Question 1

When Vania went to the phone to place a catalogue order for a humidor for her father,she was pleased when the operator suggested that she might also be interested in a subscription to a magazine targeted to cigar lovers.The operator was using a method commonly used to leverage customer information.What is it called?
A)cross-selling
B)trading up
C)modelling
D)a database channel

Accepted Answer

Cross-selling uses past customer buying information to ask for additional sales.

Question 2

The cable industry needs to identify current and future traffic patterns so it can manage the growth of cable systems.Because of high costs,it is undesirable to buy bandwidth before it is needed.It is also time consuming to upgrade a cable system.Furthermore,consumers hate to wait for capacity increases.Therefore,what does the industry use to determine when and where new systems should be implemented?
A)lifetime analysis
B)cross-selling
C)speed of data communications
D)predictive modelling

Accepted Answer

Through predictive modelling,marketers try to determine the odds that system upgrades will be needed in the future.

Question 3

In a show of fan appreciation,the San Diego Chargers gave 5,000 Chargers season ticket holders a customized digital gift card in the form of a CD to redeem at the Chargers' online team store during the upcoming season.The card is a mini CD that fits into a computer's CD-ROM drive.Fans will access the card's offerings by using a provided password that takes them to the Chargers' website where they can apply for a 10 percent discount for purchases made on the site.The card also features a brief collection of video highlights as well as links to different areas of the Chargers' website.What is the NFL team's goal?
A)to cross-sell
B)to reinforce purchase decisions
C)to retain loyal customers
D)to create team awareness

Accepted Answer

Because the cards were given to existing customers (season ticket holders),they should retain loyal fans.

Question 4

The Marriot-Hilton 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.What is the purpose of leveraging this customer information?
A)to retain loyal customers
B)to reinforce competitive promotional decisions
C)to cross-sell other products and services
D)to induce product trial by new customers

Accepted Answer

Loyalty programs reward loyal customers for making multiple purchases with the objective of building long-term relationships.

Question 5

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 who really care about the cars they drive to submit opinions and questions,enabling Volvo to gauge consumer reaction to new ideas.What is CRM giving Volvo the opportunity to do?
A)enhance its database
B)retain loyal customers
C)design targeted marketing communications
D)reinforce customer purchase decisions

Accepted Answer

It allows Volvo to target car enthusiasts-to tailor a message for this group.

Question 6

What is a marketing channel?
A)the link between the retailer and the consumer
B)the method used to facilitate all communications
C)the structure that moves products from producer to ultimate consumer
D)the direct link to the ultimate consumer from the manufacturer

Accepted Answer

A marketing channel is the structure that moves the products from the producer to the ultimate consumer. It involves all the intermediaries like wholesalers, distributors, and retailers who help in getting the product to the end consumer. The channel may involve multiple stages and each intermediary plays a vital role in ensuring the product reaches the consumer efficiently. Thus, option C is the correct answer. Option A is not correct as it refers only to one stage of the marketing channel. Option B is incorrect as it refers to only communication and not the entire structure. Option D is incorrect as it refers to a direct link and not a channel.

Question 7

In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling cooks 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 now known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions between October and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1985,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 only at the holidays,but also all year long.Butterball has maintained a prominent position on people's holiday tables,a position it is likely to hold for many years to come.
-Refer to Butterball Turkey.Butterball's pledge to providing premium products and renowned customer service indicates a commitment to which of the following?
A)customer relations mapping
B)consumer relationship marketing
C)client relationship management
D)customer relationship management

Accepted Answer

Butterball's pledge to providing premium products and renowned customer service indicates a commitment to customer relationship management, which involves building and maintaining long-term relationships with customers by providing them with a high level of satisfaction and value.

Question 8

Why does CRM concern many consumers?
A)not all customers have access to CRM marketing
B)the potential for invasion of privacy
C)the aggressive nature of marketers that use CRM
D)the expense to consumers

Accepted Answer

Consumers have concerns because of the potential for invasion of privacy.

Question 9

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 are subscribers to a journal for people actively involved in the lumber industry.In this way,the catalogue retailer could leverage customer information to do which of the following?
A)cross-sell
B)reinforce purchase decisions
C)retain loyal customers
D)induce product trial

Accepted Answer

Since a marketing database already has a profile of its best customers,then it can easily find new customers who are similar to its most profitable segment.

Question 10

A new manufacturer of craft items used in home decorating could promote its stencil designs to subscribers to The Artistic Stenciller,the official magazine of the Stencil Artisans League.In this way,the manufacturer could leverage customer information to do which of the following?
A)cross-sell
B)induce product trial
C)reduce cognitive dissonance
D)reinforce purchase decisions

Accepted Answer

Notice the question specifies this is a new manufacturer.

