Question 1

A Lexus rides smoother, goes faster, and lasts longer. Yet both a Lexus and a Hyundai deliver the same ______ if all the units deliver their respective promised quality.

Accepted Answer

The term “conformance quality” refers to the extent to which the product or service conforms to the specified design, standards, and customer expectations. Therefore, if both the Lexus and Hyundai deliver their promised quality, they would have the same conformance quality, regardless of their differences in other aspects such as performance and durability.

Question 2

An organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for such marketing purposes as lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships is called

Accepted Answer

A customer database is an organized collection of comprehensive information about individual customers or prospects that is current, accessible, and actionable for marketing purposes. It includes data such as customer contact information, purchase history, preferences, and behavior. This information can be used for lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships. The other options (A, B, C, and E) are not as specific or accurate in describing the concept of a customer database.

Question 3

Susan Belcourt's company advertises widely. In each magazine ad, a business reply card is attached. Ms. Belcourt uses these cards to build her company's database. In which of the following ways would Ms. Belcourt most likely be using the newly constructed database?

Accepted Answer

Ms. Belcourt would most likely use the newly constructed database to identify prospects. By collecting information about individuals who respond to the business reply cards, she can identify potential customers who are interested in her products or services and market to them more effectively.

Question 4

Through ________, marketing statisticians can extract useful information about individuals, trends, and segments from the mass of data.

Accepted Answer

Datamining is the process of analyzing and extracting useful information from large sets of data. It allows marketing statisticians to identify patterns, trends, and relationships in data that can be used to make informed decisions about marketing strategies and targeting specific segments of customers.

Question 5

Frequency marketing is an acknowledgment of the fact that 20 percent of a company's customers might account for ________ percent of its business.

Accepted Answer

According to the Pareto Principle, also known as the 80/20 rule, 20 percent of a company's customers typically account for 80 percent of its business. Therefore, the best choice is D (80 percent).

Question 6

James Everett is a telemarketer. He can use his company's ________ to respond to customer inquiries more effectively because of his ability to see a total picture of the customer relationship.

Accepted Answer

A data warehouse is a central repository of data from multiple sources that can be used to provide a comprehensive view of a customer's relationship with a company.

Question 7

In which of the following cases is building a database worthwhile for the company?

Accepted Answer

Building a database is worthwhile for a company when it has a long relationship with its customers. This is because the database can be used to track customer behavior, preferences, and purchase history over time, which can inform marketing and sales strategies and improve customer retention. In the other scenarios listed, such as where the product is a once-in-a-lifetime purchase, customers show little brand loyalty, or the unit sale is very small, building a database may not be as beneficial or cost-effective. In the case where the cost of gathering the information is high, the decision whether to build a database would depend on whether the potential benefits outweigh the costs.

Question 8

When companies provide rewards to customers who buy frequently and in substantial amounts, this is referred to as

Accepted Answer

The answer of When companies provide rewards to customers who...

Question 9

Which of the four key principles of Canada's Personal Information Protection and Electronic Documents Act ensures that firms only collect and use information appropriate to the transaction being undertaken?

Accepted Answer

The principle of limitations in Canada's Personal Information Protection and Electronic Documents Act ensures that firms only collect and use information appropriate to the transaction being undertaken. This means that organizations must limit the collection, use, and disclosure of personal information to only what is necessary to fulfill the stated purposes.

Question 10

A ________ is simply a set of names, addresses, and telephone numbers.

Accepted Answer

A customer mailing list is a list that includes names, addresses, and telephone numbers of customers. A customer database is a more comprehensive record of customer data, often including purchase history and other details. Call-waiting list, demographic list, and psychographic list have different purposes and are not related to a simple set of names, addresses, and telephone numbers.

Question 11

A ________ would contain such items as past volumes, prices, profits, buyer team names, status of current contacts, and an assessment of competitive strengths and weaknesses.

Accepted Answer

The items mentioned in the question are specific to a business database which tracks past volumes, prices, profits, buyer teams, and competition. Contact lists, general corporate databases, customer mailing lists, and customer databases may not contain all of this information.

Question 12

In general, companies can use their databases in five ways. Which way involves remembering customer preferences and sending appropriate gifts, coupons, and reading material?

Accepted Answer

The way that involves remembering customer preferences and sending appropriate gifts, coupons, and reading material is to deepen customer loyalty. This involves using the database to track individual customer behavior and preferences, and then using that information to personalize interactions and rewards.

Question 13

Nina Saab has just ordered a number of expensive executive gifts that he will be sending as an appreciation token to a select few customers from his client database. In which of the following ways is Ms. Saab most likely using his database?

Accepted Answer

Ms. Saab is using his database to deepen customer loyalty by sending executive gifts as a token of appreciation to a select few customers.

Question 14

________ involves the use of sophisticated statistical and mathematical techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking.

Accepted Answer

Datamining is the process of extracting useful information and patterns from large datasets using advanced techniques such as cluster analysis, automatic interaction detection, predictive modeling, and neural networking. It helps businesses identify trends, relationships, and hidden patterns in data to make more informed decisions. Data management and accumulation are important components of datamining, but they do not involve the sophisticated statistical and mathematical techniques mentioned. Target market analysis and data marketing are related to using data to understand and target specific customer segments, but they are not the same as datamining.

Question 15

Which of the following is considered to be one of the five problems that can deter a firm from using CRM (customer relationship marketing)?

Accepted Answer

Building and maintaining a customer database requires a large investment is considered to be one of the five problems that can deter a firm from using CRM. The other problems are not mentioned in the options.

Question 16

Which of the following represents the type of information typically found in a customer database?

Accepted Answer

The answer of Which of the following represents the type...

Question 17

________ is based on the premise that marketers can no longer use "interruption marketing" via mass media campaigns.

Accepted Answer

Permission marketing is based on the premise that marketers need to seek permission from potential customers before delivering their marketing messages. This approach recognizes that consumers are increasingly tuning out traditional, interruption-based marketing tactics carried out through mass media channels like TV, radio, and print ads. Permission marketing seeks to build trust and credibility with consumers by engaging them in interactive, two-way communications that are more relevant and targeted to their interests and needs. By obtaining the customer's consent and building a relationship with them, permission marketing aims to foster long-term loyalty and repeat business.

Question 18

Royal Caribbean uses its database to offer spur-of-the-moment cruise packages to fill all the berths on its ships. It focuses on retired people and single people because they are more able to make quick commitments. This is an example of opportunities presented by

Accepted Answer

This is an example of datamining, as Royal Caribbean is using its database to identify and target specific customer groups with targeted and timely offers.

Question 19

CRM tends to be used less often by ________, although some have built databases for certain brands.

Accepted Answer

Consumer packaged-goods companies tend to use CRM less often because they have a large customer base and their products are often sold through intermediaries rather than directly to consumers. However, some of these companies have built databases for certain brands.

Question 20

The process of building, maintaining, and using customer databases and other databases for the purpose of contacting, transacting, and building customer relationships is called

Accepted Answer

Database marketing involves using customer data to create targeted marketing efforts, build customer relationships, and ultimately increase sales. Datamining and data warehousing are related concepts but are more focused on the technical aspects of managing data, while custom marketing and electronic marketing do not specifically relate to the use of customer data.

Quiz 5: Creating Long term Loyalty Relationships