Deck 18: Customer Relationship Management CRM
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Deck 18: Customer Relationship Management CRM
1
Which of the following statements about the CRM cycle is true?
A) The letters CRM are an acronym for consumer relationship marketing.
B) The CRM cycle does not affect employees outside the marketing and management functional areas.
C) The CRM cycle takes a simplistic perspective on customers.
D) The CRM cycle is continuous and circular with no predefined start or end point.
A) The letters CRM are an acronym for consumer relationship marketing.
B) The CRM cycle does not affect employees outside the marketing and management functional areas.
C) The CRM cycle takes a simplistic perspective on customers.
D) The CRM cycle is continuous and circular with no predefined start or end point.
D
2
According to the text,which of the following statements about a CRM system is true?
A) A company using a CRM system must view its customers as bits of data.
B) Due to privacy laws,a CRM system disseminates customer information only to those who are actually in day-to-day contact with customers.
C) A CRM system operates on the theory that all customers are equally important.
D) A critical component of a CRM system is the use of the appropriate technology to store and integrate customer data.
A) A company using a CRM system must view its customers as bits of data.
B) Due to privacy laws,a CRM system disseminates customer information only to those who are actually in day-to-day contact with customers.
C) A CRM system operates on the theory that all customers are equally important.
D) A critical component of a CRM system is the use of the appropriate technology to store and integrate customer data.
D
3
How can the success of CRM be directly measured?
A) by the increased revenue and profit levels of the firm
B) by the decrease in costs to acquire new business and retain existing business
C) by the effectiveness of the interaction between the customer and the firm
D) by the breadth and depth of the customer database
A) by the increased revenue and profit levels of the firm
B) by the decrease in costs to acquire new business and retain existing business
C) by the effectiveness of the interaction between the customer and the firm
D) by the breadth and depth of the customer database
C
4
What is a companywide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments?
A) customer relationship management
B) consumer relationship marketing
C) market aggregation
D) total quality management
A) customer relationship management
B) consumer relationship marketing
C) market aggregation
D) total quality management
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5
In a CRM environment,which of the following is defined as the informal process of collecting customer information through customer contacts and feedback on product performance?
A) learning
B) attitude adjustment
C) organizational perception
D) stimulus/response research
A) learning
B) attitude adjustment
C) organizational perception
D) stimulus/response research
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6
The difference between traditional marketing and customer relationship marketing can be compared to the difference between which of the following?
A) circles and squares
B) shooting a rifle and a shotgun
C) night and day
D) mice and elephants
A) circles and squares
B) shooting a rifle and a shotgun
C) night and day
D) mice and elephants
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7
Customer-centric is an internal management philosophy similar to which of the following?
A) the equity theory
B) utilitarianism
C) the marketing concept
D) consumerism
A) the equity theory
B) utilitarianism
C) the marketing concept
D) consumerism
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8
The guest at a Marriott stepped in a mud puddle on his way into the hotel.His pants were drenched,and he had planned to wear them to an important sales presentation in an hour.The hotel concierge saw the guest's unhappy face and asked if he could help.After learning of the problem,the concierge used his contacts to get a rush cleaning done by a local dry cleaner.Why was the concierge able to handle the situation in a matter that created customer satisfaction?
A) Marriott has a sales orientation.
B) Marriott uses interactive marketing.
C) Marriott empowers its employees.
D) Marriott uses knowledge management.
A) Marriott has a sales orientation.
B) Marriott uses interactive marketing.
C) Marriott empowers its employees.
D) Marriott uses knowledge management.
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9
What is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization?
A) information marketing
B) database marketing
C) learning
D) knowledge management
A) information marketing
B) database marketing
C) learning
D) knowledge management
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10
Which of the following BEST describes customer relationship management?
A) It organizes the company around functional departments.
B) It is often described as a closed-loop system.
C) It is a very simplistic method of encouraging customer satisfaction.
D) It involves only personnel in marketing and management departments.
A) It organizes the company around functional departments.
B) It is often described as a closed-loop system.
