Chapter 9 Customer Relationship Management CRM PDF

Preview

Summary

Download Chapter 9 Customer Relationship Management CRM PDF

Description

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) 1. What is the term for a company-wide business strategy designed to optimize profitability, revenue, and

customer satisfaction by focusing on highly defined and precise customer segments? a. organizational optimization b. consumer relationship marketing c. total quality management d. customer relationship management ANSWER: d 2. As a strategy to optimize profitability, revenue, and customer satisfaction, what would the Toronto Blue Jays

implement to focus on its fan base and provide them with additional benefits? a. organizational optimization b. consumer relationship marketing c. total quality management d. customer relationship management ANSWER: d 3. Convergys Corporation is a provider of customer care, human resources, and billing services. Its new software allows anyone talking to a customer to view the customer’s order and billing information. This new software would be classified as part of which of the following? a. organizational optimization b. call response marketing c. total quality management d. customer relationship management ANSWER: d 4. What is the purpose of customer relationship management? a. to help improve relationships, and build loyalty b. to predict customer purchases c. to organize a firms marketing department d. to assist marketers to sell their products ANSWER: a 5. To meet the needs of a customer, what must a company first do? a. create marketing objectives b. learn more about the customer by doing research c. determine the level of interaction customers have with the organization d. acquire and capture customer data for product categories ANSWER: b 6. What is the one focused objective of CRM? a. building customer loyalty and retaining customers Copyright Cengage Learning. Powered by Cognero.

Page 1

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) b. understanding customer buying behaviours c. delivering promises d. creating lots of data on customers ANSWER: a 7. Which of the following statements best describes CRM? a. The letters CRM stand for consumer relationship marketing. b. CRM collects too little data on customers. c. CRM provides a process to interact with a customer over the long term. d. CRM takes a simplistic perspective on customers. ANSWER: c 8. Which of the following statements best describes a CRM system? a.A critical component of a CRM system is the use of the appropriate technology

to store and integrate customer data. b.A CRM system operates on the theory that all customers are equally important. c.Due to privacy laws, a CRM system disseminates customer information only to those who are actually in day-to-day contact with customers. d.A company using a CRM system must view its customers as bits of data. ANSWER: a 9. What is the value of CRM? a. a focus on customer’s needs b. a focus on sales c. a supply-based focus d. developing a customer who will invest in maintaining a mutually beneficial

interaction ANSWER: d 10. What industry uses CRM the most? a. retail b. wholesaling c. manufacturin

g d. supply chain ANSWER: b 11. There is an emphasis in customer relationship management on the hardware and software needed to gather

customer information. What is the focus of database creation? a. management b. marketing Copyright Cengage Learning. Powered by Cognero.

Page 2

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) c. selling d. retention ANSWER: b 12. What is customer relationship management based on? a. the customer’s needs b. an overall company strategy c. technology to track customers on an individual level d. strategic management ANSWER: c 13. What is the focus of Stage One in the CRM cycle? a. technology to identify customers b. marketing research tools that are used c. concepts and types of solutions d. data mining ANSWER: b 14. What is the focus of Stage 2 in the CRM cycle? a. technology to identify customers b. marketing research tools that are used c. tools and concepts offering types of solutions d. data mining ANSWER: c 15. During the first stage of building a CRM system, what must companies create? a. an offering b. an objective c. a strategy d. a service ANSWER: a 16. What is the objective in Stage 1? a. to satisfy needs of the customer b. to create an opportunity for marketing research to occur c. to better understand the external marketplace d. to sell the CRM process ANSWER: a 17. How much information should the companies collect during Stage 1? a. 20% Copyright Cengage Learning. Powered by Cognero.

Page 3

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) b. as much information as possible c. too much data confuses the issue d. 70% ANSWER: b 18. To develop a successful CRM system, which of the following must companies use? a. technology b. technology and strategy c. technology, strategy, and marketing d. technology and the 4Ps. ANSWER: c 19. To initiate Stage 2 of the CRM cycle, what must a company do first? a. identify customer relationships with organizations b. choose the technology needed for the project c. build the strategies d. set the goals of the project ANSWER: a 20. Bridgestone Canada Inc., a tire service company uses a CRM system called ONDemand5. What kind of

information is Bridgestone trying to collect? a. demographic information b. information on where customers live c. information on why they shop there d. information on why they are loyal customers ANSWER: a 21. What does the value of customer data depend on? a. the system that stores the data b. the high quality of the system c. the consistency and accuracy of the data captured d. the information retrieval ANSWER: c 22. What do we call the process of finding hidden patterns and relationships in the customer data stored in the data warehouse? a. customer information management b. data feedback c. information retrieval d. data mining ANSWER: d Copyright Cengage Learning. Powered by Cognero.

