Question 1

In a restaurant, when a consumer is greeted, shown to their table and served, in CRM terms, which term describes all of these interactions?

Accepted Answer

Touch points refer to any interaction a customer has with a company, from initial contact to after-sales service. In this case, being greeted, shown to a table, and served are all touch points in the customer's experience at the restaurant.

Question 2

Which type of interactions occur when customers buy products in a store?

Accepted Answer

Point of sale interactions occur when customers buy products in a store, meaning the interaction takes place at the point of purchase. Relationship-based interactions refer to situations where a customer's past experiences with a company or brand influence their interaction, while cost-based interactions focus on customers trying to get the best deal for their money. Retail-centric interactions emphasize the role of the retailer in the buying process.

Question 3

How should an organization view every transaction?

Accepted Answer

In today's business world, every transaction should be viewed as an opportunity to collect vast amounts of data about the customer. This data can be used to improve the customer experience, personalize marketing efforts, and increase customer loyalty. Simply viewing transactions as a financial exchange or as harmful to customer relationship management is a short-sighted approach that fails to recognize the strategic value of customer data. Creating customer-organization multiplicity is also not a primary goal of every transaction.

Question 4

Hong Kong's TravelSky Technology Limited, a provider of information technology solutions for China's air travel and tourism industries, wants to capture the huge amounts of new information required to provide the information needed by its users. What can it create to do this?

Accepted Answer

To capture and store large amounts of new information, TravelSky Technology Limited can create a data warehouse. This will allow them to retrieve, analyze, and use the data to provide the necessary information to their users in a timely and efficient manner.

Question 5

"Lots of organizations have customer data, but not in a way that's useful," said a speaker at the Canadian Marketing Association's national convention. "Retailers have all kinds of data in different places-they don't have a single view of the customer." The speaker is saying that retailers do NOT use which of the following?

Accepted Answer

The speaker is saying that retailers do not have a single view of the customer, which implies that they do not have a data warehouse where all their customer data is stored and organized in a useful way. The other options, information distribution centres, data intermediaries, and information extraction mines, are not mentioned by the speaker and therefore cannot be determined as being used or not used by retailers.

Question 6

How does the traditional approach for acquiring data from customers occur?

Accepted Answer

The answer of How does the traditional approach for acquiring...

Question 7

Scenario 9-2
Recreational Equipment, Inc. (REI) is a large retailer that specializes in outdoor gear like tents, mountain climbing equipment, mountain bikes and outdoor clothing. They have stores all across North America and are always looking for new locations to open more stores. Recreational Equipment, Inc. (REI) collects a vast amount of data through its website, direct mailings, and retail stores.
-Refer to the scenario. When REI considers new store locations, it examines order data to find places with high concentrations of customers buying online and through the company's catalogues. What is REI using to identify potential store locations?

Accepted Answer

REI is using data mining to analyze its order data and identify potential store locations. Data mining involves finding patterns and relationships within large sets of data to extract valuable information. By analyzing its order data, REI can identify areas with high concentrations of customers buying online and through its catalogs, which can help inform decisions about where to open new stores.

Question 8

David Poirier, CIO of Hudson's Bay Company said, "We [Hudson's Bay Company] had all kinds of data in different places. We didn't have a single view of the customer until we focused on finding one method to manage relationships with our customers." What would Hudson's Bay use to profile customer segments for better CRM marketing efforts?

Accepted Answer

A data warehouse would be the best option for profiling customer segments for better CRM marketing efforts. A data warehouse is a central repository for all types of data from various sources, including transactions, customer interactions, and demographics. By consolidating this data, Hudson's Bay can create a comprehensive view of its customers' behavior and preferences, leading to more effective CRM marketing efforts. The other options (data mart, customer information system, and data mining system) may play a role in this process but the data warehouse provides the comprehensive view needed for effective profiling of customer segments.

Question 9

Lesley Owens has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about making scrapbooks. She wants to send the mailing to those prospects with the highest probability of becoming subscribers. What should she use?

Accepted Answer

A response list includes individuals who have shown interest or taken some sort of action related to the product or service being offered. In the case of a new magazine about making scrapbooks, sending the mailing to a response list of individuals who have previously subscribed to or purchased scrapbooking materials would have a higher probability of converting into subscribers compared to a compiled list or data mine. Additionally, a response list can often be rented, which can be more cost-effective for Lesley Owens compared to purchasing a data mine. Data clustering may not be applicable in this scenario since Lesley Owens is not analyzing existing data, but rather looking to target a specific group of individuals.

Question 10

In Nokia stores, "Experience Areas" feature phones connected to photo printers, speakers, notebook computers, and Bluetooth headsets to demonstrate the interactivity and full range of features available on the cell phones. These "Experience Areas" allow customers to interact with the technology and provide information to Nokia. What are the "Experience Areas" examples of?

Accepted Answer

The "Experience Areas" can be considered touch points, as they allow customers to physically interact with the products and gain a hands-on experience with the technology.

Question 11

A large volume of data resulting from a CRM initiative can be managed effectively only through which of the following?

Accepted Answer

Technology such as customer relationship management software is crucial for managing a large volume of customer data effectively. Past purchase history, information about the customer's relationship with the organization, and average amount spent on purchases are all important pieces of data, but they cannot be effectively managed without the right technology to organize and analyze them.

