Deck 5: CRM, Big Data, and Marketing Analytics

Question 1

Data mining helps in segmenting customers in order to target key markets.

Answer 1

TRUE

Question 2

Positioning customer relationship management (CRM) as a comprehensive business model provides the impetus for top management to properly support it over the long run.

Answer 2

TRUE

Question 3

A POS system is in use when you go to a grocery store and your transaction is collected at the cash register so companies can analyze your purchase behavior.

Answer 3

TRUE

Question 4

It is possible today to calculate the total financial returns for each customer.

Question 5

Marketing analytics is a new concept brought about by the increased use of mobile phones.

Question 6

Cross-promotional opportunities are a benefit of collecting data from mobile apps.

Question 7

Jeremiah wants to find out if the new advertising campaign is positively impacting sales. He is likely to use diagnostic analytics.

Question 8

The four Vs of Big Data are volume, velocity, variety, and visibility.

Question 9

Customer satisfaction and customer loyalty, two metrics used by brand managers, are metrics used in customer relationship management.

Question 10

About the only thing you know for certain about your first version of a marketing dashboard is that it will likely look the same in a year or two.

Question 11

Data in a spreadsheet is considered unstructured data.

Question 12

When a customer willingly gives a company sensitive information, such as a social security number, the company is not responsible for the security of this information.

Question 13

When the online shore store Zappos collects information on the average dollar amount a customer spends in a single transaction, it is using descriptive analytics.

Question 14

One major objective of CRM is customer replacement.

Question 15

It has been demonstrated for some products that exposure to television advertisements influences the number of brand-specific keyword searches conducted online by customers. In this instance, the conclusion drawn is based on attribution.

Question 16

Big Data can be leveraged to optimize the marketing mix.

Question 17

Of the four marketing analytics approaches, diagnostic analytics is the most complex.

Question 18

When a salesperson calls on a prospect and meets face to face, it is an example of an interactive touchpoint.

Question 19

Marketing planning is the first phase of the customer relationship management (CRM) process cycle.

Question 20

Increasing formalization of customer analysis processes is a component of a customer-centric culture.

Question 21

When Target had a data breach that resulted in the loss of the personal information of 40 million customers, it ________.

A) postponed a campaign focused on Target's corporate citizenship
B) refunded purchases to customers made during a two-week period
C) sent all customers a gift card to Target stores
D) hid the information from its customers
E) fired the employee who caused the data breach.

Question 22

What is one of the four elements of the process cycle for customer relationship management?

A) customer interaction
B) customer loyalty
C) customer satisfaction
D) customer support
E) customer profitability

Question 23

In the CRM process cycle, ________ is the process of analyzing the customer information acquired through various customer touchpoints.

A) analysis and refinement
B) supplier interface
C) customer interaction
D) marketing planning
E) knowledge discovery

Question 24

Customer satisfaction is defined as ________.

A) the degree to which an individual will resist switching from one offering to another
B) the level at which the offering meets or exceeds a customer's expectations
C) retaining satisfied and loyal profitable customers and channels
D) increasing the likelihood that a customer becomes a buzz marketer
E) the number of purchases in a defined period of time

Question 25

The Juice and Java company uses information from customers who write on its Twitter feed about its products. This is an example of a(n) ________ touchpoint.

A) interactive
B) direct interface
C) noninteractive
D) personal
E) nonpersonal

Question 26

Redefining the selling role within the firm to focus on customer business consultation and solutions is one way that CRM ________.

A) increases profits for the firm
B) keeps its costs down
C) increases the formalization of customer analysis processes
D) maintains customer loyalty
E) facilitates a customer-centric culture

Question 27

The expectation is that ROMI and other metrics of marketing performance will begin to decrease in use, as firms attempt to better quantify marketing's contribution to various dimensions of organizational success.

Question 28

Which of the following major objectives of customer relationship management relates to increased individual customer margins, while offering the right products at the right time?

