Question 1

What is one of the major forces driving the movement toward relationship marketing?

Accepted Answer

The realization that retaining customers is far more profitable than constantly acquiring new ones is a key driver of relationship marketing. This approach focuses on building long-term relationships with customers to enhance loyalty and repeat business, which is generally more cost-effective than the continuous pursuit of new customers.

Question 2

Which of the following is an example of a typical third-level relationship marketing program?

Accepted Answer

The answer of Which of the following is an example...

Question 3

Why do customers prefer to have continuing relationships with businesses or suppliers?

Accepted Answer

Customers prefer continuing relationships with businesses or suppliers because it simplifies the decision-making process by reducing the number of choices they need to consider, leading to convenience and often better service due to established trust and understanding.

Question 4

What is often the cause of failure with customer relationship management (CRM)?

Accepted Answer

The failure of CRM systems is often due to the organization's inability to effectively organize its people and processes around the CRM strategy, rather than the technology itself. This includes challenges in aligning organizational culture, managing change, and ensuring that all employees are engaged and trained to use the CRM system effectively.

Question 5

What do customer relationship management programs require to be successful?

Accepted Answer

Investment in training is crucial for CRM programs to be successful as it ensures that employees are well-equipped to use the system effectively and maximize its benefits.

Question 6

The Best Buy Rewards Program tracks customer sales and periodically issues coupons to customers based on prior purchases. What kind of marketing is this program classified as?

Accepted Answer

The Best Buy Rewards Program is classified as frequency marketing because it rewards customers based on the frequency and amount of their purchases, encouraging repeat business.

Question 7

What is the term for the process of trying to rejuvenate lost relationships with customers?

Accepted Answer

Customer winbacks refer to the strategies and efforts a company employs to re-engage and regain customers who have lapsed or chosen to leave for a competitor.

Question 8

Who assists marketers by providing software when it is needed to capture, manipulate, and analyze consumer data?

Accepted Answer

Application service providers (ASPs) offer software and services over the internet, allowing marketers to use software applications for capturing, manipulating, and analyzing consumer data without having to install or maintain the software on their own computers.

Question 9

What do databases have the capacity to do when used properly?

Accepted Answer

Databases, when used properly, can analyze customer data to identify which customers are most profitable for a firm. This helps businesses focus their marketing and customer service efforts more effectively.

Question 10

Why do customers prefer to have continuing relationships with businesses or suppliers?

Accepted Answer

Continuing relationships with businesses reduce the number of choices a customer has to make, simplifying the decision-making process and often leading to greater satisfaction and loyalty.

Question 11

What is the first step in measuring customer satisfaction?

Accepted Answer

The first step in measuring customer satisfaction involves understanding what customers need, want, and expect. This foundational knowledge is crucial for developing products, services, and experiences that meet or exceed customer expectations, thereby ensuring satisfaction.

Question 12

Which of the following implies the highest form of buyer-seller interactions?

Accepted Answer

The answer of Which of the following implies the highest...

Question 13

What is a proactive method a firm might use to assess customer satisfaction?

Accepted Answer

Using surveys to directly ask customers about their satisfaction is a proactive approach to gather feedback and assess customer satisfaction.

Question 14

What makes customer relationship management possible?

Accepted Answer

Technological advances enable strategic integration of customer data, communication, and management systems, making effective customer relationship management (CRM) possible.

Question 15

What type of marketing program enables satisfied customers to get the word out about products to other consumers?

Accepted Answer

The answer of What type of marketing program enables satisfied...

Question 16

What is customer relationship management?

Accepted Answer

Customer Relationship Management (CRM) is focused on re-orienting a business towards a strong emphasis on customer satisfaction. It involves strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention, and driving sales growth.

Question 17

What type of marketing effort is sponsored by an organization that solicits responses from individuals who share common interests and activities?

Accepted Answer

Affinity marketing is a strategy designed by organizations to target individuals who share common interests and activities, aiming to build a community or target market based on shared affinities or connections.

Question 18

What is a major drawback associated with customer relationship management systems?

Accepted Answer

CRM systems require a well-thought-out strategy and commitment from the entire organization to be effective, which can be challenging to implement.

Question 19

Which of the following is an example of affinity marketing?

Accepted Answer

Affinity marketing refers to a partnership between a company and an organization (such as a university) to offer a product or service branded with the organization's brand to its members or supporters, often providing a benefit back to the organization. The University of Manitoba's branded credit card is an example of this, as it is likely co-branded with a financial institution and marketed to alumni and supporters of the university, potentially offering a portion of the proceeds back to the university or benefits to the cardholders.

Question 20

What type of marketing is the information-based approach that collects and analyzes data for specific information about markets and consumers?

Accepted Answer

Database marketing is the approach that focuses on collecting and analyzing data about markets and consumers to inform marketing strategies and decisions.

Quiz 17: Relationship Marketing and Customer Relationship Management CRM

What is one of the major forces driving the movement toward relationship marketing?

Which of the following is an example of a typical third-level relationship marketing program?

Why do customers prefer to have continuing relationships with businesses or suppliers?

What is often the cause of failure with customer relationship management (CRM) ?

What do customer relationship management programs require to be successful?

The Best Buy Rewards Program tracks customer sales and periodically issues coupons to customers based on prior purchases. What kind of marketing is this program classified as?

What is the term for the process of trying to rejuvenate lost relationships with customers?

Who assists marketers by providing software when it is needed to capture, manipulate, and analyze consumer data?

What do databases have the capacity to do when used properly?

Why do customers prefer to have continuing relationships with businesses or suppliers?

What is the first step in measuring customer satisfaction?

Which of the following implies the highest form of buyer-seller interactions?

What is a proactive method a firm might use to assess customer satisfaction?

What makes customer relationship management possible?

What type of marketing program enables satisfied customers to get the word out about products to other consumers?

What is customer relationship management?

What type of marketing effort is sponsored by an organization that solicits responses from individuals who share common interests and activities?

What is a major drawback associated with customer relationship management systems?

Which of the following is an example of affinity marketing?

What type of marketing is the information-based approach that collects and analyzes data for specific information about markets and consumers?