Question 1

A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.
A) provide higher levels of customer service
B) develop deeper customer relationships
C) create offers tailored to meet specific customer requirements
D) understand the competition better
E) pinpoint high-value customers and cross-sell products

Accepted Answer

A successful CRM program is designed to help companies establish deeper relationships with customers, provide higher levels of customer service, create specialized offers, and identify high-value customers for cross-selling purposes. However, it is not intended to help the company understand the competition better. Understanding the competition is more closely associated with market research and intelligence.

Question 2

What is observational research and when is it used?

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Question 3

What type of research would be the most useful to determine if a 20-percent decrease in price for a high-end sedan would result in an increase in purchases sufficient to offset the reduced price? Why?

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Question 4

The fourth step in gathering insights into the marketplace and customers is ________.
A) assessing marketing information needs
B) developing marketing information
C) performing marketing research
D) analyzing and using marketing information
E) preparing reports for marketing management

Accepted Answer

Analyzing and using marketing information is the fourth step in the process of gathering insights, following the collection and development of marketing data and information.

Question 5

Briefly explain why marketers need marketing research in addition to competitive marketing intelligence.

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Question 6

What is the purpose of marketing analytics?
A) to obtain secondary data and integrate it with primary data
B) to gather and integrate data in a central, accessible location
C) to interpret the data obtained
D) to prevent the theft of customer data
E) to identify and discard outdated data

Accepted Answer

The purpose of marketing analytics is to interpret the data obtained, which involves analyzing and drawing insights from different data sources to improve marketing strategies and decision-making. The other options do not fully capture the primary purpose of marketing analytics.

Question 7

What are some of the limitations of observational research?

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Question 8

How do primary data differ from secondary data?

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Question 9

Ralph Goldsmith works for Zenith Inc., a leading cosmetic company based in Illinois. At Zenith, Ralph's primary responsibility revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes. This data is, in turn, used by Zenith to personalize its customers' shopping experiences. Ralph's position at Zenith requires him to focus primarily on ________.
A) customer sales
B) human resource management
C) risk assessment
D) financial analysis
E) customer relationship management

Accepted Answer

Ralph's primary responsibility at Zenith revolves around digging deeply into customer data to gain valuable insights about customer needs, motives, and attitudes, which in turn is used by Zenith to personalize its customers' shopping experiences. This indicates that Ralph's primary focus is on customer relationship management.

Question 10

Customer relationship management (CRM) helps ________.
A) firms monitor and minimize employee turnover
B) customers manage information about different sellers in the market
C) firms manage customer touch points to maximize customer loyalty
D) customers locate the best deals in the market
E) firms create artificial demand in the market

Accepted Answer

CRM helps firms manage customer touch points to maximize customer loyalty by understanding their needs and preferences, providing personalized experiences, and resolving complaints quickly and efficiently. It is focused on building long-term relationships with customers rather than creating artificial demand. Option A is incorrect as CRM does not directly impact employee turnover, and Option B and D are incorrect as CRM is not aimed at helping customers manage information or locate deals.

Question 11

For marketing information to have value, it must be available to decision makers. This may include non-routine information for special situations. Companies frequently use ________ in these instances.
A) e-mail messages
B) computer extranets
C) company intranet and internal CRM systems
D) scanned documents and faxes
E) video conferences

Accepted Answer

Company intranets and internal CRM systems allow for easy accessibility and sharing of non-routine marketing information among decision makers within a company. They also provide a secure platform for storing and organizing sensitive information.

Question 12

Customer relationship management integrates everything that a company's sales, service, and ________ teams know about individual customers.
A) management
B) marketing
C) manufacturing
D) engineering
E) accounting

Accepted Answer

Marketing teams play a crucial role in understanding customer behavior, preferences, and needs. They use this knowledge to devise targeted marketing strategies and campaigns focused on individual customers. By integrating marketing data with sales and service data, companies can create a comprehensive customer profile and offer personalized experiences that boost loyalty and retention.

Question 13

In CRM, ________ techniques are used to sort through data and locate useful findings about customers.
A) data warehousing
B) marketing analytics
C) niche marketing
D) data conservancy
E) mass marketing

Accepted Answer

Marketing analytics techniques are used in CRM to analyze and sort through data to find useful insights about customers. The other options, such as data warehousing, niche marketing, data conservancy, and mass marketing, are not directly related to the task of analyzing customer data in CRM.

Question 14

Compare and contrast closed-ended questions and open-ended questions for gathering data.

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Question 15

Why is it important for managers to define the problem and establish research objectives?

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Question 16

What is experimental research and when is it used?

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Question 17

Which of the following is true about customer relationship management (CRM)?
A) Data mining has limited applicability in CRM activities.
B) Sophisticated analytical tools are sparingly used in CRM activities.
C) CRM reduces the number of customer touch points.
D) CRM aims to maximize customer loyalty.
E) CRM enables firms to compare various product and service categories.

Accepted Answer

CRM aims to maximize customer loyalty by providing personalized and efficient services to the customers, thus increasing their satisfaction levels and strengthening their relationship with the company. Data mining and sophisticated analytical tools are extensively used in CRM activities to identify customer needs and preferences and to create targeted marketing campaigns. CRM also increases the number of customer touchpoints, allowing companies to communicate with their customers through multiple channels and capture feedback at different stages of the customer journey. While CRM may allow comparison of different product and service categories, this is not its primary focus.

Question 18

List two benefits of using secondary data.

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Question 19

How can researchers and managers arrive at the best interpretation of research findings?

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Question 20

Customer information is often buried deep in separate databases and records of different company departments. To overcome such problems, many companies are now turning to ________ to manage detailed information about individual customers.
A) neuromarketing
B) customer needs marketing
C) customer relationship management
D) ethnographic research
E) netnography research

Accepted Answer

Customer relationship management (CRM) systems are specifically designed to manage detailed information about individual customers by consolidating data from different company departments into one central database. This enables companies to better understand and serve their customers, and ultimately improves their profitability. Neuromarketing, customer needs marketing, ethnographic research, and netnography research all involve different methodologies for understanding customers, but they are not specifically designed to manage customer data in the way that CRM systems are.

Quiz 4: Managing Marketing Information to Gain Customer Insights

A successful CRM program is expected to help a company achieve all of the following EXCEPT ________.

What is observational research and when is it used?

What type of research would be the most useful to determine if a 20-percent decrease in price for a high-end sedan would result in an increase in purchases sufficient to offset the reduced price? Why?

The fourth step in gathering insights into the marketplace and customers is ________.

Briefly explain why marketers need marketing research in addition to competitive marketing intelligence.

What is the purpose of marketing analytics?

What are some of the limitations of observational research?

How do primary data differ from secondary data?

Customer relationship management (CRM) helps ________.

For marketing information to have value, it must be available to decision makers. This may include non-routine information for special situations. Companies frequently use ________ in these instances.

Customer relationship management integrates everything that a company's sales, service, and ________ teams know about individual customers.

In CRM, ________ techniques are used to sort through data and locate useful findings about customers.

Compare and contrast closed-ended questions and open-ended questions for gathering data.

Why is it important for managers to define the problem and establish research objectives?

What is experimental research and when is it used?

Which of the following is true about customer relationship management (CRM) ?

List two benefits of using secondary data.

How can researchers and managers arrive at the best interpretation of research findings?

Customer information is often buried deep in separate databases and records of different company departments. To overcome such problems, many companies are now turning to ________ to manage detailed information about individual customers.