Deck 3: Customer Relationship Management Crm and Building Partnerships

Question 1

A systematic integration of information, technology, and human resources, all oriented toward (a) providing maximum value to customers and (b) maximizing the value obtained from customers is known as __________.

A) one-to-one marketing
B) customer relationship management
C) differentiated marketing
D) mass marketing

Answer 1

customer relationship management

Question 2

Dealing with different groups of customers by offering a unique product for each group refers to __________.

A) one-to-one marketing
B) customer relationship management
C) differentiated marketing
D) mass marketing

Answer 2

differentiated marketing

Question 3

__________ refers to offering a specialized product to an individual customer segment with specialized needs.

A) niche marketing
B) one-to-one marketing
C) differentiated marketing
D) mass marketing

Answer 3

niche marketing

Question 4

__________ involves matching individual products with individual customers.

A) niche marketing
B) one-to-one marketing
C) differentiated marketing
D) mass marketing

Question 5

Companies focus on processes allowing large-scale, efficient, and economic production is known as __________.

A) customer-centric
B) market orientation
C) production orientation
D) customer value

Question 6

__________ firms focus on making what could be sold, not selling what is made.

A) customer-centric
B) market orientated
C) production orientated
D) customer value

Question 7

The customer becomes the heart of the business process in __________ firms.

A) customer-centric
B) market orientated
C) production orientated
D) customer value

Question 8

Differentiated marketers and one-to-one marketers prescribe to the philosophy of __________ since their products must closely match consumer desires or a competitor will move in to better meet the demand.

A) customer-centric
B) market orientation
C) production orientation
D) customer value

Question 9

The net positive worth resulting from participation in exchange is known as __________.

A) customer-centric
B) market orientation
C) production orientation
D) customer value

Question 10

Which of the following statements about customer relationship management is not true:

A) CRM is based on the premise that companies interact with customers more than one time and in more than one way
B) the cost of finding a new customer is less expensive than selling to an old customer
C) businesses that assume they'll contact each customer one time are less motivated to provide excellent service than those that assume they'll be in touch with customers many times over an extended period
D) the extra motivation to build relationships is based on the likelihood of repeat business

Question 11

A __________ salesperson is motivated primarily by matching up customers with products that best address their needs.

A) customer-centric
B) sales-oriented
C) customer-oriented
D) customer value

Question 12

A __________ refers to points in time when the customer and the company come together, either personally or virtually.

A) sales exchange
B) relational exchange
C) touchpoint
D) transactional selling

Question 13

The act of trading economic resources (usually money) for a specific set of benefits offered by a company is called a __________.

A) sales exchange
B) relational exchange
C) touchpoint
D) transactional selling

Question 14

When a sales firm acts consistently with the view that each and every interaction with a customer is a unique and independent event refers to __________.

A) sales exchange
B) relational exchange
C) touchpoint
D) transactional selling

Question 15

Recognition, by both buyer and seller, that each transaction is merely one in a series of purchase agreements between a buyer and a seller is known as __________.

A) sales exchange
B) relational exchange
C) touchpoint
D) transactional selling

Question 16

__________ is at the low end of the relationship involvement (exchange) continuum.

A) strategic partnership
B) transactional selling
C) relational selling
D) none of the above

Question 17

__________ is viewed in the middle of the relationship involvement (exchange) continuum.

A) strategic partnership
B) Transactional selling
C) Relational selling
D) none of the above

Question 18

__________ is characterized by short-term customer needs. Sales reps make periodic sales calls, with high-volume customers receiving more frequent visits than low-volume customers.

A) strategic partnerships
B) relational selling
C) transactional selling
D) none of the above

Question 19

In __________ buyers and sellers remain independent, and each transaction is conducted as a new event.

A) transactional selling
B) strategic partnerships
C) relational selling
D) none of the above

Question 20

In __________ no long-term commitment or loyalty is involved, and little value is assigned to understanding long-run buyer needs and expectations.

A) relational selling
B) strategic partnerships
C) transactional selling
D) none of the above

Question 21

In __________ buyers and sellers participate in exchanges many times over a period of years, they negotiate prices and other terms each time an exchange takes place and the exchange does not require high trust levels.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 22

In __________ if customers have a bad experience, they simply exclude the selling company from the consideration set next time. Selling firms with this orientation generally have to touch large numbers of customers to generate business, thus risk is reduced because the selling firm is less dependent on any one customer or a small number of customers.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 23

__________ is characterized by both buyer and seller recognizing that each transaction is just one in a series of purchase agreements and the exchange environment manifests a spirit of cooperation between buyer and seller.

A) strategic partnerships
B) relational selling
C) transactional selling
D) none of the above

Question 24

Poorly served or neglected customers are likely to start looking for alternate suppliers. Thus, __________ is characterized by frequent, even daily contacts between the sales force and the customer, or by electronic systems that enable the seller to monitor various aspects of the buyer's business, such as inventory levels and reorder points.