C) It is a very simplistic method of encouraging customer satisfaction.
D) It involves only personnel in marketing and management departments.
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11
What is the fundamental element of CRM systems used by the Bank of Montreal and Rogers as discussed in the text?
A) a reliance on marketing research to more precisely segment their target markets
B) a focus on one-to-one customer communication
C) a focus on capturing information on current and prospective customers
D) providing means for customers to communicate with the company
A) a reliance on marketing research to more precisely segment their target markets
B) a focus on one-to-one customer communication
C) a focus on capturing information on current and prospective customers
D) providing means for customers to communicate with the company
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12
Suppose a firm builds long-term relationships with clients by focusing on what satisfies and retains valuable clients.Which of the following BEST describes the firm?
A) market-oriented
B) supply-based
C) customer-centric
D) sales-oriented
A) market-oriented
B) supply-based
C) customer-centric
D) sales-oriented
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13
Suppose a company customizes its product offerings based on data generated through interaction between the customer and the company.What does the company have?
A) a supply-based focus
B) a demand-based focus
C) a sales orientation
D) a customer-centric focus
A) a supply-based focus
B) a demand-based focus
C) a sales orientation
D) a customer-centric focus
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14
According to the text,which of the following statements about touch points is true?
A) The marketing research department of a company with a CRM system is an example of an external touch point.
B) Data gathered at external touch points,once interpreted,provide information that affects internal touch points.
C) A customer request is an example of an external touch point.
D) A customer applying for a credit card is an example of an internal touch point.
A) The marketing research department of a company with a CRM system is an example of an external touch point.
B) Data gathered at external touch points,once interpreted,provide information that affects internal touch points.
C) A customer request is an example of an external touch point.
D) A customer applying for a credit card is an example of an internal touch point.
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15
To initiate the CRM cycle,what must a company first do?
A) acquire and capture customer data for product categories
B) establish customer relationships within the organization
C) establish marketing objectives
D) decide on a segmentation strategy
A) acquire and capture customer data for product categories
B) establish customer relationships within the organization
C) establish marketing objectives
D) decide on a segmentation strategy
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16
What is the point at which a customer and a company representative exchange information and develop learning relationships?
A) a social contact
B) an empowering moment
C) an interaction
D) an equilibrium point
A) a social contact
B) an empowering moment
C) an interaction
D) an equilibrium point
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17
Synavant is a pharmaceutical company in Toronto,Ontario.Its director of business development told a group of investors,"There is a single database repository in this company from which everybody can access data about a customer or potential customers." What is Synavant most likely using?
A) sales-oriented marketing
B) learned research
C) motivational research
D) knowledge management
A) sales-oriented marketing
B) learned research
C) motivational research
D) knowledge management
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18
By listening to customer feedback and informally gathering specific comments on benefits and features that the marketing department thought interested customers,the manufacturers of SUVs have made sure that every seat has at least one cup holder.What did the manufacturers of SUVs use?
A) perceptual application
B) knowledge management
C) database marketing
D) learning
A) perceptual application
B) knowledge management
C) database marketing
D) learning
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19
Which of the following refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers?
A) consumer learning
B) interaction
C) empowerment
D) customerization
A) consumer learning
B) interaction
C) empowerment
D) customerization
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20
The way to people's hearts may be through their stomachs,but the marketers at Kraft Foods have decided not to rely exclusively on that maxim to secure the long-term loyalty of the company's customers.They are also making new product developments through data generated from interaction between Kraft and its customers.Which of the following BEST describes Kraft Foods?
A) It has a customer-centric focus.
B) It is product-oriented.
C) It is sales-oriented.
D) It is ethnocentric.
A) It has a customer-centric focus.
B) It is product-oriented.
C) It is sales-oriented.
D) It is ethnocentric.
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21
According to the text,what does database enhancement refer to?
A) the acquisition of customer names,addresses,telephone numbers,and a complete transaction history with the company
B) the acquisition of demographic,lifestyle,or behavioural data.
C) the ability of a company to rapidly and economically scale up its database as it acquires larger numbers of customers.
