Question 1

The core of the data warehouse is:

Accepted Answer

A)  empowered employees 
B)  transaction channels of communication 
C)  point-of-sale interactions 
D)  the database 
E)  a compiled list 
A)  empowered employees 
B)  transaction channels of communication 
C)  point-of-sale interactions 
D)  the database 
E)  a compiled list

Question 2

To initiate the CRM cycle,a company must first:

Accepted Answer

A)  establish marketing objectives 
B)  decide on a segmentation strategy 
C)  establish customer relationships within the organization 
D)  determine the level of interaction customers have with the organization 
E)  acquire and capture customer data for product categories 
A)  establish marketing objectives 
B)  decide on a segmentation strategy 
C)  establish customer relationships within the organization 
D)  determine the level of interaction customers have with the organization 
E)  acquire and capture customer data for product categories

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

Point-of-sales interactions are used both in marketing and in merchandising activities.

Accepted Answer

A) True 
 B)False

Question 5

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.To centralize and share the vast amount of customer information that its staff gathered through its years of interaction with customers,Butterball would use:

Accepted Answer

A)  cognitive learning 
B)  knowledge management 
C)  the marketing concept 
D)  the societal marketing concept 
E)  customer empowerment 
A)  cognitive learning 
B)  knowledge management 
C)  the marketing concept 
D)  the societal marketing concept 
E)  customer empowerment

Question 6

The success of CRM can be directly measured by the effectiveness of suppliers in providing exactly what the company needs to satisfy its customers.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about how the organization should use customer data is true?

Accepted Answer

A)  Customer data should be accumulated over the customer's entire life span with the organization. 
B)  Once customer data is gathered,it is owned by the organization,which can use this information anyway it seems fit. 
C)  Customer data is unaffected by the internal process of empowerment. 
D)  The transaction-based touch point is not needed if information is centralized. 
E)  All of these statements about how the organization should use customer data are true. 
A)  Customer data should be accumulated over the customer's entire life span with the organization. 
B)  Once customer data is gathered,it is owned by the organization,which can use this information anyway it seems fit. 
C)  Customer data is unaffected by the internal process of empowerment. 
D)  The transaction-based touch point is not needed if information is centralized. 
E)  All of these statements about how the organization should use customer data are true.

Question 8

Andy recently purchased a new surge protector for his computer using a $20 rebate offer.He completed the rebate certificate and sent it to the manufacturer.The rebate certificate contained Andy's full name,his phone number,his address,and some purchase information.Andy has most likely become part of the manufacturer'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 9

Ginnie is a thirty-year-old divorcee with one son and a career.When she went to the phone to place a catalog order for a black wool blazer,she was pleased when the operator suggested that she might also be interested a black-and-white silk scarf that was on sale.The operator was using _____--a method commonly used in one-to-one marketing.

Accepted Answer

A)  data mining 
B)  cross-selling 
C)  trading-up 
D)  database enhancement 
E)  a database channel 
A)  data mining 
B)  cross-selling 
C)  trading-up 
D)  database enhancement 
E)  a database channel

Question 10

A catalog retailer that sells fleece-lined outer wear knows its target market includes people who work outdoors year round as well as people who engage in winter sports.The catalog retailer could mail personalized catalogs to prospects who were subscribers to a journal for people actively involved in the lumber industry.In this way,the catalog retailer could use one-to-one marketing to:

Accepted Answer

A)  cross-sell 
B)  reinforce purchase decisions 
C)  maintain control over the product life cycle of its clothing 
D)  retain loyal customers 
E)  induce product trial 
A)  cross-sell 
B)  reinforce purchase decisions 
C)  maintain control over the product life cycle of its clothing 
D)  retain loyal customers 
E)  induce product trial

Question 11

Data mining is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Accepted Answer

A) True 
 B)False

Question 12

Looking to build up its post-purchase relationships,General Motors recently launched a service whereby GM vehicle owners can sign up to get e-mail service reminders,access information about GM vehicles,and receive special promotions.General Motors is using _____ to enhance its customer relationships.

Accepted Answer

A)  modeling 
B)  scoring 
C)  valence management 
D)  campaign management 
E)  data mining 
A)  modeling 
B)  scoring 
C)  valence management 
D)  campaign management 
E)  data mining

Question 13

Transactions-based interactions are no different from any other type of touch point.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a guideline for a successful CRM system?

