Question 1

Customer segmentation attempts to?
A) Satisfy profitable customers
B) Reduce costs of serving low-profit customers
C) Both satisfy profitable customers and reduce costs of serving low-profit customers
D) Neither satisfy profitable customers nor reduce costs of servicing low-profit customers

Accepted Answer

Customer segmentation aims to both satisfy profitable customers by giving them personalized attention and reduce costs of serving low-profit customers by directing them to less costly channels or self-service tools.

Question 2

Transaction elements of customer service occur during what time frame?
A) Prior to the sale of goods and services
B) During the order cycle
C) After the product or service has been sold
D) Before the product or service is designed

Accepted Answer

Transaction elements of customer service occur during the order cycle, which includes the process of placing and fulfilling an order for goods or services. The other options (A, C, and D) refer to other stages in the customer journey, but not specifically to the transactional process.

Question 3

Which of the following is not a pre-transaction element of customer service?
A) Customer service authority
B) Customer service policies
C) Information system development
D) Order entry

Accepted Answer

Order entry is a transaction element of customer service, as it involves processing the customer's order, whereas the other options are related to setting up systems and policies before transactions occur.

Question 4

The CRM applications market is (in recent years)?
A) Not growing
B) Growing
C) Neither growing nor not growing
D) Impossible to determine growth rate of CRM applications market

Accepted Answer

The article states that the CRM applications market is "expected to grow significantly in the coming years" due to factors such as the increasing adoption of cloud-based solutions and the growing demand for personalized customer experiences. Therefore, the best choice is B, indicating that the market is growing.

Question 5

Niche segmentation of customers involves segmenting customers based on all of the following except?
A) Customers with similar social media presence
B) Customers with similar needs
C) Customers with similar buying attitudes
D) Customers with similar buying habits

Accepted Answer

Niche segmentation of customers involves segmenting customers based on their needs, buying attitudes, and buying habits. Social media presence is not a typical factor considered in niche segmentation.

Question 6

All of the following are examples of customer service failures except?
A) Stockouts
B) Product failure
C) Failure to adhere to customer service policies
D) Late deliveries

Accepted Answer

Product failure is not a customer service failure; it is a product-related issue. Customer service failures typically involve issues in the service provided to the customer, such as stockouts, policy adherence, or delivery problems.

Question 7

The book CRM Unplugged: Releasing CRM's Strategic Value details three questions that companies should answer prior to implementing a customer service improvement initiative. Which of the following questions is not one of the three?
A) What is the expected effect on the firm's profitability?
B) What is the value being added and for which customers?
C) At what cost to existing customer goodwill is this improvement being made?
D) Does it strengthen or dilute the firm's competitive strategy?

Accepted Answer

The book does not include the question about the cost to existing customer goodwill as one of the three key questions.

Question 8

"A person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer" refers to a?
A) Preferred customer
B) Profitable customer
C) Positive customer
D) Perfect customer

Accepted Answer

The description is referring to a profitable customer, who generates more revenue than the cost of attracting, selling, and servicing them over time. The other choices do not accurately reflect this definition.

Question 9

CRM refers to which concept?
A) Customer returns management
B) Customer relationship management
C) Customer refurbishment management
D) Customer retention management

Accepted Answer

CRM stands for customer relationship management, which is a strategy used by businesses to manage interactions with customers and improve customer satisfaction and loyalty. It involves using technology and data analysis to gain insights into customer behavior and preferences, in order to personalize communication and tailor services to meet their needs.

Question 10

A company collecting demographic information about its customers would most likely try to capture which of the following kinds of information?
A) Previous customer responses to advertisements
B) History of customer sales calls
C) Customer age
D) Customer purchase history

Accepted Answer

Demographic information typically includes data such as age, gender, income level, education, and other personal characteristics.

Question 11

Grouping customers within a firm's customer database is referred to as?
A) Customer segmentation
B) Customer discrimination
C) Customer loyalty determination
D) Customer partitioning

Accepted Answer

Customer segmentation is the process of dividing a company's customers into groups based on common characteristics such as demographics, behavior or preferences.

Question 12

An airline that divides its customers into VIP, Preferred, and Regular customer sets is practicing what principle?
A) Customer prioritization
B) Customer displacement
C) Customer segmentation
D) Customer clustering

Accepted Answer

The airline is practicing customer segmentation by dividing its customers into different groups based on their level of importance or frequency of travel. This allows the airline to tailor its services and marketing efforts to each group, ultimately improving customer satisfaction and maximizing profits.

