Question 1

_____ is the process of breaking large groups of customers into smaller,more homogeneous groups.

Accepted Answer

A)  Customer segmentation 
B)  Recency-frequency-monetary analysis 
C)  Data mining 
D)  Customer valuation 
E)  Relationship marketing 
A)  Customer segmentation 
B)  Recency-frequency-monetary analysis 
C)  Data mining 
D)  Customer valuation 
E)  Relationship marketing

Question 2

Ford Motor Company has launched an online effort to market its F-Series trucks.It hopes to use its database capabilities to capture valuable data on car buyers.Ford plans on cross-referencing new F-series owners with the database generated from this online campaign to see how many names are duplicated.Ford will use these data to forecast which campaigns have the greatest probability of success.Which of the following methods will Ford most likely use to analyze these data?

Accepted Answer

A)  Lifetime value analysis (LTV) 
B)  Present value/future value assessment 
C)  Recency-frequency-monetary analysis 
D)  Predictive modeling 
E)  Reach-frequency-media analysis 
A)  Lifetime value analysis (LTV) 
B)  Present value/future value assessment 
C)  Recency-frequency-monetary analysis 
D)  Predictive modeling 
E)  Reach-frequency-media analysis

Question 3

Que Rica Vida
General Mills has created Que Rica Vida magazine,which seeks to build relationships with newly acculturated Latina moms by providing them with culturally relevant lifestyle information and expert advice on the topics of education,holiday occasions,health and wellness,and family-issues of great importance to Hispanic families in America.Each issue normally contains 6-10 General Mills coupons.In addition to the magazine,General Mills also has a Web site of the same name: QueRicaVida.com,as well as a Spanish-language iPad application that provides Spanish-speaking consumers with instant access to more than 900 Latin-inspired recipes.
-Refer to Que Rica Vida.General Mills' Que Rica Vida magazine encourages customers to visit the accompanying Web site to vote and provide ratings and feedback on their favorite recipes.The company then sends a "thank you" email for responding to their Web site.All of these activities show that General Mills is:

Accepted Answer

A)  customer centric 
B)  product oriented 
C)  sales oriented 
D)  customer service focused 
E)  goal oriented 
A)  customer centric 
B)  product oriented 
C)  sales oriented 
D)  customer service focused 
E)  goal oriented

Question 4

How can a company measure its success at implementing customer relationship management (CRM)techniques? How does empowerment influence CRM marketing?

Accepted Answer

The success of CRM can be directly measu

Question 5

Data mining identifies the most profitable customers and prospects.Managers can then design tailored marketing strategies to best appeal to the identified segments.In CRM this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

Accepted Answer

A)  manipulating 
B)  leveraging 
C)  harvesting 
D)  converting 
E)  managing 
A)  manipulating 
B)  leveraging 
C)  harvesting 
D)  converting 
E)  managing

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

When Sony Playstation users want to access amenities on the Sony web site,they are required to log in and supply information such as their name,e-mail address,and birth date.They are also given the opportunity to complete a survey that captures much more information about the person and their gaming habits.Sony gathers this information and makes it available internally to better serve the customer.This is an example of a company using:

Accepted Answer

A)  learned research 
B)  stimulus/response marketing 
C)  knowledge management 
D)  sales-oriented marketing 
E)  motivational research 
A)  learned research 
B)  stimulus/response marketing 
C)  knowledge management 
D)  sales-oriented marketing 
E)  motivational research

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Blood Services
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
-Refer to Blood Services.What technique did the organization use to analyze its donor information?

Accepted Answer

A)  data identifying 
B)  recency-frequency-monetary analysis 
C)  niche marketing 
D)  predictive modeling 
E)  customer segmentation 
A)  data identifying 
B)  recency-frequency-monetary analysis 
C)  niche marketing 
D)  predictive modeling 
E)  customer segmentation

Question 10

Blood Services
As flextime,consulting,telecommuting,and downsizing make it more difficult for people to donate blood at the workplace,Brooklyn/Staten Island Blood Services has launched a CRM marketing campaign to boost awareness and repeat donations.Early in the campaign it went to its listings of previous donors and pulled out those with birthdays in February,March,and April.These donors were sent a birthday card with the greeting,"On the anniversary of your life,would you consider saving another's life?"
-Refer to Blood Services.The organization used CRM marketing to:

Accepted Answer

A)  cross-sell other products 
B)  design targeted marketing communications 
C)  increase effectiveness of its distribution strategy 
D)  define customer service 
E)  do all of these things 
A)  cross-sell other products 
B)  design targeted marketing communications 
C)  increase effectiveness of its distribution strategy 
D)  define customer service 
E)  do all of these things

Question 11

Los Angeles Sparks
The WMBA's Los Angeles Sparks is an example of a sports franchise adopting a CRM approach to grow their fan base.The Sparks CRM system,provided by software vendor "Smart Button" manages all email promotions sent to fans.Additionally,the sparks online fan site keeps fans informed of upcoming games,practices open to the public,team events,and more.The Sparks also instituted their new Home Court Advantage program that awards season ticket holders points for each seat they purchased for the season,that ticket holders can give to others.The ticket holders can actually earn extra points by telling Sparks at ticket renewal time who's getting the seats.At the end of the season,the top three point-givers receive cash prizes.The Sparks organization is gathering information on the ticket holder as well as the people that attend games with the free tickets.As a result,the Sparks have seen a sharp rise in late-season ticket sales this year.
-Refer to the Los Angeles Sparks.Sparks' season ticket holders that frequent the Sparks' fan Web site have spent money to buy their season tickets and are likely to purchase again.Which type of analysis will help Sparks identify those customers most likely to purchase again because they have bought recently?

