Deck 4: Strategic Customer Management: Systems, ethics, and Social Responsibility

Question 1

Which of the following is the first step of developing a CRM strategy?

A) Form a cross-functional CRM project team for decision analysis and actions.
B) Gain an organization-wide commitment to CRM strategy.
C) Conduct a business needs analysis concerning customer relationships.
D) Develop and define the CRM strategy to guide management process.

Answer 1

Gain an organization-wide commitment to CRM strategy.

Question 2

Companies that have embedded CSR in their strategy usually take a defensive stance in their response to social responsibility.

Answer 2

False

Question 3

Which of the following CRM levels provides a strategic focus for CRM?

A) Field level
B) Company-wide level
C) Functional level
D) Customer-facing level

Answer 3

Company-wide level

Question 4

 Which of the following levels of CRM is concerned with coordinating information across all contact channels on a continuing basis?

A) Field level
B) Company-wide level
C) Functional level
D) Customer-facing level

Question 5

If a firm is essentially defensive in its stance on social responsiveness,then its primary concerns will be the protection of relationships.

Question 6

 The metric customer lifetime value incorporates the past profit produced by the customer in its calculation.

Question 7

CRM approaches do not identify less attractive customers.

Question 8

The _____ perspective of CRM considers the processes that are needed to fulfill required marketing activities.

A) functional
B) field
C) company-wide
D) customer-facing

Question 9

 _____ is a cross-functional core business process that is specifically concerned with achieving improved shareholder value through the development of effective affiliations with key customers and customer segments.

A) Benchmarking
B) Customer equity
C) Customer relationship management
D) Customer value proposition

Question 10

Investing in building relationships with disinterested customers is a major initiative of CRM.

Question 11

 The company-wide level of CRM offers a single view of the customer across all of the organization's access channels to the customer.

Question 12

In order to successfully apply CRM,a firm should first create a customer strategy before implementing CRM.

Question 13

In the value creation process,the benefits the customer receives are expressed by the customer strategy.

Question 14

CRM supports a customer-responsive strategy,which gains competitive advantage when it:

A) demonstrates the customer's trustworthiness and reliability to the company.
B) delivers superior customer value by personalizing the interaction between the customer and the company.
C) tightens connections with the competitors.
D) achieves the coordination of customer capabilities around the organization.

Question 15

The _____ in the CRM strategy spells out what the organization must provide in order to satisfy customer expectations.

A) value proposition
B) enterprise transformation plan
C) operating agreement
D) business case

Question 16

The _____ in a CRM strategy is an assessment that indicates the shareholder value and financial return of delivery of the required customer value.

A) operating agreement
B) enterprise transformation plan
C) value proposition
D) business case

Question 17

The _____ level of CRM considers the implications of knowledge about customers and their preferences across the entire organization. 

A) field
B) customer-facing
C) company-wide
D) functional

Question 18

 The integration of CRM into the firm's operational support systems is important for the successful implementation of CRM. 

Question 19

Which of the following information should be present in a database created by CRM technology?

A) Channels of distribution
B) Company contacts with its distributors
C) Response to marketing stimuli
D) Information on supplier quality

Question 20

The sum of CLV for all the customers of a firm is termed as business case.

Question 21

Which of the following is a pitfall to be avoided when implementing CRM initiatives?

A) Creating a customer strategy before implementing CRM
B) Putting CRM in place before changing the organization to match
C) Matching the technology to the customer strategy
D) Investing in building relationships with interested customers

Question 22

What are the major steps in developing a CRM strategy?

Question 23

What is customer lifetime value? How is it calculated?

Question 24

The _____ in the CRM strategy indicates the necessary initiatives to launch the strategy.

A) value proposition
B) enterprise transformation plan
C) operating agreement
D) business case

Question 25

 How does CRM help gain a competitive advantage through a customer-responsive strategy?

Question 26

The _____ component in the CRM strategy indicates how different consumer segments will be formed and managed.

A) business case
B) value proposition
C) customer strategy
D) enterprise transformation plan

Question 27

Which of the following activities hinders the successful implementation of CRM initiatives?

A) Creating a customer strategy before implementing CRM
B) Changing the organization before putting CRM in place
C) Matching the technology to the customer strategy
D) Investing in building relationships with disinterested customers

Question 28

What are the different CRM levels?

Question 29

The goal in _____ CSR mode is to anticipate and develop appropriate responses to social demands from any source that threatens to undermine the value and credibility of brands,the attractiveness of the competitive position on which the company's strategy depends,and the viability of the marketing strategy itself.

A) defensive
B) strategic
C) systemic
D) charitable

Question 30

 What information should a database created through CRM technology contain?

Question 31

Which of the following is the final step in developing a CRM strategy?

A) Gaining an organization-wide commitment to CRM strategy
B) Forming a cross-functional CRM project team for decision analysis and actions
C) Developing and defining the CRM strategy to guide management process
D) Conducting a business needs analysis concerning customer relationships

Question 32

 _____ has to be avoided when implementing CRM initiatives.

A) Creating a customer strategy before implementing CRM
B) Changing the organization before putting CRM in place
C) Assuming that more CRM technology is necessarily better
D) Investing in building relationships with interested customers

Question 33

Which of the following is a pitfall to be avoided when applying CRM initiatives?

A) Changing the organization before putting CRM in place
B) Matching CRM technology to the customer strategy
C) Investing in building relationships with customers who value them
D) Implementing CRM before creating a customer strategy

Question 34

In CRM,the benefits the customer receives are expressed by the _____.

A) value proposition
B) customer equity
C) customer lifetime value
D) enterprise transformation plan

Question 35

_____ refers to the sum of CLV for all of a firm's customers.

A) Customer zone
B) Customer orientation
C) Customer concentration
D) Customer equity