A) customer retention
B) customer service
C) customer acquisition
D) customer profitability
E) customer loyalty

Question 29

When Lucifer joined his company as CEO, he instituted an organization-wide focus on understanding the requirements of customers, making sure that everyone in the organization understood the customer marketplace. Lucifer was practicing ________.

A) a customer orientation
B) an organizational reorganization
C) a product reflow
D) a human resources policy
E) a culture modification

Question 30

The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.

A) analysis and refinement
B) supplier interface
C) marketing planning
D) knowledge discovery
E) customer interaction

Question 31

Customer relationship management (CRM) is considered critical largely because of ________.

A) internal pressure by employees
B) external pressure by suppliers and vendors
C) competitive pressures in the marketplace
D) increasing demand by customers
E) revised government regulations

Question 32

One potential pitfall of using a dashboard approach to marketing metrics is not insuring that senior management believe in and understand the dashboard.

Question 33

Ichiro is a marketing manager at a consumer products company. Ichiro's company has started selling consumer information to other sources without informing its customers that it is doing so. This is referred to as the ________ of CRM.

A) added benefit
B) dark side
C) unintended consequence
D) evolution
E) legal loophole

Question 34

Which phase of the process cycle for customer relationship management represents the actual implementation of the customer strategies and programs?

A) analysis and refinement
B) supplier interface
C) customer interaction
D) knowledge discovery
E) marketing planning

Question 35

To maximize the use of touchpoints, a firm needs to do all of the following EXCEPT________.

A) identify all potential touchpoints
B) inform customers that you will be using their information
C) develop objectives for what to collect at each touchpoint
D) determine how information will be collected
E) develop policies on how the information will be accessed and used

Question 36

What is one of the three major objectives of customer relationship management?

A) customer satisfaction
B) customer service
C) customer loyalty
D) customer engagement
E) customer acquisition

Question 37

________ means that structure, processes and tools, and managerial knowledge and commitment are formally established in support of the culture.

A) Reliability
B) Formalization
C) Trust
D) Interactivity
E) Accommodation

Question 38

Customer loyalty is defined as ________.

A) retention of satisfied and loyal profitable customers and channels
B) the degree to which an individual will resist switching from one offering to another
C) the total number of customers who purchase a product
D) increased individual customer margins, while offering the right products at the right time
E) the likelihood that a customer becomes a buzz marketer

Question 39

Return on marketing investment (ROMI) looks at marketing as an investment, not an expense.

Question 40

Customer touch points and data mining are related to which element of the process cycle for customer relationship management?

A) analysis and refinement
B) supplier interface
C) customer interaction
D) knowledge discovery
E) marketing planning

Question 41

________ refers to the ever-increasing quantity and complexity of data that is continuously being produced by various technological sources.

A) Little data
B) Data mining
C) Big Data
D) A database
E) Information overload

Question 42

When you complete a form online with your name, address, and credit card information in order to make a purchase, you are giving the company ________ data that can populate a relational database or spreadsheet.

A) unsecured
B) abstract
C) structured
D) unstructured
E) soft

Question 43

A(n) ________ is a person's belief that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job.

A) personal values system
B) organizational buy-in
C) consumer practice
D) work philosophy
E) customer mind-set

Question 44

The use of ________ at an early stage in a customer's exploration of an e-commerce website can provide insight into the state of his or her intentions.

A) web logs
B) social media
C) competitive surfing
D) phishing
E) clickstream data

Question 45

The CFO of BakersMark wasn't sure about using Big Data, and he couldn't justify the expense for collecting and storing it. In this case, he was concerned about the ________ of Big Data.

A) volume
B) velocity
C) variety
D) veracity
E) value

Question 46

Tamra was so upset about how she was treated when she went on the Eiffel Tower tour that she recorded a video rant and posted it on YouTube. This is an example of ________ data.

