Question 1

SERVQUAL is a 22 item instrument for assessing customer perceptions of service quality.

Accepted Answer

A) True 
 B)False  True

Question 2

If one wants to measure the effectiveness of customer retention efforts, the best way to do it is through

Accepted Answer

A)  transaction specific research.
B)  ethnographic research.
C)  cumulative satisfaction measures.
D)  critical incident scoring.
E)  RFM modeling. C

Question 3

Company 3E measures would NOT include which of the following?

Accepted Answer

A)  first contact resolution
B)  revenue per CRM dollar
C)  time to resolution
D)  time spent in generating targeted promotions
E)  all are 3E measures E

Question 4

Measuring consumer behavior over time is best done through which of the following?

Accepted Answer

A)  cross-sectional data collection
B)  human observation
C)  interaction scores
D)  longitudinal data collection
E)  critical incident scores

Question 5

Useful measures of customer acquisition do NOT include which of the following?

Accepted Answer

A)  yield rate
B)  capture rate
C)  share of category
D)  conversion rate
E)  conversion efficiency

Question 6

When using a 5 point rating scale to measure customer satisfaction (where a "5" denotes highest satisfaction) it is perhaps more important for companies to move customers from 2 and 3 levels to a 4 as it is to move customers at a 4 to level 5.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is false regarding "return on relationships"?

Accepted Answer

A)  it is the long term net financial outcome caused by the establishment and maintenance of an organization's network of relationships
B)  it includes accounting approaches pertinent to a company's marketing efforts
C)  it focuses on the company-customer relationship
D)  it is similar to customer equity measures
E)  it pertains to a company's marketing efforts to customers, suppliers, and even channel members

Question 8

An acquisition/defection matrix indicates

Accepted Answer

A)  who a company is losing their customers to and gaining them from.
B)  the relationship between satisfaction scores and retention.
C)  none of the above
D)  which type of customer is entering and leaving.
E)  which VAN members are short vs. long term.

Question 9

Developing closer bonds, avoiding defection, changing behavior could all be types of retention.

Accepted Answer

A) True 
 B)False

Question 10

Customer Equity is the CLV

Accepted Answer

A)  of all the company's individual customers.
B)  of all the company's customers less company expenditures.
C)  of all the company's customers less company expenditures discounted to a net present value.
D)  plus brand equity.
E)  plus brand value.

Question 11

The vast majority of CRM effectiveness measures can be grouped into four important and distinct areas: customer cycle measures, company 3E measures, customer and company worth measures, and competitive strength measures.

Accepted Answer

A) True 
 B)False

Question 12

The maintenance ration is the cost involved in maintaining customer relationships divided by total CRM expenditures.

Accepted Answer

A) True 
 B)False

Question 13

Customers who participate in satisfaction surveys register lower satisfaction scores because of the imposition.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT true regarding CLV?

Accepted Answer

A)  it looks forward and not backward regarding customers' value
B)  it includes all of the elements that drive profitability
C)  it focuses on the product as the drive of profitability
D)  it can be used to include the value of prospects
E)  all of the above are true

Question 15

The drivers of value equity are

Accepted Answer

A)  the 4Ps.
B)  price, quality, and convenience.
C)  brand image.
D)  CLV.
E)  all of the above are drivers of value equity

Question 16

RFM stands for recency, frequency and monetary value.

Accepted Answer

A) True 
 B)False

Question 17

A simple but effective way to measure customer satisfaction is to

Accepted Answer

A)  get ratings on the ideal, on the experience, and simply compute the difference.
B)  ask consumers if the product or service was above, below, or about what was expected.
C)  use conjoint analysis.
D)  use computer simulation.
E)  employ management by walking around (MBW
A)

Question 18

The best way to measure satisfaction is to use which of the following?

Accepted Answer

A)  service quality gap measures
B)  a direct measure: merely ask if the service was better, worse or about what was expected
C)  a transaction specific measure
D)  a cumulative satisfaction score
E)  none of the above

Question 19

Company 3E measures of CRM effectiveness include

Accepted Answer

A)  enterprise cost/benefit analysis.
B)  ERP cost savings.
C)  elasticity demand curves.
D)  employee behavior.
E)  A, B and C

Question 20

Some useful measures of customer acquisition effectiveness include size of wallet, share of wallet, and share of category.

Accepted Answer

A) True 
 B)False

Exam 12: CRM Program Measurement and Tools

SERVQUAL is a 22 item instrument for assessing customer perceptions of service quality.

If one wants to measure the effectiveness of customer retention efforts, the best way to do it is through

Company 3E measures would NOT include which of the following?

Measuring consumer behavior over time is best done through which of the following?

Useful measures of customer acquisition do NOT include which of the following?

When using a 5 point rating scale to measure customer satisfaction (where a "5" denotes highest satisfaction) it is perhaps more important for companies to move customers from 2 and 3 levels to a 4 as it is to move customers at a 4 to level 5.

Which of the following is false regarding "return on relationships"?

An acquisition/defection matrix indicates

Developing closer bonds, avoiding defection, changing behavior could all be types of retention.

Customer Equity is the CLV

The vast majority of CRM effectiveness measures can be grouped into four important and distinct areas: customer cycle measures, company 3E measures, customer and company worth measures, and competitive strength measures.

The maintenance ration is the cost involved in maintaining customer relationships divided by total CRM expenditures.

Customers who participate in satisfaction surveys register lower satisfaction scores because of the imposition.

Which of the following is NOT true regarding CLV?

The drivers of value equity are

RFM stands for recency, frequency and monetary value.

A simple but effective way to measure customer satisfaction is to

The best way to measure satisfaction is to use which of the following?

Company 3E measures of CRM effectiveness include

Some useful measures of customer acquisition effectiveness include size of wallet, share of wallet, and share of category.