D) the periodic upgrading of a firm's customer database capabilities.
A) the acquisition of customer names,addresses,telephone numbers,and a complete transaction history with the company
B) the acquisition of demographic,lifestyle,or behavioural data.
C) the ability of a company to rapidly and economically scale up its database as it acquires larger numbers of customers.
D) the periodic upgrading of a firm's customer database capabilities.
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22
What is the core of the data warehouse?
A) point-of-sale interactions
B) a compiled list
C) the database
D) transaction channels of communication
A) point-of-sale interactions
B) a compiled list
C) the database
D) transaction channels of communication
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23
What is the overlay of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of customers or prospects?
A) data mining
B) information formatting
C) predictive modelling
D) database enhancement
A) data mining
B) information formatting
C) predictive modelling
D) database enhancement
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24
When viewed as an interaction between the organization and the customer,a transaction can produce all of the following data EXCEPT which one?
A) average amount spent on purchases
B) name,address,and phone number
C) past purchase history
D) information about the customer's relationship with other customers
A) average amount spent on purchases
B) name,address,and phone number
C) past purchase history
D) information about the customer's relationship with other customers
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25
What do CRM systems use to enable individualized contact with customers?
A) customer feedback surveys
B) marketing research studies
C) technology that automates interactions
D) database sorting programs
A) customer feedback surveys
B) marketing research studies
C) technology that automates interactions
D) database sorting programs
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26
How should an organization view all transactions?
A) as deleterious to customer relationship management
B) as the opportunity to collect vast amounts of data about the customer
C) as simply a financial exchange
D) as the creation of customer-organization synergy
A) as deleterious to customer relationship management
B) as the opportunity to collect vast amounts of data about the customer
C) as simply a financial exchange
D) as the creation of customer-organization synergy
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27
The Shell Company offers a Shell MasterCard,which can be used anywhere an ordinary credit card can be used.Every time the credit card is used,the Shell Company gathers information about consumer buying habits.The Shell Company relies on which type of interactions to gather customer information?
A) store-based
B) customer-centric
C) transaction-based
D) retail-centric
A) store-based
B) customer-centric
C) transaction-based
D) retail-centric
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28
The traditional approach for acquiring data from customers is through which of the following?
A) media
B) personal selling
C) channel interactions
D) feedback mechanisms
A) media
B) personal selling
C) channel interactions
D) feedback mechanisms
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29
Which list generally includes names and addresses gleaned from directories or membership rosters?
A) actionable
B) response
C) aggregated
D) compiled
A) actionable
B) response
C) aggregated
D) compiled
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30
The executive vice-president of Hudson's Bay Company,the major retailer,said in an interview,"We have to be able to offer customers what they want when they want it.We need better insight into their spending-we have gaps in knowledge of how customers spend." Which type of interactions would provide the retail chain the best opportunity for learning about its customers?
A) technology-centric
B) relationship-based
C) sales-oriented
D) point of sale
A) technology-centric
B) relationship-based
C) sales-oriented
D) point of sale
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31
Andy recently purchased a new surge protector for his computer using a $20 rebate offer.He completed the rebate certificate and sent it to the manufacturer.The rebate certificate contained Andy's full name,his phone number,his address,and some purchase information.What has Andy most likely become part of?
A) the manufacturer's compiled list
B) the manufacturer's response list
C) the manufacturer's electronic cash list
D) the manufacturer's Internet research list
A) the manufacturer's compiled list
B) the manufacturer's response list
C) the manufacturer's electronic cash list
D) the manufacturer's Internet research list
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32
Lesley Owens has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about making scrapbooks.She wants to mail to those prospects with the highest probability of becoming subscribers.What should Owens use?
A) a data warehouse
B) a data mine
C) a response list
D) a management database
A) a data warehouse
B) a data mine
C) a response list
D) a management database
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33
In Canada,Kraft Foods has launched its website (www.kraftcanada.com)with enhanced content that provides "what we [Kraft Foods] knew our consumers were looking for,based on the information they had shared." What type of interactions is Kraft Foods using to send and receive communications from its customers?