Accepted Answer

A)  80/20 customer 
B)  loyalty 
C)  RFM 
D)  CRM analysis 
E)  Cohort value 
A)  80/20 customer 
B)  loyalty 
C)  RFM 
D)  CRM analysis 
E)  Cohort value

Question 12

To initiate the CRM cycle,a company must first identify customer relationships within the organization.

Accepted Answer

A) True 
 B)False

Question 13

Ford Canada has turned to the Internet to help it stand apart from its competitors in the automotive industry.One Internet ad shows a Ford truck driving out of a forest with its engine roaring and mud splattering on the screen.The wipers come on to reveal the Ford "Built Tough" logo,which then recedes to the side of the screen.The ad directs people to a site where they can sign up to receive direct mail from Ford.Ford Canada will combine this database with a database of new F-series truck owners to look for significant patterns and trends.Ford Canada will use:

Accepted Answer

A)  an information search system 
B)  knowledge trending 
C)  data interpolation 
D)  data graphing 
E)  data mining 
A)  an information search system 
B)  knowledge trending 
C)  data interpolation 
D)  data graphing 
E)  data mining

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

An interaction is a touch point at which

Question 16

Toys "R" Us collects a vast amount of data through its Web site,direct mailings,and retail stores.To be useful,all of these data would be centralized in a(n):

Accepted Answer

A)  data mart 
B)  decision matrix 
C)  data warehouse 
D)  decision support system 
E)  data cluster 
A)  data mart 
B)  decision matrix 
C)  data warehouse 
D)  decision support system 
E)  data cluster

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Customer-centric is an internal management philosophy similar to:

Accepted Answer

A)  utilitarianism 
B)  Herzberg's theory of motivation 
C)  the equity theory 
D)  the marketing concept 
E)  consumerism 
A)  utilitarianism 
B)  Herzberg's theory of motivation 
C)  the equity theory 
D)  the marketing concept 
E)  consumerism

Question 19

_____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.

Accepted Answer

A)  Knowledge management 
B)  Learning 
C)  Database marketing 
D)  Interactive marketing 
E)  Information marketing 
A)  Knowledge management 
B)  Learning 
C)  Database marketing 
D)  Interactive marketing 
E)  Information marketing

Question 20

The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.

Accepted Answer

A)  customer segmentation 
B)  predictive modeling 
C)  customer valuation 
D)  data manipulation 
E)  lifetime value analysis 
A)  customer segmentation 
B)  predictive modeling 
C)  customer valuation 
D)  data manipulation 
E)  lifetime value analysis

_____ is the process of breaking large groups of customers into smaller,more homogeneous groups.

How can a company measure its success at implementing customer relationship management (CRM)techniques? How does empowerment influence CRM marketing?

Data mining identifies the most profitable customers and prospects.Managers can then design tailored marketing strategies to best appeal to the identified segments.In CRM this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

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

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

To initiate the CRM cycle,a company must first identify customer relationships within the organization.

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

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.

Toys "R" Us collects a vast amount of data through its Web site,direct mailings,and retail stores.To be useful,all of these data would be centralized in a(n):

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

Customer-centric is an internal management philosophy similar to:

_____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.

The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Decisions

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Promotional Planning for Competitive Advantage

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Social Media and Marketing

Filters

Exam 21: Customer Relationship Management (CRM)

_____ is the process of breaking large groups of customers into smaller,more homogeneous groups.

How can a company measure its success at implementing customer relationship management (CRM)techniques? How does empowerment influence CRM marketing?

Data mining identifies the most profitable customers and prospects.Managers can then design tailored marketing strategies to best appeal to the identified segments.In CRM this is commonly referred to as _____ customer information to facilitate enhanced relationships with customers.

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

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

To initiate the CRM cycle,a company must first identify customer relationships within the organization.

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

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.

Toys "R" Us collects a vast amount of data through its Web site,direct mailings,and retail stores.To be useful,all of these data would be centralized in a(n):

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

Customer-centric is an internal management philosophy similar to:

_____ is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization.

The basic assumption of _____ is that marketing to repeat customers is more profitable than marketing to first-time buyers.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics and Social Responsibility

The Marketing Environment

Developing a Global Vision

Consumer Decision Making

Business Marketing

Segmenting and Targeting Markets

Decision Support Systems and Marketing Research

Product Decisions

Developing and Managing Products

Services and Nonprofit Organization Marketing

Marketing Channels

Supply Chain Management

Retailing

Promotional Planning for Competitive Advantage

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Social Media and Marketing

Filters