Question 1

Initial CRM support efforts should be made using the website because the web developers have the most customer contact.

Accepted Answer

CRM support should be handled by customer support or sales teams, rather than web developers. While web developers may have insight into website functionality and user experience, they are not necessarily trained in providing customer support or handling CRM issues.

Question 2

The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large firms.

Accepted Answer

One-on-one contact with customers has historically been a strength of small businesses and has been harder for larger firms to replicate. However, with advancements in technology and personalized marketing strategies, larger firms have been able to establish stronger one-on-one relationships with their customers.

Question 3

Customer relationship management means different things to different businesses.

Accepted Answer

Customer relationship management (CRM) is a strategy and approach that varies depending on the business and industry. Each business may have different goals and objectives when it comes to managing relationships with their customers. Therefore, CRM means different things to different businesses.

Question 4

Evoked sets are features or characteristics of products or services that are used to compare brands.

Accepted Answer

Evoked sets refer to a group of relevant brands that a consumer considers when making a purchase decision, not the features or characteristics used to compare brands.

Question 5

Customer service issues are always identified through a formal review process within a small firm.

Accepted Answer

Customer service issues may not always be identified through a formal review process within a small firm, as some issues may be brought to the attention of management through customer complaints or feedback without going through a formal review.

Question 6

A consumer's recognition of a problem can be characterized as routine if the problem evolves over time.

Accepted Answer

A routine problem is one that a consumer can easily recognize and solve without much effort or consideration. If the problem evolves over time, it may become more complex and require more attention from the consumer, making it less routine.

Question 7

Addressing a customer by name typically means very little to them.

Accepted Answer

Addressing a customer by name can significantly enhance the customer experience by making interactions feel more personal and valued, which can lead to increased customer satisfaction and loyalty.

Question 8

Small businesses must strive to understand post-purchase dissonance among their customers and to manage it effectively.

Accepted Answer

Understanding and managing post-purchase dissonance is crucial for small businesses as it can affect customer satisfaction and loyalty.

Question 9

Only three classes of needs-social, psychological, and spiritual-can be connected to behavior through motivations.

Accepted Answer

Abraham Maslow's hierarchy of needs, a widely recognized theory, outlines five classes of needs: physiological, safety, love/belonging (social), esteem, and self-actualization, which are connected to behavior through motivations.

Question 10

Post-purchase dissonance and consumer complaints are both directly related to customer satisfaction.

Accepted Answer

Post-purchase dissonance refers to the discomfort or uncertainty a consumer feels after making a purchase decision. When consumers experience post-purchase dissonance, they may express dissatisfaction or complaints about their purchase. Therefore, post-purchase dissonance and consumer complaints are both indicators of low customer satisfaction.

Question 11

In the information search and evaluation stage, the firm's principal objective is to gain market awareness.

Accepted Answer

In the information search and evaluation stage, the firm's principal objective is to gather and evaluate information about potential markets, customers, and competitors in order to gain market awareness and inform their marketing strategy.

Question 12

There must be a company-wide commitment to CRM concept if CRM is to be productive.

Accepted Answer

CRM (Customer Relationship Management) cannot be successful if it is only implemented in certain departments or sections of a company. There must be a company-wide commitment to the CRM concept, with everyone understanding the importance of the customer and their needs, in order for it to be productive.

Question 13

It is important to keep in touch with a customer and make a sales pitch each time.

Accepted Answer

It is not necessary to make a sales pitch each time you keep in touch with a customer. Building a relationship and providing helpful information can also be effective in retaining customers and making future sales. It is important to strike a balance between staying top of mind and not being too pushy or invasive.

Question 14

Consumer needs can be completely satisfied by proper customer relationship management.

Accepted Answer

While proper customer relationship management can significantly enhance satisfaction by addressing and anticipating consumer needs, it cannot completely satisfy all consumer needs due to the dynamic nature of these needs and external factors beyond the control of customer relationship management.

Question 15

Regardless of the nature of the business, small firms can gain a competitive edge by providing exceptional customer service.

Accepted Answer

Providing exceptional customer service can help small firms stand out from larger competitors and build customer loyalty. This can ultimately lead to increased sales and a stronger reputation in the marketplace.

Question 16

A transactional relationship is an association between a business and a customer that begins or ends with a purchase or a business exchange.

Accepted Answer

A transactional relationship only involves a business and customer engaging in a purchase or exchange, nothing more.

Question 17

Lack of internal expertise is a major justification for using outside CRM services.

Accepted Answer

Many companies may not have the internal expertise or resources to effectively implement and manage a CRM system, so outsourcing to a third-party provider is a common solution.

Question 18

An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem.

Accepted Answer

This is the definition of an evoked set.

Question 19

Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers have satisfied their needs.

Accepted Answer

Post-purchase dissonance is actually related to customer satisfaction. It occurs when customers feel uncertainty or doubt about whether they made the right choice or not, which can lead to decreased satisfaction with their purchase.

Question 20

In some situations, a small business owner will have to influence need recognition; in others, he or she may simply be able to react to needs that consumers have identified on their own.

Accepted Answer

It is true that in some situations, small business owners may have to influence need recognition, but in others, they may be able to react to needs that consumers have already identified on their own. This depends on the specific circumstances and the type of product or service being offered.

Quiz 14: Building Customer Relationships