Question 11

In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line.Created to assist struggling cooks 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 now known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions between October and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1985,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 only at the holidays,but also all year long.Butterball has maintained a prominent position on people's holiday tables,a position it is likely to hold for many years to come.
-Refer to Butterball Turkey.As more struggling cooks 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 would be classified as which of the following?
A)customer-centric
B)sales oriented
C)production oriented
D)ethnocentric

Accepted Answer

Butterball Turkey's actions indicate a focus on meeting the needs and wants of their customers. The creation and expansion of the Butterball Turkey Talk-Line and development of products such as low-fat meat options show a commitment to providing solutions and meeting customer demands. This aligns with a customer-centric approach to business.

Question 12

To target outdoor enthusiasts,Subaru added an outdoor life section to its website that is organized by area of interest.The site will serve as a platform for co-marketing and promotional programs.
-Refer to Subaru.This offering of customized products to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of which of the following?
A)campaign management
B)customer aggregation
C)transaction segmentation
D)data mining

Accepted Answer

Developing customized offerings for the appropriate customer segment is a common tactic in campaign management.

Question 13

According to the CEO of Allied Office Products,"We're a head-count business: I know that if you have a 60-person office,you should buy $290 worth of basic office supplies-paper,pens,staples-from us with each order,but if that's all we get,we stagnate.For us to grow,we have to convince the customer,who already likes our products and service,to buy more than just basic supplies;we have to increase the order by 10,20,or 29 times." Allied's salespeople are trained to push the company's less traditional,higher-margin lines such as coffee and refreshments,printing and forms management,and office furniture.What are Allied's salespeople engaging in?
A)cross-selling
B)trading up
C)buyer empowerment
D)bundling

Accepted Answer

Cross-selling uses past customer buying information to ask for additional sales.

Question 14

When Ford Motor Company launched an online effort to market its F-Series trucks,it created a database.According to the textbook,what is one potential problem with the use of this database?
A)that customers may perceive it as an invasion of privacy
B)that the database may be used to generate unrepresentative focus groups
C)that media alternatives may be eliminated from promotional campaigns
D)the lack of adequate personal information on customers

Accepted Answer

Consumers have concerns because of the potential for invasion of privacy.

Question 15

Which of the following involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships?
A)predictive modelling
B)campaign management
C)data mining
D)consumerism

Accepted Answer

Campaign management involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships. Predictive modelling and data mining are both analytical techniques used to extract insights from data. Consumerism refers to the social movement that advocates for the rights and protection of consumers.

Question 16

BMW automobiles has launched an online effort to market its new styles.It hopes to use its database capabilities to capture valuable data on car buyers.BMW plans on cross-referencing new owners with the database generated from this online campaign to see how many names are duplicated.BMW will use these data to forecast which campaigns have the greatest probability of success.Which of the following methods will BMW most likely use to analyze these data?
A)lifetime value analysis
B)future value assessment modelling
C)recency-frequency-monetary analysis
D)predictive modelling

Accepted Answer

Predictive modelling is a data manipulation technique in which marketers try to determine,based on some past set of occurrences,the odds that some other occurrence,such as a purchase,will take place.

Question 17

After Ruth and Mike had paid in advance for their week's stay at a Quebec inn,Ruth felt that 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 disintermediation
C)by implementing a penetration strategy
D)by reinforcing her purchase decision

Accepted Answer

A database offers marketers an excellent opportunity to reach out to customers to reinforce the purchase decision.

Question 18

Looking to build up its postpurchase 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)modelling
B)scoring
C)campaign management
D)data mining

Accepted Answer

It has established a campaign to sell its services to car buyers.

Question 19

What is the technique used to suggest that a customer who wanted to buy a $28 shirt would also be a likely prospect for a cigar humidor?
A)predictive modelling
B)customer segmentation
C)market aggregation
D)data interpolation

Accepted Answer

Predictive modelling is a data manipulation technique in which marketers try to determine,based on some past set of occurrences,the odds that some other occurrence,such as a purchase,will take place.

Question 20

To target outdoor enthusiasts,Subaru added an outdoor life section to its website that is organized by area of interest.The site will serve as a platform for co-marketing and promotional programs.
-Refer to Subaru.Which of the following provides the most likely reason that Subaru has added this section to its site?
A)to design a more effective customer outreach program
B)to increase the effectiveness of its channels of distribution
C)to increase the importance of customer service
D)to design more targeted marketing communications

Accepted Answer

By designing different sites for different segments,it is targeting customers.

Quiz 8: Customer Relationship Management CRM

The Marriot-Hilton 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.What is the purpose of leveraging this customer information?

What is a marketing channel?

Why does CRM concern many consumers?

A new manufacturer of craft items used in home decorating could promote its stencil designs to subscribers to The Artistic Stenciller,the official magazine of the Stencil Artisans League.In this way,the manufacturer could leverage customer information to do which of the following?

When Ford Motor Company launched an online effort to market its F-Series trucks,it created a database.According to the textbook,what is one potential problem with the use of this database?

Which of the following involves developing product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships?

Looking to build up its postpurchase 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?

What is the technique used to suggest that a customer who wanted to buy a $28 shirt would also be a likely prospect for a cigar humidor?