A) relational selling
B) strategic partnerships
C) transactional selling
D) none of the above

Question 25

__________ requires a longer-term focus, thus salespeople develop relationships that generate repeated transactions. These relationships require higher levels of trust, since the switching costs are increased due to greater dependence.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 26

__________ refers to the percentage of customers who will repeatedly purchase products from the selling firm.

A) vertical integration
B) customer retention
C) strategic partnerships
D) mutual loyalty

Question 27

__________ results when the goals, strategies, and resources of buyers and sellers become so interconnected and intertwined that they develop an integrated, symbiotic relationship although still retaining their independent identities.

A) vertical integration
B) customer retention
C) strategic partnerships
D) mutual loyalty

Question 28

__________ lie at the opposite high end of the relationship involvement (exchange) continuum.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 29

__________ are based more on inter-organizational collaboration than on arm's-length aggressive bargaining and are not viewed as competitive. In fact, decision making often is collaborative, and firms share managerial resources and expertise when solving key strategic and tactical issues.

A) strategic partnerships
B) relational selling
C) transactional selling
D) none of the above

Question 30

__________ result in continuous, recurring exchanges, which requires intensive levels of communication, relationship openness, information sharing, joint problem solving, strategic integration, and mutual learning.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 31

__________ exhibit high levels of collaboration among partners, equality, shared vision, benefits and goals, and high levels of trust.

A) relational selling
B) strategic partnerships
C) transactional selling
D) none of the above

Question 32

__________ occurs when both buyer and seller are committed to each other and avoid behaviors that may damage the relationship.

A) vertical integration
B) customer retention
C) strategic partnerships
D) mutual loyalty

Question 33

A pattern of controlling and perhaps acquiring assets and resources at different levels of the marketing channel is known as __________.

A) vertical integration
B) customer retention
C) strategic partnerships
D) mutual loyalty

Question 34

__________ involves arrangements for sharing information and tasks between the buying and selling firm, but falls short of spelling out specific obligations for each party.

A) vertical integration
B) relational-based governance
C) governance
D) strategic partnerships

Question 35

One fact of all relationships is that sometimes one firm may take advantage of another firm, which is known as __________.

A) customer lifetime value
B) opportunism
C) customer share
D) customer commitment

Question 36

All types of exchanges are accompanied by some type of governance. __________ is controlled by market forces.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 37

All types of exchanges are accompanied by some type of governance. __________ is governed by contracts.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 38

All types of exchanges are accompanied by some type of governance. __________ is governed by a mechanism known as relational governance.

A) strategic partnerships
B) transactional selling
C) relational selling
D) none of the above

Question 39

Customer loyalty is a function of which of the following components-

A) customer satisfaction and customer commitment
B) customer share and customer service
C) customer share and customer commitment
D) customer service and customer commitment

Question 40

__________ represents the proportion of resources a customer spends with one among a set of competing suppliers.

A) customer lifetime value
B) opportunism
C) customer share
D) customer commitment

Question 41

__________ represents the bonding, or affective attachment, between a customer and a sales firm.

A) customer lifetime value
B) opportunism
C) customer share
D) customer commitment

Question 42

Which of the following is a major disadvantage of relational selling and strategic partnerships?

A) selling to existing customers less expensive than selling to new customers
B) increase dependence on partners
C) delivering higher value
D) repeat sales

Question 43

__________represents an individual's selective perception of the worth of some activity, object, or idea.

A) customer lifetime value
B) customer commitment
C) value
D) customer share

Question 44

With CRM the salesperson does more than just create sales. In helping create value for the customer, which of the following is not among the important goals for salespeople?

A) gather important data about the customer and the market
B) identify the types of data needed to give the customer better service
C) help the customer reduce turnover of their employees
D) provide input into how the CRM system should utilize data to create value for the customer

Question 45

The set of products that a customer is responsible for selling is known as __________.

A) deliverability
B) product portfolio
C) customer portfolios
D) push technology

Question 46

Sets of customers who have something in common refers to __________.

A) deliverability
B) product portfolio
C) customer portfolios
D) push technology

Question 47

__________ focuses on aggregating customer information electronically, allowing for better identification of target markets and opportunities for cross-selling.

A) deliverability
B) operational CRM
C) analytical CRM
D) push technology

Question 48

__________ focuses on using information to improve internal efficiencies.

A) deliverability
B) operational CRM
C) analytical CRM
D) push technology

Question 49

__________ involves using data stored about a particular customer or customer group; helps send the particular customer information and promotional material when the data suggests the customer will be interested in a purchase.

