Question 1

Direct interface relates to touchpoints that are both interactive and noninteractive.

Accepted Answer

False

Question 2

Customer satisfaction and customer loyalty essentially are the same thing.

Accepted Answer

While customer satisfaction and customer loyalty are related, they are not the same thing. Customer satisfaction refers to a customer's overall feelings and perceptions about a product or service, while customer loyalty refers to a customer's commitment to repeatedly purchase or use a particular product or service. A customer may be satisfied with a product or service but not necessarily loyal to it, and vice versa.

Question 3

Data mining is about analyzing as much information as possible about customers and potential customers to develop micro-segments.

Accepted Answer

Data mining is a process of examining large sets of data to discover patterns and insights for making informed business decisions. One of the major applications of data mining is customer profiling, where businesses extract customer data from various sources to develop micro-segments for targeted marketing and sales efforts.

Question 4

USAA customers and employees have face-to-face interaction that leads to high levels of satisfaction.

Accepted Answer

The answer of USAA customers and employees have face-to-face interaction...

Question 5

It is possible today to calculate the total profitability for each customer that is expected to be earned over the length of the customer relationship.

Accepted Answer

With the help of customer analytics, it is possible to estimate the total profitability of a customer over the entire duration of the relationship. This allows companies to identify high-value customers, and tailor their marketing and service offerings to drive retention and growth.

Question 6

An employee who believes that he or she needs to understand who buys the company's products and services has an internal customer mind-set.

Accepted Answer

The answer of An employee who believes that he or...

Question 7

It is okay to fire a customer who has a low predicted lifetime value,even if there is not a more attractive customer in sight.

Accepted Answer

The answer of It is okay to fire a customer...

Question 8

An employee who believes that he or she can do a better job by understanding the company's customers has an internal customer mind-set.

Accepted Answer

The answer of An employee who believes that he or...

Question 9

An employee who believes that he or she needs to focus on the requirements of the person who receives his or her work has an internal customer mind-set.

Accepted Answer

An internal customer mind-set means considering the recipients of one's work as customers and focusing on meeting their requirements and expectations.

Question 10

Database marketing requires that the firm have access to a data warehouse and engage in data mining.

Accepted Answer

Database marketing is a process where marketers identify their target audience and utilize data analysis tools such as data warehouses and data mining to collect and analyze customer data, understand consumer behavior and preferences, and create targeted marketing campaigns. Therefore, access to a data warehouse and engagement in data mining are essential requirements for effective database marketing.

Question 11

CRM software is best selected for purchase by the Information Technology department since the 'techies' will need to maintain it and better understand the required functions.

Accepted Answer

CRM software is best selected for purchase by the specific department or business unit that will be using it, as they will have a better understanding of their needs and requirements. However, the IT department may be involved in the selection process to ensure compatibility with existing systems and to provide technical support.

Question 12

The ultimate goal of CRM is maximizing performance of the customer side of the enterprise.

Accepted Answer

The ultimate goal of CRM is to maximize the performance of the customer side of the enterprise by improving customer satisfaction, retention, and profitability through personalized interactions and efficient management of customer data.

Question 13

A key element that makes CRM possible is the degree to which a customer trusts the firm with his or her information.

Accepted Answer

CRM relies heavily on the collection and management of customer data, which requires trust between the customer and the firm to ensure that the data is kept safe and used appropriately. Without this trust, customers are unlikely to be willing to share their personal information with the firm.

Question 14

Marketing managers who want to improve the effectiveness of CRM focus on three areas: Customers,the relationship,and managerial decision-making.

Accepted Answer

CRM stands for customer relationship management, so it is important for marketing managers to focus on the customers, the relationship between the company and customers, and how they make managerial decisions based on the data from CRM.

Question 15

CRM essentially is computer software.

Accepted Answer

The answer of CRM essentially is computer software....

Question 16

Customer satisfaction refers to the degree to which a customer will resist switching from one offering to another.

Accepted Answer

Customer satisfaction refers to the degree to which a customer is happy or content with a specific product or service. It is not directly related to the customer's resistance to switching to another offering. A customer may be satisfied with a product but still switch to another offering if it better meets their needs or preferences.

Question 17

CRM software is exclusively for the use of the Information Technology experts.

Accepted Answer

CRM software is designed for use by a range of professionals, not just Information Technology experts. Sales, marketing, and customer service teams all use CRM software in their work.

Question 18

CRM-driven,one-to-one marketing tends to have increased promotional costs.

Accepted Answer

The answer of CRM-driven,one-to-one marketing tends to have increased promotional...

Question 19

A data warehouse allows the firm to collect information about every customer touchpoint in a systematic way and analyze it through data mining.

Accepted Answer

A data warehouse is designed to collect and store data from various sources in a systematic way, allowing businesses to analyze and extract insights through techniques such as data mining. By collecting information about every customer touchpoint, a data warehouse provides a comprehensive view of customer behavior and preferences, enabling businesses to make informed decisions about marketing, sales, and customer service.

Question 20

Customer contact and access points are key to the knowledge discovery process.

Accepted Answer

Customer contact and access points, such as customer service calls and website interactions, provide valuable insights and information that is critical to the knowledge discovery process.

Quiz 3: Perspectives on Crm and Marketing Metrics