Deck 10: Customer Relationship Management

Question 1

Safeguarding customer information is a legal and ethical responsibility for any company collecting,processing,and transmitting sensitive customer data.

Answer 1

True

Question 2

Customers of companies,using CRM applications,should not be concerned with their personal information becoming compromised or being shared with other companies.​

Answer 2

False

Question 3

While a company's Internet presence may be desirable for finding information or conducting product transfers,touching products and talking face-to-face with company representatives remains an integral part of the supplier-customer interface.​

Answer 3

True

Question 4

Companies that provide on-demand applications are often referred to as data warehouses.​

Question 5

According to the text,poor planning is typically the cause for most unsuccessful CRM initiatives.​

Question 6

Cloud computing is a term used to describe how a customer navigates a website.​

Question 7

According to the text,customer relationship management refers to building and maintaining profitable long-term customer relationships.​

Question 8

The objectives of any CRM initiative should be focused on what the company can reasonable achieve.​

Question 9

When web sites suggest other items for purchase based on already purchased items,this is an example of Clickstream Selling.​

Question 10

Sales force automation products help salespeople better manage their accounts,their business opportunities,and communications while away from the office.​

Question 11

The three inputs for calculating Customer Lifetime Value are Average Annual Sales,Expected Lifetime and Forecasted Sales.​

Question 12

Up until now CRM has been very effective for most companies because it has focused on building customers' trust and loyalty,ultimately building a strong relationship with the customer through programs that make it easy for the customer to return products and get information from people inside the organization.​

Question 13

As customers navigate through a website CRM software can record and analyze the customer's clickstream so website images and ads can be tailored to the needs and desires of that individual customer.​

Question 14

Training managers and users in the key customer contact areas can help the firm decide what customizations to the CRM applications are required.​

Question 15

Through the use permission marketing programs,customers are allowed to select the type of communications companies can make with them.Actually,customers can even choose to be completly eliminated from both e-mail and traditional mailing lists.​

Question 16

While a well-planned and organized CRM plan can be extremely useful in developing effective and efficient marketing programs for retailers,they are not particularly helpful for manufacturing companies like GM since their touches with the customer are few.​

Question 17

Only employees who will enter CRM data should be involved in the CRM implementation plan.​

Question 18

Private clouds allow corporate users to internally manage their data centers.​

Question 19

Segmenting customers on the basis of things like products purchased,sales history,demographic information,and desired product features can dilute the results of a CRM program; segmenting customers should be avoided.​

Question 20

In general,companies avoid social media sites since they rarely are able to find useful information about customer opinions via blogs and social networking sites.​

Question 21

Tire manufacturer Firebridge sells tires to retail firm A.Average annual sales for firm A is $55,000.Average profit margin is 15%.The expected lifetime is 10 years.Using a discount rate of 10 percent,calculate the Customer Lifetime Value of firm A and choose the closest answer below:

A)$5,500
B)$50,693
C)$38,590
D)$25,675

Question 22

All of the following are recommended for designing and implementing a successful CRM program EXCEPT:

A)Support from the firm's top executive
B)Expect employees to 'learn on the job' and adapt their way of working
C)Knowledge of the tools available to aid in CRM
D)Continuous awareness of customers' changing requirements

Question 23

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a:

A)Sales activity management system
B)Sales territory management system
C)Lead management system
D)Knowledge management system

Question 24

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events,like birthdays and anniversaries,this is referred to as:​

A)Event-based marketing
B)Segmented selling
C)Personal holiday marketing
D)Extreme segmentation marketing

Question 25

Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a:

A)Clickstream
B)QR code
C)Data warehouse
D)Social media site

Question 26

Companies work very hard to reduce the number of their present customers which never return.This customer defection is often referred to as:​

A)Customer churn
B)Clickstream defection
C)Balking
D)Revenue Exodus

Question 27

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is:​

A)Segmenting customers
B)Predicting customer behaviors
C)Customer value determination
D)Customer preference determination

Question 28

Which of the following are required elements of an effective CRM initiative?​

A)Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers
B)Segmenting customers
C)Preserving a traditional sales force that communicates with the supply-chain via a traditional paper document/contract system
D)All of these

Question 29

The element of a CRM program in which a customer's lifetime value is calculated is referred to as:

