Exam 20: Customer Relationship Management

After Ruth and Mike had paid in advance for their week's stay at a Vermont inn,Ruth felt like they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.The hospitality of the letter dealt with Ruth's cognitive dissonance by:

Which of the following statements about consumer privacy concerns is true?

What is modeling? When do decision makers engage in modeling?

Customer-centric is an internal management philosophy similar to:

An organization should NOT enhance a database with outside sources of information to:

Which of the following techniques used to analyze marketing databases considers whether a customer has made a purchase in the last ninety days as well as how often that customer makes a purchase?

Les Ailes de la Mode is a Quebec retailer offers its customers Les Ailes MasterCard.The card is connected to a points program that offers one point for every $20 of purchases on the card,and triple that on purchases made at Les Ailes.It also incorporates an electronic chip,on which a $10 coupon is rewarded to each member every month via the electronic gift card (on purchases of $10 or more every month).Card members also receive free subscriptions to the retailer's Les Ailes magazine.This shows how CRM can be used:

Which of the following is a data mining technique based on the notion that "birds of a feather flock together?"

As a process strategy,customer relationship management (CRM)manages the interactions between a company and its customers.

_____ is the development of product offerings customized for the appropriate customer segment and then pricing and communicating these offerings for the purpose of enhancing customer relationships.

"Lots of organizations have customer data,but not in a way that's useful," said a speaker at the Canadian Marketing Association's National Convention."Retailers have all kinds of data in different places--they didn't have a single view of the customer." The speaker is criticizing how retailers do NOT use:

Lesley Owens has limited money to invest in a mailing to people who might be interested in subscribing to a new magazine about making scrapbooks.She wants to mail to those prospects with the highest probability of becoming subscribers.Owens should use a:

SCENARIOS Butterball Turkey In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line opened.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer Web sites,complete with turkey preparation tips and favorite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.Butterball has maintained a prominent position on America's holiday tables,a position it is designed to hold for,undoubtedly,many years to come. -Refer to Blood Services.The information about past donors is stored in the organization's:

SCENARIOS Butterball Turkey In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line opened.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer Web sites,complete with turkey preparation tips and favorite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.Butterball has maintained a prominent position on America's holiday tables,a position it is designed to hold for,undoubtedly,many years to come. -Refer to Butterball Turkey.Butterball's commitment to providing premium products and renowned customer service indicates a commitment to:

SCENARIOS Butterball Turkey In 1981,the producers of Butterball Turkey opened the Butterball Turkey Talk-Line opened.Created to assist struggling chefs with preparing the holiday bird,the Butterball Turkey Talk-Line was initially staffed with six home economists who responded to 11,000 phone calls in its first year.The Butterball Turkey Talk-Line is known as "the granddaddy of all help lines." Today the staff of 45 home economists and nutritionists responds to over 100,000 questions each November and December.In keeping with its history of technological advances,Butterball launched butterball.com in 1995,one of the first consumer Web sites,complete with turkey preparation tips and favorite recipes from the Butterball kitchens.Butterball Turkey's commitment to providing premium products and renowned customer service has prevailed as a long-standing tradition to call on,not just at the holidays,but all year long.Butterball has maintained a prominent position on America's holiday tables,a position it is designed to hold for,undoubtedly,many years to come. -Refer to Blood Services.The organization used CRM marketing to:

Customer relationship management:

Subaru of America targeted outdoor enthusiasts when it added an outdoor life section to its Web site,organized by area of interest.The site will serve as a platform for co-marketing,promotional programs and will allow Subaru to gather most overt and covert information.Which of the following provides the most likely reason why Subaru has added this section to its site?

RFM analysis is used to delete unnecessary or duplicated data.

Hudson's Bay Company in Canada operates The Bay,Zellers,Home Outfitters,and hbc.com.At each of its stores,it gives HBC Rewards enables that members to earn points Consumers can redeem points in the HBC Rewards catalogue for various items,including travel,leisure and entertainment items,Air Miles reward miles,or Bay and Zellers gift certificates.To use the system,customers have to provide store personnel with their HBC card number.This introduction of the reward program enables Hudson's Bay to engage in _____ interactions with its customers.

Customer relationship management (CRM)requires that companies are organized around customer segments.