Question 1

Which of the following best describes the type of data analysis that focuses on the composition of products purchased by a household during a single shopping occasion?
A)allotment analysis
B)market basket analysis
C)location analysis
D)shopping cart analysis
E)merchandising analysis

Accepted Answer

The market basket analysis,analyzes what the customer bought during a single visit.This information is useful for where to place merchandise in a store.

Question 2

Electronic retailers can collect transaction data for their data warehouse,but they can also collect information by placing cookies on a visitor's hard drive.What is a cookie?
A)a virus
B)a frequent shopper reward
C)text files that identify pirated software
D)text files that identify visitors when they return to a website
E)text files used to determine demographic information

Accepted Answer

Many consumers do not realize the extensive amount of information that can be collected without their knowledge online through using cookies.

Question 3

Which of the following is NOT one of principles that the Federal Trade Commission (FTC)practices?
A)notice and awareness: covers the disclosure of information practices
B)prohibit/prevent companies from sharing their customers' personal information
C)choice/consent: includes both opt-out and opt-in options
D)access/participation: allows for the confirmation of information accuracy by consumers
E)integrity/security: controls for the theft of and tampering with personal information

Accepted Answer

The missing principle here is enforcement/redress: provides a mechanism to ensure compliance by participating companies.

Question 4

__________ are applications of statistical techniques and models to find patterns in customer purchases data and make recommendations for improving the effectiveness of retailers.
A)Retail analytics
B)Redress analytics
C)Strategic analytics
D)Information drafts
E)Data clones

Accepted Answer

Retail analytics uses information collected to target promotions and tailor assortments in its stores to preference of customer in the store's trading area.

Question 5

When consumers agree to share personal information,it is referred to as _______.
A)participatory knowledge
B)opting in
C)public information
D)getting out
E)opting out

Accepted Answer

In the USA,personal information is viewed as the public domain so in a sense,consumers are automatically "opted in" whether they realize it or not.

Question 6

Why is constructing a customer database more difficult for in-store transactions than it is for on-line shopping?
A)Customer returns to the store confound the data.
B)Store purchases can be made with cash.
C)Availability of store assortments is not always similar to website assortments.
D)Store customers are not interested in sharing personal information.
E)Since customers may be more likely to buy gifts for others in stores than online,it defeats the purpose of understanding the end-user.

Accepted Answer

With in-store transactions,it can be difficult to identify customers because customers can pay with cash,check or third-party credit cards making the purchase virtually anonymous.

Question 7

When Lana went to Amazon.com to see if they had any new books about health and wellness,the first thing she saw was a personalized greeting.Which of the following best describes how Amazon.com knew it was Lana?
A)She ordered before and told them her name.
B)Her name is on all of her shipments as well as her address.
C)She used a password.
D)Another retailer sold her private information to Amazon.com.
E)Amazon.com placed cookies on her hard drive to identify her when she visits.

Accepted Answer

Many consumers do not realize the extensive amount of information that can be collected without their knowledge online through using cookies.

Question 8

If a U.S.retailer wants to conform to the European policies concerning how customer information is collected,it should adopt which type of policy?
A)opt in
B)opt out
C)opt private
D)opt EC
E)It should not have a policy

Accepted Answer

In the USA,personal information is viewed as the public domain so in a sense,consumers are automatically "opted in" whether they realize it or not.In Europe,the perspective is that consumers own their personal information so retailers must get consumers to agree explicitly to share this personal information,or opt in.

Question 9

Many products in a supermarket can be found in more than one place throughout the stores.What type of retail analytics is used to decide where to place products in a store?
A)supermarket analysis
B)market basket analysis
C)location analysis
D)shopping cart analysis
E)merchandising analysis

Accepted Answer

The market basket analysis,analyzes what the customer bought during a single visit.This information is useful for where to place merchandise in a store.

