Question 1

Which of the following statements is True of customer loyalty?

Accepted Answer

A)  It refers to customers making repeat visits to a retailer and being satisfied with their experiences. 
B)  It occurs when customers purchase merchandise and services from a retailer because of its convenient location. 
C)  It is an emotional connection between a retailer and a customer. 
D)  It is the state of accumulated transactions that customers build through repeat purchases responding to various promotions. 
E)  It is the sole result of superior customer service. 
A)  It refers to customers making repeat visits to a retailer and being satisfied with their experiences. 
B)  It occurs when customers purchase merchandise and services from a retailer because of its convenient location. 
C)  It is an emotional connection between a retailer and a customer. 
D)  It is the state of accumulated transactions that customers build through repeat purchases responding to various promotions. 
E)  It is the sole result of superior customer service.

Question 2

Which of the following retail analytic applications involves the use of search techniques to gain insights into customers' buying patterns?

Accepted Answer

A)  Factor analysis 
B)  Regression analysis 
C)  Data mining 
D)  Data scraping 
E)  Data cloning 
A)  Factor analysis 
B)  Regression analysis 
C)  Data mining 
D)  Data scraping 
E)  Data cloning

Question 3

Which of the following statements is True of a tiered reward structure?

Accepted Answer

A)  It provides an incentive for customers to consolidate their purchases with one retailer to reach the higher tiers. 
B)  It helps retailers determine which products customer purchases during a single shopping trip. 
C)  It uses software to discover new insights into the buying patterns of customers using large databases. 
D)  Customers belonging to the same tier form a retail brand community. 
E)  A tiered reward structure charges customers who use services. 
A)  It provides an incentive for customers to consolidate their purchases with one retailer to reach the higher tiers. 
B)  It helps retailers determine which products customer purchases during a single shopping trip. 
C)  It uses software to discover new insights into the buying patterns of customers using large databases. 
D)  Customers belonging to the same tier form a retail brand community. 
E)  A tiered reward structure charges customers who use services.

Question 4

Why would the customer pyramid be more appropriate in identifying a customer's lifetime value than utilizing the traditional 80-20 rule?

Accepted Answer

A)  The 80-20 rule doesn't recognize the behavior of 20 percent of the customers. 
B)  The 80-20 rule focuses only on the value of 80 percent of the shoppers. 
C)  Customers can more easily identify where they would be located in the customer pyramid than within the 80-20 rule. 
D)  If shoppers only buy 20 percent of the time, retailers have a missed sale 80 percent of the time. 
E)  The 80-20 rule does not consider important differences among the 80 percent of customers in the "rest" segment. 
A)  The 80-20 rule doesn't recognize the behavior of 20 percent of the customers. 
B)  The 80-20 rule focuses only on the value of 80 percent of the shoppers. 
C)  Customers can more easily identify where they would be located in the customer pyramid than within the 80-20 rule. 
D)  If shoppers only buy 20 percent of the time, retailers have a missed sale 80 percent of the time. 
E)  The 80-20 rule does not consider important differences among the 80 percent of customers in the "rest" segment.

Question 5

Which of the following principles forming the basis of a new legislation on consumer privacy encourages retailers to treat consumer privacy as their default setting?

Accepted Answer

A)  Simplified consumer choice 
B)  Data mining 
C)  Privacy by design 
D)  Greater transparency 
E)  Opt-in agreements 
A)  Simplified consumer choice 
B)  Data mining 
C)  Privacy by design 
D)  Greater transparency 
E)  Opt-in agreements

Question 6

What are the four factors that limit the effectiveness of frequent-shopping programs?

Accepted Answer

The four factors that limit the effectiv

Question 7

What does the 80-20 rule mean?

Accepted Answer

A)  80% of the buying comes from 20% of the vendors. 
B)  80% of the sales come from 20% markdowns. 
C)  80% of the customers pay with 20% of their income. 
D)  80% of the sales or profits come from 20% of the customers. 
E)  80% of the merchandise is sold at 20% off. 
A)  80% of the buying comes from 20% of the vendors. 
B)  80% of the sales come from 20% markdowns. 
C)  80% of the customers pay with 20% of their income. 
D)  80% of the sales or profits come from 20% of the customers. 
E)  80% of the merchandise is sold at 20% off.

Question 8

Describe approaches that retailers use in dealing with unprofitable customers.

Accepted Answer

The bottom tier of customers is unprofit

Question 9

When Lana went to Bookdreams.com to look for books on health and wellness, she saw a personalized greeting and book recommendations. The greeting and books recommendations were based on her previous visits to the site. Which of the following best describes how Bookdreams.com knew that Lana has accessed their site?

