Question 1

A loyalty program is also commonly known as a(n) ________ program.

Accepted Answer

A loyalty program is designed to reward customers for their repeat business and encourage loyalty towards the brand or company. Therefore, the best choice would be "reward" program.

Question 2

Sally purchased Brand X lotion. In comparing her perception of how the lotion made her skin feel and look to her expectations for Brand X lotion, Sally was measuring her level of ________.

Accepted Answer

Sally's comparison of her expectation for the lotion and her perception of how the lotion made her skin feel and look is an example of customer satisfaction measurement.

Question 3

Which of the following accurately describes an aspect of CRM systems?

Accepted Answer

CRM systems often require a major investment in technology, as they rely on computer software and databases to track customer interactions and provide insights into consumer behavior. This can involve significant costs for software, hardware, and implementation.

Answer: A and B are both incorrect. CRM systems typically require significant security measures to protect customer data and other sensitive information. They also often require significant employee resources, both in terms of implementation and ongoing management.

Answer: D and E are both incorrect. CRM systems can help companies to reduce costs by streamlining and automating customer interactions, improving customer satisfaction and loyalty, and providing insights that can inform more effective marketing and sales strategies. And while CRM systems may offer more benefits to some industries or businesses than others, they can be valuable tools for retailers as well as other types of companies.

Question 4

A company is most likely to see increased customer loyalty by practicing which step of the CRM process?

Accepted Answer

The answer of A company is most likely to see...

Question 5

Which of the following is a benefit a company can gain through using a CRM system?

Accepted Answer

A CRM system can help a company identify dissatisfied customers before losing them to the competition by tracking customer interactions and identifying patterns of negative feedback or complaints.

Question 6

________ is the statistical analysis of large databases for the purpose of discovering hidden pieces of information.

Accepted Answer

Data mining is the statistical analysis of large databases for the purpose of discovering hidden pieces of information. Customer differentiation, customer identification, customization, and customer relationship management are all related concepts in marketing but do not specifically address statistical analysis of data.

Question 7

Aric purchased a digital camera at a significant discount. Though the camera did not have all of the features he had wanted, he was pleased with the reduced price. Aric thought the photos he took with the camera were of a high quality, but he was disappointed that the camera did not have a larger memory and that its batteries needed to be replaced so frequently. Aric is best described as a ________ customer.

Accepted Answer

Aric's mixed feelings about the camera—pleased with the price and photo quality but disappointed with the memory and battery life—suggest he might not be fully committed to the brand or product. This indicates he could be swayed or "switchable" to other brands or products that better meet his needs.

Question 8

Diana Dion is currently researching data sources from within her company to make marketing decisions. Diana is making use of ________ databases.

Accepted Answer

The question explicitly states that Diana is researching data sources from within her company, therefore she is making use of internal databases.

Question 9

In CRM, findings about customers discovered through ________ techniques often lead to marketing opportunities.

Accepted Answer

Data mining techniques involve analyzing large sets of customer data to identify patterns and insights that can be used for targeted marketing opportunities. Therefore, data mining is the most relevant technique for discovering customer insights that can lead to marketing opportunities in CRM.

Question 10

FedEx offers its customers fast and reliable package delivery. When FedEx customers weigh these benefits against the monetary cost of using FedEx along with any other costs of using the service, they are acting upon ________.

Accepted Answer

Customer perceived value refers to the customer's assessment of the total benefits they receive from a product or service, weighed against the total costs of acquiring and using it. In this scenario, customers are evaluating the benefits of fast and reliable package delivery against the monetary cost of using FedEx and any other associated costs, such as time or effort required to use the service.

Question 11

The functional benefit of a family car is to provide ________.

Accepted Answer

The main functional benefit of a family car is transportation, allowing families to move from one place to another conveniently, comfortably and safely. While safety is an important feature, it is typically considered a means to achieving the primary benefit of transportation. Status or entertainment may be seen as additional benefits, but are not the primary reason for owning a family car. Savings may be a benefit of owning a car, but is not specific to a family car.

Question 12

After calculating the CLV of its customers, American Auto Supplies identified its most profitable customers and also found that a significant percentage of its customers are unprofitable. Which of the following actions would American Auto Supplies most likely take based on these findings?

Accepted Answer

American Auto Supplies would most likely fire its unprofitable customers because they are a drain on the company's resources.

Question 13

Joy recently tried Green Day's new organic cleaning product and has been so pleased with the results that she has purchased the same item again, along with other cleaning products from the company. Joy has also talked about Green Day's cleaning products with her friends, encouraging them to try the products for their effectiveness and great scent. Joy is best described as a ________ customer.

Accepted Answer

Joy's advocacy and recommendation of Green Day's cleaning products make her a product champion. She is satisfied with the product and has made additional purchases, as well as promoting it to others.

Question 14

Frequent flier miles are an example of ________ programs.

Accepted Answer

Frequent flier miles are a loyalty program, meant to encourage repeat business from customers by offering incentives and rewards for frequent purchases or usage.

Question 15

Through customer ________, a company has the means to find groups of customers who share similar characteristics.

Accepted Answer

Differentiation allows a company to identify and target groups of customers who share similar characteristics by distinguishing between different segments of the market.

Question 16

At Gina's Nails, the posted policy is "Without our customers, we don't exist." Gina and her staff aim to delight each customer, and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Gina and her staff strive to make every customer a repeat customer. It is most accurate to say that instead of focusing on each individual transaction, Gina and her staff put a priority on ________.

Accepted Answer

Gina and her staff focus on delighting customers and making them repeat customers, which aligns with capturing customer lifetime value.

Question 17

For which of the following products would a customer's level of satisfaction with the purchase MOST likely change over time?

Accepted Answer

A car with unexpected service needs is the most likely product where a customer's level of satisfaction with the purchase can change over time. As the customer experiences unexpected service needs and costs associated with repairs, their satisfaction with the product may decline.

Question 18

A company that is making an effort to improve customer relationships should look at customer interactions as ________.

Accepted Answer

Viewing customer interactions as ongoing conversations allows the company to see them as opportunities to build relationships and gain valuable feedback, rather than just one-time transactions or exchanges. This allows for a more personalized and customized approach, rather than a one-size-fits-all mentality. Patternless encounters and isolated exchanges imply a lack of continuity and consistency, which is not desirable in building strong customer relationships.

Question 19

A company that uses a CRM system needs to take special precautions to protect which of the following?

Accepted Answer

A CRM system often contains sensitive customer information, such as contact details, purchase history, and preferences. Therefore, it is crucial to ensure the protection of customer privacy by limiting access, implementing adequate security measures, and complying with data protection regulations. Failing to safeguard customer privacy can harm the company's reputation, erode trust, and result in legal consequences. Although customer perceptions, value, satisfaction, and retention are essential for business success, they are not directly related to the security of a CRM system.

Question 20

Shania works hard to foster an emotional relationship between her Internet customers and the beauty products and services that she and her staff sell. By promoting a company culture that values exceptional value and service, Shania aims to create ________ by going beyond the expected.

Accepted Answer

Shania's goal is to create customer delight, which means exceeding customer expectations and creating an emotional attachment between customers and the company's products and services. This goes beyond customer satisfaction, which simply means meeting customer expectations. Switchable or neutral customers are not desirable because they may be more likely to choose a competitor's products or services. The term "fair value zone" is not related to the concept of emotional customer relationships.

Quiz 6: Value for Customers