Question 1

Advocacy is a new stage in the consumer decision making process.

Accepted Answer

Advocacy is the post-purchase stage in the consumer decision making process where the customer expresses satisfaction or dissatisfaction with the product or service and shares their experiences with others, leading to word-of-mouth marketing.

Question 2

Social media is an online mass collaboration environment.

Accepted Answer

Social media platforms provide users with the ability to collaborate online and share content with a large audience. Users can interact with each other, create and join groups, and share information on various topics. This mass collaboration leads to the creation of communities and networks that bring people from different parts of the world together.

Question 3

Companies that engage customers via social media are, in effect, practicing social CRM.

Accepted Answer

Social CRM refers to customer relationship management strategies that involve the use of social media platforms to interact with customers, gather feedback and engage with them on a more personal level. Companies that engage customers via social media are, therefore, practicing social CRM.

Question 4

According to Gartner, the starting point for most social media initiatives is in the IT department.

Accepted Answer

According to Gartner, the starting point for most social media initiatives should be the business units, not the IT department.

Question 5

Because of the many negative consumer comments that are generated on company social media sites, most companies have decided to eliminate their own social media sites.

Accepted Answer

While negative comments are a common issue on company social media sites, most companies still maintain and actively use their own social media presence to engage with customers and promote their brand.

Question 6

Social networking sites, for the most part, maintain privacy regarding member profiles.

Accepted Answer

While social networking sites may offer privacy settings, many member profiles are public or can easily be accessed by others, either intentionally or unintentionally. It is important for users to be mindful of the information they share on these sites and adjust their privacy settings accordingly.

Question 7

Social networks work well in B2C markets but not as well in B2B markets.

Accepted Answer

While social networks may have a stronger impact on B2C markets, social media can still be effective in B2B marketing. It depends on the industry and target audience, as well as the specific social media platform and strategy used. B2B companies can use social media to build brand awareness, engage with potential customers, share industry news and insights, and even generate leads. However, B2B social media marketing may require a different approach and focus compared to B2C marketing.

Question 8

Operational CRM includes predictive analytics and segmentation applications.

Accepted Answer

Operational CRM focuses on automating and improving customer-facing and back-office processes, while predictive analytics and segmentation are typically part of analytical CRM.

Question 9

Social media marketing works well in theory but to this point it has been found that conversations focus on social concerns and not brand and product information.

Accepted Answer

Social media marketing has been effective for many brands in promoting their products and engaging with customers directly. Conversations on social media platforms can indeed focus on social concerns, but they also significantly involve brand and product information, allowing companies to leverage these platforms for marketing purposes.

Question 10

Social trust is the most important factor determining social capital.

Accepted Answer

Social trust is the foundation of social capital. Without trust, people cannot rely on each other, and collaboration and cooperation become difficult. Therefore, social trust is the most crucial factor determining social capital.

Question 11

A higher percentage of the U.S. population uses social networking than the Chinese population.

Accepted Answer

According to the World Bank, as of 2019, 69% of the U.S. population uses social networking, while only 54% of the Chinese population does.

Question 12

The leading social networking site in China, as in the U.S., is Facebook.

Accepted Answer

The leading social networking site in China is actually WeChat, which has over 1 billion monthly active users. Facebook is banned in China.

Question 13

While some older people use social networking in the U.S, the average age of social networking site users in the U.S. is 23 years old.

Accepted Answer

According to a survey conducted by Pew Research Center in 2018, the average age of social networking site users in the U.S. is 40 years old.

Question 14

BBS stands for Bulletin Board System.

Accepted Answer

BBS stands for Bulletin Board System.

Question 15

Chinese consumers are much heavier users of social media to make purchase decisions regarding brands, products and services than are those in the U.S.

Accepted Answer

According to a report by KPMG, 95% of Chinese consumers use social media to make purchase decisions compared to 58% of U.S. consumers.

Question 16

CRM usage in Asia, particularly China and Japan, is higher than in the U.S.

Accepted Answer

The U.S. has historically led in CRM usage due to its early adoption of CRM technologies and the presence of major CRM software companies, making it more prevalent in the U.S. compared to Asia, including China and Japan.

Question 17

The reason CRM has penetrated companies to such a degree in China is their infrastructure of data-bases and call centers.

Accepted Answer

CRM's penetration in companies, including those in China, is primarily due to its ability to enhance customer relationships, improve customer loyalty, and drive sales growth, rather than just the infrastructure of databases and call centers.

Question 18

Social networks cannot be considered as new channels within the CRM network.

Accepted Answer

Social networks can be considered as new channels within the CRM network as they offer new ways to interact with customers and gather information about their needs and preferences. Companies can use social media platforms to engage with customers, respond to their queries and complaints, and provide them with relevant information and offers. They can also track customer behavior and sentiment on social media to gain insights into their preferences and opinions, which can help them to improve their products and services. Therefore, social networks are an important part of the modern CRM ecosystem.

Question 19

Walmart was one of the first to develop a Facebook profile that was embraced by students.

Accepted Answer

Walmart's initial foray into social media, particularly with Facebook, was met with mixed reactions and not specifically targeted or embraced by students as a pioneering effort.

Question 20

Dave Carroll's United Airline's YouTube videos have proven to be highly successful for United, having been seen over 10 million times.

Accepted Answer

Dave Carroll's United Airline's YouTube videos were actually highly damaging to United's reputation, resulting in a significant loss of revenue and negative publicity. The videos were seen over 17 million times, but they did not bring success to United.

Quiz 13: Social Networking and CRM

Advocacy is a new stage in the consumer decision making process.

Social media is an online mass collaboration environment.

Companies that engage customers via social media are, in effect, practicing social CRM.

According to Gartner, the starting point for most social media initiatives is in the IT department.

Because of the many negative consumer comments that are generated on company social media sites, most companies have decided to eliminate their own social media sites.

Social networking sites, for the most part, maintain privacy regarding member profiles.

Social networks work well in B2C markets but not as well in B2B markets.

Operational CRM includes predictive analytics and segmentation applications.

Social media marketing works well in theory but to this point it has been found that conversations focus on social concerns and not brand and product information.

Social trust is the most important factor determining social capital.

A higher percentage of the U.S. population uses social networking than the Chinese population.

The leading social networking site in China, as in the U.S., is Facebook.

While some older people use social networking in the U.S, the average age of social networking site users in the U.S. is 23 years old.

BBS stands for Bulletin Board System.

Chinese consumers are much heavier users of social media to make purchase decisions regarding brands, products and services than are those in the U.S.

CRM usage in Asia, particularly China and Japan, is higher than in the U.S.

The reason CRM has penetrated companies to such a degree in China is their infrastructure of data-bases and call centers.

Social networks cannot be considered as new channels within the CRM network.

Walmart was one of the first to develop a Facebook profile that was embraced by students.

Dave Carroll's United Airline's YouTube videos have proven to be highly successful for United, having been seen over 10 million times.