Question 13

Information collected about customers may include all of the following except?
A) Customer transactions
B) Customer contacts
C) Demographic information
D) Customer health information

Accepted Answer

Collecting and storing customer health information is a violation of privacy laws and is not relevant to most businesses. Therefore, customer health information should not be collected along with other commonly collected information such as customer transactions, customer contacts, and demographic information.

Question 14

Customer service policies will likely consider all of the following except?
A) Guarantees
B) Warranties
C) Performance standards
D) Pricing

Accepted Answer

Customer service policies may consider guarantees, warranties, and performance standards, but pricing is typically not a part of customer service policies. Pricing is typically determined by the company's pricing strategies and is not specifically related to customer service.

Question 15

Customer transactions information will likely include which of the following?
A) Sales calls and service requests
B) Customer age and education level
C) Purchase and return histories
D) Customer responses to promotions

Accepted Answer

Customer transactions information typically includes purchase and return histories, which are important for analyzing customer behavior and for tracking sales performance. Sales calls and service requests are more relevant to customer service operations, and customer age and education level are demographic data that may or may not be useful depending on the context. Customer responses to promotions are important for analyzing promotional effectiveness, but they are not strictly transactional data.

Question 16

"Customer service authority" most closely refers to?
A) Determining which aspects of customer service a customer may access
B) Determining how a customer may interact with customer service
C) Determining how customer service decision-making authority is allocated within the firm
D) Determining who within the organization may make contact with the customer

Accepted Answer

"Customer service authority" typically refers to the delegation of decision-making power and responsibilities within the organization as it relates to customer service. This includes determining who has the authority to make decisions on behalf of the company when it comes to handling customer issues or complaints.

Question 17

All of the following are customer service elements except?
A) Extra-transaction elements
B) Pre-transaction elements
C) Transaction elements
D) Post-transaction elements

Accepted Answer

Extra-transaction elements are not considered part of customer service. The other options (pre-, transaction, and post-transaction elements) all refer to parts of the customer service experience.

Question 18

The order cycle refers to?
A) Time from product or service design to delivery to customer
B) Time from product shipment to receipt by customer
C) Time from product or service design initiation to availability for customer purchase
D) Time from customer order initiation to product or service delivery to customer

Accepted Answer

The order cycle refers to the time from when the customer initiates an order to when the product or service is delivered to the customer.

Question 19

The creation and management of customer relationships should lead to all of the following except?
A) Enhanced customer experience
B) Enhanced customer loyalty
C) Increased sales
D) Increased product returns

Accepted Answer

The creation and management of customer relationships should not lead to increased product returns. Instead, it should aim to minimize returns by providing customers with exceptional customer experience, building strong loyalty, and increasing sales.

Question 20

"Managing the relationships among people within an organization and between customers and the company's customer service representatives in order to improve the bottom line" is the definition of which concept?
A) The customer relationship process
B) Customer satisfaction optimization
C) Customer relationship management
D) The customer retention process

Accepted Answer

The answer of "Managing the relationships among people within an...

Quiz 5: Customer Relationships and Customer Service

Customer segmentation attempts to?

Transaction elements of customer service occur during what time frame?

Which of the following is not a pre-transaction element of customer service?

The CRM applications market is (in recent years) ?

Niche segmentation of customers involves segmenting customers based on all of the following except?

All of the following are examples of customer service failures except?

The book CRM Unplugged: Releasing CRM's Strategic Value details three questions that companies should answer prior to implementing a customer service improvement initiative. Which of the following questions is not one of the three?

"A person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer" refers to a?

CRM refers to which concept?

A company collecting demographic information about its customers would most likely try to capture which of the following kinds of information?

Grouping customers within a firm's customer database is referred to as?

An airline that divides its customers into VIP, Preferred, and Regular customer sets is practicing what principle?

Information collected about customers may include all of the following except?

Customer service policies will likely consider all of the following except?

Customer transactions information will likely include which of the following?

"Customer service authority" most closely refers to?

All of the following are customer service elements except?

The order cycle refers to?

The creation and management of customer relationships should lead to all of the following except?

"Managing the relationships among people within an organization and between customers and the company's customer service representatives in order to improve the bottom line" is the definition of which concept?