Page 4

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) 23. What could a catalogue retailer use to determine consumers’ buying habits? a. data mining b. information search c. evoked sets d. an information environment ANSWER: a 24. What would an online retailer use to discover that customers who purchase flannel sheets also have a high probability of purchasing all-natural Christmas wreaths, if the opportunity is made available? a. knowledge interpretation b. systems management c. data mining d. information extraction ANSWER: c 25. What is the purpose of data mining? a. to sell them products and services b. to make managerial decisions c. to understand their consumers d. to build consumer relationships ANSWER: b 26. According to your textbook, Bridgestone Canada Inc. uses OnDemand5 to analyze their data for what

purpose? a. to sell products and services b. to determine which customers qualify for the MasterCare Select program c. to understand their consumers d. to provide a loyalty card for their best customers ANSWER: b 27. What does Bridgestone Canada Inc. use the information in its database for? a. to sell products and services b. to develop targeted marketing campaigns c. to understand their consumers d. to build consumer relationships ANSWER: b 28. What does a company have if it customizes its product offerings based on data generated through interaction between the customer and the company? a. a supply-based focus Copyright Cengage Learning. Powered by Cognero.

Page 5

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) b. a sales orientation c. a marketing orientation d. a customer-centric focus ANSWER: d 29. Foremost Manufacturing makes lighting reflectors and other fabricated metal products. Foremost

Manufacturing recognizes that being “good enough” just isn’t good enough. With this in mind, Foremost has embarked on a program to transform itself into a manufacturing enterprise with an unwavering focus on customer service. What has Foremost adopted? a. a demand-based focus b. a sales focus c. a supply-based focus d. a customer-centric focus ANSWER: d 30. During 2005–2006, Best Buy introduced a new focus in all of its stores, which will now customize their

product offerings for the five key customer segments it has identified. Which type of focus is Best Buy using? a. demand based focus b. sales-centric focus c. supply based focus d. customer-centric focus ANSWER: d 31. What internal management philosophy is a customer-centric focus similar to? a. utilitarianism b. the equity theory c. the marketing

concept d. consumerism ANSWER: c 32. The way to people’s hearts may be through their stomachs, but Kraft Foods has decided not to rely

exclusively on that maxim to secure the long-term loyalty of its customers. It is also making new product developments through data generated from interaction between Kraft and its customers. Which of the following best describes Kraft Foods? a. It is sales oriented. b. It has a standardization focus. c. It is ethnocentric. d. It has a customer-centric focus. ANSWER: d 33. In a CRM environment, which of the following is defined as the informal process of collecting customer Copyright Cengage Learning. Powered by Cognero.

Page 6

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) information through customer contacts and feedback on product performance? a. attitude adjustment b. organizational perception c. stimulus/response research d. learning ANSWER: d 34. What is learning in CRM? a. the informal process of collecting customer

information b. the formal process of collecting customer information c. the feedback on the process d. the feedback on the service performance ANSWER: a 35. Which of the following is the process by which learned information from customers is centralized and shared in order to enhance the relationship between customers and the organization? a. knowledge management b. learning c. database mining d. information marketing ANSWER: a 36. Synavant is a pharmaceutical company in Toronto. Its director of business development told a group of investors, “There is a single database repository in this company from which everybody can access data about a customer or potential customers.” What is Synavant most likely using? a. learned research b. stimulus/response marketing c. knowledge management d. sales-oriented marketing ANSWER: c 37. Which of the following refers to the latitude organizations give their representatives to negotiate mutually satisfying commitments with customers? a. consumer learning b. customerization c. empowerment d. interaction ANSWER: c

Copyright Cengage Learning. Powered by Cognero.

Page 7

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) 38. Sally is a guest at a Marriott hotel. She stepped in a puddle on her way into the hotel. Her shoes were wet,

and she planned to wear them to an important sales presentation that day. The hotel concierge saw the guest’s unhappy face and asked if he could help. After learning of the problem, the concierge called a nearby shoe store and had a new pair sent over. Why was the concierge able to handle the situation in a manner that created customer satisfaction? a. Marriott has a sales orientation. b. Marriott uses knowledge management. c. Marriott limits customer interactions. d. Marriott empowers its employees. ANSWER: d 39. What do we call the point at which a customer and a company representative exchange information and develop learning relationships? a. social contact b. interaction c. empowering moment d. equilibrium point ANSWER: b 40. Les Ailes de la Mode is a Quebec retail store that promotes the highest-quality customer service. It does this by maintaining the importance of the point at which customer and store personnel exchange information and develop learning relationships. What is this point called? a. knowledge analysis b. equilibrium point c. empowerment moment d. interaction ANSWER: d 41. In Nokia stores, “Experience Areas” feature phones connected to photo printers, speakers, notebook computers, and Bluetooth headsets to demonstrate the interactivity and full range of features available on the cell phones. These “Experience Areas” allow customers to interact with the technology and provide information to Nokia. What are the “Experience Areas” examples of? a. touch points b. focus areas c. information search areas d. experimental points ANSWER: a 42. The Toronto Blue Jays, a Major League Baseball team, used customer satisfaction surveys of season ticket

holders to determine why the number of season ticket holders was declining. What was this survey an example of? Copyright Cengage Learning. Powered by Cognero.