A) deliverability
B) product portfolio
C) customer portfolios
D) push technology

Question 50

__________ represents the proportion of e-mail sent that is successfully delivered to the intended recipient.

A) deliverability
B) product portfolio
C) customer portfolios
D) push technology

Question 51

Which of the following statements about sales force automation (SFA) is inaccurate?

A) salespeople report more rather than less stress on the job as they go through growing pains in learning and using new SFA technologies
B) SFA can make salespeople more productive
C) SFA means salespeople will never be needed anymore
D) SFA enables them to be more certain that each sales call will actually produce sales

Question 52

Which of the following is not a benefit of sales force automation (SFA)?

A) ease of spotting opportunities based on the information available through the sfa system
B) SFA has the ability to lower sales force turnover
C) increased ability to monitor, coach, and mentor salespeople
D) greater ability to assess, analyze, and react to results of sales calls

Question 53

__________ use computer technology to integrate all aspects of marketing.

A) marketing automation systems.
B) sales force automation
C) database marketing
D) marketing automation systems

Question 54

__________ refers to a computerized process for analyzing customer databases in a way that allows more effective selling by tailoring product and promotional offerings to a specific customer's sales patterns.

A) marketing automation systems.
B) sales force automation
C) database marketing
D) marketing automation systems

Question 55

__________ is an electronic storage center containing data records from diverse information systems that are shared across all functional departments.

A) marketing automation systems.
B) sales force automation
C) database warehouse
D) marketing automation systems

Question 56

The exploratory statistical analysis of the data in the data warehouse, which aims to reveal relationships that allow customers to be targeted more accurately, is known as __________.

A) click-stream analysis
B) data mining
C) database marketing
D) CRM intelligence

Question 57

CRM software converts information into data that can be used in solving a sales manager's problem refers to __________.

A) click-stream analysis
B) data mining
C) database marketing
D) CRM intelligence

Question 58

Drawing conclusions based on the path a customer takes while navigating information on the company website is called __________.

A) click-stream analysis
B) data mining
C) database marketing
D) CRM intelligence

Question 59

Which of the following characteristics should sales managers not look for before recommending a particular CRM software?

A) flexible sales effectiveness processes
B) easy coaching
C) adopt CRM software with the lowest cost
D) advanced analytics

Question 60

A systematic integration of information, technology, and human resources, all oriented toward (1) providing maximum value to customers and (2) maximizing the value obtained from customers is known as CRM.

Question 61

A way of dealing with customers by offering the same product to the entire market is called differentiated marketing.

Question 62

Dealing with different groups of customers by offering a unique product for each group refers to mass marketing.

Question 63

Niche marketing involves matching individual products with individual customers.

Question 64

Companies focus on processes allowing large-scale, efficient, and economic production is known as market orientation.

Question 65

Sales managers in mass-marketing firms concentrate on moving large quantities of products through traditional distribution channels that allow for economical shipping, such as trucking and railroad freight.

Question 66

Production oriented companies focus on making what could be sold, not selling what is made.

Question 67

The net positive worth resulting from participation in exchange is known as customer value.

Question 68

Customer-oriented salespersons are motivated to maximize sales from each contact even if a product does not best match customer needs and desires.

Question 69

A sales-oriented salesperson is motivated primarily by matching up customers with products that best address their needs.

Question 70

A touchpoint refers to points in time when the customer and the company come together, either personally or virtually.

Question 71

The act of trading economic resources (usually money) for a specific set of benefits offered by a company is called a sales exchange.

Question 72

When a sales firm acts consistently with the view that each and every interaction with a customer is a unique and independent event refers to relational exchange.

Question 73

Strategic partnerships lie at the low end of the relationship involvement (exchange) continuum.

Question 74

Transactional selling is characterized by short-term customer needs. Sales reps make periodic sales calls, with high-volume customers receiving more frequent visits than low-volume customers.

Question 75

In relational selling buyers and sellers remain independent, and each transaction is conducted as a new event.

Question 76

In transactional selling no long-term commitment or loyalty is involved and little value is assigned to understanding long-run buyer needs and expectations.

Question 77

Relational selling can be more adversarial than cooperative. Price becomes a key consideration-neither the salesperson nor the customer is looking for much beyond the immediate transaction, and issues like service after the sale are relatively less important.

Question 78

In relational selling buyers and sellers participate in exchanges many times over a period of years, they negotiate prices and other terms each time an exchange takes place and the exchange does not require high trust levels.

Question 79

In strategic partnerships if customers have a bad experience, they simply exclude the selling company from the consideration set next time. Selling firms with this orientation generally have to touch large numbers of customers to generate business, thus risk is reduced because the selling firm is less dependent on any one customer or a small number of customers.

Question 80

Recognition, by both buyer and seller, that each transaction is merely one in a series of purchase agreements between a buyer and a seller is known as transactional selling.