Question 1

Customer lifetime value represents the bonding, or affective attachment, between a customer and a sales firm.

Accepted Answer

Customer lifetime value (CLV) measures the total revenue a business can expect from a single customer account throughout the business relationship, not the emotional attachment.

Question 2

Customer share refers to the monetary amount representing the worth of a customer to a firm over the foreseeable life of a relationship.

Accepted Answer

Customer share refers to the portion of a customer's total spending in a category that is captured by a specific company, not the monetary worth of the customer over their lifetime.

Question 3

Customer loyalty is a function of which of the following components-customer share and customer commitment.

Accepted Answer

Customer loyalty is influenced by both customer share (the portion of a customer's total spending in a category that goes to a particular brand) and customer commitment (the emotional or psychological attachment a customer has to a brand).

Question 4

The major advantage of relational selling and strategic partnerships is that they decrease dependence on partners.

Accepted Answer

Relational selling and strategic partnerships typically increase interdependence between partners, as they rely on mutual trust and collaboration to achieve shared goals.

Question 5

Value represents an individual's selective perception of the worth of some activity, object, or idea.

Accepted Answer

Value is a subjective assessment of the importance or worth of something, which can vary based on individual perceptions and priorities.

Question 6

With CRM the salesperson does more than just create sales. A CRM system helps salespeople gather important data about the customer and the market, identify the types of data needed to give the customer better service, and provide input into how the CRM system should utilize data to create value for the customer.

Accepted Answer

A CRM system is designed to manage customer relationships by collecting and analyzing customer data, which helps salespeople understand customer needs, improve service, and enhance customer value.

Question 7

The set of products that a customer is responsible for selling is known as product portfolio.

Accepted Answer

A product portfolio refers to the collection of all products or services that a company offers for sale, which a customer or sales representative may be responsible for selling.

Question 8

Analytical CRM focuses on aggregating customer information electronically, allowing for better identification of target markets and opportunities for cross-selling.

Accepted Answer

Analytical CRM involves collecting and analyzing customer data to understand customer behavior and preferences, which helps in identifying target markets and cross-selling opportunities.

Question 9

Operational CRM focuses on using information to improve internal efficiencies.

Accepted Answer

Operational CRM focuses on using information to improve internal efficiencies, such as sales force automation, customer service, and marketing automation.

Question 10

Deliverability involves using data stored about a particular customer or customer group; helps send the particular customer information and promotional material when the data suggests the customer will be interested in a purchase.

Accepted Answer

The answer of Deliverability involves using data stored about a...

Question 11

Push technology represents the proportion of e-mail sent that is successfully delivered to the intended recipient.

Accepted Answer

Push technology refers to a communication model where information is sent from a server to a client without the client requesting it, not specifically related to email delivery success rates.

Question 12

Sales force automation refers to an integrated system of computer software and hardware used to perform certain routine sales functions that formerly were performed with independent and often manual systems.

Accepted Answer

Sales force automation involves using technology to streamline and automate sales tasks, which were traditionally done manually, to improve efficiency and accuracy.

Question 13

The adoption of sales force automation (SFA) means salespeople will never be needed anymore.

Accepted Answer

Sales force automation (SFA) enhances efficiency by automating certain tasks, but it cannot replace the personal touch, relationship-building, and complex decision-making skills that human salespeople provide.

Question 14

Marketing automation systems use computer technology to integrate all aspects of marketing.

Accepted Answer

Marketing automation systems leverage computer technology to streamline, automate, and integrate various marketing tasks and processes, enhancing efficiency and effectiveness.

Question 15

A database warehouse refers to a computerized process for analyzing customer databases in a way that allows more effective selling by tailoring product and promotional offerings to a specific customer's sales patterns.

Accepted Answer

A data warehouse is a system used for reporting and data analysis, and is a central repository of integrated data from one or more disparate sources. It is not specifically for analyzing customer databases for sales purposes.

Question 16

Data marketing is an electronic storage center containing data records from diverse information systems that are shared across all functional departments.

Accepted Answer

The description provided is more aligned with a data warehouse, not data marketing. Data marketing involves using data to inform and optimize marketing strategies.

Question 17

The exploratory statistical analysis of the data in the data warehouse, which aims to reveal relationships that allow customers to be targeted more accurately, is known as data mining.

Accepted Answer

Data mining is the process of extracting knowledge from data by analyzing large amounts of data to identify patterns and relationships. It is used to target customers more accurately by identifying their needs and preferences.

Question 18

CRM software converts information into data that can be used in solving a sales manager's problem refers to CRM intelligence.

Accepted Answer

CRM intelligence involves analyzing and converting customer-related information into actionable data to help solve business problems, such as those faced by sales managers.

Question 19

Drawing conclusions based on the path a customer takes while navigating information on the company website is called click-stream analysis.

Accepted Answer

Click-stream analysis involves tracking and analyzing the paths users take through a website to understand their behavior and preferences.

Question 20

Sales managers should look for following characteristics before recommending CRM software: flexible sales effectiveness processes, easy coaching, and advanced analytics.

Accepted Answer

The answer of Sales managers should look for following characteristics...

Quiz 3: Customer Relationship Management Crm and Building Partnerships