Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

_____ is a company-wide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments.

Accepted Answer

A)  Organizational optimization 
B)  Consumer relationship marketing (CRM) 
C)  Total quality management (TQM) 
D)  Customer relationship management (CRM) 
E)  Market aggregation 
A)  Organizational optimization 
B)  Consumer relationship marketing (CRM) 
C)  Total quality management (TQM) 
D)  Customer relationship management (CRM) 
E)  Market aggregation

Question 3

Through the application of knowledge management,the Lands' End clothing catalog retailer would have learned that a substantial number of its customers would like Lands' End to offer a line of maternity wear.

Accepted Answer

A) True 
 B)False

Question 4

CRM concerns many Americans because:

Accepted Answer

A)  of the large number of people who must be served 
B)  not all customers have access to CRM marketing 
C)  of the potential for invasion of privacy 
D)  of the aggressive nature of marketers that use CRM 
E)  of the expense to consumers 
A)  of the large number of people who must be served 
B)  not all customers have access to CRM marketing 
C)  of the potential for invasion of privacy 
D)  of the aggressive nature of marketers that use CRM 
E)  of the expense to consumers

Question 5

In the RFM analysis model,"R" stands for:

Accepted Answer

A)  returning 
B)  recency 
C)  reimbursement 
D)  relationship 
E)  retention 
A)  returning 
B)  recency 
C)  reimbursement 
D)  relationship 
E)  retention

Question 6

For a CRM system to be effective,customer information must be stored in a data matrix.

Accepted Answer

A) True 
 B)False

Question 7

Frequent Fliers
If you think George Clooney's character in the movie Up in the Air was pure fiction, think again. Clooney portrayed a frequent flier who enjoyed top-of-the-line perks the likes of which even most "elite" fliers don't experience. That's because he was a member of American Airline's invitation-only ConciergeKey recognition program. Most airlines maintain these unpublished super elite frequent-flier plans, such as Continental's Chairman's Circle and Delta's Executive Partner programs. These programs are reserved for the highest-volume customers in terms of miles flown or highest-value in terms of revenue. You'll have to fly upwards of 300,000 miles or spend $50,000 a year to be invited.
-Refer to Frequent Fliers. American Airlines gives its gate employees the authority to hold up a connecting flight when a ConciergeKey member's incoming flight is delayed. The delegation of this authority to a gate employee is called:

Accepted Answer

A)  empowerment 
B)  trickle-down management 
C)  centralization 
D)  synergy 
E)  knowledge management 
A)  empowerment 
B)  trickle-down management 
C)  centralization 
D)  synergy 
E)  knowledge management

Question 8

In a CRM system,_____ are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.

Accepted Answer

A)  touch points 
B)  focus areas 
C)  data mining 
D)  information search periods 
E)  observational points 
A)  touch points 
B)  focus areas 
C)  data mining 
D)  information search periods 
E)  observational points

Question 9

As a predictive tool,data mining has limited utility.

Accepted Answer

A) True 
 B)False

Question 10

Which technique was likely used to suggest that a customer who wanted to buy a $29 shirt would also be a likely prospect for a cigar humidor.

Accepted Answer

A)  predictive modeling 
B)  customer segmentation 
C)  market aggregation 
D)  recency-frequency-monetary analysis 
E)  data interpolation 
A)  predictive modeling 
B)  customer segmentation 
C)  market aggregation 
D)  recency-frequency-monetary analysis 
E)  data interpolation

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

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.The information gathered from ticket holders will probably become part of the organization's _____ list.

Accepted Answer

A)  compiled 
B)  cookies 
C)  response 
D)  electronic cash 
E)  Internet research 
A)  compiled 
B)  cookies 
C)  response 
D)  electronic cash 
E)  Internet research

Question 14

Hudson's Bay Company has Canada's largest reward program--HBC Rewards,which enables members to earn points at Hudson's Bay family of stores,including The Bay,Zellers,Home Outfitters,and hbc.com.Consumers can redeem points for over 600 rewards in the HBC Rewards catalog,including travel,leisure and entertainment items,Air Miles reward miles,or Bay and Zellers gift certificates.Which of the following provides the most likely reason why Hudson's Bay Company implemented this reward program?