A)Segmenting customers
B)Predicting customer behaviors
C)Customer value determination
D)Customer preference determination

Question 30

Your top sales executive leaves your company to work for a competitor.Fortunately,all of her notes regarding prior dealings with customers have been captured in a:​

A)Sales activity management system
B)Sales territory management system
C)Lead management system
D)Knowledge management system

Question 31

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased.This type of marketing/promotion is an example of:

A)Target marketing
B)Segmented selling
C)Clickstream selling
D)Cross-selling

Question 32

CRM can allow organizations to identify which customers have stopped purchasing products or services from the organization so that the organization can target those former customers for future promotions and/or perhaps to investigate why they stopped purchasing in the first place.The CRM attribute is called:

A)Customer profitability determination
B)Customer-base retention initiative
C)Customer defection analysis
D)Customer clickstream analysis

Question 33

The use of quick response codes (QR Codes)to retrieve marketing information is a type of:​

A)Geographic marketing
B)Target marketing
C)Customer churn
D)Mobile marketing

Question 34

Your company's marketing efforts allow customers to "opt-out" of receiving email advertisers.This is referred to as:

A)Event-based marketing
B)Permission marketing
C)Customer churn
D)Customer preference marketing

Question 35

Which of the following is one of the most basic and very important activities of CRM?​

A)Segmenting customers
B)Cross-selling customers
C)Increasing churn
D)Finding customers

Question 36

All of the following are required elements for the development of an effective CRM initiative EXCEPT:​

A)Segmenting customers
B)Customer value determination
C)Utilization of MRP
D)Personalizing customer communications

Question 37

You work for a company that segments customers by demographic information markets specifically to those customers who are located in the Los Angeles area.This is an example of:​

A)Target marketing
B)Cross-selling
C)Geographic marketing
D)Personalized customer communication

Question 38

Which of the following customer service elements can be classified as examples of posttransaction elements?

A)Salesperson politeness
B)Customer complaint resolution
C)Customer service policies
D)The company's choice of organizational structure

Question 39

Why do so many CRM programs fail?

A)They are so expensive that it is hard to recover the investment
B)They take the firm away from concentrating on their key suppliers
C)Because of incompatible information and communication systems
D)Firms concentrate more on the CRM software instead of taking care of customers

Question 40

You are a manager at Sunnydale Appliances.A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information.According to the text,this is an example of:

A)Customer churn
B)Posttransaction customer service
C)Customer management
D)Pretransaction customer service

Question 41

Define THREE of the goals of the common CRM program.How does CRM software attempt to achieve each of these goals?

Question 42

Which of the following is a U.S.law which requires compliance by all firms engaged in handling customer information:

A)The Customer Loyalty Law
B)The Data Protection Act
C)The Internet Privacy Law
D)The U.S. Patriot Act

Question 43

Firms can safeguard customer information by doing which of the following?:

A)Allow customers to opt-in and out of mailing lists
B)Allow customers to access their accounts online to view information collected about themselves​
C)Both A & B​
D)None of these​

Question 44

According to the text,firms are using social media for all of the following EXCEPT:

A)To create user forums where customer questions are answered by other customers
B)To listen to their customers​
C)To communicate to their customers​
D)To obtain leads for hiring new employees​

Question 45

For the information given,rank the two customers in terms of customer lifetime value.​ ​Use a discount rate of 8 percent and treat the average sales figures as annuities.

Question 46

Data Security in CRM is a new trend.Briefly describe the issue and discuss why it is something important to monitor.

Question 47

A good CRM program is only good if it is successfully implemented.Describe three important elements a firm should consider when designing and implementing a CRM program.

Question 48

Today a number of application service providers (ASPs)provide cloud applications.Explain why companies use ASPs.

Question 49

A practical independent measure firms can take to improve information security is:

A)Eliminate employee internet use at work
B)Do not collect information about their customers
C)Continuously monitor employee desktop applications, e-mails and phone calls
D)None of these

Question 50

The textbook describes a perfect order as one in which all of seven of the rules in the "Seven Rs Rule" are satisfied.List of five of the seven R's.

Question 51

Cloud based CRM services are particularly useful for:

A)Large companies with many resources
B)Small companies with limited resources
C)Customers wanting to shop online
D)Firms wanting customers seeing their current inventory balance