Exam 17: Relationship Marketing and Customer Relationship Management CRM

Walter T. Wexler is a family-owned business that sells custom-ordered furniture. After a delivery is made, a salesperson calls the customer to ensure the delivery was satisfactory. Within a month, the salesperson will call again to see if any additional pieces are needed to complete the decor. This follow-up service will most likely result in a sale, as studies have shown that the chance of a repeat sale can be higher than the chance of a new sale.

Affinity marketing consists of frequent-buyer or user marketing programs that reward customers with cash, rebates, merchandise, or other premiums.

Many businesses have replaced their buyer-managed inventory systems with vendor-managed systems because electronic data interchange allows suppliers to reduce response time.

The use of databases allows marketers to identify targeted groups of customers among thousands, or even millions, of less qualified prospects.

Who assists marketers by providing software when it is needed to capture, manipulate, and analyze consumer data?

The average lifetime of a customer relationship ultimately depends on the sales representative assigned to handle the account or customer.

Effective customer relationship management depends on cross-disciplinary teams that work together to solve customer problems.

A lateral partnership involves extensive buying and selling interaction between the partners.

Explain the differences between frequency marketing and affinity marketing programs. Give an example of each.

Companies can use knowledge obtained from databases to track customer buying patterns and customize offerings and sales promotions.

Which of the following is an important competitive advantage that results from effective supply-chain management?

Which of the following is NOT part of the relationship marketing continuum?

Customer relationship management (CRM) is the combination of strategies and technologies that empowers relationship programs.

Along with the advances in technology and increased use of data gathering of consumer information come privacy concerns.

Successful customer relationship management systems are process driven. The firm's goals and objectives become secondary to the operation of the system.

Electronic data interchange involves computer-to-computer exchange of invoices, orders, and other business documents.

Transaction-based marketing depends on the development of social ties between buyers and sellers.

Buyer-seller relationships between companies involve working together to provide advantages that benefit both parties.

As compared to happy customers, unhappy customers typically talk less about their buying experiences.

How can a firm improve the speed and efficiency of its supply-chain operations?