Accepted Answer

A)  Customer information is not retained past the initial contact with the customer. 
B)  Intuition and experience must define the products provided by the organization. 
C)  The product takes center stage in the organization. 
D)  Customer information is centralized. 
E)  All of these are guidelines for a successful CRM system. 
A)  Customer information is not retained past the initial contact with the customer. 
B)  Intuition and experience must define the products provided by the organization. 
C)  The product takes center stage in the organization. 
D)  Customer information is centralized. 
E)  All of these are guidelines for a successful CRM system.

Question 15

_____ is simply the act of building a model in a situation where the answer is known and then applying the model in a situation where the answer is unknown.

Accepted Answer

A)  Correlation analysis 
B)  Trending 
C)  Consumer simulation 
D)  Patterning 
E)  Modeling 
A)  Correlation analysis 
B)  Trending 
C)  Consumer simulation 
D)  Patterning 
E)  Modeling

Question 16

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

Accepted Answer

A)  predictive 
B)  compiled 
C)  response 
D)  actionable 
E)  aggregated 
A)  predictive 
B)  compiled 
C)  response 
D)  actionable 
E)  aggregated

Question 17

Ford Motor Company has launched an on-line 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 on-line 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 18

Subaru of America added an outdoor life section to its Web site that is organized by area of interest to target outdoor enthusiasts.The site will serve as a platform for co-marketing and promotional programs.This offering of customized product offerings to a customer segment for the purpose of enhancing the auto manufacturer's customer relationships is an example of:

Accepted Answer

A)  campaign management 
B)  customer aggregation 
C)  transaction segmentation 
D)  data mining 
E)  knowledge management 
A)  campaign management 
B)  customer aggregation 
C)  transaction segmentation 
D)  data mining 
E)  knowledge management

Question 19

Distinguish between a compiled list and a response list.

Accepted Answer

A RESPONSE LIST includes the names and a

Question 20

The executive vice president of Hudson's Bay Company in Canada (a major retail chain)said in an interview,"We have to be able to offer customers what they want and when they want it.We need better insight into their spending--we have gaps in knowledge of how customers spend." _____ interactions would provide the retail chain the best opportunity for learning about its customers.

Accepted Answer

A)  Point-of-sale 
B)  Relationship-based 
C)  Retail-centric 
D)  Technology-centric 
E)  Sales-oriented 
A)  Point-of-sale 
B)  Relationship-based 
C)  Retail-centric 
D)  Technology-centric 
E)  Sales-oriented

The core of the data warehouse is:

To initiate the CRM cycle,a company must first:

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.

Point-of-sales interactions are used both in marketing and in merchandising activities.

The success of CRM can be directly measured by the effectiveness of suppliers in providing exactly what the company needs to satisfy its customers.

Which of the following statements about how the organization should use customer data is true?

Data mining is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Transactions-based interactions are no different from any other type of touch point.

Which of the following is a guideline for a successful CRM system?

_____ is simply the act of building a model in a situation where the answer is known and then applying the model in a situation where the answer is unknown.

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

Distinguish between a compiled list and a response list.

An Overview of Marketing

Strategic Planning for Competitive Advantag

Social Responsibility, ethics, and the Marketing Environment

Developing a Global Vision27

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 and Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Internet Marketing

Filters

Exam 20: Customer Relationship Management

The core of the data warehouse is:

To initiate the CRM cycle,a company must first:

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.

Point-of-sales interactions are used both in marketing and in merchandising activities.

The success of CRM can be directly measured by the effectiveness of suppliers in providing exactly what the company needs to satisfy its customers.

Which of the following statements about how the organization should use customer data is true?

Data mining is an analytical process that compiles actionable data about the purchase habits of a firm's current and potential customers.

Transactions-based interactions are no different from any other type of touch point.

Which of the following is a guideline for a successful CRM system?

_____ is simply the act of building a model in a situation where the answer is known and then applying the model in a situation where the answer is unknown.

A(n)_____ list generally includes names and addresses gleaned from directories or membership rosters.

Distinguish between a compiled list and a response list.

An Overview of Marketing

Strategic Planning for Competitive Advantag

Social Responsibility, ethics, and the Marketing Environment

Developing a Global Vision27

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 and Supply Chain Management

Retailing

Integrated Marketing Communications

Advertising and Public Relations

Sales Promotion and Personal Selling

Pricing Concepts

Setting the Right Price

Internet Marketing

Filters