Question 1

Consumers are reluctant to enter information through point-of-sale interactions because of privacy violation fears.

Accepted Answer

Many point-of-sale software programs enable customers to easily provide information about themselves without feeling their privacy has been violated.

Question 2

Empowerment in a CRM environment is normally a process of collecting customer information through customers' feedback on products.

Accepted Answer

This is learning. Empowerment is the delegation of authority to solve customers' problems quickly.

Question 3

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 4

Channel interactions are the relationships a manufacturer has with its distributors.

Accepted Answer

Channel interactions are between customers and marketers and include store visits,conversations with salespeople,and wireless communication.

Question 5

Data consolidation is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Accepted Answer

This is data mining.

Question 6

Customer relationship management (CRM)requires that organizations be organized around customer segments.

Accepted Answer

CRM is an approach in which organizations identify their customers and build relationships with them to improve customer satisfaction and retention. To effectively implement CRM strategies, organizations need to be organized around customer segments and tailor their marketing, sales, and support efforts to meet the unique needs and preferences of different customer groups.

Question 7

Through the application of knowledge management,the Lands' End clothing catalog retailer would have learned that a substantial number of its customers would like Lands' End to offer a line of maternity wear.

Accepted Answer

Knowledge management involves gathering, analyzing, and applying knowledge or information to improve business processes and decision-making. Through customer feedback and market research, Lands' End could have learned about the demand for maternity wear and used this knowledge to introduce a new product line to meet customers' needs.

Question 8

Touch points are any situations in which the company's employees actually interact with customers.When a customer places an order through the company Web site no touch point has been created.

Accepted Answer

Any contact between the customer and the company is considered a touch point,including contact through the company's web site.

Question 9

RFM analysis is used to delete unnecessary or duplicated data.

Accepted Answer

RFM analysis identifies customers most likely to purchase again.

Question 10

Technology plays a major role in any CRM system.

Accepted Answer

Technology is essential in any CRM system as it enables businesses to effectively manage customer data, automate tasks, and analyze customer interactions to improve the overall customer experience. Without technology, a CRM system would not be possible.

Question 11

Data mining is used to find hidden patterns and relationships in the customer data stored in the data warehouse.

Accepted Answer

Data mining is a technique used to discover hidden patterns and relationships in large datasets, including customer data stored in data warehouses. Its goal is to extract useful information and insights from data that can help businesses make informed decisions.

Question 12

Privacy issues are the primary reason for centralizing data in a CRM.

Accepted Answer

Customer data is centralized in a CRM system not for privacy reasons,but to actually to make it available throughout the organization.

Question 13

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

Accepted Answer

Response lists help to establish patterns and trends in past behavior, which can be used to make predictions about future behavior. This information is crucial in creating effective databases that can be used to make informed decisions and improve organizational performance.

Question 14

Customer-centric is an internal management philosophy similar to the marketing concept.

Accepted Answer

Customer-centric is a management philosophy that prioritizes the needs and wants of customers above all else, similar to the marketing concept that focuses on meeting customer needs and wants.

Question 15

Database elaboration 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

This is referred to as database enhancement and involves purchasing information on customers or prospects to better describe their needs or determine how responsive they might be to marketing programs.

Question 16

Volvo has a Web site 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

Data mining is the process of extracting useful information from large data sets. In this case, Volvo could have used data mining techniques to identify individuals who have shown interest in cars and innovation, and targeted them with relevant marketing messages or invitations to see the company's concept cars on its website.

Question 17

For a catalog retailer,the contact between the customer and the company's order taker would be an example of a touch point.

Accepted Answer

A touch point is any point of contact between a customer and a company or brand. The interaction between a customer and a catalog retailer's order taker would be considered a touch point, as it is a direct point of contact between the customer and the company.

Question 18

When Amazon.com asks visitors to its Internet site to create wish lists and then invites them to send the lists to people who may be planning on buying them a present soon,it is relying on Web-based interactions to help it learn about its customers.

Accepted Answer

By asking visitors to create wish lists and then sending those lists to others who might buy them a present, Amazon can gather data on customers' preferences, which it can then use to tailor its offerings and marketing efforts. This is an example of using Web-based interactions to learn more about customers.

Question 19

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

Accepted Answer

Multinational companies have operations in multiple countries and may use different systems to store customer data, making it challenging to pull together the information into a comprehensive view of their customers. Additionally, the data may be in different languages or formats and may require significant effort to clean and standardize.

Question 20

The process of centralizing data in a CRM system is sometimes referred to as the interpolation of external and internal touch points.

Accepted Answer

The process of centralizing data in a CRM system is called data warehousing.

Quiz 21: Customer Relationship Management (CRM)