A) unsecured
B) abstract
C) structured
D) unstructured
E) soft

Question 47

________ is a major source of data generation that will continue to grow in importance as more people rely on the Internet.

A) Face-to-face research
B) Mail surveys
C) Focus groups
D) Web-related activity
E) Observation

Question 48

________ relates to the frequency at which data is generated over time and the speed at which it can and should be analyzed and used.

A) Volume
B) Velocity
C) Variety
D) Veracity
E) Value

Question 49

________ data contains some elements of structure that make it easier for machines to understand its organization, but still contains parts that do not possess an appropriate level of structure to make them readily analyzable by automated means for knowledge creation.

A) Unsecured
B) Semi-structured
C) Unstructured
D) Soft
E) Abstract

Question 50

Fred has a sales meeting coming up and he needs to know sales figures by product and by region as quickly as possible so he can direct his managers on their presentations. Fred needs the ________ characteristic of Big Data.

A) volume
B) velocity
C) variety
D) veracity
E) value

Question 51

Bjorn felt that the focus groups did not give him enough quantitative information to make a decision, so he directed his managers to conduct surveys online and look for secondary research. Which characteristic of Big Data is Bjorn trying to achieve?

A) volume
B) velocity
C) variety
D) veracity
E) value

Question 52

When Keung received the report from the interns who conducted surveys in the mall, he was concerned that they were not properly trained because the data did not match any of his other research. Keung was primarily concerned with the ________ of the data.

A) volume
B) velocity
C) variety
D) veracity
E) value

Question 53

After staying in a boutique hotel in Chicago, Marissa posted a picture on her Facebook feed and described how fabulous it was. This kind of information is considered ________ data.

A) unsecured
B) abstract
C) structured
D) unstructured
E) soft

Question 54

Which of the six key sources of Big Data is being used when a company collects Big Data on customers in order to sell it to other organizations?

A) data from business systems
B) data from Internet-connected devices
C) data from mobile apps
D) data from commercial entities
E) data from government agencies

Question 55

________ relates to the different types of data, including text, video, images, and audio, to name a few types.

A) Volume
B) Velocity
C) Variety
D) Veracity
E) Value

Question 56

________ relates to the reliability and validity of the data.

A) Volume
B) Velocity
C) Variety
D) Veracity
E) Value

Question 57

Mr. Evans is a fan of using Big Data because of its ability to generate a large amount of data that can be organized and quantified. Mr. Evans likes the ________ characteristic of Big Data.

A) volume
B) velocity
C) variety
D) veracity
E) value

Question 58

________ data refers to data that is generated in such a way that a logical organization is imposed on it during its generation, thus enabling it to be more readily analyzable for knowledge creation.

A) Big
B) Abstract
C) Structured
D) Unstructured
E) Concrete

Question 59

Big Data from ________, such as Cartwheel from Target, can be used to assist customers in finding in-store deals and provides opportunities for retailers to maximize the value of in-store shopping experiences.

A) business systems
B) Internet-connected devices
C) mobile apps
D) commercial entities
E) government agencies

Question 60

________ relates to the amount of data produced, which is generally measured in bytes, given the digital media in which data is most commonly stored.

A) Volume
B) Velocity
C) Variety
D) Veracity
E) Value

Question 61

The marketing ________ is a comprehensive system providing managers with up-to-the-minute information, including data such as actual sales versus forecast and progress on marketing plan objectives.

A) accelerator
B) matrix
C) dashboard
D) equation
E) strategy

Question 62

An approach using ________ analytics involves determining the optimal level of marketing-relevant factors for a specific context by considering how adjusting their levels in varying ways will impact different marketing outcomes.

A) descriptive
B) predictive
C) prescriptive
D) diagnostic
E) determinant

Question 63

There are times when marketers forget that marketing is not just a department, and they fail to market the dashboard to ________.

A) customers
B) suppliers
C) key stakeholders
D) the accounting group
E) the finance group

Question 64

Two primary goals of any dashboard are diagnostic insight and ________.