A) Web-based
B) technology-centric
C) product-centric
D) transaction-based
A) Web-based
B) technology-centric
C) product-centric
D) transaction-based
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34
In a speech,David Poirier,executive VP,CIO of Hudson's Bay Company said,"We [Hudson's Bay Company] had all kinds of data in different places.We didn't have a single view of the customer until we focused on finding one method to manage relationships with our customers." What could Hudson's Bay use to profile customer segments for better CRM marketing efforts?
A) a data mart
B) a decision support system
C) a customer information system
D) a data warehouse
A) a data mart
B) a decision support system
C) a customer information system
D) a data warehouse
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35
What is essentially a very large,corporate-wide database,culled from a number of separate systems,such as billing,accounting,order fulfillment,distribution,customer service,and marketing and sales,already in place within an organization?
A) a decision support system
B) a customer information system
C) a data warehouse
D) a data cluster
A) a decision support system
B) a customer information system
C) a data warehouse
D) a data cluster
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36
Alexis is very interested in developing a mailing list of people who enjoy stenciling as a hobby.She has offered to purchase a list of the current members of the Stencil Artisans League.What is Alexis building?
A) an e-mail list
B) a predictive list
C) a response list
D) a compiled list
A) an e-mail list
B) a predictive list
C) a response list
D) a compiled list
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37
In a CRM system,what are those areas of the business where customer data are gathered and used to guide and direct the decision making within that business unit?
A) observational points
B) focus areas
C) data mining
D) touch points
A) observational points
B) focus areas
C) data mining
D) touch points
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38
"Lots of organizations have customer data,but not in a way that's useful," said a speaker at the Canadian Marketing Association's National Convention."Retailers have all kinds of data in different places-they didn't have a single view of the customer." The speaker is criticizing how retailers do NOT use which of the following?
A) information distribution centres
B) information extraction mines
C) data warehouses
D) marketing information systems
A) information distribution centres
B) information extraction mines
C) data warehouses
D) marketing information systems
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39
What is a central repository for data from various functional areas of the organization from which these data can be shared by all of the organization's departments?
A) an information intermediary
B) an information mine
C) an information extraction unit
D) a data warehouse
A) an information intermediary
B) an information mine
C) an information extraction unit
D) a data warehouse
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40
Which type of interactions occur when a customer buys a product with his or her credit card?
A) activity-based
B) transaction-based
C) retail-centric
D) relationship-based
A) activity-based
B) transaction-based
C) retail-centric
D) relationship-based
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41
Which of the following is the most useful in the identification of an organization's most profitable customers and prospects?
A) information searches
B) knowledge interpolation
C) a distribution intermediary
D) data mining
A) information searches
B) knowledge interpolation
C) a distribution intermediary
D) data mining
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42
Looking to build up its post-purchase relationships,General Motors recently launched a service whereby GM vehicle owners can sign up to get e-mail service reminders,access information about GM vehicles,and receive special promotions.What is General Motors using to enhance its customer relationships?
A) data mining
B) valence management
C) campaign management
D) modelling
A) data mining
B) valence management
C) campaign management
D) modelling
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43
Marketing to repeat customers is more profitable than marketing to first-time buyers according to the basic assumption of which of the following?
A) customer segmentation
B) lifetime value analysis
C) predictive modelling
D) customer valuation
A) customer segmentation
B) lifetime value analysis
C) predictive modelling
D) customer valuation
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44
When Ginnie phoned to place a catalogue order for a black wool blazer,she was pleased when the operator suggested that she might also be interested a black-and-white silk scarf that was on sale.The operator was using a method commonly used in one-to-one marketing.What is that method?
A) data mining
B) cross-selling
C) database enhancement
D) trading-up
A) data mining
B) cross-selling
C) database enhancement
D) trading-up
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45
A manufacturer of craft items used in home decorating could promote its stencil designs to subscribers of The Artistic Stenciler,the official magazine of the Stencil Artisans League.In this way,the manufacturer could use one-to-one marketing to do which of the following?
