Question 1

The difference between viral marketing and buzz marketing is that buzz marketing is orchestrated on a more formal basis by influencers that disseminate their positive experience with the product or company.

Accepted Answer

Buzz marketing relies on the power of one-on-one personal messages more than viral marketing, which spreads more organically and rapidly, often through social media. Buzz marketing often involves influencers and is more controlled and planned by the company.

Question 2

Buyer-seller relationships between companies involve working together to provide advantages that benefit both parties.

Accepted Answer

Buyer-seller relationships are typically based on mutual benefits and advantages for both companies involved. As such, it is true that working together can lead to advantages that benefit both parties.

Question 3

Application service providers (ASPs) monitor the activities of marketers in capturing, manipulating, and analyzing masses of consumer data so that the privacy of the data providers is not compromised.

Accepted Answer

Application Service Providers (ASPs) offer software-based services and solutions to customers over a network, focusing on delivering applications and services rather than monitoring the activities of marketers or ensuring the privacy of consumer data.

Question 4

Interactive television devices are having difficulty tracking viewer habits because the shows are not watched at the time of original broadcast.

Accepted Answer

The answer of Interactive television devices are having difficulty tracking...

Question 5

Marketers can use grassroots marketing approach to develop long-lasting, individual relationships with loyal customers.

Accepted Answer

Grassroots marketing is all about connecting with individual customers on a personal level, and building long-lasting relationships with them. This approach emphasizes building trust and brand loyalty through genuine interactions with customers, rather than relying solely on traditional advertising methods. As a result, grassroots marketing can be a particularly effective strategy for developing strong, loyal customer bases over time.

Question 6

It is NOT unreasonable to think that in the future radio frequency identification (RFID) technology will allow retailers to tag individual store items in order to gather information about the purchaser.

Accepted Answer

RFID technology can be used to track individual items and gather data, which could potentially include information about the purchaser, although privacy concerns would need to be addressed.

Question 7

One common characteristic of grassroots marketing is the nontraditional approach.

Accepted Answer

Grassroots marketing typically involves nontraditional strategies that rely on creativity and direct contact with a target audience, rather than mainstream, large-scale advertising campaigns.

Question 8

The use of customer relationship management (CRM) is limited to large organizations with vast financial resources.

Accepted Answer

CRM systems are available in various sizes and price points, making them accessible to businesses of all sizes, including small and medium-sized enterprises (SMEs).

Question 9

Customer relationship management leverages technology to integrate all stakeholders into a company's product design and development, manufacturing, marketing, sales, and customer service processes.

Accepted Answer

The answer of Customer relationship management leverages technology to integrate...

Question 10

The cost of acquiring a new customer is equivalent to that of retaining a loyal customer.

Accepted Answer

It is typically more expensive to acquire a new customer than to retain an existing one. Retaining loyal customers can actually be more cost-efficient in the long run as they are likely to make repeat purchases and potentially bring in new customers through referrals.

Question 11

Along with the advances in technology and increased use of data gathering of consumer information come privacy concerns.

Accepted Answer

Advances in technology and the increased use of data gathering methods have indeed raised concerns about consumer privacy, as more personal information is collected, stored, and potentially shared or sold without explicit consent.

Question 12

Application service providers (ASPs) assist marketers by providing software when it is needed to capture, manipulate, and analyze masses of consumer data.

Accepted Answer

ASPs provide on-demand software solutions to help with data management and analysis for marketers.

Question 13

An important part of an effective customer relationship management (CRM) strategy is the process of re-establishing lost relationships with customers.

Accepted Answer

Re-establishing lost relationships with customers is crucial in CRM strategies as it helps regain trust, understand customer churn reasons, and potentially increases loyalty and revenue by bringing back former customers.

Question 14

Effective customer relationship management depends on cross-disciplinary teams that work together to solve customer problems.

Accepted Answer

Effective customer relationship management often involves cross-disciplinary teams because it allows for a comprehensive approach to solving customer problems, leveraging diverse expertise and perspectives.

Question 15

Customer relationship management (CRM) requires a top-down commitment to succeed and must penetrate every aspect of a firm's business.

Accepted Answer

CRM is not just a software system, it's a strategy that must be adopted and integrated into every department of an organization in order to truly improve customer relationships and overall business performance. This requires a top-down commitment and effort from every level of the organization.

Question 16

Word-of-mouth advertising via technological devices is referred to as viral marketing.

Accepted Answer

Viral marketing refers to a strategy that encourages individuals to share a marketing message through technological devices and social networks, spreading information about a product or service rapidly, much like a virus.

Question 17

Businesses create partnerships for a variety of reasons that might include market expansion domestically or internationally, product expansion or innovation, and economies of scale.

Accepted Answer

Businesses often form partnerships to leverage complementary strengths, allowing them to expand into new markets, innovate products, and achieve economies of scale by sharing resources and costs.

Question 18

The job of application service providers is to assist marketers in turning the data into meaningful information.

Accepted Answer

Application service providers assist marketers in turning data into meaningful information by providing tools and services that help marketers collect, analyze, and interpret data.

Question 19

Successful customer relationship management systems are process driven. The firm's goals and objectives become secondary to the operation of the system.

Accepted Answer

Successful customer relationship management (CRM) systems are designed to align with and support a firm's goals and objectives, not to make these goals secondary. The primary purpose of a CRM system is to enhance customer relationships in a way that supports the firm's overall strategy and objectives.

Question 20

Customer relationship management (CRM) is the combination of strategies and technologies that empowers relationship programs.

Accepted Answer

CRM involves the use of strategies, practices, and technologies to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving customer service relationships and assisting in customer retention and sales growth.

Quiz 17: Relationship Marketing and Customer Relationship Management CRM