Accepted Answer

A)  Bookdreams.com used retail analytics to create a personalized offer. 
B)  The site used the 80-20 scheme to analyze her buying behavior. 
C)  The site used market basket analysis to predict her buying patterns. 
D)  Another retailer sold her private information to Bookdreams.com. 
E)  Bookdreams.com placed cookies on her computer to identify her. 
A)  Bookdreams.com used retail analytics to create a personalized offer. 
B)  The site used the 80-20 scheme to analyze her buying behavior. 
C)  The site used market basket analysis to predict her buying patterns. 
D)  Another retailer sold her private information to Bookdreams.com. 
E)  Bookdreams.com placed cookies on her computer to identify her.

Question 10

Developing retail programs for small groups or individual customers is referred to as 1-to-1 retailing.

Accepted Answer

A) True 
 B)False

Question 11

Why is constructing a data warehouse more difficult for in-store transactions than it is for online shopping?

Accepted Answer

A)  Customer returns to the store confound the data. 
B)  Store purchases can be made with cash or third-party credit cards. 
C)  Availability of store assortments is not always similar to website assortments. 
D)  Store customers are not interested in sharing personal information. 
E)  Since customers are more likely to buy gifts for others in stores than online, it defeats the purpose of understanding the end-user. 
A)  Customer returns to the store confound the data. 
B)  Store purchases can be made with cash or third-party credit cards. 
C)  Availability of store assortments is not always similar to website assortments. 
D)  Store customers are not interested in sharing personal information. 
E)  Since customers are more likely to buy gifts for others in stores than online, it defeats the purpose of understanding the end-user.

Question 12

________ help in measuring a customer's CLV by using the data collected about customers.

Accepted Answer

A)  Retail analytics 
B)  Risk analytics 
C)  Portfolio analyses 
D)  Biometrics 
E)  RFM analyses 
A)  Retail analytics 
B)  Risk analytics 
C)  Portfolio analyses 
D)  Biometrics 
E)  RFM analyses

Question 13

When consumers explicitly tell the retailer not to use their personal information, they must

Accepted Answer

A)  choosing/consenting. 
B)  opt in. 
C)  opt out. 
D)  declining public domain statutes. 
E)  notifying consumer information services. 
A)  choosing/consenting. 
B)  opt in. 
C)  opt out. 
D)  declining public domain statutes. 
E)  notifying consumer information services.

Question 14

A ________ is a group of customers who are bound together by their loyalty to a retailer and the activities the retailer sponsors and undertakes.

Accepted Answer

A)  frequent shopper community 
B)  retail brand community 
C)  consideration set 
D)  target market 
E)  customer pyramid 
A)  frequent shopper community 
B)  retail brand community 
C)  consideration set 
D)  target market 
E)  customer pyramid

Question 15

Which of the following statements best describes a customer lifetime value (CLV)?

Accepted Answer

A)  CLV is the value placed upon a retailer by a consumer. 
B)  CLV is a numerical value of how much a "best customer" shops. 
C)  CLV is what a customer contributes to a retailer's profits over his or her entire relationship with the retailer. 
D)  CLV is an assessment of how many valued customers shop with a retailer. 
E)  CLV is what retailers use to rate the value of guaranteed merchandise. 
A)  CLV is the value placed upon a retailer by a consumer. 
B)  CLV is a numerical value of how much a "best customer" shops. 
C)  CLV is what a customer contributes to a retailer's profits over his or her entire relationship with the retailer. 
D)  CLV is an assessment of how many valued customers shop with a retailer. 
E)  CLV is what retailers use to rate the value of guaranteed merchandise.

Question 16

Customer loyalty means

Accepted Answer

A)  customers are committed to purchasing from the retailer and will seldom shop at competing stores. 
B)  customers have a high frequency of purchasing merchandise from the retailer. 
C)  customers have most recently shopped and purchased from the retailer. 
D)  customers make the highest amount of their purchases at one retailer and will be loyal to that retailer. 
E)  customers have positive emotions about a retailer and will be loyal to that retailer. 
A)  customers are committed to purchasing from the retailer and will seldom shop at competing stores. 
B)  customers have a high frequency of purchasing merchandise from the retailer. 
C)  customers have most recently shopped and purchased from the retailer. 
D)  customers make the highest amount of their purchases at one retailer and will be loyal to that retailer. 
E)  customers have positive emotions about a retailer and will be loyal to that retailer.

Question 17

The Bird of Paradise is one of the world's most attractive tropical flowers. When Josiah, who owns Joe's Flower Shop, knows he's receiving flowers from Hawaii, he emails all his customers whom he knows will like the flower and informs them of the expected shipment. Josiah's program is an example of

Accepted Answer

A)  a frequent-shopper program. 
B)  a loyalty program. 
C)  gaining competitive advantage. 
D)  add-on selling. 
E)  1-to-1 retailing. 
A)  a frequent-shopper program. 
B)  a loyalty program. 
C)  gaining competitive advantage. 
D)  add-on selling. 
E)  1-to-1 retailing.