A) reinforce purchase decisions
B) induce product trial
C) cross-sell
D) reduce cognitive dissonance
A) reinforce purchase decisions
B) induce product trial
C) cross-sell
D) reduce cognitive dissonance
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46
What is the development of product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships?
A) transaction management
B) knowledge management
C) data mining
D) campaign management
A) transaction management
B) knowledge management
C) data mining
D) campaign management
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47
What was the technique used to suggest that the customer who wanted to buy the $29 shirt would also be a likely prospect for the cigar humidor?
A) recency-frequency-monetary analysis
B) predictive modelling
C) market aggregation
D) customer segmentation
A) recency-frequency-monetary analysis
B) predictive modelling
C) market aggregation
D) customer segmentation
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48
Which of the following uses independent and dependent variables to predict the likelihood that some occurrence,such as a response or purchase,will take place?
A) predictive modelling
B) causal research
C) data mining
D) lifetime value analysis
A) predictive modelling
B) causal research
C) data mining
D) lifetime value analysis
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49
Which of the following transforms customer data into customer information that a firm can use to make managerial decisions such as,"Who are our best customers and what actions can we take to keep them?"
A) marketing research
B) data mining
C) cost-benefit analysis
D) scanner-based data
A) marketing research
B) data mining
C) cost-benefit analysis
D) scanner-based data
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50
What is a data manipulation technique that projects the future value of a customer over time using the assumption that marketing to repeat customers is more profitable than marketing to first-time buyers?
A) LTV
B) RFM
C) data mining
D) predictive modelling
A) LTV
B) RFM
C) data mining
D) predictive modelling
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51
A catalogue retailer that sells fleece-lined outerwear knows its target market includes people who work outdoors year-round as well as people who engage in winter sports.The catalogue retailer could mail personalized catalogues to prospects who were subscribers to a journal for people actively involved in the lumber industry.In this way,the catalogue retailer could use one-to-one marketing to do which of the following?
A) reinforce purchase decisions
B) cross-sell
C) retain loyal customers
D) induce product trial
A) reinforce purchase decisions
B) cross-sell
C) retain loyal customers
D) induce product trial
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52
After Ruth and Mike had paid in advance for their week's stay at a country inn,Ruth felt like they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.How did the hospitality of the letter deal with Ruth's cognitive dissonance?
A) by cross-selling
B) by implementing a penetration strategy
C) by reinforcing her purchase decision
D) by disintermediation
A) by cross-selling
B) by implementing a penetration strategy
C) by reinforcing her purchase decision
D) by disintermediation
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53
Many high-end hotel chains award points for every dollar spent in one of their hotels.Customers who earn a high number of points are given special privileges that may include upgraded hotel rooms or several free nights.This application of one-to-one marketing is an example of which of the following?
A) designing targeted marketing communications
B) retaining loyal customers
C) cross-selling other products and services
D) reinforcing competitive promotional decisions
A) designing targeted marketing communications
B) retaining loyal customers
C) cross-selling other products and services
D) reinforcing competitive promotional decisions
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54
Which of the following is a data mining technique based on the notion that "birds of a feather flock together?"
A) patterning
B) lifetime transactional audit
C) actionable predicting
D) modelling
A) patterning
B) lifetime transactional audit
C) actionable predicting
D) modelling
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55
Ford Canada has turned to the Internet to help it stand apart from its competitors in the automotive industry.One Internet ad shows a Ford truck driving out of a forest with its engine roaring and mud splattering on the screen.The ad directed viewers to a site (www.ford.ca/builtfordtough)where they could sign up to receive direct mail from Ford.Ford Canada will combine this database with a database of new F-series truck owners to look for significant patterns and trends.What will Ford Canada use?
A) an information search system
B) data interpolation
C) data mining
D) data graphing
A) an information search system
B) data interpolation
C) data mining
D) data graphing
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56
Ford Motor Company has launched an on-line effort to market its F-Series trucks.It hopes to use its database capabilities to capture valuable data on car buyers.Ford plans on cross-referencing new F-series owners with the database generated from this on-line campaign to see how many names are duplicated.Ford will use these data to forecast which campaigns have the greatest probability of success.Which of the following methods will Ford most likely use to analyze these data?
