Question 1

________ refers to the percentage of the customers' purchases made from the retailer.

Accepted Answer

A)  80-20 rule 
B)  Share of wallet 
C)  Customer lifetime value 
D)  Profit sharing 
E)  1-to-1 retailing 
A)  80-20 rule 
B)  Share of wallet 
C)  Customer lifetime value 
D)  Profit sharing 
E)  1-to-1 retailing

Question 2

The release of the new Harry Potter book brought excitement in Enid's neighborhood. The local Book Universe store sold thousands of vouchers for the night of the release. The store invited Harry Potter enthusiasts to come for a party at the store that lasted until midnight when the book would be available for purchase. Book Universe developed a customer retention program based on

Accepted Answer

A)  a market basket analysis. 
B)  creating a sense of community among its customers. 
C)  1-to-1 retailing programs. 
D)  a tiered rewards program. 
E)  the concept of add-on selling offers for preferred customers. 
A)  a market basket analysis. 
B)  creating a sense of community among its customers. 
C)  1-to-1 retailing programs. 
D)  a tiered rewards program. 
E)  the concept of add-on selling offers for preferred customers.

Question 3

A(n) ________ forms the foundation for all CRM activities.

Accepted Answer

A)  frequent-shopper program 
B)  loyalty program 
C)  1-to-1 retailing program 
D)  RFM analysis 
E)  data warehouse 
A)  frequent-shopper program 
B)  loyalty program 
C)  1-to-1 retailing program 
D)  RFM analysis 
E)  data warehouse

Question 4

Customer loyalty is limited to ensuring satisfaction by offering a wide assortment of products.

Accepted Answer

A) True 
 B)False

Question 5

Although having information about individual customers helps retailers provide better services to consumers, consumers are concerned about

Accepted Answer

A)  price promotions. 
B)  loyalty. 
C)  descriptive information. 
D)  privacy. 
E)  data mining. 
A)  price promotions. 
B)  loyalty. 
C)  descriptive information. 
D)  privacy. 
E)  data mining.

Question 6

What is customer alchemy?

Accepted Answer

A)  Converting iron and gold customers into platinum customers 
B)  Offering more products to existing customers 
C)  Increasing the data collection from only platinum and gold customers 
D)  Creating a group of customers bound together by loyalty to a retailer 
E)  Tailoring loyalty programs to suit customers' needs 
A)  Converting iron and gold customers into platinum customers 
B)  Offering more products to existing customers 
C)  Increasing the data collection from only platinum and gold customers 
D)  Creating a group of customers bound together by loyalty to a retailer 
E)  Tailoring loyalty programs to suit customers' needs

Question 7

Customers in the platinum segment place more value on the price of a product.

Accepted Answer

A) True 
 B)False

Question 8

How is the customer pyramid more appropriate than the 80-20 rule when identifying customers?

Accepted Answer

For most retailers, a relatively small n

Question 9

What information does a data warehouse contain?

Accepted Answer

The data warehouse should cont

Question 10

What is market basket analysis, and when do retailers utilize it?

Accepted Answer

In a market basket analysis, the data mi

Question 11

Which of the following statements does not describe how retailers use a customer lifetime value (CLV)?

Accepted Answer

A)  CLV is used to identify and cater to the best and more profitable customers. 
B)  CLV should be estimated under the assumption that the customer's future purchase behaviors will be the same as they have been in the past. 
C)  Sophisticated statistical methods are typically used to estimate the future contributions from past purchases. 
D)  An RFM analysis is often used by catalog retailers and direct marketers in estimating their customers' lifetime value. 
E)  A customer who spends $800 twice a year has a higher CLV than a customer that spends $100 each month. 
A)  CLV is used to identify and cater to the best and more profitable customers. 
B)  CLV should be estimated under the assumption that the customer's future purchase behaviors will be the same as they have been in the past. 
C)  Sophisticated statistical methods are typically used to estimate the future contributions from past purchases. 
D)  An RFM analysis is often used by catalog retailers and direct marketers in estimating their customers' lifetime value. 
E)  A customer who spends $800 twice a year has a higher CLV than a customer that spends $100 each month.

Question 12

Effective frequent-shopper programs are transparent.

Accepted Answer

A) True 
 B)False

Question 13

Describe practices that retailers use to convert good customers into their best customers.

Accepted Answer

Increasing the sales made to good custom

Question 14

Which of the following statements is True of frequent-shopper programs?

Accepted Answer

A)  They are highly beneficial for building long-term customer loyalty. 
B)  The discounts offered appeal mostly to price-conscious customers. 
C)  Customers are able to clearly differentiate the programs offered by different retailers. 
D)  Competitive advantages gained from these programs are sustainable. 
E)  Effective frequent-shopper programs are easy to develop. 
A)  They are highly beneficial for building long-term customer loyalty. 
B)  The discounts offered appeal mostly to price-conscious customers. 
C)  Customers are able to clearly differentiate the programs offered by different retailers. 
D)  Competitive advantages gained from these programs are sustainable. 
E)  Effective frequent-shopper programs are easy to develop.

Question 15

Which of the following statements is not True of frequent-shopper programs?