Accepted Answer

A)  to reduce problems associated with cultural diversity 
B)  to make sure the 80/20 principle is not influencing its activities 
C)  to retain loyal customers 
D)  to create cognitive dissonance 
E)  to lessen the importance of customer service 
A)  to reduce problems associated with cultural diversity 
B)  to make sure the 80/20 principle is not influencing its activities 
C)  to retain loyal customers 
D)  to create cognitive dissonance 
E)  to lessen the importance of customer service

Question 15

The United States has the most restrictive privacy laws in the world.

Accepted Answer

A) True 
 B)False

Question 16

_____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.

Accepted Answer

A)  Consumer learning 
B)  Customerization 
C)  Empowerment 
D)  Autonomy 
E)  Interaction 
A)  Consumer learning 
B)  Customerization 
C)  Empowerment 
D)  Autonomy 
E)  Interaction

Question 17

When Coca Cola sent users of the My Coke Rewards program digital coupons for free trials of its new Coke Zero product more than 100,000 people redeemed them.It would have cost Coke far more to randomly distribute enough coupons to the general market to get that level of sampling.This is an example of the power of the _____ approach.

Accepted Answer

A)  rifle 
B)  machine gun 
C)  stealth marketing 
D)  gorilla marketing 
E)  shotgun 
A)  rifle 
B)  machine gun 
C)  stealth marketing 
D)  gorilla marketing 
E)  shotgun

Question 18

Multinational companies often face difficult problems when pulling together internal data about their customers.

Accepted Answer

A) True 
 B)False

Question 19

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 20

Technology plays a major role in any CRM system.

Accepted Answer

A) True 
 B)False

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

_____ is a company-wide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments.

Through the application of knowledge management,the Lands' End clothing catalog retailer would have learned that a substantial number of its customers would like Lands' End to offer a line of maternity wear.

CRM concerns many Americans because:

In the RFM analysis model,"R" stands for:

For a CRM system to be effective,customer information must be stored in a data matrix.

In a CRM system,_____ are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.

As a predictive tool,data mining has limited utility.

Which technique was likely used to suggest that a customer who wanted to buy a $29 shirt would also be a likely prospect for a cigar humidor.

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

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

The United States has the most restrictive privacy laws in the world.

_____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.

Multinational companies often face difficult problems when pulling together internal data about their customers.

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

Technology plays a major role in any CRM system.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics & 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 Concepts

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

Filters

Exam 21: Customer Relationship Management (CRM)

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

_____ is a company-wide business strategy designed to optimize profitability,revenue,and customer satisfaction by focusing on highly defined and precise customer segments.

Through the application of knowledge management,the Lands' End clothing catalog retailer would have learned that a substantial number of its customers would like Lands' End to offer a line of maternity wear.

CRM concerns many Americans because:

In the RFM analysis model,"R" stands for:

For a CRM system to be effective,customer information must be stored in a data matrix.

In a CRM system,_____ are all areas of the business where customers have contact with the company and data may be gathered and used to guide and direct the decision making within that business unit.

As a predictive tool,data mining has limited utility.

Which technique was likely used to suggest that a customer who wanted to buy a $29 shirt would also be a likely prospect for a cigar humidor.

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

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

The United States has the most restrictive privacy laws in the world.

_____ refers to the latitude organizations bestow on their representatives to negotiate mutually satisfying commitments with customers.

Multinational companies often face difficult problems when pulling together internal data about their customers.

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

Technology plays a major role in any CRM system.

An Overview of Marketing

Strategic Planning for Competitive Advantage

Ethics & 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 Concepts

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

Filters