A) recency-frequency-monetary analysis
B) reach-frequency-media analysis
C) predictive modelling
D) lifetime value analysis (LTV)
A) recency-frequency-monetary analysis
B) reach-frequency-media analysis
C) predictive modelling
D) lifetime value analysis (LTV)
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57
What would an on-line retailer use to discover that customers who purchase flannel sheets also had a high probability of purchasing all-natural Christmas wreaths if the opportunity were made available?
A) knowledge interpretation
B) information extraction
C) information search
D) data mining
A) knowledge interpretation
B) information extraction
C) information search
D) data mining
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58
What is the process of finding hidden patterns and relationships in the customer data stored in the data warehouse?
A) data feedback
B) information retrieval
C) data mining
D) information extraction
A) data feedback
B) information retrieval
C) data mining
D) information extraction
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59
Which of the following is simply the act of building a model in a situation where the answer is known and then applying the model in a situation where the answer is unknown?
A) consumer simulation
B) patterning
C) correlation analysis
D) modelling
A) consumer simulation
B) patterning
C) correlation analysis
D) modelling
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60
Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase in the last 90 days as well as how often that customer makes a purchase?
A) recency-frequency-monetary analysis
B) predictive modelling
C) customer valuation
D) data mining
A) recency-frequency-monetary analysis
B) predictive modelling
C) customer valuation
D) data mining
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61
Les Ailes de la Mode is a Quebec retail store that promotes the highest quality customer service.The company has established itself not only as a top retailer in the province,but also as a credit card and point program company,a cataloger,and even a publisher.It gathers customer information for its credit cards and point program through catalogue orders,and through subscriptions to its publications.
Refer to Les Ailes de la Mode.What has Les Ailes de la Mode created?
A) several different touch points
B) several different interrelationship promotions
C) several different focus areas
D) several different distribution channels
Refer to Les Ailes de la Mode.What has Les Ailes de la Mode created?
A) several different touch points
B) several different interrelationship promotions
C) several different focus areas
D) several different distribution channels
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62
In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.
Refer to Butterball Turkey.As more struggling chefs needed the information provided by the Butterball Turkey Talk-Line,Butterball added more employees.When many consumers expressed an inability to tell when the turkey was done,Butterball developed a pop-up signal that made it easy to tell when the turkey was cooked to perfection.When customers wanted more low-fat meat products,Butterball produced turkey luncheon meats and sausage.Butterball is definitely which of the following?
A) sales-oriented
B) product-oriented
C) customer-centric
D) production-oriented
Refer to Butterball Turkey.As more struggling chefs needed the information provided by the Butterball Turkey Talk-Line,Butterball added more employees.When many consumers expressed an inability to tell when the turkey was done,Butterball developed a pop-up signal that made it easy to tell when the turkey was cooked to perfection.When customers wanted more low-fat meat products,Butterball produced turkey luncheon meats and sausage.Butterball is definitely which of the following?
A) sales-oriented
B) product-oriented
C) customer-centric
D) production-oriented
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63
Subaru Canada added an outdoor life section to its website that is organized by area of interest to target outdoor enthusiasts.The site will serve as a platform for co-marketing and promotional programs.
Refer to Subaru.The site will serve as a platform for co-marketing and promotional programs,and will allow Subaru to gather most overt and covert information.Which of the following provides the most likely reason that Subaru has added this section to its site?
A) to lessen the importance of customer service
B) to design more targeted marketing communications
C) to reduce problems associated with cultural diversity
D) to increase the effectiveness of its channels of distribution
Refer to Subaru.The site will serve as a platform for co-marketing and promotional programs,and will allow Subaru to gather most overt and covert information.Which of the following provides the most likely reason that Subaru has added this section to its site?
A) to lessen the importance of customer service
B) to design more targeted marketing communications
C) to reduce problems associated with cultural diversity
D) to increase the effectiveness of its channels of distribution
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64
Why does CRM concern some Canadians?