Accepted Answer

A)  Frequent-shopper programs are programs that identify and provide rewards to customers who patronize a retailer. 
B)  Frequent-shopper programs are also commonly called loyalty programs. 
C)  Frequent-shopper cards are issued on the basis of market basket analysis. 
D)  Frequent-shopper programs include a private-label credit card offered by a retailer. 
E)  Frequent-shopper programs can provide customer information automatically to the retailer when customers have their program card scanned at the time of transaction. 
A)  Frequent-shopper programs are programs that identify and provide rewards to customers who patronize a retailer. 
B)  Frequent-shopper programs are also commonly called loyalty programs. 
C)  Frequent-shopper cards are issued on the basis of market basket analysis. 
D)  Frequent-shopper programs include a private-label credit card offered by a retailer. 
E)  Frequent-shopper programs can provide customer information automatically to the retailer when customers have their program card scanned at the time of transaction.

Question 16

A data warehouse normally contains information on customer preferences.

Accepted Answer

A) True 
 B)False

Question 17

If a U.S. retailer wants to conform to the European policies concerning how customer information is collected, which type of policy should it adopt?

Accepted Answer

A)  Opt in 
B)  Opt out 
C)  Opt private 
D)  Opt EC 
E)  80-20 rule 
A)  Opt in 
B)  Opt out 
C)  Opt private 
D)  Opt EC 
E)  80-20 rule

Question 18

In the customer pyramid, which of the following segments consists of customers with the top 25 percent CLVs?

Accepted Answer

A)  Gold segment 
B)  Platinum segment 
C)  Iron segment 
D)  Lead segment 
E)  Silver segment 
A)  Gold segment 
B)  Platinum segment 
C)  Iron segment 
D)  Lead segment 
E)  Silver segment

Question 19

________ indicates that customers are committed to purchasing merchandise and services from the retailer regardless of competing retailers' enticements.

Accepted Answer

A)  Customer commitment 
B)  Customer loyalty 
C)  Customer satisfaction 
D)  Customer attitudes 
E)  Customer interest 
A)  Customer commitment 
B)  Customer loyalty 
C)  Customer satisfaction 
D)  Customer attitudes 
E)  Customer interest

Question 20

Which of the following statements is True of the gold segment members in the customer pyramid?

Accepted Answer

A)  Price plays a greater role in their decision-making process. 
B)  The gold segment members place more value on customer service. 
C)  Their spending levels and profitability do not warrant special treatment. 
D)  They demand a lot of attention but buy very little from retailers. 
E)  This segment is composed of the customers with the top 25 percent CLVs. 
A)  Price plays a greater role in their decision-making process. 
B)  The gold segment members place more value on customer service. 
C)  Their spending levels and profitability do not warrant special treatment. 
D)  They demand a lot of attention but buy very little from retailers. 
E)  This segment is composed of the customers with the top 25 percent CLVs.

________ refers to the percentage of the customers' purchases made from the retailer.

A(n) ________ forms the foundation for all CRM activities.

Customer loyalty is limited to ensuring satisfaction by offering a wide assortment of products.

Although having information about individual customers helps retailers provide better services to consumers, consumers are concerned about

What is customer alchemy?

Customers in the platinum segment place more value on the price of a product.

How is the customer pyramid more appropriate than the 80-20 rule when identifying customers?

What information does a data warehouse contain?

What is market basket analysis, and when do retailers utilize it?

Which of the following statements does not describe how retailers use a customer lifetime value (CLV)?

Effective frequent-shopper programs are transparent.

Describe practices that retailers use to convert good customers into their best customers.

Which of the following statements is True of frequent-shopper programs?

Which of the following statements is not True of frequent-shopper programs?

A data warehouse normally contains information on customer preferences.

If a U.S. retailer wants to conform to the European policies concerning how customer information is collected, which type of policy should it adopt?

In the customer pyramid, which of the following segments consists of customers with the top 25 percent CLVs?

________ indicates that customers are committed to purchasing merchandise and services from the retailer regardless of competing retailers' enticements.

Which of the following statements is True of the gold segment members in the customer pyramid?

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

________ refers to the percentage of the customers' purchases made from the retailer.

A(n) ________ forms the foundation for all CRM activities.

Customer loyalty is limited to ensuring satisfaction by offering a wide assortment of products.

Although having information about individual customers helps retailers provide better services to consumers, consumers are concerned about

What is customer alchemy?

Customers in the platinum segment place more value on the price of a product.

How is the customer pyramid more appropriate than the 80-20 rule when identifying customers?

What information does a data warehouse contain?

What is market basket analysis, and when do retailers utilize it?

Which of the following statements does not describe how retailers use a customer lifetime value (CLV)?

Effective frequent-shopper programs are transparent.

Describe practices that retailers use to convert good customers into their best customers.

Which of the following statements is True of frequent-shopper programs?

Which of the following statements is not True of frequent-shopper programs?

A data warehouse normally contains information on customer preferences.

If a U.S. retailer wants to conform to the European policies concerning how customer information is collected, which type of policy should it adopt?

In the customer pyramid, which of the following segments consists of customers with the top 25 percent CLVs?

________ indicates that customers are committed to purchasing merchandise and services from the retailer regardless of competing retailers' enticements.

Which of the following statements is True of the gold segment members in the customer pyramid?

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