Question 1

When Target had a data breach that resulted in the loss of the personal information of 40 million customers, it ________.
A) postponed a campaign focused on Target's corporate citizenship
B) refunded purchases to customers made during a two-week period
C) sent all customers a gift card to Target stores
D) hid the information from its customers
E) fired the employee who caused the data breach.

Accepted Answer

Target postponed a campaign focused on its corporate citizenship in response to the data breach to focus on addressing the breach and its repercussions. This move was part of their crisis management strategy.

Question 2

What is one of the four elements of the process cycle for customer relationship management?
A) customer interaction
B) customer loyalty
C) customer satisfaction
D) customer support
E) customer profitability

Accepted Answer

Customer interaction is one of the four elements of the process cycle for customer relationship management. The process cycle includes customer interaction, customer satisfaction, customer support, and customer profitability. Customer interaction involves all the touchpoints between the company and the customer, including marketing, sales, and customer service interactions.

Question 3

In the CRM process cycle, ________ is the process of analyzing the customer information acquired through various customer touchpoints.
A) analysis and refinement
B) supplier interface
C) customer interaction
D) marketing planning
E) knowledge discovery

Accepted Answer

Knowledge discovery is the process of analyzing customer information acquired through various customer touchpoints in the CRM process cycle.

Question 4

Customer satisfaction is defined as ________.
A) the degree to which an individual will resist switching from one offering to another
B) the level at which the offering meets or exceeds a customer's expectations
C) retaining satisfied and loyal profitable customers and channels
D) increasing the likelihood that a customer becomes a buzz marketer
E) the number of purchases in a defined period of time

Accepted Answer

Customer satisfaction refers to the level at which the offering meets or exceeds a customer's expectations. While retaining satisfied and loyal customers and increasing the likelihood of buzz marketing are important aspects of customer satisfaction, the core definition is the level of satisfaction with the offering itself. Resistance to switching and number of purchases are related to customer loyalty but do not necessarily define customer satisfaction.

Question 5

The Juice and Java company uses information from customers who write on its Twitter feed about its products. This is an example of a(n) ________ touchpoint.
A) interactive
B) direct interface
C) noninteractive
D) personal
E) nonpersonal

Accepted Answer

The answer of The Juice and Java company uses information...

Question 6

Redefining the selling role within the firm to focus on customer business consultation and solutions is one way that CRM ________.
A) increases profits for the firm
B) keeps its costs down
C) increases the formalization of customer analysis processes
D) maintains customer loyalty
E) facilitates a customer-centric culture

Accepted Answer

CRM facilitates a customer-centric culture by redefining the selling role to focus on customer business consultation and solutions, aligning with the goal of understanding and meeting customer needs.

Question 7

The expectation is that ROMI and other metrics of marketing performance will begin to decrease in use, as firms attempt to better quantify marketing's contribution to various dimensions of organizational success.

Accepted Answer

ROMI (Return on Marketing Investment) and other metrics of marketing performance are expected to increase in use as firms continue to seek more accurate and comprehensive ways to quantify marketing's contribution to various dimensions of organizational success. These metrics are crucial for understanding the effectiveness of marketing strategies and making informed decisions.

Question 8

Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?
A) customer retention
B) customer service
C) customer acquisition
D) customer profitability
E) customer loyalty

Accepted Answer

Customer profitability aims to increase individual customer margins by offering the right products at the right time. This objective focuses on identifying and targeting those customers who are most profitable for the company, and on developing and maintaining long-term relationships with them.

Question 9

When Lucifer joined his company as CEO, he instituted an organization-wide focus on understanding the requirements of customers, making sure that everyone in the organization understood the customer marketplace. Lucifer was practicing ________.
A) a customer orientation
B) an organizational reorganization
C) a product reflow
D) a human resources policy
E) a culture modification

Accepted Answer

Lucifer's focus on understanding the requirements of customers and ensuring that everyone in the organization understands the customer marketplace demonstrates a customer orientation. This means that the organization focuses on meeting the needs and wants of its customers in order to achieve its goals.

Question 10

The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
A) analysis and refinement
B) supplier interface
C) marketing planning
D) knowledge discovery
E) customer interaction

Accepted Answer

The analysis and refinement phase is where the organization evaluates the effectiveness of their implemented strategies and programs, and makes adjustments based on customer response. This is where organizational learning takes place as they discover what works and what doesn't in terms of customer satisfaction and engagement.

Question 11

Customer relationship management (CRM) is considered critical largely because of ________.
A) internal pressure by employees
B) external pressure by suppliers and vendors
C) competitive pressures in the marketplace
D) increasing demand by customers
E) revised government regulations

Accepted Answer

CRM is critical due to competitive pressures in the marketplace, as businesses strive to maintain and enhance customer relationships to gain a competitive edge.

Question 12

One potential pitfall of using a dashboard approach to marketing metrics is not insuring that senior management believe in and understand the dashboard.