A) the large number of people who must be served
B) not all customers have access to CRM marketing
C) invasion-of-privacy issues
D) the expense to consumers
A) the large number of people who must be served
B) not all customers have access to CRM marketing
C) invasion-of-privacy issues
D) the expense to consumers
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65
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
Refer to Blood Services.What type of list of donors did the organization develop to receive birthday cards?
A) feedback
B) proactive
C) response
D) compiled
Refer to Blood Services.What type of list of donors did the organization develop to receive birthday cards?
A) feedback
B) proactive
C) response
D) compiled
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66
In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.
Refer to Butterball Turkey.To centralize and share the vast amount of customer information that its staff gathered through its years of interaction with customers,what would Butterball use?
A) knowledge management
B) customer empowerment
C) cognitive learning
D) the marketing concept
Refer to Butterball Turkey.To centralize and share the vast amount of customer information that its staff gathered through its years of interaction with customers,what would Butterball use?
A) knowledge management
B) customer empowerment
C) cognitive learning
D) the marketing concept
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67
Organizations in Canada must follow rules that are designed to protect the personal information of both their clients and their employees.Where are these rules contained?
A) the PIPED Act
B) the Competition Act
C) the Consumer Protection Act
D) the Fair Trade Practices Act
A) the PIPED Act
B) the Competition Act
C) the Consumer Protection Act
D) the Fair Trade Practices Act
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68
According to the text,which statement is true about Canadian privacy legislation?
A) Canada's privacy laws enable customers the right to request copies of any files a firm keeps on their personal data.
B) PIPEDA states that customers must sign an "opt-in" agreement before a firm can do whatever it wishes with the customer data.
C) Since PIPEDA has come into effect in 2004,the majority of malls and mid-size business have initiated programs of privacy compliance.
D) Marketers that rely on third-party CRM-specialist firms to assist them with their customer database management will expose the third-party firm to potential lawsuits for privacy violation unless the third-party firm approaches the customers.
A) Canada's privacy laws enable customers the right to request copies of any files a firm keeps on their personal data.
B) PIPEDA states that customers must sign an "opt-in" agreement before a firm can do whatever it wishes with the customer data.
C) Since PIPEDA has come into effect in 2004,the majority of malls and mid-size business have initiated programs of privacy compliance.
D) Marketers that rely on third-party CRM-specialist firms to assist them with their customer database management will expose the third-party firm to potential lawsuits for privacy violation unless the third-party firm approaches the customers.
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69
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
Refer to Blood Services.What technique did the organization use to access donor information?
A) niche marketing
B) data mining
C) predictive modelling
D) customer segmentation
Refer to Blood Services.What technique did the organization use to access donor information?
A) niche marketing
B) data mining
C) predictive modelling
D) customer segmentation
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70
In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.
Refer to Butterball Turkey.By having the customers initiate the communication with Butterball and developing learning relationships between the company and its customers,what was Butterball establishing?
A) a flat span of management
B) a stable organizational culture
C) motivation for obsolescence
D) interactions
Refer to Butterball Turkey.By having the customers initiate the communication with Butterball and developing learning relationships between the company and its customers,what was Butterball establishing?
A) a flat span of management
B) a stable organizational culture
C) motivation for obsolescence
D) interactions
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71
Subaru Canada added an outdoor life section to its website that is organized by area of interest to target outdoor enthusiasts.The site will serve as a platform for co-marketing and promotional programs.
Refer to Subaru.This offering of customized product offerings to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of which of the following?
A) transaction segmentation
B) data mining
C) campaign management
D) knowledge management
Refer to Subaru.This offering of customized product offerings to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of which of the following?
A) transaction segmentation
B) data mining
C) campaign management
D) knowledge management
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72
In customer relationship management,what is a marketing channel?
A) the structure that moves products from producer to ultimate consumer
B) the method used to facilitate all communications
C) the link between the retailer and the consumer
D) the direct link to the ultimate consumer from the manufacturer
A) the structure that moves products from producer to ultimate consumer
B) the method used to facilitate all communications
C) the link between the retailer and the consumer
D) the direct link to the ultimate consumer from the manufacturer
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73
In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.