Question 10

When Mary purchased some caulk for her windows at Home Depot,the cashier asked for her telephone number at the point-of-sale.What was the retailer doing by asking this question?
A)The retailer was determining her level of trust in the store.
B)The retailer was identifying her preference.
C)The retailer was collecting data for its database.
D)The retailer was curious as to how many people from that area code shopped the store.
E)The retailer was confirming forecasts for buyers.

Accepted Answer

Some retailers have the sales associates ask customers for identifying information when they process a sale.This information is then used to link all applicable transactions to the customer.

Question 11

Customers become Kohl's Most Valued Customer (MVC)by spending at least $600 on their Kohl's Charge every year (from February through January),receive extra exclusive benefits.Kohl's is utilizing their private-label credit card also as ______.
A)special customer service
B)a form of personalization
C)a customer loyalty program
D)an exclusive value share program
E)a sense of community

Accepted Answer

Loyalty or frequent-shopper programs provide rewards to customers who patronize a retailer.

Question 12

When consumers are asked by a retailer and explicitly tell the retailer not to use their personal information,they are _________.
A)choosing/consenting
B)opting in
C)opting out
D)declining public domain statutes
E)notifying consumer information services

Accepted Answer

In the USA,personal information is viewed as the public domain so in a sense,consumers are automatically "opted in" unless they explicitly tell the retailer not to use their information.

Question 13

Why are concerns about privacy heightened for customers who use the electronic channel while they shop?
A)Electronic retailers ask for more information than necessary for a simple transaction.
B)Consumers are concerned about their credit card security.
C)Because a large amount of information can be collected without the consumer's knowledge.
D)Consumers are concerned as to how the information is shared.
E)Consumers are concerned about identity theft.

Accepted Answer

Many consumers do not realize the extensive amount of information that can be collected without their knowledge online through using cookies.

Question 14

Although having information about individual customers provides more benefits to their better customers,consumers are concerned about ________.
A)price promotions
B)loyalty
C)descriptive information
D)privacy
E)data mining

Accepted Answer

Some consumers may be concerned about their personal information being public.

Question 15

Which of the following correctly describes the practices which protect customer privacy?
A)In the United States,Americans rely upon federal government to protect consumer privacy.
B)Current legislation in the U.S.for consumer privacy forces strict protection of consumer privacy in retailing.
C)The United States have more stringent consumer privacy laws than the European Union.
D)In the EU,the opt-out policy is applied when consumers' personal information is collected and used.
E)In the U.S. ,personal information is generally viewed as being in the public domain,and retailers can use it in any way they desire.

Accepted Answer

In the United States,Americans rely upon retailers to protect consumer privacy.The United States' current legislation for consumer privacy is not strict in retailing,and it is less stringent than that of the European Union.In the EU,the opt-in policy is applied when consumers' personal information is collected and used.The EU perspective is that consumers own their personal information,so retailers must get consumers to agree explicitly to share this personal information.This agreement is called an opt-in.

Question 16

Wilbur uses a Books-A-Million customer card,a Kash-N-Karry customer card,a Blockbuster customer card,and a Sandwich Shop customer card when he shops at any of these retailers.Each time he uses them,they reward him with reduced cost,free merchandise or a credit.These cards are examples of:
A)store credit cards
B)identification cards
C)frequent shopper cards
D)third-party credit cards
E)frequent membership cards

Accepted Answer

Frequent shopper program cards and loyalty programs identify and provide rewards to customers who patronize a retailer.

Question 17

Which of the following is NOT TRUE regarding frequent shopper programs?
A)Frequent shopper programs are programs that identify and provide rewards to customers who patronize a retailer.
B)Frequent shopper programs are also commonly called loyalty programs.
C)When retailers in the United States issue customers a frequent shopper card,the companies are legally required to obtain the customers' permission to share personal information.
D)Frequent shopper programs can consist simply by a retailer offering a private-label credit card.
E)Frequent shopper programs can provide customer information automatically to the retailer when customers have their program card scanned at the time of transaction.