Question 12

Scenario 9-1
Hudson's Bay Company in Canada operates The Bay, Home Outfitters, and hbc.com. At each of its stores and its website, it gives HBC Rewards that enable members to earn points, which can be redeemed in the HBC Rewards catalogue for various items, including travel, leisure and entertainment items, Air Miles reward miles, or Bay gift certificates. To use the system, customers have to provide their HBC card number.
-Refer to the scenario. Which of the following provides the most likely reason that Hudson's Bay Company implemented this reward program?

Accepted Answer

The most likely reason that Hudson's Bay Company implemented this reward program is to retain loyal customers. Offering rewards and incentives for frequent purchases can encourage customers to continue shopping at the store or website, which can ultimately lead to increased sales and revenue. By providing a catalog of redemption options, customers may feel valued and motivated to continue earning points to redeem for desired rewards.

Question 13

What is essentially a very large, corporate-wide database, culled from a number of separate systems, such as billing, accounting, order fulfillment, distribution, customer service, and marketing and sales, already in place within an organization?

Accepted Answer

A data warehouse is a database that integrates data from various sources across an entire organization and is used for business intelligence and decision-making purposes. It is a centralized repository of data that has been specifically designed to support strategic queries and analysis.

Question 14

The Toronto Blue Jays, a Major League Baseball team, used customer satisfaction surveys of season ticket holders to determine why the number of season ticket holders was declining. What was this survey an example of?

Accepted Answer

The survey of season ticket holders is a touch point, which is a specific moment of interaction between a customer and a business that can provide valuable information about customer satisfaction and preferences. In this case, the Blue Jays are using the survey to gather information about why season ticket holders are not renewing their subscriptions, which can help them improve the customer experience and retain more customers.

Question 15

The executive vice president of Hudson's Bay Company in Canada (a major retail chain) said in an interview, "We have to be able to offer customers what they want when they want it. We need better insight into their spending-we have gaps in knowledge of how customers spend." Which type of interactions would provide the retail chain the best opportunity for learning about its customers?

Accepted Answer

Point of sale interactions, where customers are making purchases, would provide the most direct and specific information about how customers are spending their money. This data can then be used to improve the company's customer insights and better meet customer needs. Relationship-based interactions may also be useful, but they require more effort from both the company and the customer to establish and maintain. Retail-centric and sales-oriented interactions may not provide as much detailed information about customer spending habits.

Question 16

What is the core of the data warehouse?

Accepted Answer

The core of the data warehouse is the database. It is where all the data from various sources is stored, integrated and organized to be easily analyzed and queried to support decision making. A data warehouse typically contains historical data that has been cleaned, transformed and modeled for reporting and analysis purposes.

Question 17

What is the term for a central repository for data from various functional areas of the organization that can be shared by all of the organization's departments?

Accepted Answer

A data warehouse is a central repository for data from various functional areas of the organization that can be shared by all of the organization's departments. It is designed to support business intelligence activities such as reporting, analysis, and decision-making by providing a single, consolidated view of data from across the organization. Option A (an information mine) and option C (an information intermediary) are not commonly used terms in the context of data management, and option B (a knowledge distribution centre) implies a focus on distributing knowledge rather than storing and managing data.

Question 18

Scenario 9-1
Hudson's Bay Company in Canada operates The Bay, Home Outfitters, and hbc.com. At each of its stores and its website, it gives HBC Rewards that enable members to earn points, which can be redeemed in the HBC Rewards catalogue for various items, including travel, leisure and entertainment items, Air Miles reward miles, or Bay gift certificates. To use the system, customers have to provide their HBC card number.
-Refer to the scenario. This reward program enables Hudson's Bay to engage in which type of interactions with its customers?

Accepted Answer

The reward program involves interactions at the point of sale (in stores) and through their website (Web-based), as customers can earn points both in physical stores and online.

Question 19

In Canada what legislation protects customers' privacy?

Accepted Answer

PIPEDA (Personal Information Protection and Electronic Documents Act) is the primary federal privacy legislation in Canada that sets out rules for how businesses must handle personal information in the course of commercial activities. It applies to all private-sector organizations that collect, use, or disclose personal information in the course of commercial activities. Green Peace is an environmental organization, CRM (Customer Relationship Management) is a business strategy, and OCP (Open Compute Project) is a set of open-source server hardware designs.

Question 20

Scenario 9-2
Recreational Equipment, Inc. (REI) is a large retailer that specializes in outdoor gear like tents, mountain climbing equipment, mountain bikes and outdoor clothing. They have stores all across North America and are always looking for new locations to open more stores. Recreational Equipment, Inc. (REI) collects a vast amount of data through its website, direct mailings, and retail stores.
-Refer to the scenario. To be useful, where could all of these data be centralized?

Accepted Answer

To be useful, all of the data collected through REI's website, direct mailings, and retail stores should be centralized in a data warehouse. A data warehouse allows for the integration of data from multiple sources and provides a centralized location for data analysis and reporting. Data marts are subsets of data warehouses that focus on specific areas, and a decision matrix is a tool used for decision making, not data storage. A data cluster is not a commonly used term in the context of data storage and analysis.

Quiz 9: Customer Relationship Management CRM