Refer to Butterball Turkey.What are Butterball's touch points?
A) its emotional-appeal commercials
B) its human resources department
C) its new product innovations
D) its help line and its website
Refer to Butterball Turkey.What are Butterball's touch points?
A) its emotional-appeal commercials
B) its human resources department
C) its new product innovations
D) its help line and its website
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74
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
Refer to Blood Services.What did the organization use CRM marketing to do?
A) define customer service
B) increase effectiveness of distribution strategy
C) design targeted marketing communications
D) cross-sell other products
Refer to Blood Services.What did the organization use CRM marketing to do?
A) define customer service
B) increase effectiveness of distribution strategy
C) design targeted marketing communications
D) cross-sell other products
Unlock Deck
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75
In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer websites,complete with turkey preparation tips and favourite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.
Refer to Butterball Turkey.Butterball's commitment to providing premium products and renowned customer service indicates a commitment to which of the following?
A) consumer relationship marketing
B) consumer replacement market
C) customer relations mapping
D) customer relationship management
Refer to Butterball Turkey.Butterball's commitment to providing premium products and renowned customer service indicates a commitment to which of the following?
A) consumer relationship marketing
B) consumer replacement market
C) customer relations mapping
D) customer relationship management
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76
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
Refer to Blood Services.The card sent by the organization is an example of which of the following?
A) a service message
B) a touch point
C) transformational exchange
D) a predictive campaign
Refer to Blood Services.The card sent by the organization is an example of which of the following?
A) a service message
B) a touch point
C) transformational exchange
D) a predictive campaign
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77
Volvo has a concept car website that caters to car enthusiasts who might want to see concept cars evolve into real-life products.A "Forum" section allows people to submit opinions and questions-enabling Volvo to gauge consumer reaction to new ideas.
Refer to Volvo.What type of interactions is Volvo using to send and receive communications from consumers?
A) relationship-based
B) technology-centric
C) Web-based
D) product-centric
Refer to Volvo.What type of interactions is Volvo using to send and receive communications from consumers?
A) relationship-based
B) technology-centric
C) Web-based
D) product-centric
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78
Les Ailes de la Mode is a Quebec retail store that promotes the highest quality customer service.The company has established itself not only as a top retailer in the province,but also as a credit card and point program company,a cataloger,and even a publisher.It gathers customer information for its credit cards and point program through catalogue orders,and through subscriptions to its publications.
Refer to Les Ailes de la Mode.The company promotes its service by maintaining the importance at the point at which the customer and store personnel exchange information and develop learning relationships.What is being described?
A) the transactional dyad
B) an interaction
C) knowledge analysis
D) an empowerment moment
Refer to Les Ailes de la Mode.The company promotes its service by maintaining the importance at the point at which the customer and store personnel exchange information and develop learning relationships.What is being described?
A) the transactional dyad
B) an interaction
C) knowledge analysis
D) an empowerment moment
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79
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Canadian Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
Refer to Blood Services.Where is the information about past donors stored?
A) in the organization's data mine
B) in the organization's database
C) in the organization's information repository
D) in the organization's spreadsheet
Refer to Blood Services.Where is the information about past donors stored?
A) in the organization's data mine
B) in the organization's database
C) in the organization's information repository
D) in the organization's spreadsheet
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80
Volvo has a concept car website that caters to car enthusiasts who might want to see concept cars evolve into real-life products.A "Forum" section allows people to submit opinions and questions-enabling Volvo to gauge consumer reaction to new ideas.
Refer to Volvo.What does CRM give Volvo the opportunity to do?
A) retain loyal customers
B) enhance its database
C) reinforce customer purchase decisions
D) design targeted marketing communications
Refer to Volvo.What does CRM give Volvo the opportunity to do?
A) retain loyal customers
B) enhance its database
C) reinforce customer purchase decisions
D) design targeted marketing communications
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