Question 1

The renovation process is a result of customer patterns and insights that were analyzed to make better marketing decisions.Which of the following processes did Magnet Inc.use?

Accepted Answer

Magnet Inc.used data mining.Data mining is a process of analyzing customer patterns and insights to make better marketing decisions.

Question 2

Nathan, who runs a grocery store, looks at each customer as an investment.Nathan is referring to each customer's _____.

Accepted Answer

Nathan is referring to customer lifetime value.Companies are starting to focus on the value of a customer if that customer remains loyal to the firm over the customer's lifetime.This is referred to as customer lifetime value.

Question 3

Michael & Peter's, a legal consultant, has discovered that it is losing a significant number of its clients.Which of the following refers to the first step that the consultant should take for customer reacquisition?

Accepted Answer

The first step in customer recovery is to find the customer who is in jeopardy of being lost to the company.The longer customers stay away from a business, the less likely they are to return.

Question 4

Describe the concept of customer relationship management.

Accepted Answer

The answer of Describe the concept of customer relationship management....

Question 5

The potential sales that will be generated by a customer if the customer remains loyal to that company for a lifetime are referred to as customer lifetime _____.

Accepted Answer

Companies are starting to focus on the value of a customer if that customer remains loyal to the firm over the customer's lifetime.This is referred to as customer lifetime value.

Question 6

Magnet Inc.was storing all the data about customers in a central place.This central place is referred to as a _____.

Accepted Answer

The central place where Magnet Inc.was storing data is referred to as a data warehouse.A data warehouse can be thought of as an electronics library where all the information is indexed.

Question 7

Which of the following is a disadvantage of jettisoning low-value customers?

Accepted Answer

Firing low-value customers seems to be a common-sense approach, but in some cases there is a danger.If a company is left with only high-value customers, this leaves the company open to poaching by competitors if they are aware of its customer base.

Question 8

Most often, customers tend to stop buying from a company due to _____.

Accepted Answer

Customers stop buying from a company for a variety of reasons.Very often, the reasons can be poor customer service as opposed to something inherently wrong with the brand.

Question 9

Philip, who went to pick up his car after servicing, noticed that his tennis racquet, which he had left behind in the car, was missing.When he approached the car dealer, he was given an apology and a cheque for a new racquet.The dealer, although not at fault, took care of the mishap as a favour to the customer.The dealer, thus, was giving importance to customer lifetime _____.

Accepted Answer

The dealer was giving importance to customer lifetime value.Companies are starting to focus on the value of a customer if that customer remains loyal to the firm over the customer's lifetime.This is referred to as customer lifetime value.

Question 10

Along with bringing changes to the store layout, Magnet Inc.has also created rooms that resemble a home to show customers exactly how the products will look when they are installed.This will personalize the customer's experience, which will help Magnet Inc.in building customer relationships.This focus is an example of customer lifetime _____.

Accepted Answer

Companies are starting to focus on the value of a customer if that customer remains loyal to the firm over the customer's lifetime.This is referred to as customer lifetime value.

Question 11

Porther Inc.maintains an electronic library where all its customer information is indexed.This library is called the _____.

Accepted Answer

All the data about customers is stored in a central place, called the data warehouse.A data warehouse can be thought of as an electronics library where all the information is indexed.

Question 12

In addition to rewarding customers, Gatersby Inc.'s loyalty program provided the firm with reams of customer information in its database._____ is the most efficient way to use this information to make better marketing decisions.

Accepted Answer

Data mining is an efficient way to sort through large amounts of data to find relationships between variables.Data mining is a process of analyzing customer patterns and insights to make better marketing decisions.

Question 13

Many firms are beginning to _____ their low-value customers while focusing their time on their high-valued customers.

Accepted Answer

CRM analysis shows that a small proportion of customers contribute to a large percentage of profits, and that many customers are unprofitable.Many firms are beginning to jettison or fire their low-value customers and are focusing their time on their high-valued customers.

Question 14

The Eatery Palace, a grocery chain, used to display its juices by arranging them according to their brands.The store later studied information and learned that its customers prefer the juices to be arranged according to their flavours.The process used to retrieve this information is referred to as _____.

Accepted Answer

This process is referred to as data mining.Data mining is an efficient way to sort through large amounts of data to find relationships between variables.Data mining is a process of analyzing customer patterns and insights to make better marketing decisions.

Question 15

Maria, who regularly shops for cosmetics from Beauty at Its Best using her loyalty card, receives mailings from the store offering her special coupons on cosmetic items related to her regular purchase.Beauty at Its Best is trying to increase its _____.

Accepted Answer

Beauty at Its Best is trying to increase its share of wallet.The percentage of a customer's purchases that a company has in a specific product category is called share of wallet.

Question 16

_____ is a process of analyzing customer patterns and insights to make better marketing decisions.

Accepted Answer

Data mining is a process of analyzing customer patterns and insights to make better marketing decisions.

Question 17

Which of the following is true about customer reacquisition?

Accepted Answer

The first step in customer recovery is to find the customer who is in jeopardy of being lost to the company.The longer customers stay away from a business, the less likely they are to return.

Question 18

Companies are beginning to focus on the _____ of a customer if that customer remains loyal to the firm over the customer's lifetime.

Accepted Answer

Companies are starting to focus on the value of a customer if that customer remains loyal to the firm over the customer's lifetime.This is referred to as customer lifetime value.

Question 19

The percentage of a customer's purchases that a company has in a specific product category is referred to as _____.

Accepted Answer

The percentage of a customer's purchases that a company has in a specific product category is called share of wallet.

Question 20

All the data concerning customers is stored in a central place, called the _____.

Accepted Answer

All the data about customers is stored in a central place, called the data warehouse.

Quiz 14: Customer Relationship Management

The renovation process is a result of customer patterns and insights that were analyzed to make better marketing decisions.Which of the following processes did Magnet Inc.use?

Nathan, who runs a grocery store, looks at each customer as an investment.Nathan is referring to each customer's _____.

Michael & Peter's, a legal consultant, has discovered that it is losing a significant number of its clients.Which of the following refers to the first step that the consultant should take for customer reacquisition?

Describe the concept of customer relationship management.

The potential sales that will be generated by a customer if the customer remains loyal to that company for a lifetime are referred to as customer lifetime _____.

Magnet Inc.was storing all the data about customers in a central place.This central place is referred to as a _____.

Which of the following is a disadvantage of jettisoning low-value customers?

Most often, customers tend to stop buying from a company due to _____.

Porther Inc.maintains an electronic library where all its customer information is indexed.This library is called the _____.

In addition to rewarding customers, Gatersby Inc.'s loyalty program provided the firm with reams of customer information in its database._____ is the most efficient way to use this information to make better marketing decisions.

Many firms are beginning to _____ their low-value customers while focusing their time on their high-valued customers.

Maria, who regularly shops for cosmetics from Beauty at Its Best using her loyalty card, receives mailings from the store offering her special coupons on cosmetic items related to her regular purchase.Beauty at Its Best is trying to increase its _____.

_____ is a process of analyzing customer patterns and insights to make better marketing decisions.

Which of the following is true about customer reacquisition?

Companies are beginning to focus on the _____ of a customer if that customer remains loyal to the firm over the customer's lifetime.

The percentage of a customer's purchases that a company has in a specific product category is referred to as _____.

All the data concerning customers is stored in a central place, called the _____.