Accepted Answer

If senior management does not believe in or understand the metrics presented on the dashboard, they may not make informed decisions or take action based on the data. It is important to communicate the value and relevance of the metrics to ensure buy-in and effective use of the dashboard.

Question 13

Ichiro is a marketing manager at a consumer products company. Ichiro's company has started selling consumer information to other sources without informing its customers that it is doing so. This is referred to as the ________ of CRM.
A) added benefit
B) dark side
C) unintended consequence
D) evolution
E) legal loophole

Accepted Answer

The dark side of CRM refers to the unethical or illegal practices that companies can engage in when collecting, managing, and using customer data. Selling consumer information without informing customers is a violation of their privacy rights and an example of the dark side of CRM.

Question 14

Which phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?
A) analysis and refinement
B) supplier interface
C) customer interaction
D) knowledge discovery
E) marketing planning

Accepted Answer

The customer interaction phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs. This is when the organization directly interacts with customers through various channels to establish and maintain relationships.

Question 15

To maximize the use of touchpoints, a firm needs to do all of the following EXCEPT________.
A) identify all potential touchpoints
B) inform customers that you will be using their information
C) develop objectives for what to collect at each touchpoint
D) determine how information will be collected
E) develop policies on how the information will be accessed and used

Accepted Answer

Informing customers that their information will be used is not necessary for maximizing the use of touchpoints. However, identifying potential touchpoints, developing objectives for what to collect, determining how information will be collected, and developing policies on how the information will be accessed and used are all essential for maximizing the use of touchpoints.

Question 16

What is one of the three major objectives of customer relationship management?
A) customer satisfaction
B) customer service
C) customer loyalty
D) customer engagement
E) customer acquisition

Accepted Answer

The answer of What is one of the three major...

Question 17

________ means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture.
A) Reliability
B) Formalization
C) Trust
D) Interactivity
E) Accommodation

Accepted Answer

Formalization refers to the extent to which rules, procedures, and instructions govern behavior within an organization. When structure, processes, tools, managerial knowledge, and commitment are formally established in support of the culture, it means that the organization has a high degree of formalization. This helps to ensure consistency, standardization, and efficiency in operations.

Question 18

Customer loyalty is defined as ________.
A) retention of satisfied and loyal profitable customers and channels
B) the degree to which an individual will resist switching from one offering to another
C) the total number of customers who purchase a product
D) increased individual customer margins, while offering the right products at the right time
E) the likelihood that a customer becomes a buzz marketer

Accepted Answer

Customer loyalty is the degree to which an individual will resist switching from one offering to another. It is not about the number of customers, individual margins, or buzz marketing, although those factors can contribute to customer loyalty. Customer loyalty is about retaining satisfied and loyal profitable customers and channels.

Question 19

Return on marketing investment (ROMI) looks at marketing as an investment, not an expense.

Accepted Answer

The answer of Return on marketing investment (ROMI) looks at...

Question 20

Customer touch points and data mining are related to which element of the process cycle for customer relationship management?
A) analysis and refinement
B) supplier interface
C) customer interaction
D) knowledge discovery
E) marketing planning

Accepted Answer

Knowledge discovery involves extracting valuable information from customer data, which is essential for understanding customer needs and preferences.

Quiz 5: CRM, Big Data, and Marketing Analytics

When Target had a data breach that resulted in the loss of the personal information of 40 million customers, it ________.

What is one of the four elements of the process cycle for customer relationship management?

In the CRM process cycle, ________ is the process of analyzing the customer information acquired through various customer touchpoints.

Customer satisfaction is defined as ________.

The Juice and Java company uses information from customers who write on its Twitter feed about its products. This is an example of a(n) ________ touchpoint.

Redefining the selling role within the firm to focus on customer business consultation and solutions is one way that CRM ________.

The expectation is that ROMI and other metrics of marketing performance will begin to decrease in use, as firms attempt to better quantify marketing's contribution to various dimensions of organizational success.

Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?

When Lucifer joined his company as CEO, he instituted an organization-wide focus on understanding the requirements of customers, making sure that everyone in the organization understood the customer marketplace. Lucifer was practicing ________.

The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.

Customer relationship management (CRM) is considered critical largely because of ________.

One potential pitfall of using a dashboard approach to marketing metrics is not insuring that senior management believe in and understand the dashboard.

Ichiro is a marketing manager at a consumer products company. Ichiro's company has started selling consumer information to other sources without informing its customers that it is doing so. This is referred to as the ________ of CRM.

Which phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?

To maximize the use of touchpoints, a firm needs to do all of the following EXCEPT________.

What is one of the three major objectives of customer relationship management?

________ means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture.

Customer loyalty is defined as ________.

Return on marketing investment (ROMI) looks at marketing as an investment, not an expense.

Customer touch points and data mining are related to which element of the process cycle for customer relationship management?