A) intuitive insight
B) intuitive focus
C) predictive foresight
D) assuming results
E) dictating goals

Question 65

Taking a dashboard approach to marketing metrics goes a long way toward enabling successful marketing planning. However, several potential pitfalls exist in its execution, such as ________.

A) very little reliance on "inside-out" measurement
B) too few tactical metrics
C) forgetting to market the dashboard internally
D) not utilizing the approach to create marketing plans
E) too much strategic insight

Question 66

A marketing dashboard uses graphical representations of crucial metrics in ways that begin to show, often for the first time, the direct, understandable links between marketing initiatives and ________.

A) stock prices
B) the number of employees
C) the number of products sold
D) financial results
E) other expenses

Question 67

In some cases, a marketing dashboard can overly rely on ________, putting the focus on what you already know.

A) inside-out measurement
B) external measurement
C) strategic insights
D) partial measurement
E) internal marketing

Question 68

Personalization can be achieved at three possible levels of granularity: individual, segment, and ________.

A) group
B) mass
C) customer
D) product
E) geographic

Question 69

Into the Abyss is an outdoor clothing company that is just starting to conduct analyses on new data. Which approach would be the appropriate first step before employing more complex analyses?

A) descriptive analytics
B) predictive analytics
C) prescriptive analytics
D) diagnostic analytics
E) determinant analytics

Question 70

To compete in today's market, how often should firms focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips?

A) at least each week
B) at least each month
C) at least once a month
D) at all times
E) at decision-making times

Question 71

One of the benefits of a marketing dashboard is that it fosters a(n) ________ organization that values fact-based, logical decision making.

A) informational
B) learning
C) quantitative behavioral
D) analyzing
E) evolving

Question 72

________ is an analytic method that predicts a customer's preferences for products or services based on the observed preferences of customers who are perceived to be similar.

A) Collaborative filtering
B) Attribution
C) Targeting
D) Content filtering
E) Content segmenting

Question 73

A dashboard creates transparency in marketing's goals, operations, and performance. This in turn ________.

A) leads to smaller marketing budgets
B) leads to animosity among departments
C) increases marketing's perceived credibility and trust by others
D) makes marketing less attractive to key decision makers
E) diminishes the alliances between marketing and the rest of the firm

Question 74

What type of marketing analytics is being used when data is used from likes for posts on Facebook?

A) Web analytics
B) social media analytics
C) retail analytics
D) CRM analytics
E) demographic analytics

Question 75

An approach using ________ analytics utilizes data to make predictions about future marketing outcomes of interest.

A) descriptive
B) predictive
C) prescriptive
D) diagnostic
E) determinant

Question 76

________ is an analytic method that identifies which products or services to recommend based on a determination of how similar a product or service seems to be to those that the customer has demonstrated a preference for in the past, or is currently considering.

A) Collaborative filtering
B) Attribution
C) Targeting
D) Content filtering
E) Content segmenting

Question 77

________ include a set of methods facilitated by technology that utilize individual-level and market-level data to identify and communicate meaningful patterns within the data for the purpose of improving marketing-related decisions.

A) Customer decision systems
B) Computer management systems
C) Marketing databases
D) Structured surveys
E) Marketing analytics

Question 78

A potential pitfall in marketing dashboards is that a company becomes too focused on tactical measures that may overshadow measures of ________.

A) immediacy
B) tenacity
C) locus of control
D) strategic insight
E) financial performance

Question 79

Kalea works for a large global corporation. Her job is to conduct market analyses and manage the computational costs associated with them. Kalea is MOST likely a(n) ________.

A) marketing manager
B) high-level executive
C) marketing analyst
D) financial manager
E) economist

Question 80

What is NOT an element of a great marketing dashboard?

A) earnings report
B) tools for customer insights
C) goals and objectives
D) predictive value
E) forecasting