Accepted Answer

In the United States,it is not required for retailers to receive permission to share personal information (demographic information and transaction information)in their database.

Question 18

Through _________,Tesco uses information collected through their frequent buyer program to target promotions and tailor assortments in its stores based on customer's preferences in the store's trading area.
A)retail analytics
B)redress analytics
C)strategic analytics
D)information drafts
E)data clones

Accepted Answer

Retail analytics uses information collected to target promotions and tailor assortments in its stores to preference of customer in the store's trading area.

Question 19

When a customer joins the BestBuy Reward Zone,they receive one point on every purchase they make at Best Buy stores and BestBuy.com.Reward Zone points are converted to reward certificates which can be redeemed for merchandise at Best Buy stores or on BestBuy.com.Reward Zone Members also receive exclusive members only offers throughout the year,and a "special reward" for their birthday.This describes ______.
A)special customer service
B)personalization
C)a customer loyalty program
D)an exclusive value share program
E)a sense of community

Accepted Answer

Loyalty or frequent-shopper programs provide rewards to customers who patronize a retailer.

Question 20

Since Yolanda used __________ to analyze what her customers buy together during a single store visit,she knows to place facial tissues by the cold medicine and Wonder bread by the Skippy Peanut Butter.
A)market basket analysis
B)computer analysis
C)merchandising analysis
D)allotment analysis
E)location analysis

Accepted Answer

The market basket analysis,analyzes what the customer bought during a single visit.This information is useful for where to place merchandise in a store.

Quiz 11: Customer Relationship Management

Which of the following best describes the type of data analysis that focuses on the composition of products purchased by a household during a single shopping occasion?

Electronic retailers can collect transaction data for their data warehouse,but they can also collect information by placing cookies on a visitor's hard drive.What is a cookie?

Which of the following is NOT one of principles that the Federal Trade Commission (FTC) practices?

__________ are applications of statistical techniques and models to find patterns in customer purchases data and make recommendations for improving the effectiveness of retailers.

When consumers agree to share personal information,it is referred to as _______.

Why is constructing a customer database more difficult for in-store transactions than it is for on-line shopping?

When Lana went to Amazon.com to see if they had any new books about health and wellness,the first thing she saw was a personalized greeting.Which of the following best describes how Amazon.com knew it was Lana?

If a U.S.retailer wants to conform to the European policies concerning how customer information is collected,it should adopt which type of policy?

Many products in a supermarket can be found in more than one place throughout the stores.What type of retail analytics is used to decide where to place products in a store?

When Mary purchased some caulk for her windows at Home Depot,the cashier asked for her telephone number at the point-of-sale.What was the retailer doing by asking this question?

Customers become Kohl's Most Valued Customer (MVC) by spending at least $600 on their Kohl's Charge every year (from February through January) ,receive extra exclusive benefits.Kohl's is utilizing their private-label credit card also as ______.

When consumers are asked by a retailer and explicitly tell the retailer not to use their personal information,they are _________.

Why are concerns about privacy heightened for customers who use the electronic channel while they shop?

Although having information about individual customers provides more benefits to their better customers,consumers are concerned about ________.

Which of the following correctly describes the practices which protect customer privacy?

Wilbur uses a Books-A-Million customer card,a Kash-N-Karry customer card,a Blockbuster customer card,and a Sandwich Shop customer card when he shops at any of these retailers.Each time he uses them,they reward him with reduced cost,free merchandise or a credit.These cards are examples of:

Which of the following is NOT TRUE regarding frequent shopper programs?

Through _________,Tesco uses information collected through their frequent buyer program to target promotions and tailor assortments in its stores based on customer's preferences in the store's trading area.

Since Yolanda used __________ to analyze what her customers buy together during a single store visit,she knows to place facial tissues by the cold medicine and Wonder bread by the Skippy Peanut Butter.