Page 8

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) a. a touch point b. a focus area c. a data search d. an interaction ANSWER: a 43. In a restaurant, when a consumer is greeted, shown to their table and served, in CRM terms, which term describes all of these interactions? a. touch points b. focus areas c. information search periods d. observational data ANSWER: a 44. 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 when they want it. We need better insight into their spending—we have gaps in knowledge of how customers spend.” Which type of interactions would provide the retail chain the best opportunity for learning about its customers? a. point of sale b. relationship based c. retail-centric d. sales oriented ANSWER: a

Scenario 9-1 Hudson’s Bay Company in Canada operates The Bay, Home Outfitters, and hbc.com. At each of its stores and its website, it gives HBC Rewards that enable members to earn points, which can be redeemed in the HBC Rewards catalogue for various items, including travel, leisure and entertainment items, Air Miles reward miles, or Bay gift certificates. To use the system, customers have to provide their HBC card number. 45. Refer to the scenario. This reward program enables Hudson’s Bay to engage in which type of interactions

with its customers? a. point of sale and Web-based b. transaction-based and Web-based c. transaction-based and retail-centric d. point of sale and retail-centric ANSWER: a 46. Refer to the scenario. Which of the following provides the most likely reason that Hudson’s Bay Company

implemented this reward program? a. to acquire more information about its customers b. to make sure the 80/20 principle is not influencing its activities Copyright Cengage Learning. Powered by Cognero.

Page 9

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) c. to retain loyal customers d. to increase the importance of customer service ANSWER: c 47. Which type of interactions occur when customers buy products in a store? a. point of sale b. relationship based c. cost based d. retail-centric ANSWER: a 48. How does the traditional approach for acquiring data from customers occur? a. through encoding devices b. through media c. through feedback mechanisms d. through channel interactions ANSWER: d 49. How should an organization view every transaction? a. as simply a financial exchange b. as harmful to customer relationship management c. as the opportunity to collect vast amounts of data about the customer d. as the creation of customer-organization multiplicity ANSWER: c 50. A large volume of data resulting from a CRM initiative can be managed effectively only through which of the following? a. technology b. past purchase history c. information about the customer’s relationship with the organization d. average amount spent on purchases ANSWER: a 51. In Canada what legislation protects customers’ privacy? a. PIPEDA b. Green Peace c. CRM d. OCP ANSWER: a 52. What is the term for a central repository for data from various functional areas of the organization that can Copyright Cengage Learning. Powered by Cognero.

Page 10

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) be shared by all of the organization’s departments? a. an information mine b. a knowledge distribution centre c. an information intermediary d. a data warehouse ANSWER: d 53. Hong Kong’s TravelSky Technology Limited, a provider of information technology solutions for China’s air

travel and tourism industries, wants to capture the huge amounts of new information required to provide the information needed by its users. What can it create to do this? a. an information mine b. a knowledge distribution centre c. an information storage unit d. a data warehouse ANSWER: d 54. “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 don’t have a single view of the customer.” The speaker is saying that retailers do NOT use which of the following? a. information distribution centres b. data warehouses c. information extraction mines d. data intermediaries ANSWER: b 55. What is the core of the data warehouse? a. transaction channels of

communication b. point-of-sale interactions c. the database d. a compiled list ANSWER: c 56. David Poirier, CIO of Hudson’s Bay Company said, “We [Hudson’s Bay Company] had all kinds of data in

different places. We didn’t have a single view of the customer until we focused on finding one method to manage relationships with our customers.” What would Hudson’s Bay use to profile customer segments for better CRM marketing efforts? a. a data mart b. a customer information system Copyright Cengage Learning. Powered by Cognero.

Page 11

Name :

Clas s:

Dat e:

Chapter 9 - Customer Relationship Management (CRM) c. a data warehouse d. a data mining system ANSWER: c 57. What is essentially a very large, corporate-wide database, culled from a number of separate systems, such as billing, accounting, order fulfillment, distribution, customer service, and marketing and sales, already in place within an organization? a. a customer information system b. a data warehouse c. a decision support system d. a data cluster ANSWER: b

Scenario 9-2 Recreational Equipment, Inc. (REI) is a large retailer that specializes in outdoor gear like tents, mountain climbing equipment, mountain bikes and outdoor clothing. They have stores all across North America and are always looking for new locations to open more stores. Recreational Equipment, Inc. (REI) collects a vast amount of data through its website, direct mailings, and retail stores. 58. Refer to the scenario. To be useful, where could all of these data be centralized? a. in a data mart b. in a decision

matrix c. in a data warehouse d. in a data cluster ANSWER: c 59. Refer to the scenario. When REI considers new store locations, it examines order data to find places with high concentrations of customers buying online and through the company’s catalogues. What is REI using to identify potential store locations? a. database enhancement b. data mining c. data shading d. customer prediction ANSWER: b 60. 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 send the mailing to those prospects with the highest probability of becoming subscribers. What should she use? a. a compiled list b...