Question 1

For a CRM system to be effective,customer information must be stored in a data matrix.

Accepted Answer

The information must be stored in a data warehouse,a central repository for data from various functional areas of the organization.

Question 2

Lifetime value analysis is helpful only when it is used on current customers.

Accepted Answer

LTV facilitates targeting new customers who look as though they will be profitable customers.

Question 3

What is a data warehouse? How does it differ from a database?

Accepted Answer

The answer of What is a data warehouse? How does...

Question 4

Multinational companies often face difficult problems when pulling together internal data about their customers.

Accepted Answer

The problems include differences in language,computer systems,and data-collection methods.

Question 5

Data mining analyzes significant relationships simultaneously among several customer dimensions within vast data warehouses.

Accepted Answer

Data mining is a process of discovering patterns and insights in large data sets by analyzing and segmenting customer data from multiple dimensions such as demographics, purchase history, behavior, and more. This process allows businesses to identify meaningful correlations, patterns, trends, and associations to make data-driven decisions and improve customer experiences.

Question 6

What is a touch point? Give two examples of touch points.

Accepted Answer

The answer of What is a touch point? Give two...

Question 7

Briefly describe how and why an organization uses data mining.What are some commonly used types of data analysis?

Accepted Answer

The answer of Briefly describe how and why an organization...

Question 8

Comment on the following statement: "A CRM cycle is a rather simplistic customer service strategy." How should the cycle be described?

Accepted Answer

The answer of Comment on the following statement: "A CRM...

Question 9

Distinguish between a compiled list and a response list.

Accepted Answer

The answer of Distinguish between a compiled list and a...

Question 10

Response lists are especially important in database creation because past behaviour is a strong predictor of future behaviour.

Accepted Answer

A response list includes the names and addresses of individuals who have responded to an offer of some kind.

Question 11

An organization wants to identify its best customers.What data-mining techniques can it use if all of its customer information is stored in a database?

Accepted Answer

The answer of An organization wants to identify its best...

Question 12

What is knowledge management? What type of companies use knowledge management?

Accepted Answer

The answer of What is knowledge management? What type of...

Question 13

Volvo has a website that caters to car enthusiasts who might want to see concept cars evolve into real-life products.Volvo would likely have used data mining to locate people who were car enthusiasts and innovators.

Accepted Answer

It is likely that Volvo used data mining to locate their target audience of car enthusiasts and innovators for their website.

Question 14

European-based companies are much more likely to have adopted campaign management and other CRM techniques than North American-based organizations.

Accepted Answer

European companies have been slow to embrace campaign management and CRM techniques,in part because of strict privacy laws.

Question 15

How can a company measure its success at implementing CRM techniques? How does empowerment influence CRM marketing?

Accepted Answer

The answer of How can a company measure its success...

Question 16

As a predictive tool,data mining has limited utility.

Accepted Answer

Data mining has great utility as a predictive tool.

Question 17

Describe the actions of a company that is referred to as having a customer-centric focus.

Accepted Answer

The answer of Describe the actions of a company that...

Question 18

Data enhancement is the addition of information to customer or prospect records for the purpose of better describing or better determining the responsiveness of those customers or prospects.

Accepted Answer

Data enhancement is the process of adding information to existing datasets to improve their quality, accuracy, and relevance. In the context of marketing, it involves using external data sources to enhance customer or prospect records, such as demographic, psychographic, and behavioral data. The objective is to gain insights into customer behavior, preferences, and needs, and to create more targeted and personalized marketing campaigns.

Question 19

Explain the importance of interactions in a customer relationship management system.Most colleges and universities have some form of CRM system.Describe an interaction that occurs at your institution.

Accepted Answer

The answer of Explain the importance of interactions in a...

Question 20

RFM analysis is used to delete unnecessary or duplicated data.

Accepted Answer

RFM analysis identifies customers most likely to purchase again.

Quiz 8: Customer Relationship Management CRM