Question 18

The customer lifetime value (CLV) is the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer.

Accepted Answer

A) True 
 B)False

Question 19

Frequent-shopper programs are expensive to implement and manage.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an inherent limitation associated with asking the customer for identifying information for building a data warehouse?

Accepted Answer

A)  Some customers may feel that the sales associate is violating their privacy. 
B)  Some identifying information is illegal to use for marketing purposes. 
C)  If the information provided is inaccurate, the retailer may be held liable. 
D)  Customer consent is mandatory in the U.S. for using personal information. 
E)  Customers may give more information than what the sales associate can record. 
A)  Some customers may feel that the sales associate is violating their privacy. 
B)  Some identifying information is illegal to use for marketing purposes. 
C)  If the information provided is inaccurate, the retailer may be held liable. 
D)  Customer consent is mandatory in the U.S. for using personal information. 
E)  Customers may give more information than what the sales associate can record.

Which of the following statements is True of customer loyalty?

Which of the following retail analytic applications involves the use of search techniques to gain insights into customers' buying patterns?

Which of the following statements is True of a tiered reward structure?

Why would the customer pyramid be more appropriate in identifying a customer's lifetime value than utilizing the traditional 80-20 rule?

Which of the following principles forming the basis of a new legislation on consumer privacy encourages retailers to treat consumer privacy as their default setting?

What are the four factors that limit the effectiveness of frequent-shopping programs?

What does the 80-20 rule mean?

Describe approaches that retailers use in dealing with unprofitable customers.

Developing retail programs for small groups or individual customers is referred to as 1-to-1 retailing.

Why is constructing a data warehouse more difficult for in-store transactions than it is for online shopping?

________ help in measuring a customer's CLV by using the data collected about customers.

When consumers explicitly tell the retailer not to use their personal information, they must

A ________ is a group of customers who are bound together by their loyalty to a retailer and the activities the retailer sponsors and undertakes.

Which of the following statements best describes a customer lifetime value (CLV)?

Customer loyalty means

The Bird of Paradise is one of the world's most attractive tropical flowers. When Josiah, who owns Joe's Flower Shop, knows he's receiving flowers from Hawaii, he emails all his customers whom he knows will like the flower and informs them of the expected shipment. Josiah's program is an example of

The customer lifetime value (CLV) is the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer.

Frequent-shopper programs are expensive to implement and manage.

Which of the following is an inherent limitation associated with asking the customer for identifying information for building a data warehouse?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Managing the Merchandise Planning Process

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters

Exam 10: Customer Relationship Management

Which of the following statements is True of customer loyalty?

Which of the following retail analytic applications involves the use of search techniques to gain insights into customers' buying patterns?

Which of the following statements is True of a tiered reward structure?

Why would the customer pyramid be more appropriate in identifying a customer's lifetime value than utilizing the traditional 80-20 rule?

Which of the following principles forming the basis of a new legislation on consumer privacy encourages retailers to treat consumer privacy as their default setting?

What are the four factors that limit the effectiveness of frequent-shopping programs?

What does the 80-20 rule mean?

Describe approaches that retailers use in dealing with unprofitable customers.

Developing retail programs for small groups or individual customers is referred to as 1-to-1 retailing.

Why is constructing a data warehouse more difficult for in-store transactions than it is for online shopping?

________ help in measuring a customer's CLV by using the data collected about customers.

When consumers explicitly tell the retailer not to use their personal information, they must

A ________ is a group of customers who are bound together by their loyalty to a retailer and the activities the retailer sponsors and undertakes.

Which of the following statements best describes a customer lifetime value (CLV)?

Customer loyalty means

The Bird of Paradise is one of the world's most attractive tropical flowers. When Josiah, who owns Joe's Flower Shop, knows he's receiving flowers from Hawaii, he emails all his customers whom he knows will like the flower and informs them of the expected shipment. Josiah's program is an example of

The customer lifetime value (CLV) is the expected contribution from the customer to the retailer's profits over his or her entire relationship with the retailer.

Frequent-shopper programs are expensive to implement and manage.

Which of the following is an inherent limitation associated with asking the customer for identifying information for building a data warehouse?

Introduction to the World of Retailing

Types of Retailers

Multichannel and Omnichannel Retailing

Customer Buying Behavior

Retail Market Strategy

Financial Strategy

Retail Locations

Retail Site Location

Information Systems and Supply Chain Management

Managing the Merchandise Planning Process

Buying Merchandise

Retail Pricing

Retail Communication Mix

Human Resources and Managing the Store

Store Layout, Design, and Visual Merchandising

Customer Service

Filters