactions organizations have with their customers are called _______________________________________.

Question 65

Think of a loyalty program you or someone you know utilizes. How does this program benefit you or that person? How does the loyalty program benefit the company? Which of Porter's Five Forces do loyalty programs impact and how?

Question 66

______________________ CRM systems are also known as SaaS.

Question 67

Provide an example of a persuasive technology. What ethical issues are associated with this type of persuasive technology?

Question 68

The pharmaceutical industry has customer management needs that are more complex than those of other industries, so CRM strategies need to be heavily technology-supported.

Question 69

The Redglaze Group case illustrates the importance of a 360 degree view of the customer when using a CRM system.

Question 70

______________ is a form of cross-selling in which a business sells a group of products or services together at a lower price than their combined individual prices.

Question 71

List and describe the five "other types" of CRM systems (you should NOT include operational or analytical CRM systems in your answer). Why would a large company want to use each of these systems? Why would a small company want to use each of these systems?

Question 72

_______________________ CRM systems provide effective and efficient interactive communication with the customer throughout the entire organization.

Question 73

In customer-________________ CRM applications, an organization's sales, field service, and customer interaction center representatives interact directly with customers.

Question 74

The Redglaze Group case illustrates how a CRM system benefits from an ERP implementation.